SCHEME INFORMATION DOCUMENTS FOR COMMON EQUITY

UTI-Balanced Fund, (An open-ended Balanced Fund) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments (maximum-75%) and fixed income securities (debt and money market securities) High risk (Brown)

UTI-Contra Fund, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in undervalued equity instruments based on insights from behavioral finance High risk (Brown)

UTI-Dividend Yield Fund, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment predominantly in high dividend yielding equity instruments High risk (Brown)

UTI-Equity Fund, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments of companies with good growth prospects High risk (Brown)

UTI-Equity Tax Savings Plan, (An open-ended ELSS with a lock-in period of 3 years) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments of companies that are believed to have growth potential High risk (Brown)

UTI-India Lifestyle Fund (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growthInvestment in equity instruments of companies that are expected to benefit from changing Indian demographics and indian lifestyles High risk (Brown)

UTI-Leadership Equity Fund, (An open-ended equity Scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments of companies that are “Leaders” in their respective industries/sectors / sub-sectors. High risk (Brown)

UTI-Master Plus Unit Scheme, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in high growth equity instruments comprised in S&P BSE 100 High risk (Brown)

SCHEME INFORMATION DOCUMENTS FOR COMMON EQUITY & BALANCED SCHEMES

SCHEME INFORMATION DOCUMENT FOR COMMON EQUITY & BALANCED SCHEMES

UTI-Mastershare Unit Scheme, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments of fundamentally strong companies High risk (Brown)

UTI- Master Value Fund, (An open-ended equity oriented value fund) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments of companies that are undervalued to their expected long term earnings growth. High risk (Brown)

UTI-MNC Fund, (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment predominantly in equity instruments of Multinational companies and other liquid stocks. High risk (Brown)

UTI-Nifty Index Fund, (An open-ended passive Index Fund tracking the CNX Nifty Index) This product is suitable for investors who are seeking*: Capital growth in tune with the index returns Passive investment in equity instruments comprised in CNX Nifty Index High risk (Brown)

UTI - Opportunities Fund (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments by capitalizing on opportunities arising in the market dynamically High risk (Brown)

UTI-Top 100 Fund (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment predominantly in equity instruments of Top 100 companies by market capitalisation High risk (Brown)

UTI-Wealth Builder Fund – Series II (An open-ended equity scheme) This product is suitable for investors who are seeking*: Long term capital growth Investment in equity instruments/ Gold ETFs High risk (Brown)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as:

(BLUE) investors understand that their principal will be at low risk

(YELLOW) investors under-stand that their principal will be at medium risk

(BROWN) investors understand that their principal will be at high risk

COMMON EQUITY & BALANCED FUND SID

UTI Mutual Fund

UTI Asset Management Company LimitedUTI Trustee Company Private Limited

Address of the Mutual Fund, AMC and Trustee Company:

UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.

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

Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as

amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units

offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified

the accuracy or adequacy of the Scheme Information Document.

This Scheme Information Document sets forth concisely the information about the scheme that a prospective

investor ought to know before investing. Before investing, investors should also ascertain about any further

changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI

Financial Centres (UFCs) / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI

Mutual Fund, Tax and Legal issues and general information on www.utimf.com.

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest UTI Financial Centre or log on to our website.

The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated July 29, 2013.


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TABLE OF CONTENTSItem No. Contents Page No.

HIGHLIGHTS 5

I INTRODUCTIONA. Risk Factors 8

B. Requirement of minimum investors in the Schemes 12

C. Definitions 12

D. Due Diligence by the Asset Management Company 15

II. INFORMATION ABOUT THE SCHEMESA. Type of the Schemes 16

B. What are the investment objectives of the Schemes? 16

C. How will the Schemes allocate their assets? 18

D. Where will the Schemes invest? 24

E. What are the Investment Strategies? 26

F. Fundamental Attributes 30

G. How will the Schemes Benchmark their performance? 31

H. Who manage the Schemes? 31

I. What are the Investment Restrictions? 34

J. How have the Schemes performed? 35

III. UNITS AND OFFERA. Ongoing Offer Details 39

B. Periodic Disclosures 54

C. Computation of NAV 55

IV. FEES AND EXPENSESA. Annual Scheme Recurring Expenses 56

B. Load Structure 57

V. RIGHTS OF UNITHOLDERS 59

VI.PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

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HIGHLIGHTS :Scheme Name UTI Balanced Fund UTI-Contra FundInvestment Objective

The scheme aims to invest in a portfolio of equity / equity related securities and fixed income securities (debt and money market securities) with a view to generating regular income together with capital appreciation.

The fund aims to provide long-term capital appreciation/ dividend distribution through investments in listed equities and equity-related instruments. The Fund’s investment policies are based on insights from behavioral finance. The fund offers an opportunity to benefit from the impact of non-rational investors’ behavior by focussing on stocks that are currently undervalued because of emotional and behavioral patterns present in the stock market.

Benchmark CRISIL Balanced Fund Index S&P BSE 200

Scheme Name UTI-Dividend Yield Fund UTI-Equity FundInvestment Objective

The investment objective of the Scheme is to provide medium to long term capital gains and/or dividend distribution by investing predominantly in equity and equity related instruments, which offer high dividend yield.There can be no assurance that the investment objectives of the scheme will be realised.

This Scheme primarily aims at securing for the unitholders capital appreciation by investing the funds of the scheme in equity shares and convertible and non-convertible bonds/debentures of companies with good growth prospects and money market instruments.

Benchmark S&P BSE 100 S&P BSE 100

Scheme Name UTI-Equity Tax Savings Plan (UTI-ETSP) UTI-India Lifestyle FundInvestment Objective

The funds collected under the scheme shall be invested in equities, fully convertible debentures/bonds and warrants of companies. Investment may also be made in issues of partly convertible debentures/bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures/bonds so acquired or subscribed shall be disinvested within a period of twelve months from their acquisition.

The investment objective of the scheme is to provide long term capital appreciation and/or income distribution from a diversified portfolio of equity and equity related instruments by primarily investing in sectors, areas, companies and themes that are expected to benefit from changing Indian demographics, Indian lifestyles and rising consumption pattern. However, there can be no assurance that the investment objective of the scheme will be achieved.

Benchmark S&P BSE 100 CNX 500

Scheme Name UTI-Leadership Equity Fund UTI-Master Plus Unit SchemeInvestment Objective

The investment objective of the scheme is to achieve long term capital appreciation and / or dividend distribution by investing in stocks that are “Leaders” in their respective industries/sectors / sub-sectors.

Investment objective of the scheme is capital appreciation through investments in equity and equity related instruments.

Benchmark CNX Nifty S&P BSE Sensex

Scheme Name UTI-Mastershare Unit Scheme UTI-Master Value FundInvestment Objective

This scheme aims at securing for the unitholders capital appreciation by investing the funds of the scheme in equity shares, equity-related instruments and fully convertible bonds/debentures of companies. Investment may also be made in issues of partly convertible debentures/bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures/bonds so acquired or subscribed shall be disinvested within a period of twelve months from the date of acquisition.

Investment objective of the Scheme is “capital appreciation” through investment in stocks that are relatively undervalued to their expected long-term earnings growth. The fund will utilize in-depth fundamental research to evaluate factors such as a company’s financial structure, its competitive position in the market and its management’s commitment to increasing shareholder value while selecting the universe of stocks for investment by this fund.



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Scheme Name UTI-MNC Fund UTI-Nifty Index Fund (UTI-NIF)Investment Objective

The funds collected under the scheme shall be invested predominantly in stocks of Multinational Corporations and other liquid stocks.The funds collected under the scheme shall be invested in equities and equity related instruments.The risk profile of investment could be high.

The principal investment objective of the scheme is to invest in stocks of companies comprising CNX Nifty Index and endeavour to achieve return equivalent to Nifty by “passive” investment. The scheme will be managed by replicating the index in the same weightage as in the CNX Nifty-Index with the intention of minimising the performance differences between the scheme and the CNX-Nifty Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error.The scheme would alter the scripts / weights as and when the same are altered in the CNX Nifty Index.

Benchmark CNX MNC CNX Nifty

Scheme Name UTI-Opportunities Fund UTI-Top 100 FundInvestment Objective

This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments. The main focus of this scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.

The fund aims to provide long term capital appreciation/dividend distribution by investing predominantly in equity and equity related instruments of top 100 stocks by market capitalisation. There can be no assurance that the investment objectives of the scheme will be realised.


Scheme Name UTI - Wealth Builder Fund – Series IIInvestment Objective

The objective of the Scheme is to achieve long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments along with investments in Gold ETFs and Debt and Money Market Instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Benchmark S&P BSE 100 is the benchmark index for the Equity part of the Portfolio, CRISIL Bond Fund Index is the benchmark for that part of the Portfolio relating to investments in Debt and Money Market Instruments and the Price of Gold as per SEBI Regulations for Gold ETFs in India is the benchmark in so far it pertains to investments in Gold ETFs.

Features Common to all schemesLiquidity The schemes will offer subscription and redemption of units on all business days on an ongoing basis.

Under ETSP, as per ELSS guidelines, redemption of units is allowed after an initial lock-in-period of 3 years from the date of allotment of each investment.UTI-Wealth Builder Fund – Series IIRestriction on subscriptionThe Scheme will be open for subscription during each calendar month subject to the condition that not more than 10% of the number of outstanding units allotted as on the last business day of the previous month would be available for the sale in the immediately following month.However, the UTI AMC reserves the right to collect the subscriptions in excess of the said limit of 10% of the outstanding allotted Units. The excess subscription for allotment of Units will be decided by the Fund Manager of the Scheme on the basis as stated in the case of NFO period. All such applications in excess of the above 10% limit will be accepted for full allotment.Similarly, the AMC/Trustee may close such additional subscription by giving one day’s notice in one daily newspaper and UTI MF website.However, Subscriptions by way of SIPs/STRIPs will be allowed on all business days at the applicable NAVs (subject to load) even if the said limit of 10% is exceeded. Subscriptions through ATMs are not allowed. However, subscriptions through online mode will be allowed.The subscriptions through online mode will not be reckoned for the purpose of determining the 10% limit. Regarding subscription through online mode, refer to Statement of Additional Information (SAI) for details.


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For Applications submitted through other than online mode or SIPs/STRIPs, Investors are required to check the Official Points of Acceptance (OPAs) whether the Scheme is open for subscription before submitting their application forms for subscription of Units of the Scheme failing which the UTI MF/UTI AMC shall not be responsible/liable in any manner whatsoever.

Transparency / NAV Disclosure

NAV will be disclosed on every business day.

Entry / Exit load for all schemes except UTI-ETSP and UTI-NIF

Entry Load(As % of NAV)

Exit Load(As % of NAV)

Nil Less than one year - 1%Greater than or equal to one Year – Nil

Entry / Exit Load for UTI-NIF



Nil Less than 15 days - 1%Greater than or equal to 15 days – Nil

Entry / Exit Load for UTI-ETSP



Nil Nil(Lock-in-period of 3 years for each investment)

Plans / Options Available

In addition to the Existing Plan, under all the schemes and Retail Plan under UTI-Wealth Builder Fund – Series II there is a ‘Direct Plan’ ^.Both the Plans offer the following options:(a) Growth Option(b) Dividend Option (with payout & reinvestment facilities)Default Option–Growth Option^ Direct PlanThis is a separate plan for direct investments i.e. investments not routed through a distributor. This plan shall have a lower expense ratio excluding distribution expenses, commission etc. and have a separate NAV. No commission shall be paid from Direct Plan.Portfolio of the Scheme under the Existing Plan, Retail Plan of UTI-Wealth Builder Fund – Series II and Direct Plan will be common.

Minimum Application Amount

Minimum amount of investment under all plans and optionsFor all schemes except UTI-Balanced Fund, UTI-Equity Tax Savings Plan and UTI-Wealth Builder Fund – Series II-Retail PlanMinimum initial investment is ` 5,000/-. Subsequent minimum investment under a folio is ` 1,000/- and in multiples of ` 1/- thereafter with no upper limit.For UTI-Balanced FundMinimum amount of initial investment.Growth Option - ` 1000/-Dividend Option - ` 5000/- and in multiples of ` 1/- under both the options.Subsequent minimum investment `1000/- and in multiples of ` 1/- under both the options.For UTI-Equity Tax Savings PlanMinimum investment ` 500/- and in multiples of ` 500/- thereafter. No maximum limit.While there is no maximum limit on the amount of investment under the UTI ETSP in any fiscal year, investment upto ` 100000/- only will qualify for deduction from the gross taxable income under Section 80 C of the Income Tax Act, 1961 as per current tax laws.For UTI-Wealth Builder Fund – Series II-Retail PlanMinimum initial investment amount `5,000/- and in multiples of `1/- thereafter.


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I. INTRODUCTIONA. RISK FACTORSStandard Risk Factors1. Investment in Mutual Fund Units involves investment

risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

2. As the price / value / interest rates of the securities in which the schemes invests fluctuates, the value of your investment in the schemes may go up or down

3. Past performance of the Sponsors/AMC/Mutual Fund does not guarantee future performance of the schemes.

4. The names of the schemes do not in any manner indicate either the quality of the schemes or their future prospects and returns. There may be instances where no dividend distribution could be made.

5. The sponsors are not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of `10,000/- made by them towards setting up the Fund.

6. The present schemes are not guaranteed or assured return schemes.

7. Statements/Observations made are subject to the laws of the land as they exist at any relevant point of time.

8. Growth, appreciation, dividend and income, if any, referred to in this Common Scheme Information Document are subject to the tax laws and other fiscal enactments as they exist from time to time.

9. The NAVs of the Schemes may be affected by changes in the general market conditions, factors and forces affecting capital market, in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures.

10. Credit Risk: Bonds /debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central/State governments have lesser to zero probability of credit / default risk in view of the sovereign status of the issuer.

11. Interest -Rate Risk: Bonds/ Government securities which are fixed income securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI, the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/ Government securities are

also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI.

Pressure on exchange rate of the rupee may also affect security prices. Such rise and fall in price of bonds/government securities in the portfolio of the schemes may influence the NAVs under the schemes as and when such changes occur.

12. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the schemes might have to incur a significant “impact cost” while transacting large volumes in a particular security.

13. Securities Lending: It is one of the means of earning additional income for these schemes with a lesser degree of risk. The risk could be in the form of non availability of ready securities for sale during the period the securities remain lent. The schemes could also be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities.

However, the risk would be adequately covered by taking in of suitable collateral from the borrower by the intermediary involved in the process. The schemes will have a lien on such collateral. They will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

14. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.

15. Money Market Securities are subject to the risk of an issuer’s inability to meet interest and principal payments on its obligations and market perception of the creditworthiness of the issuer.

16. Investment in overseas markets: The success of investment in overseas markets depends upon the ability of the fund manager to understand conditions of those markets and analyse the information which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides market risks of those markets.

17. Trading in debt and equity derivatives involves certain specific risks like:

a. Credit Risk: This is the risk on default by the counter party. This is usually to the extent of difference between actual position and contracted position. This risk is substantially mitigated where derivative transactions happen through clearing corporation.

b. Market Risk: Market movement may also


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adversely affect the pricing and settlement of derivative trades like cash trades.

c. Illiquidity Risk: The risk that a derivative product may not be sold or purchased at a fair price due to lack of liquidity in the market.

d. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the Fund Manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the scheme could be lower.

e. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not the notional principal amount.

f. Participating in derivatives is a highly specialized activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to action of other participants in the market.

g. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies.

h. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

18. The aggregate value of “illiquid securities” of a scheme (other than UTI-NIF), which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of a scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value. The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of a scheme. In normal course of business, the schemes would be able to make payment of redemption proceeds within 10 business days, as they would have sufficient exposure to liquid assets. In case of the need for exiting from such illiquid instruments in a short period of time, the NAVs of the schemes could be impacted adversely.

19. In the event of receipt of inordinately large number of

redemption requests or a restructuring of a Schemes’ portfolio, there may be delays in the redemption of units.

20. Different types of securities in which the schemes would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly a scheme’s risk may increase or decrease depending upon its investment pattern. For e.g. Corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated.

21. Scheme specific risks factors for equity-oriented schemes

a) Investors may note that AMC/Fund Manager’s investment decisions may not always be profitable, even though it is intended to generate capital appreciation and maximize the returns by actively investing in equity/ equity related securities.

b) The value of the investments in the schemes, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the NAV of the Units of the Schemes may fluctuate and can go up or down.

c) Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity and equity related investments made by the Schemes which could cause the scheme to miss certain investment opportunities. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The inability of the Scheme to make intended securities purchases due to settlement problems could also cause the Scheme to miss certain investment opportunities. By the same rationale, the inability to sell securities held in a Scheme’s portfolio due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in potential losses to the Scheme, in case of a subsequent decline in the value of securities held in a Scheme’s portfolio.

d) Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison


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to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. Within the regulatory limits, the AMC may choose to invest in unlisted securities that offer attractive yields. This may however increase the risk of the portfolio.

e) The Scheme may use various derivative products as permitted by the Regulations. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.

f) The Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank of India and Securities and Exchange Board of India. To the extent that some part of the assets of the schemes may be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign currencies relative to the Indian Rupee.

The repatriation of capital also may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment

g) The schemes intend to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, the schemes will be subject to credit risk as well as settlement risk, which might affect the liquidity of the schemes.

22. Risk Factors specific to investments in Securitised Papers:

Types of Securitised Debt vary and carry different levels and types of risks. Credit Risk on Securitised Bonds depends upon the Originator and varies depending on whether they are issued with Recourse to Originator or otherwise. A structure with Recourse will have a lower Credit Risk than a structure without Recourse. Underlying assets in Securitised Debt may assume different forms and the general types of receivables include Auto Finance, Credit Cards, Home Loans or any such receipts. Credit risks relating to these types of receivables depend upon various factors including macro economic factors of these industries and economies. Specific factors like nature and adequacy of property mortgaged against these borrowings, nature of loan agreement/ mortgage deed in case of Home Loan, adequacy of documentation in case of Auto Finance and Home Loans, capacity of borrower to meet its obligation on borrowings in

case of Credit Cards and intentions of the borrower influence the risks relating to the asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail base on underlying assets especially when securitised assets are created by high credit rated tranches, risk profiles of Planned Amortisation Class tranches (PAC), Principal Only Class Tranches (PO) and Interest Only class tranches (IO) will differ depending upon the interest rate movement and speed of prepayment. Various types of major risks pertaining to Securitised Papers are as below:

Liquidity & Price risk Presently, secondary market for securitised papers is

not very liquid. This could limit the ability of the investor to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure.

Delinquency and Credit Risk Securitised transactions are normally backed by pool

of receivables and credit enhancement as stipulated by the rating agency, which differ from issue to issue. The Credit Enhancement stipulated represents a limited loss cover to the Investors. These Certificates represent an undivided beneficial interest in the underlying receivables and there is no obligation of either the Issuer or the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. No financial recourse is available to the Certificate Holders against the Investors’ Representative. Delinquencies and credit losses may cause depletion of the amount available under the Credit Enhancement and thereby the Investor Payouts may get affected if the amount available in the Credit Enhancement facility is not enough to cover the shortfall. On persistent default of a Obligor to repay his obligation, the Servicer may repossess and sell the underlying Asset. However many factors may affect, delay or prevent the repossession of such Asset or the length of time required to realize the sale proceeds on such sales. In addition, the price at which such Asset may be sold may be lower than the amount due from that Obligor.

Prepayment Risk Asset securitisation is a process whereby commercial

or consumer credits are packaged and sold in the form of financial instruments. Full prepayment of underlying loan contract may take place during the tenure of the paper. In the event of prepayments, investors may be exposed to changes in tenor and reinvestment risk.

Schemes and Risks Associated UTI-NIF a. UTI-NIF is passively a managed index fund


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i.e. the amount collected under the scheme is invested in securities of companies comprising the CNX Nifty in the same weightages as they have in the Nifty.

b. The composition of the CNX – Nifty is subject to changes that may be effected periodically by the IISL.

c. Performance of the CNX – Nifty will have a direct bearing on the performance of UTI-NIF.

d. The extent of the Tracking error may have an impact on the performance of the UTI-NIF.

UTI-MNC FundThere may be risk associated due to limited diversification of the portfolio.UTI-Master Value FundThe scheme will use a bottom up approach to investing. While the scheme will utilise in depth fundamental research to select stocks, there is always a potentially high element of risk. This risk arises from investing in mid cap and small cap stocks where the business is still young and growing and the business model in some cases is vulnerable to changes in macroeconomic or sector specific conditions.UTI-Mastershare Unit Scheme, UTI-Dividend Yield Fund, UTI-Leadership Equity Fund, UTI-Opportunities Fund & UTI-Contra FundThe scheme intends to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, the scheme will be subject to credit risk as well as settlement risk which might affect the liquidity of the scheme.UTI-Dividend Yield FundRisk associated with high dividend yield stocks:Though the investments would be in companies having a track record of dividend payments, the performance of the scheme would inter-alia depend on the ability of these companies to sustain dividends in future. These stocks, at times, may be relatively less liquid as compared to growth stocks.UTI-Leadership Equity FundThe investment focus is on select companies/industries/ sectors of the market and hence the portfolio may be concentrated in these companies/sectors/industries. This may make the portfolio vulnerable to factors that may affect these companies/sectors/industries in general thereby leading to increased volatility in the movement of the scheme’s NAV.UTI-Opportunities FundThe investment focus is on select sectors of the market and hence the portfolio will be concentrated in select companies across these select sectors. This may make the portfolio vulnerable to factors that may affect these sectors in general thereby leading to increased volatility in the movement of the scheme’s NAV.

UTI-Contra Funda. Time Risk is inherent as to how long will it take for

the companies to realize the true value cannot be predicted. Further all times there may be risk of short term under performance.

b. The scheme aims to invest in stocks which are undervalued as they are out of favour currently with the anticipation that soon the stock will find their true price. But, due to various reasons it may so happen that such stocks continue to languish and are not able to attain the price discovery.

UTI-Wealth Builder Fund – Series IIRisk factors relating to investments in Gold ETFsa. The price of gold may fluctuate due to various reasons

which are: (i) Global gold supplies and demand, which is

influenced by factors such as forward selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales, and productions and cost levels in major gold producing countries such as the South Africa, the United States and Australia.

(ii) Investor’s expectations with respect to the rate of inflation.

(iii) Currency exchange rates. (iv) Interest rates (v) Investment and trading activities of commodity

funds/hedge funds. (vi) Global or regional political, economic or financial

events and situations. In addition, there is no assurance that gold

will maintain its long-term value in terms of purchasing power in the future. In the event that the price of gold declines, the value of investment in units in which the scheme has invested will, in general, decline proportionately.

b. There may be certain circumstances that may motivate large-scale sales of gold by the issuer of Gold ETFs which could decrease the price of gold and adversely affect the value of investment in the Gold ETFs in which the Scheme has invested.

c. The gold underlying in the Gold ETFs in which the Scheme has invested may be subject to loss, damage, theft, or restriction on access. There is a risk that part or all of the underlying gold of the Gold ETFs could be lost, damaged or stolen. Access to the said gold could also be restricted by natural events (such as earthquake) or human actions (such as terrorist attack). Any of these actions may adversely affect investment value of the Gold ETFs in which the Scheme has invested.

d. Impact cost risk: Impact costs are implicit costs also which is paid by


12

liquidity demanders to liquidity providers. Generally, the best bid and ask prices quoted in the market are for only small transactions. Larger transactions may have to be executed at even less favorable prices. The additional cost is called an impact cost. For e.g. if the ruling market price of a security is `500/- one may be able to buy/sell small quantities for that price. But, if one wishes to buy/sell huge quantities he might have to pay /receive higher/ lower price. Similarly, absence of adequate liquidity of Gold ETF units may impact the cost of purchasing and selling the Gold ETF units.

e. Changes in indirect taxes like custom duties for import, sales tax, VAT or any other levies will have an impact on the valuation of gold and consequently the NAV of the units in which the scheme has invested

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEMES

The Schemes shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of a Scheme. The two conditions shall also be complied within each calendar quarter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. DEFINITIONS In the scheme unless the context otherwise requires: 1. “Acceptance date” or “date of acceptance” with

reference to an application made by an applicant to the UTI Asset Management Company Ltd. (UTI AMC) for purchase or redemption/changeover/switchover of units means the day on which the UTI Financial Centres (UFCs) / Registrar or the official point of acceptance as per the list attached with this Scheme Information Document after being satisfied that such application is complete in all respects, accepts the same.

2. “Accounting Year” of UTI Mutual Fund is from April to March.

3. “Act” means the Securities and Exchange Board of India Act, 1992, (15 of 1992) as amended from time to time.

4. “Applicant” means an investor who is eligible to participate in the schemes and who is not a minor and shall include the alternate applicant mentioned in the application form.

5. “Alternate applicant” in case of a minor means

the parent other than the parent/step-parent/court guardian who has made the application on behalf of the minor.

6. “AMFI” means Association of Mutual Funds in India.

7. “Asset Management Company/UTI AMC/AMC/Investment Manager” means the UTI Asset Management Company Limited incorporated under the Companies Act, 1956 (1 of 1956) and approved as such by Securities and Exchange Board of India (SEBI) under sub-regulation (2) of Regulation 21 to act as the Investment Manager to the schemes of UTI Mutual Fund.

8. “Behavioral finance” is a field which applies scientific research on human and social cognitive and emotional biases to better understand economic decisions and how they affect market prices, returns and the allocation of resources. Behavioral Finance presupposes that investors make mistakes in a predictable manner and the fund can employ strategies to pick up undervalued stocks due to these biases/ mistakes.

9. “Body Corporate” or “Corporation” includes a company incorporated outside India but does not include (a) a corporation sole, (b) a co-operative society registered under any law relating to co-operative societies and (c) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf.

10. “Bonus Unit” means and includes, where the context so requires, a unit issued as fully paid up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of this scheme.

11. “Book Closure” is a period when the register of unit holders is closed for all transactions viz. Purchases, redemptions, changeover, switchover etc. Such Book Closure period will not exceed 15 days in a year.

12. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under a scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/changeover/switching of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time.


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The AMC reserves the right to declare any day as a Business day or otherwise at any or all Official Points of Acceptance.

13. “Contrarian investing” is a disciplined approach to systematically control investor overreactions in the market. It forces one to seek out areas of the market that are currently out of favour or depressed in value and enables you to remain rational in a speculative market.

14. “Custodian” means a person who has been granted a certificate of registration to carry on the business of custodian under the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996, and who may be appointed for rendering custodian services for the Scheme in accordance with the Regulations.

15. “Cut-off timing”, in relation to an investor making an application to a mutual fund for purchase or redemption of units, shall mean the outer limits of timings within a particular day which are relevant for determination of the NAV that is to be applied for his transaction.

16. “Distributable surplus” means the Gains that has been realised on a marked to market basis and is carried forward to the balance sheet at market value, arising out of appreciation on investments which is readily available for distribution to the unit holders as Income.

17. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes ‘depository’ within the meaning of Clause (e) of Subsection (1) of Section 2 of The Depository Act, 1996.

18. “Firm”, “partner” and “partnership” have the meanings assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression “partner” shall also include any person who being a minor is admitted to the benefits of the partnership.

19. “Fund Manager” means the manager appointed for the day-to-day management and administration

of the scheme. 20. “High Dividend Yield” means Dividend Yield

greater than the Dividend Yield of the Nifty last released /published by NSE.

21. “IISL” means India Index Services & Products Ltd., a joint venture between Credit Rating Information Services of India Ltd. (CRISIL) and the National Stock Exchange of India Ltd. (NSE).

22. “Investment Management Agreement or IMA” means the Investment Management Agreement (IMA) dated December 9, 2002, executed between UTI Trustee Company Private Limited and UTI Asset Management Company Limited.

23. “Investor Service Centre” such offices as are designated as ISC by the AMC from time to time.

24. “Load” is a charge that may be levied as a percentage of NAV at the time of exiting from the Scheme.

25. “Lock-in-period under UTI-ETSP” shall be a period of 3 years from the date of acceptance of an application under the scheme during which the applicant will be required to hold the units and not tender them for redemption.

26. “Mutual Fund” or “Fund” or “UTIMF” means UTI Mutual Fund, a Trust under the Indian Trust Act, 1882 registered with SEBI under registration number MF/048/03/01 dated January 14, 2003.

27. “NAV” means Net Asset Value of the Units of the Scheme calculated in the manner provided in this Scheme Information Document and in conformity with the SEBI Regulations as prescribed from time to time.

28. “Non-Resident Indian (NRI)” shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand-parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.

29. “Number of units deemed to be in issue” means the aggregate of the number of units issued and still remaining outstanding.

30. “Official points of acceptance” UTI Financial


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Centres (UFCs), Offices of the Registrars of the Schemes and any other authorised centre as may be notified by UTI AMC from time to time are the official points of acceptance of purchase/redemption/changeover/switchover applications of the schemes. The cut off time as mentioned in this Scheme Information Document will be applicable at these official points of acceptance. The list of official points of acceptance is attached with this Scheme Information Document.

For purchase / redemption / changeover / switchover of units applications received at any authorized collection centre, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV for purchase / redemption / changeover / switchover of units.

31. “RBI” means the Reserve Bank of India, constituted under the Reserve Bank of India Act, 1934.

32. “Record Date” means the date announced by the Fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC/Registrars, on the record date shall be eligible for such benefits.

33. “Registrar” means a person whose services may be retained by UTI AMC to act as the Registrar under the schemes, from time to time.

34. “Regulations” or “SEBI Regulations” mean the SEBI (Mutual Funds) Regulations, 1996 as amended or reenacted from time to time.

35. “SEBI” means the Securities and Exchange Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992).

36. “SENSEX” is the Index compiled, calculated, maintained and published by The Stock Exchange, Mumbai (BSE).

37. “Society” means a society established under the Societies Registration Act of 1860 (21 of 1860) or any other society established under any State or Central law for the time being in force.

38. “Sponsors” are Bank of Baroda, Life Insurance Corporation of India, Punjab National Bank, and State Bank of India;

39. “CNX Nifty” means an index which is determined, composed and calculated by India Index Services Products Limited.

40. “Switchover” means transfer of units of one scheme of UTI MF to another scheme of UTI MF wherever permissible.

41. “Time” all time referred to in the Scheme Information Document stands for Indian Standard Time.

42. “Tracking Error” means the extent to which the

NAVs of Nifty Index Fund move in a manner inconsistent with the movements of the Nifty on any given day or over any given period of time arising from any cause or reason whatsoever including but not limited to differences in the weightage of the investments in the securities of the schemes and the weightage to such securities in the index, time lags in deployment or realisation of funds under the scheme as compared to the movement of or within the said index.

43. “Trustee” means UTI Trustee Company Private Limited a company set up under the Companies Act, 1956 and approved by SEBI to act as the Trustee to the schemes of UTI Mutual Fund.

44. “Trust Deed” means the Trust Deed dated December 9, 2002 of UTI Mutual Fund.

45. “Unit” means the interest of the unitholders in a scheme, which consists of each unit representing one undivided share in the assets of a scheme.

46. “Unit Capital” means the aggregate of the face value of units issued under the scheme and outstanding for the time being.

47. “Unitholder” means a person holding units in the scheme of the Mutual Fund.

48. In this Scheme Information Document, unless the context otherwise requires, (i) the singular includes the plural and vice versa, (ii) reference to any gender includes a reference to all other genders, (iii) heading and bold typeface are only for convenience and shall be ignored for the purposes of interpretation.


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D. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

Due Diligence Certificate submitted to SEBI for UTI-Balanced Fund, UTI-Contra Fund, UTI-Dividend Yield Fund, UTI-Equity Fund, UTI-Equity Tax Savings Plan, UTI-India Lifestyle Fund, UTI-Leadership Equity Fund, UTI-Master Plus Unit Scheme, UTI-Mastershare Unit Scheme, UTI-Master Value Fund, UTI-MNC Fund, UTI-Nifty Index Fund, UTI-Opportunities Fund, UTI-Top 100 Fund and UTI-Wealth Builder Fund – Series II

It is confirmed that:

I. the Draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

The total holding of the schemes are held in the names of the schemes except (a) under UTI-Equity Fund, where securities pertaining to 2 BIFR companies are held in physical and are not in the name of the scheme and (b) under UTI-Balanced Fund debt, where the holding of 4 companies are NPAs which are held in physical and are not in the name of the scheme.

II. all legal requirements connected with the launching of these schemes as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with;

III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the schemes.

IV. all the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Sd/- Date: July 29, 2013 Vivek Maheshwari Place: Mumbai Compliance Officer


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II. INFORMATION ABOUT THE SCHEMESA. TYPE OF THE SCHEMES (a) UTI-Balanced Fund is an open ended Balanced

Fund. (b) UTI-Contra Fund is an open-ended equity

oriented scheme. (c) UTI-Dividend Yield Fund is an open-ended equity

oriented scheme. (d) UTI-Equity Fund is an open ended equity scheme. (e) UTI Equity Tax Savings Plan is an open-ended

equity scheme. (f) UTI-India Lifestyle Fund is an open ended equity

oriented scheme. (g) UTI-Leadership Equity Fund is an open-ended

Equity Oriented Scheme. (h) UTI-Master Plus Unit Scheme is an open ended

equity scheme. (i) UTI-Mastershare Unit Scheme is an open ended

equity oriented scheme. (j) UTI- Master Value Fund is an open ended equity

oriented value fund. (k) UTI-MNC Fund is an open ended equity scheme. (l) UTI-Nifty Index Fund is an open ended passive

Index Fund tracking the CNX Nifty. (m) UTI-Opportunities Fund is an open-ended equity

oriented scheme. (n) UTI-Top 100 Fund is an open ended equity

scheme. (o) UTI-Wealth Builder Fund – Series II is an open-

ended equity oriented scheme.B. WHAT ARE THE INVESTMENT OBJECTIVES OF

THE SCHEMES? (a) UTI-Balanced Fund The scheme aims to invest in a portfolio of equity

/ equity related securities and fixed income securities (debt and money market securities) with a view to generating regular income together with capital appreciation.

(b) UTI-Contra Fund The fund aims to provide long-term capital

appreciation/dividend distribution through investments in listed Indian equities and equity related instruments. The Fund’s investment policies are based on insights from behavioral finance. The fund offers an opportunity to benefit from the impact of non-rational investors’ behavior by focussing on stocks that are currently undervalued because of emotional and behavioral patterns present in the stock market.

The scheme name UTI-Contra Fund is derived from the approach of contrarian investing. Contrarian investing refers to picking and

investing in those stocks which are fundamentally strong. These stocks have a high intrinsic value but are currently out of favour or have been overlooked as the market has failed to recognize their potential. The lower price may also be due to investor reaction or behavior towards a company’s recent news / information such as poor results, adverse publicity, legal issues or any negative information all of which may create doubts / apprehension about company’s future prospects.

Over a longer period of time the company’s earnings drive the stocks prices and the true market price of a company is unlocked in tandem with its intrinsic value. The unlocked or realized value signifies / reflects the company’s fundamentals.

Investing contrarianly allows investor to own a portfolio at a bargained price and gain handsomely at the time of value realization. Buying “off season” and selling “in season” would be correct description of such portfolio management.

(c) UTI-Dividend Yield Fund The investment objective of the Scheme is to

provide medium to long term capital gains and / or dividend distribution by investing predominantly in equity & equity related instruments, which offer high dividend yield. There can be no assurance that the investment objectives of the scheme will be realised.

(d) UTI-Equity Fund This Scheme primarily aims at securing for the

unitholders capital appreciation by investing the funds of the scheme in equity shares and convertible and non-convertible bonds/ debentures of companies with good growth prospects and money market instruments.

(e) UTI-Equity Tax Savings Plan The funds collected under the scheme shall be

invested in equities, fully convertible debentures/bonds and warrants of companies. Investment may also be made in issues of partly convertible debentures/bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures/bonds so acquired or subscribed shall be disinvested within a period of twelve months from their acquisition.

(f) UTI-India Lifestyle Fund. The investment objective of the scheme is to

provide long term capital appreciation and/or income distribution from a diversified portfolio of equity and equity related instruments by primarily investing in sectors, areas, companies and themes that are expected to benefit from changing


17

Indian demographics, Indian lifestyles and rising consumption pattern. However, there can be no assurance that the investment objective of the scheme will be achieved.

About Changing Lifestyle in India Indian consumers, over the last few years, are

showing a marked preference to new products and services that deliver higher levels of quality, taste and aspiration than conventional items. The higher disposable income level of middle class, availability of new products, brands and services, growing awareness and sophistication, changing family structures, affordable and easy credit etc has changed their attitude to money and quality of life (lifestyle). This is likely to change the scale of demand of household goods and services such as autos, home goods, telecom, consumer finance, leisure, entertainment, media etc. For example the Telecom sector had seen exponential growth during the past five years and this momentum is expected to be sustained in future also on account of existing customers opting to upgrade to 3-G services, MMS and other Value Added Services etc and new customers hitherto not connected joining the bandwagon. UTI India Lifestyle Fund will endeavour to invest in companies, which benefit directly from rising consumerism or changing lifestyle of people of India.

About Demographic Changes in India The number of Indians in the most productive

age group of 20-50 age bracket is expected to go up significantly in the days to come. This class of population has the highest productivity, higher consumption needs and relatively higher propensity to borrow. Moreover there is a perceptible shift from single-income family to double income family, increasing the total disposable income with a greater appetite for consumption expenditure. This rising consumerism would result in a virtuous cycle of higher consumption leading to improved corporate performance, resulting in better employment conditions and healthy payouts, again leading to higher consumption.

(g) UTI-Leadership Equity Fund The investment objective of the scheme is to

achieve long-term capital appreciation and/or dividend distribution by investing in stocks that are “Leaders” in their respective industries/sectors/sub-sectors. “Leaders” tend to be companies with higher market shares, better operating efficiencies, better access to capital and significant/sustainable competitive advantages. Normally at least 65% of the investments will be restricted to the top five leading companies of

an industry/sector/sub-sector in terms of sales turnover/market share/ market capitalization.

(h) UTI-Master Plus Unit Scheme Investment objective of the scheme is capital

appreciation through investments in equity and equity related instruments.

(i) UTI-Mastershare Unit Scheme This scheme aims at securing for the unitholders

capital appreciation by investing the funds of the scheme in equity shares, equity-related instruments and fully convertible bonds/debentures of companies. Investment may also be made in issues of partly convertible debentures/bonds including those issued on rights basis subject to the condition that, as far as possible, the nonconvertible portion of the debentures/bonds so acquired or subscribed shall be disinvested within a period of twelve months from the date of acquisition.

(j) UTI-Master Value Fund Investment objective of the Scheme is “capital

appreciation” through investment in stocks that are relatively undervalued to their expected long-term earnings growth. The fund will utilise in-depth fundamental research to evaluate factors such as a company’s financial structure, its competitive position in the market and its management’s commitment to increasing shareholder value while selecting the universe of stocks for investment by this fund.

(k) UTI-MNC Fund The Funds collected under the scheme shall be

invested predominantly in stocks of Multinational Corporations and other liquid stocks. The funds collected under the scheme shall be invested in equities and equity related instruments. The risk profile of investment could be high.

(l) UTI-Nifty Index Fund The principal investment objective of the scheme

is to invest in stocks of companies comprising CNX Nifty Index and endeavour to achieve return equivalent to Nifty by “passive” investment. The scheme will be managed by replicating the index in the same weightage as in the CNX Nifty-Index with the intention of minimising the performance differences between the scheme and the CNX-Nifty Index in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error. The scheme would alter the scrips/weights as and when the same are altered in the CNX-Nifty Index.

(m) UTI-Opportunities Fund This scheme seeks to generate capital


18

appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments. The main focus of this scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.

(n) UTI-Top 100 Fund The fund aims to provide long term capital

appreciation/dividend distribution by investing predominantly in equity and equity related instruments of top 100 stocks by market capitalisation. There can be no assurance that the investment objectives of the scheme will be realised.

(o) UTI-Wealth Builder Fund – Series II The objective of the Scheme is to achieve

long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments along with investments in Gold ETFs and Debt and Money Market Instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved.

C. HOW WILL THE SCHEMES ALLOCATE THEIR ASSETS?

1. Asset Allocation pattern of the schemes are as follows:

(a) UTI-Balanced Fund

InstrumentsIndicative Allocation(% of total

assets)

Risk profile

Mini-mum

Maxi-mum

Equity & Equity Related Instruments

40% 75% High

Debt & Money Market Instruments including securitised debt

25% 60% Low to Medium

Change in Investment Pattern Subject to the Regulations, the asset allocation

pattern indicated above may change from time to time keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the unitholders. Such changes in the

investment pattern will be for short term and on defensive considerations.

(b) UTI-Contra Fund

Instruments Indicative Allocation(% of total

assets)

Risk profile

Equity and Equity related instruments based on Contrarian Strategy.

80-100% High

Debt and money market instruments including securitised debt.

0-20% Low to medium

While no fixed allocation will normally be made for investment in money market instruments like Call Deposits, Commercial Papers, Treasury Bills etc. the same may be kept to the minimum generally to meet the liquidity needs of the Scheme.

(c) UTI-Dividend Yield Fund


assets)

Risk profile

High dividend yield equity and equity related instruments

65-100% High

Other equity or equity related instruments

0-35% High

Debt and money market instruments

0-10% Low to medium

Dividend Yield is considered as high if it is greater than the Dividend Yield of the Nifty last released / published by NSE.


UTI-Dividend Yield Fund retains the option to alter the asset allocation for short-term periods on defensive considerations.

(d) UTI-Equity Fund


assets)

Risk profile

Equity and equity related instruments

At Least 80%

Medium to high

Debt and Money Market Instruments

Upto 20% Low to medium


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Notwithstanding the aforesaid, investments in money market instruments will be consistent with the SEBI Regulations on the same.

(e) UTI-Equity Tax Savings Plan (i) The scheme shall ensure that funds of the

scheme remain invested to the extent of atleast 80% in securities specified in clause II (B) (e) above. In exceptional circumstances to protect the interests of the unitholders, this requirement may be dispensed with by UTI AMC.

(ii) After 3 years from the date of commencement of the scheme i.e. from 16th December 2002, the scheme may hold upto 20% of its net assets in money market and other liquid instruments to fund the redemptions.

(f) UTI-India Lifestyle Fund


assets)

Risk profile

1. (a) Equities & Equity related instruments of sectors / areas likely to benefit from changing Indian demographics, Indian lifestyle & rising consumption pattern*

(b) Other Equity & Equity related instruments**

65% -100%

0% - 35%

High

High

2. Debt & Money Market Instruments i n c l u d i n g securitised Debt ***

0% - 20% Low to Medium

* Equities of Companies can include from the areas/ sectors like outsourcing, autos, home goods, transportation, computer, retail, telcom, consumer finance, food personal care, fashion accessories, restaurants, housing, healthcare, leisure entertainment and media. To put it precisely, the scheme will endeavor to invest in companies/sectors/ areas which benefit directly or indirectly from changing Indian demographics, Indian lifestyles and rising consumption pattern.

**Other equities as mentioned under 1(b) include stock / companies from the sector / areas which do not fall in the category 1(a).

*** The scheme may invest upto 20% of its debt portfolio in Securitised debt.

The scheme may seek investment opportunity in the ADR/GDR/Foreign Equity and Debt Securities, in accordance with guidelines stipulated in this regard by SEBI and RBI time to time. Under normal circumstances, the scheme shall not have an exposure of more than 10% of its net assets in foreign securities subject to regulatory limits.

The scheme may take derivatives position based on the opportunities available subject to the guidelines issued by SEBI from time to time and in line with the overall investment objective of the scheme. These may be taken to hedge the portfolio, rebalance the same or to undertake any other strategy as permitted under the SEBI Regulations.

Change in investment pattern Subject to SEBI Regulations, the asset allocation

pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short-term periods on defensive consideration.


(g) UTI-Leadership Equity Fund


assets)

Risk profile

Equity & Equity Related Instruments of “leaders” as stated in Clause II B (g) above

65 - 100% High

Equity and Equity Related Instruments of others including investments in potential leaders.

0 – 35% High

Debt* and Money Market Instruments including Securitised debt.

0 - 10% Low to Medium

*For Debt investments, the fund will invest in companies where the paper is rated AA+ and above.


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While no fixed allocation will normally be made for investment in money market instruments like Call Deposits, Commercial Papers, Treasury Bills, Short Term Deposits etc. the same may be kept to the minimum generally to meet the liquidity needs of the Scheme.

(h) UTI-Master Plus Unit Scheme:

Instruments Indicative Allocation(% of total assets)

Risk profile

Equity and equity related instruments, convertible debentures

Upto 100% High

Money Market Instruments No fixed allocation will normally be made for Money market instruments. Investment in money market instruments will be kept to the minimum so as to be able to meet the liquidity needs of the Scheme.

Low

(i) UTI-Mastershare Unit Scheme:

InstrumentsIndicative Allocation (% of total assets)

Risk ProfilePreferred Allocation

Maximum Allocation

Minimum Allocation

Equity & Equity Related 90% 100% 70% Medium to HighDebt & Money Market 10% 30% 0% Low to Medium

The fund manager shall review the portfolio for adherence with the above asset allocation patterns and rebalance them within 30 days to conform to the above limits.

Investment in Money Market Instruments: While no fixed allocation will normally be made for investment in money market instruments like Call Deposits,

Commercial Papers, Treasury Bills etc. the same may be kept to the minimum generally to meet the liquidity needs of the scheme.

(j) UTI-Master Value Fund (i) Minimum and maximum asset allocation: Upto 80% of the net assets will be invested in the scrips having any one or more of the following characteristics

at the time of acquisition: i) Low P/E ratio (PE ratio lower than the market PE or the sector PE) OR ii) Attractive dividend yield OR iii) Low price to book value ratio OR iv) Companies with positive Economic Value Added (EVA) Upto 20% of net assets will be invested in equity / equity related instruments issued by blue chip companies

with a potential for consistent growth and with management of high quality and track record. Not more than 20% of net assets will be invested in money market instruments. The endeavour will be to always retain the value orientation of the portfolio. With this objective, the scheme

will regularly book profits in scrips where the valuation of the stocks has increased much higher than the market PE or the sector PE.

Some of the terms used above are defined below 1) Market PE will be defined as the PE of the stocks in the NIFTY index as reported by India Index Services

Ltd (IISL) on www.nseindia.com. Sector PE will be defined as the PE ratio of the respective IISL sectoral index as calculated by IISL.

2) Attractive dividend yield will be defined as dividend yield, which is equal to or greater than the yield on 364 day T-Bill.

3) EVA is an ideal measure of wealth creation. EVA is a simple tool to indicate how much shareholder wealth the business has created in a given time period. EVA is defined as follows:

EVA = Net Operating Profit After Taxes (NOPAT) – {Capital * Cost of Capital} EVA will be calculated based upon the latest published results of the respective companies. Stocks selected on the above criteria could be either large cap, mid cap or small cap stocks. Thus the scheme may invest across the capitalisation spectrum (i.e. small caps, mid caps as well as

large caps).


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(ii) Investment in Money Market Instruments: While no fixed allocation will normally be made for investment in money market instruments like Call Deposits,

Commercial Papers, Treasury Bills etc. the same may be kept to the minimum generally to meet the liquidity needs of the scheme.

(j) UTI-MNC Fund:


Risk profile

Equity Maximum allocation 100%. HighMoney Market Instruments No fixed allocation will normally be made for money market

instruments.Low

Investment in money market instruments will be kept to the minimum so as to be able to meet the liquidity needs of the scheme.

Pending investment of funds in the above-required manner, the scheme shall invest the funds in short-term money market instruments or other liquid instruments or both. The scheme may also invest in short term money market instruments for meeting anticipated redemption.

(l) UTI-Nifty Index Fund:


Risk profile

Equity Upto 100% HighMoney Market Instruments Investment in money market instruments will be kept to the minimum. Low

The net subscription amount on any day will be invested in stocks of companies comprising the CNX-Nifty Index. Pending deployment of funds of the scheme in shares in terms of the investment objective stated above the Trust may invest the funds of the scheme in short term deposits of scheduled commercial banks and other money market instruments.

Composition of the CNX Nifty The CNX Nifty is at present being managed by India Index Services and Products Limited a joint venture company

promoted by the National Stock Exchange of India Ltd. (NSE) and the Credit Rating and Information Services of India Ltd. (CRISIL) for constructing, maintaining, disseminating data regarding various indices.

The constituents of the CNX NIFTY Index as on 11th July 2013 are:

1 ACC Ltd 26 Infosys Technologies Ltd.2 Ambuja Cements Ltd. 27 Infrastructure Devt. Finance Co3 Asian Paints Ltd 28 Jaiprakash Associates Ltd.4 Axis Bank Ltd. 29 Jindal Steel & Power Ltd5 Bajaj Auto Ltd. 30 Kotak Mahindra Bank Ltd.6 Bank of Baroda 31 Larsen & Toubro Ltd.7 Bharat Heavy Electricals Ltd. 32 Lupin Ltd8 Bharat Petroleum Corpn Ltd. 33 Mahindra & Mahindra Ltd.9 Bharti Airtel Ltd. 34 Maruti Suzuki India Ltd.

10 Cairn India Ltd. 35 NTPC Ltd.11 Cipla Ltd. 36 National Mineral Development Corporation12 Coal India Ltd. 37 Oil & Natural Gas Corporation13 DLF Ltd. 38 Power Grid Corporation of India14 Dr. Reddys Laboratories Ltd. 39 Punjab National Bank15 Gail ( India )Ltd. 40 Ranbaxy Laboratories Ltd.16 Grasim Industries Ltd. 41 Reliance Industries Ltd.17 H D F C Ltd. 42 Reliance Infrastructure Ltd.18 HCL Technologies Ltd. 43 Sesa Goa Ltd.19 HDFC Bank Limited 44 State Bank of India20 Hero Honda Motors Ltd. 45 Sun Pharmaceuticals Industries21 Hindalco Industries Ltd. 46 Tata Consultancy Services Ltd.22 Hindustan Unilever Ltd. 47 Tata Motors Ltd.23 I.T.C. Ltd. 48 Tata Power Company Ltd.24 ICICI Bank Ltd 49 Tata Steel Ltd.25 Indusind Bank 50 UltraTech Cement Ltd


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Tracking error UTI-NIF: Performance difference between UTI-NIF and the CNX Nifty may arise as a result of several factors including: i) Any delay experienced in the purchase or sale of shares due to illiquidity of the market, settlement and realisation

of sales proceeds and in receiving cash and stock dividends resulting in further delays in reinvesting them. ii) Any costs associated with the establishment and running of the scheme including costs on transactions relating

to investment, recomposition and other operating cost. iii) The CNX Nifty reflect the prices of shares at close of business hours. However, the scheme may be able to buy

or sell shares at different points of time during the trading session at the then prevailing prices, which may not correspond to the closing prices.

iv) Significant changes in the composition of the CNX-Nifty may involve inclusion of new securities in the indices in which event while the scheme will endeavour to balance its portfolio it may take some time to precisely mirror the indices.

v) The holding of a cash position and accrued dividend prior to distribution and accrued expenses. vi) Dis-investments to meet exits of investors, recurring expenses, etc. as elsewhere indicated in this Scheme

Information Document. (m) UTI-Opportunities Fund


Risk Profile

Equity & Equity Related Instruments 90- 100% HighDebt Instruments and Money Market Instruments 0-10% Low to Medium


(n) UTI-Top 100 Fund

InstrumentsIndicative Allocation

(% of total assets)Risk Profile

Equity and Equity related instruments of top 100 stocks by market capitalisation

65-100% High

Other equity or equity related instruments 0-35% HighDebt and Money Market instruments including securitised debt.*

0-35% Low to Medium

* The fund may invest upto 100% of its debt portfolio in securitised debt. Change in investment pattern: Subject to SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping

in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short-term periods on defensive consideration.


(o) UTI-Wealth Builder Fund – Series II

InstrumentsIndicative Allocation

(% of total assets)Risk Profile

Minimum MaximumEquity and Equity related instruments 65 100 HighGold ETFs 0 35 HighDebt and Money Market Instruments* 0 35 Low to Medium

* Debt instruments will also include Securitised Debt which may go upto 100% of the Debt Portfolio.


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The scheme may seek investment opportunity in the ADR/GDR/Foreign Equity and Debt Securities, in accordance with guidelines stipulated in this regard by SEBI and RBI time to time.

Under normal circumstances, the scheme shall not have an exposure of more than 10% of its net assets in foreign securities subject to regulatory limits.



pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short-term periods on defensive consideration.


Note: All the above schemes retain the option to alter the asset allocation for short term periods on defensive consideration.

(p) Debt and Money market in India (i) Debt Instrument Characteristics: A Debt Instrument is basically an obligation which

the borrower has to service periodically and generally has the following features:

Face Value : Stated value of the paper / Principal Amount

Coupon : Zero; fixed or floating Frequency : Semi-annual; annual, sometimes

quarterly Maturity : Bullet, staggered Redemption : FV; premium or discount Options : Call/Put Issue Price : Par (FV) or premium or discount

A debt instrument comprises of a unique series of cash flows for each paper, terms of which are decided at the time of issue. Discounting these cash flows to the present value at various applicable discount rates (market rates) provides the market price.

(ii) Debt Market Structure: The Indian Debt market comprises of the Money

Market and the Long Term Debt Market. Money market instruments have a tenor of less

than one year while debt market instruments typically have a tenor of more than one year.

Money market instruments are Commercial Papers (CPs), Certificates of Deposit (CDs), Treasury bills (T-bills), Repos, Inter-bank Call money deposit, CBLOs etc. They are mostly discounted instruments that are issued at a discount to face value.

Long Term Debt market in India comprises mainly of two segments viz., the Government securities market and the corporate securities market.

Government securities includes central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers) The Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt. are through on-tap sales.

Corporate debt segment on the other hand includes bonds/debentures issued by private corporates, public sector units (PSUs) and development financial institutions (DFIs). The debentures are rated by a rating agency and based on the feedback from the market, the issue is priced accordingly. The bonds issued may be fixed or floating. The floating rate debt market has emerged as an active market in the rising interest rate scenario. Benchmarks range from Overnight rates or Treasury benchmarks.

Debt derivatives market comprises mainly of Interest Rate Swaps linked to Overnight benchmarks called MIBOR (Mumbai Inter Bank Offered Rate) and is an active market. Banks and corporate are major players here and of late Mutual Funds have also started hedging their exposures through these products.

Securitised Debt Instruments - Asset securitization is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and sold in the form of financial instruments. A typical process of asset securitization involves sale of specific Receivables to a Special Purpose Vehicle (SPV)


24

set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables.

The instrument, which is issued, includes loans or receivables maturing only after all receivables are realized. However depending on timing of underlying receivables, the average tenure of the securitized paper gives a better indication of the maturity of the instrument.

(iii) Regulators: The RBI operates both as the monetary authority and the debt manager to the government. In its role as a monetary authority, the RBI participates in the market through open-market operations as well as through Liquidity Adjustment facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

(iv) Market Participants: Given the large size of the trades, the debt market has remained predominantly a wholesale market. Primary Dealers Primary dealers (PDs) act as underwriters in the primary market, and as market makers in the secondary market. Brokers Brokers bring together counterparties and negotiate terms of the trade. Investors Banks, Insurance Companies, Mutual Funds are important players in the debt market. Other players are Trusts,

Provident and pension funds. (v) Types of Security Issuances and Eligible Investors

Issuer Instruments Yields Maturity InvestorsCentral Government

Dated Securities

7.90%-8.00% 1-30 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Central Government

T-Bills 7.55%-7.65% 364/91 days Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

State Government

Dated Securities

8.25%-8.35% 10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals

PSUs Corporates

Bonds 8.45%-8.65% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Corporates (AAA rated)

Bonds 8.80%-9.00% 1-10 years Banks, MFs, Corporates, Individuals, FII

Corporates Commercial Papers

8.15% - 9.25%

15 days to 1 yr

Banks, MFs, Fin Inst, Corporates, Individuals, FIIs

Banks Certificates of Deposit

8.00%-8.40% 15 days to 1 yr

Banks, Insurance Co, PFs, MFs, PDs, Individuals

Banks Bonds 8.70 % 10-15 years Banks, Companies, MFs, PDs, Individuals (vi) Trading Mechanism Government Securities and Money Market Instruments Currently, G-Sec trades are predominantly routed though NDS-OM which is a screen based anonymous order

matching systems for secondary market trading in Government Securities owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

D. WHERE WILL THE SCHEMES INVEST? 1. The mutual funds can invest in i. ADRs/GDRs issued by Indian or foreign companies. ii. Equity of overseas companies listed on recognized stock exchanges overseas. iii. Initial and follow on public offerings for listing at recognized stock exchanges overseas. iv. Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt


25

instruments with rating not below investment grade by accredited/registered credit rating agencies.

v. Money market instruments rated not below investment grade.

vi. Repos in the form of investment, where the counterparty is rated not below investment grade; repos should not however, involve any borrowing of funds by mutual funds.

vii. Government securities where the countries are rated not below investment grade.

viii. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities.

ix. Short term deposits with banks overseas where the issuer is rated not below investment grade.

x. Units/securities issued by overseas mutual funds or unit trusts registered with overseas regulators and investing in (a) aforesaid securities, (b) Real Estate Investment Trusts (REITs) listed in recognized stock exchanges overseas or (c) unlisted overseas securities (not exceeding 10% of their net assets).

The aggregate ceiling for overseas investments as per para above is US $ 7 bn. Within the overall limit of US $ 7 bn, mutual funds can make overseas investments subject to a maximum of US $ 300 mn. per mutual fund.

Investment in overseas securities shall be made in accordance with the requirements stipulated by SEBI and RBI from time to time.

2. Participating in Derivative Products: Derivatives: A derivative instrument, broadly, is a financial

contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.

Derivatives are further classified into:- Futures Options Swaps Futures: A futures contract is a standardized

contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future.

Options: An option is a derivative instrument, which gives

its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.

There are two basic types of options, call options and put options.

(a) Call option: A call option gives the buyer of the option the right but not the obligation to buy a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.

(b) Put option: A put option gives the buyer of the option the right but not the obligation to sell a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.

On expiry of a call option, if the market price of the underlying asset is lower than the strike price the call would expire unexercised. Likewise, if, on the expiry of a put option, the market price of the underlying asset is higher than that of the strike price the put option will expire unexercised.

The buyer/holder of an option can make loss of not more than the option premium paid to the seller/writer but the possible gain is unlimited. On the other hand, the option seller/writer’s maximum gain is limited to the option premium charged by him from the buyer/holder but can make unlimited loss.

Swaps: The exchange of a sequence of cash flows that

derive from two different financial instruments. For example, the party receiving fixed in an ordinary Interest Rate Swap receives the excess of the fixed coupon payment over the floating rate payment. Of course, each payment depends on the rate, the relevant day count convention, the length of the accrual period, and the notional amount.

Debt derivatives are as of now customized over the counter products and there is no guarantee that these products will be available on tap. There are various possible combinations of strategies, which may be adopted, in a specific situation. The provision for trading in derivatives is an enabling provision and it is not binding on the Schemes to undertake trading on a day to day basis.

Some of the derivative techniques/ strategies that may be used are:-

(i) The schemes will use hedging techniques including dealing in derivative products – like futures and options, warrants, interest


26

rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The schemes may take derivatives position based on the opportunities available and in line with the overall investment objective of the schemes. These may be taken to hedge the portfolio and rebalance the same.

(iii) The Fund manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market.

(iv) The Fund Manager may sell the index forward by taking a short position in index futures to save on the cost of outflow of funds or in the event of negative view on the market.

Exposure limits: a. The cumulative gross exposure through

equity, debt and derivative positions should not exceed 100% of the net assets of the scheme.

b. Mutual Funds shall not write options or purchase instruments with embedded written options.

c. The total exposure related to option premium paid must not exceed 20% of the net assets of the scheme.

d. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure.

e. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following:-

(i) Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains.

(ii) Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limits mentioned in Point a.

(iii) Any derivative instrument used to hedge has the same underlying security as the existing position being hedged.

(iv) The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of the existing position against which hedge has been taken.

f. Mutual Funds may enter into plain vanilla interest rate swaps for hedging purposes.

The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme.

g. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point a.

Definition of Exposure in case of Derivative Positions

Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss.

Exposure in derivative positions shall be computed as follows:

Position ExposureLong Future Futures Price * Lot Size * Number

of ContractsShort Future Futures Price * Lot Size * Number

of ContractsOption bought Option Premium Paid * Lot Size *

Number of Contracts. The AMC retains the right to enter into such derivative

transactions as may be permitted by the Regulations from time to time. For risks associated with investments in derivatives investors are requested to refer to Risk Factors of this Scheme Information Document.

E. WHAT ARE THE INVESTMENT STRATEGIES? 1. Investment focus and asset allocation

strategy (a) UTI-Balanced Fund The asset allocation in the fund is designed

keeping in mind the necessity of providing consistent returns and maintaining a balance between debt and equity, with occasional alterations. The fund follows a balanced and disciplined approach to asset allocation at the macro level and specific investments at the micro level with a long – term horizon.

(b) UTI-Contra Fund The fund will be unrestricted and diversified

as the potential of the entire universe of equities present in the market could be tapped. The fund will adopt a bottom up approach to identify the universe of companies. The Fund will select stocks that are temporarily undervalued because of


27

psychological patterns present in the stock market. The fund aims to systematically select Indian equities that are likely to be undervalued and hence outperform. Of the universe so selected, the stock picking will broadly be guided by the following criteria:

1) The companies which are fundamentally sound and have long term growth potential,

2) The companies have attractive valuations, low price to book value ratio or low P/E ratio, as compared to that of peers or as compared to historic valuations of the Company.

While choosing the stock, the following points also may be considered:

The future growth potential of the company, acquisition values of similar companies, range of products and services of the company, the brand value of the company, corporate governance financials of the company, the competitive position of the company in the industry etc. The attractive valuation could be early prediction of positive changes in the company which could add to its bottomline.

Subject to the SEBI Regulations, the asset allocation pattern indicated above in respect of the entire scheme may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek to protect the interests of the Unit holders. Asset allocation pattern may be altered for short period on defensive considerations.

(c) UTI-Dividend Yield Fund Dividend Yield: Dividend Yield is the ratio

(expressed as a percentage) of total dividend declared per share for the previous accounting year divided by the current market price at the time of investment. Dividend yield is calculated as under:

Dividend = D/P * 100 Where, D = Total Dividend Per share declared for

the previous accounting year. P = Current Market Price at the time of

investment.

The fund manager will invest primarily in equity shares that have a high dividend yield at the time of investment. Dividend Yield is considered as high if it is greater than the Dividend Yield of the Nifty last released / published by NSE on its website: www. nseindia.com. Other scrips selection criteria would only be applicable once the initial dividend yield criteria is fulfilled.

Though the high dividend yield is the prime factor involved in the evaluation of a company’s investment worthiness, investment decisions would not be based on high dividend yield alone. Other parameters such as Business Fundamentals, management competence, growth prospects, industry scenario etc. would also be considered. However, all other factors remaining favorable, investment would be made primarily in high dividend stocks as mentioned above.

Under normal circumstances atleast 65% of the scheme’s assets would be invested in high dividend yield stocks. The Scheme could also invest in equity shares of other companies i.e. other than high dividend stocks to the extent of 35% of the net assets.

Further the scheme may also invest not exceeding 10% of the scheme’s assets in debt instruments such as Convertible Debentures, Non Convertible Debentures, Secured Premium Notes, Zero Interest Bonds, Deep Discount Bonds, Short-term deposits, Floating Rates Bonds/Notes and Government securities and Money Market Instruments like Call Deposit, Repos, Commercial Paper, Certificate of Deposit, Treasury Bills etc. This is for providing ongoing liquidity & preservation of capital in a bear market.

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager the intention being at all times to seek to protect the interests of the Unit holders. Asset allocation pattern may be altered for short period on defensive considerations.


28

It is perceived that high dividend yielding stocks have a limited downside especially in a falling/bearish market. It is a general belief that high dividend paying companies are rich in cash generations from its business. At the same time high dividend yield might indicate underpricing for the stock in spite of its cash generation. This might help to unlock potential growth for the stock prices. Hence, high dividend yield stocks provide good possibilities of capital appreciation in a reviving market, resulting in good capital gains.

Thus, the investment strategy of the scheme would focus on identifying and investing in a basket of high dividend yield companies, which are expected to declare dividends on a consistent basis and also provide an opportunity for capital appreciation due to the high intrinsic value of the underlying stocks.

(d) UTI-Equity Fund UTI Equity Fund is positioned as a diversified

equity fund. The Fund portfolio will primarily comprise of leading stocks in the respective sectors. The fund will invest across market capitalisation, large as well as mid caps. Large Caps would comprise around 65% of the portfolio.

(e) UTI-Equity Tax Savings Plan UTI ETSP invests in leading companies

across sectors, with an aim to provide superior risk adjusted return i.e return with relatively lesser volatility. The Fund would invest with a long term perspective, in companies that are believed to have growth potential.

(f) UTI-India Lifestyle Fund Investment focus and asset allocation

strategy The broad investment strategy of the fund

will be to invest in equity and equity related securities of companies including those in derivative segment which according to the fund manager are playing / can play pivotal role in driving Indian demographics or consumer pattern. The scheme aims to build and maintain a diversified portfolio of equity stocks that has the potential to appreciate in the long run. The investment manager will select equity securities on a bottom-up, stock by stock basis within the overall investment objective of the scheme. In picking out individual investment opportunities the investment manager will

adhere to the defined universe eligible for investment.

The scheme will predominantly invest in companies that could have the following characteristics:

l Companies that seek growth in their revenues arising out of demand from the younger generation for their products or services eg. Companies involved in services like auto, home goods, computer hardware, telecom, Consumer finance etc.

l Companies which are engaged in manufacturing of products or rendering of services that go directly to the consumer. Eg Companies involved in services like Commodity chemicals (like paints), Sports Goods etc.

l Companies can include from the areas/sectors like Consumption, outsourcing, global competitiveness and brand centric.

The investment manager will seek both value and growth. The in house research team will help us in identifying such investment opportunities. The companies wise analysis will focus amongst others on the historical and current financial conditions of the company, potential value creation /unlocking of value and its impact of earnings growth, business prospects, strength of management, competitive edge etc.

(g) UTI-Leadership Equity Fund The scheme will primarily invest in a

diversified portfolio of leadership stocks i.e. stocks of companies that are leaders in their industry/sectors/sub-sectors to achieve long term capital appreciation over time. The scheme will allow the fund manager to pick stocks that are leaders in their respective categories. “Leaders” tend to be companies with higher market shares, better operating efficiencies, better access to capital and significant/sustainable competitive advantages. They tend to give good returns in an economic upswing and are also able to withstand economic downswings better than other companies. An industry or sector that the fund manager feels will outperform others, will be selected and then leading companies within that industry/sectors will be picked. Normally at least 65% of the investments will be restricted to the ‘Leaders’ (top five leading companies of an industry/sector/ subsector in terms of sales turnover/market share/ market capitalization). The scheme will also invest upto 35% in companies that are potential leaders in order to profit from


29

the probable upside potential in the stock of these companies.

Subject to the SEBI Regulations, the asset allocation pattern indicated above in respect of the entire scheme may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek to protect the interests of the Unit holders. Asset allocation pattern may be altered for short period on defensive considerations.

(h) UTI-Master Plus Unit Scheme It aims to focus on high growth stocks of

S&P BSE 100 index, which has the potential to emerge as industry leaders in medium term. Hence portfolio of the scheme will present a good blend of industry leaders and emerging industry leaders.

(i) UTI-Mastershare Unit Scheme This scheme intends to maintain a

conservative portfolio, with a disciplined investment strategy of investing only in fundamentally strong companies. The scheme seeks to pursue the policy of distributing dividend on an annual basis.

(j) UTI-Master Value Fund The scheme invests in stocks that are

relatively undervalued to their intrinsic value and which will create wealth for the various stakeholders in the medium to long term. Investment tools like low P/E, Low P/Book value and positive EVA (Economic Value Added) will be used to identify the stocks. The scheme is committed to booking profits periodically in order to retain the value orientation of the portfolio.

(k) UTI-MNC Fund The scheme will predominantly invest only

in companies which are forming part of CNX MNC index and / or where more than 25% of the holding is by the MNC parent and / or where FII / FDI and MNC parent combined holding is more than 50%.

(l) UTI-Nifty Index Fund UTI NIF is a low cost pure index Fund

which tracks the CNX NIFTY passively. The scheme endeavours to achieve return equivalent to CNX NIFTY while minimising tracking error.

(m) UTI-Opportunities Fund The scheme will primarily invest in equity

and equity related instruments. The main highlight of this scheme is to respond to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change. The scheme will allow the fund manager to invest in select sectors based on his views of the macro economy. UTI-Opportunities Fund will predominantly invest in 4 to 5 sectors that are expected to outperform the broader market in the short to medium-term.

As markets evolve and grow, new opportunities for growth keep emerging. UTI Opportunities Fund would endeavor to capture these opportunities to generate wealth for its investors.

The aim of the scheme is to outperform plain vanilla equity funds, which are more diversified but at the same time minimise the risk arising from pure sector funds while generating a reasonable return.

The fund would invest in companies/sectors, which present good growth opportunities. These companies/sectors would seek to capitalize on opportunities such as:

1. An opportunity arising in sectors where India’s potential is being acknowledged in the world.

2. An opportunity arising in sectors wherein future growth may be influenced by various economic reforms.

3. An opportunity arising in sectors that currently drives the Indian economy.

Subject to the SEBI Regulations, the asset allocation pattern indicated above in respect of the entire scheme may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and politicaland economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek to protect the interests of the Unit holders. Asset allocation pattern may be altered for short period on defensive considerations.

(n) UTI-Top 100 Fund The investment strategy of primarily

restricting the equity portfolio to the Top 100 Indian companies is intended to reduce risks while maintaining steady growth. The


30

scheme is designed for those investors who seek exposure to large market capitalization stocks and Growth cum value style of investing. The fund shall invest at least 65% of its corpus in equity and equity related securities of top 100 Indian companies as measured by market capitalisation on BSE (stock market worth) and listed on BSE. Risk will also be reduced through a diversification of the portfolio. The remaining portion of the portfolio will be invested in equity and equity related securities of companies other than the Top 100 companies which in the opinion of the fund manager have attractive growth prospects and potential to outperform the broad market indices.

(o) UTI-Wealth Builder Fund – Series II Investment focus and asset allocation

strategy Investment in Equities and Equity related Securities

The broad Investment strategy of the Scheme will be to invest in equity and equity related securities of companies including those in the derivatives segment. The Scheme aims to build and maintain a diversified portfolio of equity stocks that has the potential to appreciate in the long run. Companies identified for selection in the portfolio will have the potential to grow at a reasonable rate in the long run.

Investment in Gold ETFs: Gold has been generally considered as a safe

haven during times of economic upheavals and volatile equity markets. Since Gold traded internationally is typically denominated in US dollars, any negative news about the US economy, adversely impacts the value of US Dollar against other currencies of the world and acts as one of the main factors for the rise in Gold Prices, as investors, especially those in US, generally seek to invest in Gold and Gold ETFs to protect their financial risk during such times.

The Scheme may invest in Gold ETFs to manage the volatility of equity returns and downturn in equity markets depending upon the market conditions.

2. Portfolio Turnover policy (a) For all the schemes (except UTI-NIF): The portfolio turnover shall be targeted

so as to have return maximisation for the unitholders. At the same time, expenses such as brokerage and transaction cost shall be kept at low level so that it does not affect the earnings of the scheme.

(b) UTI-NIF UTI-NIF is a passively managed fund

and therefore the portfolio turnover will be confined only to rebalancing of the portfolio on account of new subscriptions, redemptions and changes in composition of the CNX Nifty.

F: FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the

schemes, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of a scheme (a) UTI-Balanced Fund is an open-ended Balanced

Fund. (b) UTI-Contra Fund is an open-ended equity

oriented scheme. (c) UTI-Dividend Yield Fund is an open-ended equity

oriented scheme. (d) UTI-Equity Fund is an open-ended equity

scheme. (e) UTI Equity Tax Savings Plan is an open-ended

equity scheme. (f) UTI-India Lifestyle Fund an open-ended equity

oriented scheme. (g) UTI-Leadership Equity Fund is an open-ended

Equity Oriented Scheme. (h) UTI-Master Plus Unit Scheme is an open-ended

equity scheme. (i) UTI-Mastershare Unit Scheme is an open-ended

equity oriented scheme. (j) UTI-Master Value Fund is an open-ended equity

oriented value fund. (k) UTI-MNC Fund is an open-ended equity scheme. (l) UTI-Nifty Index Fund is an open-ended passive

Index Fund tracking the CNX Nifty. (m) UTI-Opportunities Fund is an open-ended equity

oriented scheme. (n) UTI-Top 100 Fund is an open-ended equity

scheme. (o) UTI-Wealth Builder Fund – Series II is an open-

ended equity oriented scheme. (ii) Investment Objective Main Objective – as given in Clause II B Investment pattern - The tentative Equity/Debt/

Money Market portfolio break-up with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations – as given in Clause II C.

(iii) Terms of Issue Liquidity provision of redemption: Only provisions

relating to redemption as given in Clause III (A)- Ongoing Offer Details – Page Nos. 46


31

Aggregate Expense and Fees [as given in clause IV (B) and clause IV (A) (b)] charged to the scheme. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in

the fundamental attributes of the Schemes and the Options thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Options thereunder and affect the interests of Unitholders is carried out unless:

1) A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

2)The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEMES BENCHMARK THEIR PERFORMANCE?

Sr. No. Scheme Benchmark Index1 UTI-Balanced Fund CRISIL Balanced Fund Index2 UTI-Contra Fund S&P BSE 2003 UTI-Dividend Yield Fund S&P BSE 1004 UTI-Equity Fund S&P BSE 1005 UTI-Equity Tax Savings Plan S&P BSE 1006 * UTI-India Lifestyle Fund CNX 5007 * UTI-Leadership Equity Fund CNX Nifty8 UTI-Masterplus Unit Scheme S&P BSE SENSEX9 UTI-Mastershare Unit Scheme S&P BSE 100

10 UTI-Master Value Fund S&P BSE 20011 * UTI-MNC Fund CNX MNC12 * UTI-Nifty Index Fund CNX Nifty13 UTI-Opportunities Fund S&P BSE 10014 UTI-Top 100 Fund S&P BSE 10015 @ UTI-Wealth Builder Fund – Series II S&P BSE 100 and CRISIL Bond Fund Index

@ S&P BSE 100 is the benchmark index for the Equity part of the Portfolio, CRISIL Bond Fund Index is the benchmark for that part of the Portfolio relating to investments in Debt and Money Market Instruments and the Price of Gold as per SEBI Regulations for Gold ETFs in India is the benchmark in so far it pertains to investments in Gold ETFs.

* The schemes which are benchmarked to the indices as indicated therein are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and is no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such index.

Benchmarks have been chosen as the benchmarks on the basis of the investment pattern/objective of the scheme/s and the composition of the index. A benchmark may be changed in future if a benchmark better suited to the investment objective of the scheme is available.

H. WHO MANAGE THE SCHEMES? (a) Shri Amandeep Chopra Head- Fixed Income is the fund manager of UTI-Balanced Fund (Debt Portfolio)

Age(in yrs)

Qualifications Experience Other Schemes Managed

42 B.Sc., MBA He has over 23 years of experience in Funds Management having worked in the areas of Investment Research and Funds Management. Prior to erstwhile Unit Trust of India, he has worked as Production Co-ordinator with Aaina Exports Ltd. from May, 1990 to January 1991, as Quality Control Inspector with Stenay Ltd. from February, 1991 to August, 1991.

UTI-Children’s Career Balanced Plan (Debt Portfolio),UTI-CRTS (Debt Portfolio),UTI-Fixed Income Interval Funds#,UTI-Mahila Unit Scheme,UTI-MIS-Advantage Plan,UTI-Monthly Income Scheme (Debt Portfolio),UTI Retirement Benefit Pension Fund (Debt Portfolio).UTI-Bond FundUTI-Dynamic Bond FundUTI-Gilt Advantage FundUTI-G Sec FundUTI-ULIPUTI-Credit Opportunities Fund

# alongwith Manish Joshi


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(b) Shri Anoop Bhaskar – Head Equity is the fund manager of UTI-Equity Fund, UTI-Opportunities Fund and UTI-Master Value Fund

Age(in yrs)


45 B.Com., MBA (Finance)

He has over 21 years of work experience in equity research and fund management, of which 19 years are with asset management companies. He was earlier working as Head Equity with Sundaram Asset Management from August, 2003 to March, 2007. He has also worked with Templeton Asset Management as Senior Research Analyst & Portfolio Manager from 1993 to 2003 and prior to that he was working as Manager-Investments at Shriram Financial Services Ltd. from 1992 to 1993.

UTI-Energy FundUTI-Mid Cap FundUTI-Transportation & Logistics FundUTI Childrens Career Balanced Plan (Equity Portfolio)

(c) Shri Sanjay Dongre Senior Fund Manager is the fund manager of UTI-Leadership Equity Fund and UTI-Master Plus Unit Scheme.

Age(in yrs)


44 BE, PGDM He has been in UTI AMC since 1994. He started as a Debt Analyst acting as a support service for fund management activity. He has experience in Investments & Investment Monitoring from August, 1994 till April, 1998. He also worked for a year as Equity Research Analyst covering wide range of corporate and industries. Subsequently, he worked as Equity Dealer for another year, wherein he was involved in handling all the activities relating to secondary equity market operations. Prior to joining UTI he has worked with Reliance Petrochemicals Ltd. as an officer in-charge of the Instrumentation Department. Since July, 2000, he has been working as Fund Manager-Equity with Funds Management.

UTI-Infrastructure FundUTI-MEPUS

(d) Swati Kulkarni is the fund manager of UTI-Dividend Yield Fund, UTI-Equity Tax Savings Plan, UTI-Mastershare Unit Scheme, UTI-MNC Fund and UTI-Top 100 Fund.

Age(in yrs)


48 B Com.MFM (NMIMS), CFA, CAIIB-I, C e r t i f i c a t e E x a m i n a t i o n of IIB for the Employees of UTI

She has been with UTI AMC for over 21 years. She has been a Fund Manager since June, 2004. Prior experience includes Fund Management of Equity, Balanced and Offshore Equity Funds, Macro Research, Quantitative Analysis and Corporate Financial Planning. Her previous assignment was with Reliance Industries Ltd in the Financial Planning Cell.


33

(e) Shri Kausik Basu is the dedicated Fund Manager of UTI-Contra Fund and UTI-Nifty Index Fund

Age (in yrs)


52 B.Com. (Hons), LLB, CAIIB (I), CS(Int.), ICMA,

He has an overall experience of 29 years including 12 years in the domestic Equity Capital markets. He has also worked in the areas of Accounts and Money Market of erstwhile Unit Trust of India. He was associated with the Kolkata Regional Office from August, 1984 to February, 1999 and with Department of Dealing from March, 1999 to August, 2005. He is working with Department of Funds Management since August, 2005.

UTI-SPrEAD FundUTI CCP Advantage Fund

(f) Shri V Srivasta is the fund manager of UTI-Balanced Fund (Equity Portfolio)

Age(in yrs)


39 B.Com., ICMA, CA, PGDM

He has been with UTI AMC since 2002. He has around 4 years of experience in the Equity Securities Research handling variety of sectors. Last 4 years in the fund management as fund manager for offshore funds. He is looking after fund management of Hybrid Schemes as an adhoc arrangement and report to Head of Fixed Income. Prior to joining UTI AMC, he has worked with Ford, Rhodes Parks & Co., Chartered Accountants for 3 years and as Officer-Audit in Madras Cements Ltd.

UTI Monthly Income Scheme (Equity Portfolio)UTI Retirement Benefit Pension Fund (Equity Portfolio)UTI CRTS (Equity Portfolio)

(g) Shri Lalit Nambiar is the fund manager of UTI-Wealth Builder Fund – Series II and UTI-India Lifestyle FundAge

(in yrs)Qualifications Experience Other Schemes Managed

42 B.Com, MMS,CFA

He has been with UTI AMC since December, 2006. He took up portfolio responsibilities in July, 2007. In addition to managing equity portfolios, he also leads the equity research in the capacity of Head (Research). He began his career in June 1994, with IIT InvesTrust Limited as Senior Manager in Research Department. He then joined UTI Securities Limited in October, 1999 and continued till June, 2004 as Senior Analyst in Research Department. He joined SBI Capital Markets Ltd. as AVP in Research Department from January, 2004 to December, 2006.

UTI-Gold Exchange Traded FundUTI-Pharma & Healthcare FundUTI-Long Term Advantage Fund – Series I & II

(h) Shri Arpit Kapoor is the dedicated Fund Manager for investment in ADRs / GDRs / Foreign Securities

Age (in yrs)

Qualifications Experience

28 B.Tech, PGDM He joined UTI AMC in 2009 in the Equity Research Team. He is currently working as Fund Manager-cum-Research Analyst since June, 2009. Prior to joining UTI AMC and taking up his MBA, he has worked with Torry Harris Business Solutions, Bangalore as Associate Software Engineer from June, 2005 to June, 2007 and Mobintech A/S, Denmark as Business Analyst from September, 2008 to December, 2008.


34

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

Subject to SEBI (MFs) Regulations, guidelines on investment from time to time:

(a) The schemes (except UTI-NIF and UTI MNC Fund) shall invest not more than 10% of their NAVs in the equity shares or equity related instruments of any company.

(b) The schemes which are eligible to invest in unlisted equity shares or equity related instruments shall invest not more than 5% of their NAVs in the unlisted equity shares or equity related instruments.

(c) The aggregate value of “illiquid securities” of a scheme (other than UTI-NIF), which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of a scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value. The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of a scheme. In normal course of business, the schemes would be able to make payment of redemption proceeds within 10 business days, as they would have sufficient exposure to liquid assets. In case of the need for exiting from such illiquid instruments in a short period of time, the NAV of the schemes could be impacted adversely.

(d) The schemes permitted to invest in debt shall not invest more than 15% of their NAVs in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAVs of the schemes with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in government securities. Provided further that investments within such limits can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

(e) The schemes permitted to invest in debt shall not invest more than 10% of their NAVs in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAVs of the schemes. All such investments shall be made with the prior approval of the Trustees and Board of the AMC. No mutual fund scheme shall invest more than thirty percent of its net assets in money market instruments of an issue.

Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralized borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Board and the Trustees. The details of such investments shall be communicated by UTI AMC to the Trustees in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Boards of AMC and Trustees shall be required.

(f) Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause (I) (d) and (e) above. It is further clarified that the investment limits at clause (I) (d) and (e) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above investment limits.

(g) No term loans will be advanced by this scheme for any purpose as per SEBI regulation 44(3) of SEBI (Mutual Fund) Regulations 1996.

(h) Pending deployment of funds of the schemes in securities in terms of the investment objective of the schemes, the funds of the schemes may be invested in short term deposits of scheduled commercial banks in accordance with SEBI guidelines.

(i) UTI Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction. Provided that the schemes may enter into derivatives transactions for the purpose of hedging and re-balancing the portfolio as may be permissible under guidelines issued by SEBI.

(j) The Mutual Fund under all its schemes taken together will not own more than 10% of any Company’s paid up capital carrying voting rights.

(k) Investments of each scheme are held in the names of the respective schemes. UTI MF shall, get the securities purchased by the schemes transferred in the names of the schemes, whenever investments are intended to be of long-term nature.

The total holding of the schemes are held in the names of the schemes except (a) under UTI-Equity Fund, where securities pertaining to 2 BIFR companies are held in physical and are


35

not in the name of the scheme and (b) under UTI-Balanced Fund debt, where the holding of 4 companies are NPAs which are held in physical and are not in the name of the scheme

(l) (i) These schemes may participate in the securities lending program, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediaries.

(ii) The maximum exposure of the schemes to a single approved intermediary in the securities lending programme at any point of time would be 10% of the market value of the security class of the schemes or such limit as may be specified by SEBI.

(iii) If mutual funds are permitted to borrow securities, the schemes may, in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

(m) The schemes shall not make any investment in any unlisted security of an associate or Group Company of the sponsors; or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets. However UTI-NIF will invest in securities underlying the CNX NIFTY Index. The scheme wise upper limit for such investments for UTI-NIF will be as per the weightage of the scrips in the underlying Index.

(n) Investment in non-publicly offered debt: Depending upon the available yields the schemes, which are permitted to invest in Debt instruments, may invest in non-publicly offered debt securities.

(o) Based upon the liquidity needs, the schemes may invest in Government of India/State Government Securities to the extent to which such investment can be made by the schemes.

(p) Investment by these schemes in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under: A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund. Such investment will be consistent with the investment objective of the schemes. No investment management fees will be charged by

the AMC on such investment (q) The schemes shall not make any investment in

any fund of fund scheme.J. HOW HAVE THE SCHEMES PERFORMED? (a) UTI-Balanced Fund

Performance of the scheme as on June 30, 2013

Compounded Annualised Returns*

Scheme Returns Growth

Option %

CRISIL Balanced

Fund Index %

Last 1 year 8.18 10.90Last 3 years 3.12 5.20Last 5 years 9.70 8.70

Since Inception

15.38 N.A.

(b) UTI-Contra Fund


Compounded Annualised Returns *

Scheme return %

S&P BSE

200 %Last 1 year 2.30 8.69Last 3 years -4.43 1.11Last 5 years 6.00 7.16

Since Inception

2.61 7.66


36

(c) UTI-Dividend Yield Fund

Performanceof the scheme as on June 30, 2013


Scheme return

%

S&P BSE

100 %Last 1 year 3.25 9.91Last 3 years 2.78 1.94Last 5 years 12.86 7.31

Since Inception 15.46 14.36

(d) UTI-Equity Fund



Scheme return

%

S&P BSE

100 %Last 1 year 11.01 9.91Last 3 years 6.56 1.94Last 5 years 12.65 7.31


(e) UTI-Equity Tax Savings Plan



Scheme Returns

%

S&P BSE

100%Last 1 year 7.58 9.91Last 3 years 2.48 1.94Last 5 years 6.45 7.31

Since inception 14.70 11.24

(f) UTI-India Lifestyle Fund



Scheme return

%

CNX 500 %



(g) UTI-Leadership Equity Fund



Scheme return

%

CNX Nifty %




37

(h) UTI-Master Plus Unit Scheme:



Scheme return

%

S&P BSE

Sensex %



(i) UTI-Mastershare Unit Scheme:



Scheme return %

S&P BSE 100

%Last 1 year 8.61 9.91Last 3 years 3.60 1.94Last 5 years 9.44 7.31

Since Inception

12.35 N.A.

(j) UTI-Master Value Fund



Scheme return %

S&P BSE 200


Since Inception

18.81 14.07

(k) UTI-MNC Fund:



Scheme return %

CNX MNC

Index %Last 1 year 9.58 7.87Last 3 years 10.04 5.78Last 5 years 18.51 13.71

Since Inception

16.08 10.02


38

(l) UTI-Nifty Index Fund:



Scheme Returns

%

CNX Nifty %


Since Inception

10.19 9.76

(m) UTI-Opportunities Fund



Scheme Return %

S&P BSE 100


Since Inception

15.25 12.41

(n) UTI-Top 100 Fund



Scheme Return

%

S&P BSE

100 %Last 1 year 9.79 9.91Last 3 years 4.25 1.94


(p) UTI-Wealth Builder Fund – Series II



Scheme Return

%

#Com-posite Bench-mark %

Last 1 year -1.19 0.65Last 3 years 6.40 5.02


# S&P BSE 100 is the benchmark index for the Equity

part of the Portfolio, CRISIL Bond Fund Index is the benchmark for that part of the Portfolio relating to investments in Debt and Money Market Instruments and the Price of Gold as per SEBI Regulations for Gold ETFs in India is the benchmark in so far it pertains to investments in Gold ETFs.

* Computed on compounded annualised basis.Past performance may or may not be sustained in future


39

III. UNITS & OFFERThis section provides details you need to know for investing in the schemes.A. ONGOING OFFER DETAILS UTI-Equity Tax Savings Plan (UTI-ETSP) has been drawn up pursuant to the guidelines issued by the Central

Government as mentioned in the Equity Linked Savings Scheme 1992, the Equity Linked Saving (Amendment) Scheme 1998 and Section 80 C of the Income Tax Act, 1961.

Plans / Options offered In addition to the existing Plan, all the schemes offer ‘Direct Plan’*.Both the Plans offer the following options for all schemes except UTI-Wealth Builder Fund –Series IIi) Growth Option Ordinarily no dividend distribution will be made under this option. All income

generated and profits booked will be ploughed back and returns will be reflected through the NAV.

ii) Dividend Option with Payout and Reinvestment facilities. In case where neither of the options is exercised by the applicant/unitholder

at the time of making his investment or subsequently he will be deemed to be under the Growth Option and his application will be processed accordingly.

For UTI-Wealth Builder Fund –Series IIIn addition to the Retail Plan the scheme offers ‘Direct Plan’.*Both Retail Plan and Direct Plan offer the following options:-i) Growth Option Ordinarily no dividend distribution will be made under this option. All income

generated and profits booked will be ploughed back and returns will be reflected through the NAV.

ii) Dividend Option with Payout and Reinvestment facilities. In case no option is indicated in the application form, then the default option

will be the growth option.Fresh Subscriptions has been discontinued with effect from 1st October 2012 under UTI-Wealth Builder Fund – Series II – Institutional Plan: The existing Investors under UTI-Wealth Builder Fund – Series II - Institutional Plan shall be allowed to continue in the discontinued Plan/Option till they exit.Further, the Dividend Reinvestment facility/option in Institutional Plan/options is withdrawn and the dividend as and when declared under this Plan will be compulsorily paid out in such cases even if it is under reinvestment facility/option.* Direct Plan:Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.All categories of Investors (whether existing or new Unitholders) are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid from Direct Plan.Portfolio of the Scheme under the existing plan and Direct Plan will be common.How to apply: Investors subscribing under Direct Plan of the scheme will have to indicate “Direct Plan” against the Scheme name in the application form, as for example., “UTI-Opportunities Fund - Direct Plan”.


40

Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for existing plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.

Scheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the existing plan and the Direct Plan except that:

(a) Switch of investments from existing plan through a distributor with ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan shall be subject to applicable exit load, if any. The holding period for applicability of load will be considered from the date of such switch to Direct Plan.

(b) However, no exit load shall be levied for switch of investments from existing plan made directly without an ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan of the scheme (subject to statutory taxes and levies, if any). The holding period for applicability of load will be considered from the date of initial investment in the existing plan.

(c) No exit load shall be levied in case of switches from Direct Plan to existing plan.

Dividend Policy (a) Dividend distribution: Dividend distribution, if any, under the schemes will be made subject to

availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution.

(b) Capitalisation and issue of Bonus units Bonus units may be issued under any of the scheme/s as may be decided

by the Trustee from time to time

(c) Reinvestment of dividend distributed Unitholders, if they so desire, will have facility to reinvest dividend, if any,

payable to them, into further units of that scheme.

(d) Rollover facility Rollover facility offers a facility to unitholders to redeem entire or a part

of their outstanding unit holding and simultaneously investing the entire proceeds or upto face value of units redeemed on the rollover date at the same NAV in the same scheme. No load will be required to be paid on redemption proceeds to the extent of amount invested under the rollover facility.

Risk Mitigation process against Third Party Cheques

Restriction on Third Party PaymentsThird party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions.

“Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made

For further details, please refer to SAI.


41

Who can investThis is an indicative list and you are requested to consult your financial advisor to ascertain whether the scheme is suitable to your risk profile.

An application for issue of units may be made by any resident or non-resident Indian as well as non-individuals as indicated below:(a) a resident individual or a NRI or a person of Indian origin residing abroad,

either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court;

(b) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on ‘Joint’ or ‘Anyone or Survivor’ basis.

(c) an association of persons or body of individuals whether incorporated or not;(d) a Hindu Undivided Family - both resident and non-resident;(e) a body corporate including a company formed under the Companies Act,

1956 or established under State or Central Law for the time being in force;(f) a bank including a scheduled bank, a regional rural bank, a co-operative

bank etc.;(g) an eligible trust including Private Trust being irrevocable trust and created

by an instrument in writing;(h) a society as defined under the scheme;(i) a Financial Institution;(j) an Army/Navy/ Air Force/Paramilitary Fund;(k) a partnership Firm;(An application by a partnership firm shall be made by not more than three partners of the firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorized by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)(l) FIIs registered with SEBI;(m) Mutual Funds registered with SEBI;(n) Scientific and Industrial Research Organisations;(o) Multilateral Funding Agencies / Bodies Corporate incorporated outside India

with the permission of Government of India/Reserve Bank of India;(p) Other schemes of UTI Mutual Fund subject to the conditions and limits

prescribed by SEBI Regulations.(q) Such other individuals / institutions / body corporate etc., as may be decided

by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.

(r) Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme.

The fund reserves the right to include/exclude, new/existing categories of investors to invest in the schemes from time to time, subject to SEBI Regulations, if any.Under UTI-ETSP only the following categories of investors are qualified for tax benefit under Section 80 C of Income Tax Act, 1961.(a) a resident adult individual either singly or with another individual on joint/

either or survivor basis.


42

(b) a parent, step-parent or other lawful guardian on behalf of a resident minor. Units can be held on ‘Joint’ or ‘Anyone or Survivor’ basis.

(c) a Hindu Undivided Family (HUF).

An application on behalf of a HUF shall be made only by the Karta either singly or jointly with another adult male member. Where there is no major male member, an application by a female member, as Manager will be accepted provided a declaration to that effect is attached to the application.

(d) an Association of Persons (AOP) or a Body of Individuals (BOI) consisting, in either case, only of husband and wife governed by the system of community of property in force in the state of Goa and Union Territories of Dadra and Nagar Haveli and Daman and Diu.

Neither this Scheme Information Document nor the units have been registered in any jurisdiction including the United States of America. The distribution of this Scheme Information Document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of this Scheme Information Document are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme Information Document or any accompanying application form in such jurisdiction may treat this Scheme Information Document or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements.

Accordingly this Scheme Information Document does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. It is the responsibility of any persons in possession of this Scheme Information Document and any persons wishing to apply for units pursuant to this Scheme Information Document to inform themselves of and to observe, all applicable laws and Regulations of such relevant jurisdiction.

Holding Basis: In the event an account has more than one registered holder the first named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines. Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.

In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders. For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,


43

1. Foreign Nationals shall be resident in India as per the provisions of the Foreign Exchange Management Act, 1999.

2. Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/ applicable from time to time, including but not limited to and pertaining to anti money laundering, know your customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions.

UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.Qualified Foreign Investors (QFIs) shall mean a person resident in a country that is compliant with Financial Action Task Force (FATF) standards and that is a signatory to International Organization of Securities Commission’s (IOSCO’s) Multilateral Memorandum of Understanding, provided that: - Such person is not resident in India and - Such person is not registered with SEBI as Foreign Institutional Investor or sub account.Explanation: For the above purpose,1. The term “Person” shall carry the same meaning under Section 2(31) of the

Income Tax Act, 1961.2. The phrase “resident in India” shall carry the same meaning as in the Income

Tax Act, 19613. “resident” in a country, other than India, shall mean resident as per the direct

tax laws of that country. QFIs are eligible to make investment in the equity oriented schemes of UTI Mutual Fund as may be specified by UTI AMC from time to time.

Uniform Procedure for Updation / Change of Address & Change / Updation of Bank details

A] Updation / Change of address:Investors are requested to update their change of address within 30 days from the date of change.In case of Know Your Client (KYC) complied folios, Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com], as may be specified by them, from time to time.In case of non KYC complied folios, Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, , Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.Proof of old as well as new address:Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.


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B] Updation / Change of bank details:Investors are requested to update/change their bank details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:B.1) Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council et., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.B.2) Proof of new bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.B.3) Proof of existing/old bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable, Original receipts of Two Renewal Contributions paid (applicable in case of UTI ULIP)B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.C] Cooling period:In case the change of address and/or Updation / change of bank details are submitted together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 working days from the date of such redemption request.The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.


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Ongoing price for subscription (purchase) / switch-in (from other schemes/plans of the mutual fund) by investors.This is the price you need to pay for purchase/switch-in.

The face value of a unit is `10/- and units will be issued in fractions up to three decimal places.Purchase on all business days at the applicable NAV. No entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment Plans / Systematic Transfer Investment Plans accepted by the Fund.UTI-Wealth Builder Fund – Series IIRestriction on subscriptionThe Scheme will be open for subscription during each calendar month subject to the condition that not more than 10% of the number of outstanding units allotted as on the last business day of the previous month would be available for the sale in the immediately following month.However, the UTI AMC reserves the right to collect the subscriptions in excess of the said limit of 10% of the outstanding allotted Units. The excess subscription for allotment of Units will be decided by the Fund Manager of the Scheme on the basis as stated in the case of NFO period.All such applications in excess of the above 10% limit will be accepted for full allotment.Similarly, the AMC/Trustee may close such additional subscription by giving one day’s notice in one daily newspaper and UTI MF website.However, Subscriptions by way of SIPs/STRIPs will be allowed on all business days at the applicable NAVs (subject to load) even if the said limit of 10% is exceeded. Subscriptions through the ATMs is not allowed. However, subscriptions through online mode will be allowed. The subscriptions through online mode will not be reckoned for the purpose of determining the 10% limit. Regarding subscription through online mode, refer to Statement of Additional Information (SAI) for details.For Applications submitted through other than online mode or SIPs / STRIPs, Investors are required to check the Official Points of Acceptance (OPAs) whether the Scheme is open for subscription before submitting their application forms for subscription of Units of the Scheme failing which the UTI MF/UTI AMC shall not be responsible/liable in any manner whatsoever.

Mode of Payment- Cash Cash payment to the extent of `20,000/- per financial year through designated branches of Axis Bank will be accepted subject to the following procedure.

The procedure required to be followed for cash payment is as under:

i. Investors who desire to invest upto `20,000/- per financial year shall contact any of our UFCs and obtain a Form for Deposit of Cash and fill-up the same.

ii. Investors shall then approach the designated branch of Axis Bank along with the duly filled-in Form for Deposit of Cash and deposit the cash.

iii. Axis Bank will provide an Acknowledgement slip containing the details of Date & Time of deposit, Unique serial number, Scheme Name, Name of the Investor and Cash amount deposited. The Investors shall attach the Acknowledgement slip with the duly filled-in application form and submit them at the UFCs for time stamping.

For further details please refer to SAI.


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Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.This is the price you will receive for redemptions / switch outs.Example: If the applicable NAV is `10, exit load is 2% then redemption price will be:

`10* (1-0.02) = ` 9.80

Redemption on all business days at the applicable NAV subject to prevailing exit load.Redemption under UTI-ETSP(i) As per ELSS guidelines redemption of units will be allowed after an initial

lock-in-period of 3 years from the date of acceptance of each investment.(ii) If, however, the ELSS guidelines so permit the applicability of the three-year

lock-in-period can be waived for investments made in excess of `1,00,000/-.(iii) Under UTI-ETSP in the event of the death of the assessee, the nominee or

legal heir, as the case may be, shall be able to withdraw the investment only after the completion of one year from the date of allotment of the units to the assessee or anytime thereafter.

Cut off timing for subscriptions/ redemptions/ switchesThis is the time before which your application (complete in all respects) should reach the official points of acceptance.

Purchase : For Purchases less than `2 lacsOperation Cut-off Timing Applicable NAV

Valid applications received with local cheques / demand drafts payable at par at the place where the application is received.

Upto 3 p.m. NAV of the day of receipt of the application


After 3 p.m. NAV of the next business day.

Valid applications received with outstation cheques / demand drafts (for the schemes/investors as permitted in the SID) not payable at par at the place where the application is received.

Within Business Hours

NAV of the day on which cheque/demand draft is credited to the Scheme/Plan.

Purchase : For Purchases of `2 lacs and aboveOperation Cut-off Timing Applicable NAV

Valid applications received with cheques / demand drafts.

Upto 3 p.m. NAV of the day (or immediately following Business Day if that day is not a Business Day) on which the funds are available for utilization shall be applicable.

The above mentioned rule will be applicable irrespective of the date of debit to investor’s account. `2 lacs shall be considered after considering multiple applications received from the investor under all the schemes/plans on the day and also under all modes of investment i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN.

Redemption : Operation

Cut-off Timing Applicable NAV

Valid applications received

Upto 3 p.m. NAV of the day of receipt of the application

Valid applications received

After 3 p.m. NAV of the next business day.

Book Closure Period / Record date

The purchase and redemption of units under all the schemes shall remain open on all business days throughout the year except during book closure period/s not exceeding 15 days in a year. Besides, record date/s for any scheme may be announced for distribution of dividend, if any, during the year.


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Where can the applications for purchase/redemption/ switches be submitted?

The details of official points of acceptance are given on the back cover page. It is mandatory for investors to mention their bank account particulars in their applications/requests for redemption.

How to Apply Please refer to the SAI and Application Form for the instructions.Minimum amount for purchase / switches

Minimum amount for purchase:(i) (a) Any application for initial investment shall be for a minimum of `5000/-

and in multiples of `1/- thereafter or such other amount as may be decided from time to time under all schemes except UTI-ETSP and UTI-Balanced Fund

(b) The minimum investment is `500/- and in multiples of `500/- thereafter under UTI-ETSP.

(c) The minimum investment is `1000/- under Growth Option and `5000/- under Dividend Option and in multiples of `1/- under both the options of UTI-Balanced Fund.

(ii) Amount of Subsequent minimum investment under a folio in all the schemes is `1000/- (`500/- for UTI-ETSP) and in multiples of `1/- without any upper limit.

(iii) While there is no maximum limit on the amount of investment under the UTI-ETSP in any fiscal year, investment upto `100000/- only will qualify for deduction from the gross taxable income under Section 80 C of the Income Tax Act, 1961 as per current tax laws.

Minimum amount of Switchover(i) Unitholders of these schemes may be permitted to switchover their

investment partially or fully, to specified scheme/s of UTI MF or vice versa and on such terms as may be announced by UTI AMC from time to time.

(ii) In case of partial switchover from one scheme to the other scheme/s, the condition of minimum investment holding prescribed from time to time under both the schemes has to be satisfied.

(iii) In case of UTI-ETSP, Unitholders may be permitted to switchover their investment partially or fully, to specified scheme/s of UTI MF or vice versa and on such terms as may be announced by UTI AMC from time to time after it is held for a minimum period of 3 years.

Know Your Customer Know Your Customer (KYC) NormsCommon Standard KYC through CDSL Ventures Ltd (CVL) is applicable for all categories of investors and for any amount of investment. KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI.However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual FundKYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:1. Instances where no action is requireda) In the case of those individual investors and non-individual investors, other

than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.


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b) Existing investors of UTI MF, who are already KYC compliant as per UTI MF’s records on or before 31.12.2011, may continue to invest for their future transactions (including additional purchases, Systematic Investment Plans [SIPs], etc.) under the existing folios which are KYC Compliant.

2. Instances where partial action is requireda) All those Individual Investors who wish to open a new folio with UTI Mutual

Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.

b) Entities which are Corporates, Partnership Firms and Trusts and which have complied with Uniform KYC requirements on or after January 1, 2012, are required to submit their Balance Sheet for every financial year on an ongoing basis, within a reasonable period.

3. Instances where complete KYC compliance is requireda) For existing investors as well as new investors who are not yet KYC

Compliant, are required to submit the KYC Application from duly filled in with requisite documentary proofs to KRAs along with completion of IPV process, to comply with uniform KYC requirements as stipulated by SEBI in case they intend to make purchase/additional purchase/switches/SIP etc. with UTI Mutual Fund.

b) In case of Non Individual investors even if they are KYC compliant prior to December 31, 2011, uniform KYC requirements need to be complied with afresh due to significant and major changes in uniform KYC requirements by submitting KYC form for Non-Individuals with requisite documentary proofs, if they intend to open a new folio with UTI Mutual Fund.

PAN-Exemption for micro financial productsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable.Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.

Minimum balance to be maintained and consequences of non maintenance.

Partial redemption under a folio is permitted subject to the unitholder maintaining the prescribed minimum balance to be reckoned with reference to the redemption price applicable as on the date of acceptance of the redemption application. Where the balance amount so calculated is found to be less than the prescribed minimum balance, UTI AMC may compulsorily redeem the entire outstanding holding of the unitholder without any fresh application for redemption of the balance holding and pay the proceeds to the unitholder


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Special Products 1) Systematic Investment Plan (SIP) / Micro SIP - Available (except Micro SIP is not available under UTI-India Lifestyle Fund)

2) Systematic Transfer Investment Plan – Available3) Systematic Withdrawal Plan – Available (except UTI-ETSP and UTI-India

Lifestyle Fund)4) STRIP Advantage is available under UTI-NIF and UTI-Dividend Yield Fund5) Dividend Transfer Plan (DTP) – Available (except UTI-India Lifestyle

Fund)6) Switchover Facility - available Please refer to Statement of Additional Information (SAI) for SIP, Micro

SIP, SWP, DTP, STRIP, switchover and STRIP Advantage details7) Automatic Trigger Facility (available under all the schemes except UTI-

ETSP, UTI-Balanced Fund and UTI-Wealth Builder Fund – Series II)a) The following are the four types of Trigger Options available:i. Value Trigger: As & when the investment reaches a specified value. For

example if `10,000/- is invested and the unit holder wants to encash when the investment becomes `15000/-. The specifi ed value is `15,000/-.

ii. Appreciation Trigger: On appreciation of capital by an indicated percentage (in whole numbers like 10, 11 etc.). For example if an investor invests `10,000/- and wants to encash when the capital is appreciated by 10% (only appreciation amount) his units will be redeemed at the applicable redemption price and paid 10% of capital appreciation i.e. `1,000/-. He will be paid full redemption value of his units if he opts for full redemption of units. Fractions indicated if any will be ignored.

iii. Date Trigger: Redemption on an indicated date. For example 30-12-2010.iv. Stop-loss Trigger: On depreciation of capital by an indicated percentage

(in whole numbers like 10, 11 etc.). For example if an investor invests Rs.10,000/- and wants to encash when the capital is depreciated by 10%, his full units will be redeemed at the applicable redemption price and paid.

b) A separate request for trigger facility has to be made for each investment in a folio.

c) All Trigger requests will be accepted at UTI Financial Centres/ Registrars handling the target scheme only.

d) Trigger Facility is available to the ‘individual’ as well as ‘non-individual’ unitholders upto the payment value of Rs. 10 lakhs per event per folio (per investor identification number).

e) For fresh applications the trigger will be effective only after 5 business days from the date of acceptance in the scheme/Fund. For existing investors in case of exercising trigger facility at a later date, trigger facility will become operative after a gap of business days from the date of receipt of the request.

f) Change / Cancellation of trigger will be effective only after a gap of 5 business days from the date of receipt of the request.

g) Units under trigger option can be redeemed fully or partially any time. In such event, the trigger facility will be automatically cancelled and the unitholder will be informed of the same, while sending the redemption cheque.

h) Trigger Facility is not available if the Folio is under Lien or marked “STOP” on the advice of I.T Authorities / Court or any other reason.

i) Once the mandate is given for Automatic Trigger Facility, which involves redemption of units, it will be treated as full discharge for redemption of units, whenever, such opted event takes place.


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j) Redemption amount will be paid only to the first unit holder as per normal existing practice.

k) The value will be paid by repurchasing units at the redemption price prevailing on the day following the day of event of trigger in the case of value trigger, appreciation trigger and stoploss trigger and at the redemption price prevailing on the specified date in the case of date trigger.

l) If the option date as per option a (iii) above happens to be a holiday, then redemption will be effected as on the immediate following business day.

m) Each allotment of Accumulated Income Units (AIUs)/bonus units will be treated as a separate investment. Accordingly, a separate Trigger request for each allotment has to be made, if each AIU/bonus allotment has to be brought under Trigger facility.

n) The unit holder holding Unit Certificates has to convert the unit certificate into Statement of Account (SoA) for availing Automatic Trigger Facility. Only after receipt of SoA the request for Automatic Trigger Facility can be made.

o) The Automatic Trigger Facility is subject to SEBI Regulations.p) If the Automatic Trigger selected by the unitholder is not activated and /

or implemented due to reasons which are beyond the control of UTI AMC, the AMC would not be responsible for the same. The AMC may initiate adjustments to correct any credit / payment entries or otherwise made in error to a unitholder.

Automatic Trigger Facility is only a facility extended by the AMC for the convenience of unitholders and does not form part of any scheme / fund objectives.The AMC reserves the right to amend / terminate this facility at any time, keeping in view business/operational exigencies.

Statement of Account (SoA) (a) SoA will be a valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft any issue of units to such unitholders will be cancelled and treated having not been issued if the cheque/draft is returned unpaid.

(b) Every unitholder will be given a folio number which will be appearing in SoA for his initial investment. Further investments in the same name(s) would come under the same folio, if the folio number is indicated by the applicant at the time of subsequent investment. The folio number is provided for better record keeping by the unitholder as well as by UTI AMC.

(c) The AMC shall issue to the investor whose application has been accepted, an SoA specifying the number of units allotted. UTI AMC shall issue a SoA within 5 business days from the date of acceptance of an application.

(d) The AMC will issue a Consolidated Account Statement (CAS) for each calendar month to the investor in whose folios transactions has taken place during that month and such statement will be issued on or before the 10th day of the succeeding month detailing all the transactions and holding at the end of month including transaction charges paid to the distributor, if any, across all schemes of all mutual funds.

Further, CAS as above, will also be issued to investors (where PAN details of 1st holder are available) every half yearly (September/March), on or before the 10th day of succeeding month detailing holding at the end of the sixth month, across all schemes of all mutual funds, to all such investors in whose folios no transactions has taken place during that period.

The word “transaction” for the purposes of CAS would include purchase, redemption, switch, dividend payout, dividend reinvestment, Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP), Systematic Transfer of Investment Plan (STRIP), bonus transactions and merger, if any.


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However, Folios under Micro pension arrangement shall be exempted from the issuance of CAS.

For further details on other Folios exempted from issuance of CAS, PAN related matters of CAS etc, please refer to SAI.

(e) For those unit holders who have provided an e-mail address/mobile number:- The AMC shall continue to allot the units to the unit holders whose

application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later then five business days from the date of receipt of the request from the unit holders.

The unit holder will be required to download and print the SoA/other correspondences after receiving e-mail from the Mutual Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered SoA/other correspondences, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternate means. Failure to advise UTI Mutual Fund of such difficulty within 24 hours after receiving the e-mail, will serve as an affirmation regarding the acceptance by the Unit holder of the SoA/other correspondences.

It is deemed that the Unit holder is aware of all securities risks including possible third party interception of the SoA/other correspondences and the content therein becoming known to third parties.

Under no circumstances, including negligence, shall the Mutual Fund or anyone involved in creating, producing, delivering or managing the SoA of the Unit Holder, be liable for any direct, indirect, incidental, special or consequential damages that may result from the use of or inability to use the service or out of the breach of any warranty. The use and storage of any information including, without limitation, the password, account information, transaction activity, account balances and any other information available on the Unit holder’s personal computer is at risk and sole responsibility of the Unit holder.

The unitholder may request for a physical account statement by writing/calling the AMC/R&T.

Friend in Need “Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors.For further details, please refer to SAI.

Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of delay in payment of dividend amount, The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum)

Redemption The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date of redemption.In case of funds received through Mode of Payment – Cash, the redemption or repurchase proceeds shall only be to the designated bank account.Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI


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Delay in payment of redemption proceeds

The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).

Transfer / Pledge / Assignment of Units

A. Units held in Demat form Units of the schemes held in dematerialised form shall be freely transferable

from one demat account to another demat account. However, the restrictions on transfer of Units of UTI ETSP scheme during the lock in period shall continue to be applicable as per the ELSS Guidelines.

For Pledge/assignment of Units, Unit holders should approach their Depository Participant (DP).

If an Unit holder holding units in dematerialised mode desires to change the option from dividend payout to Dividend Reinvestment or Growth, they would have to rematerialize the units for the change to be effected. For rematerialisation, Unit holders should approach their DP.

B. Units of UTI-ETSP Under UTI-ETSP units can be transferred/pledged/assigned after the lock

in period of three years from the ‘date of acceptance’. In the event of the division and/or disintegration of unitholding pertaining to HUF, AOP, BOI during the lock-in-period or thereafter, nothing contained herein above shall be a bar to the applicability for the relevant law with respect to the said division or disintegration except otherwise specifically agreed to or stated and which are not contrary to the said law, if any. The distribution of their dividend, if any, and the division of the unit among the unitholders of HUF, AOP, BOI shall always be governed by the relevant law, if any, in force from time to time.

C. Units covered by Unit Certificates1. Units covered by unit certificates issued (i) prior to March 13, 2000 under

UTI-Balanced Fund (ii) prior to April 26, 2000 under UTI-Master Plus and UTI-Equity Fund (iii) prior to February 23, 2000 under UTI-MNC Fund and units covered by unit certificates under UTI Mastershare Unit Scheme and UTI Master Value Fund are transferable / pledgeable /assignable subject to the conditions given under item (3) below.

2. Units covered by the SoA under the above schemes are not transferable.3. Transfer of units in the aforementioned cases will be subject to following

terms and conditions:-(a) Transfers to be effected only by and between transferors and transferees

who are capable of holding units as given under `Who can invest’. UTI AMC shall not be bound to recognise any other transfer.

(b) Transfers shall be permitted subject to it being for the prescribed minimum amount (currently ` 5000/-). No partial transfers shall be registered if the registration thereof would result in the transferor or the transferee holding less than ` 5000/-.

(c) Every instrument of transfer shall be signed by the transferor (all the transferors in case of joint holding) and the transferee (all the transferees in case of joint purchase).

(d) The transferor shall be deemed to hold units until the name of the transferee is entered into the register of unit holders.

(e) The AMC may require such evidence as it may consider necessary in support of the title of the transferor or his right to transfer units.


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(f) Duly stamped prescribed transfer deed with the relative unit certificate are to be sent to the offices of the registrar for the concerned scheme. Any instrument of transfer lodged with any of the Financial Centres of UTI AMC shall be forwarded to the concerned office of the Registrar. Provided, that under special circumstances, UTI AMC may allow transfer of units without an instrument of transfer on such terms and conditions and on such transferee providing such proof as may be specified by UTI AMC.

(g) UTI AMC may subject to compliance with such requirements as they deem necessary dispense with the production of the original unit certificate, should it be lost, stolen or destroyed.

(h) Upon registration of a transfer of units all instruments of transfer and the unit certificate may be retained by UTI AMC.

(i) The AMC on recognising and registering a transfer may endorse the original unit certificate or issue a fresh SoA to the transferee.

(j) If a transferee becomes a holder of units in an official capacity, by operation of law or a scheduled bank upon enforcement of a pledge, then UTI AMC shall, subject to the production of such evidence which in their opinion is sufficient, proceed to effect the transfer if the intended transferee is otherwise eligible to hold units.

(k) Under special circumstances, holding of units by a company or other body corporate with another company or body corporate or an individual/individuals, none of whom is a minor, may be considered by UTI AMC.

(l) Subject to the provisions contained herein above, UTI AMC shall register the transfer and return the unit certificate along with dividend distribution warrant, if any, (where the transferee is eligible to get such dividend) to the transferee within 30 days from the date of lodgement of the unit certificate together with the relevant instrument of transfer.

(m) In case of joint transferees, the unit certificate will be sent to and all payments in respect of the unit certificate will be made only in the name of the first unitholder.

D. Restrictions on Transfer/Pledge/Assignment under certain Schemes (For Non dematerialised Units)

Units issued under UTI-Contra Fund, UTI-Dividend Yield Fund, UTI-Leadership Equity Fund, UTI-Master Index Fund, UTI-Nifty Index Fund and UTI-Opportunities Fund are not transferable/pledgeable/assignable except as stated below:

(a) The SoA to be issued to a unitholder pursuant to this Scheme Information Document will not be transferable.

(b) However, if a person becomes a holder of units under any of the schemes by operation of law or upon enforcement of a pledge (as given in (E) below) or due to death, insolvency or winding up of the affairs of unitholder or survivors of a joint holder then subject to production of such evidence which in the opinion of UTI AMC is sufficient, UTI AMC may effect the transfer if the intended transferee is otherwise eligible to hold units. Transfer of units in such cases will be subject to compliance of operational requirements as may be specified by UTI AMC from time to time.


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E. Pledge/Assignment of units permitted only in favour of banks/other financial institutions:

The unitholders may pledge/assign units in favour of banks/other financial institutions as a security for raising loans. Units can be pledged by completing the requisite forms/formalities, as may be required, whereupon UTI AMC will record a pledge/charge/lien against units pledged. As long as the units are pledged, the pledgee bank/financial institution will have complete authority to redeem such units. The pledger will not be allowed to redeem units so pledged until the bank/financial institutions to which the units are pledged provides a written authorisation to UTI AMC that the pledge/charge/lien may be removed. However, if pledged units are received for redemption/transfer, from the unitholder, UTI AMC has right to redeem or transfer such units.

For further details on Transfer/Pledge/Assignment of Units etc, refer to SAI.

B. PERIODIC DISCLOSURESNet Asset ValueThis is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance.

The Mutual Fund shall declare the Net asset value of the scheme on every business day on www.utimf.com and on AMFI’s website www.amfiindia.com.The NAV shall be calculated for all business days and released to the Press.

Monthly Portfolio Disclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of the month for all its schemes on its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format.The format for monthly portfolio disclosure shall be the same as that of half yearly portfolio disclosures.The Mutual Fund shall also disclose additional information (such as ratios etc) subject to compliance with the SEBI Advertisement Code.

Half Yearly Disclosure: Portfolio / Financial Results

The Mutual Fund shall within one month from the close of each half year, (i.e. 31st March and 30th September), host a soft copy of its unaudited financial results on its website.The Mutual Fund shall publish an advertisement disclosing the hosting of such financial results / half yearly portfolios on the website, in atleast two newspaper one national English daily newspaper having nationwide circulation and one in a newspaper having wide circulation published in the language of the region where the Head Office of UTI MF is situated.

Additional Disclosure: The Mutual Fund shall, in addition to the total commission and expenses paid to distributors, make additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio of AUM to gross inflows on its website on an yearly basis.In case, the data mentioned above suggests that a distributor has an excessive portfolio turnover ratio, i.e., more than two times the industry average, the AMC shall conduct additional due-diligence of such distributors.The Mutual Fund shall also submit the data to AMFI and the consolidated data in this regard shall be disclosed on AMFI website.

Annual Report An abridged annual report in respect of the scheme shall be mailed to the unitholders not later than four months from the date of closure of the relevant accounting year and the full annual report shall be made available for inspection at UTI Tower, Gn Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051. A copy of the full annual report shall also be made available to the unitholders on request on payment of nominal fee, if any.

Associate Transactions Please refer to Statement of Additional Information (SAI).


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TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/ authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. For further details on taxation please refer to the clause on Taxation in the SAIEquity Fund:Tax on Dividend

Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.By virtue of proviso to section 115 (R) (2) of the Act, equity oriented funds are exempt from income distribution tax.Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax. The Mutual Fund will receive income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.

Capital Gains:

Securities Transaction Tax

Long Term Capital Gain:As per section 10(38) of the Act, any income arising from the transfer of a long term capital asset being a unit of an Equity Oriented Fund chargeable to securities transaction tax shall not form part of total income therefore, exempt from Income Tax.Short Term Capital Gain:Capital gains arising from the transfer of short term capital assets being unit of an equity oriented fund shall be liable to income tax @ 15% under section 111 A and section 115 AD of the Act. The said tax rate would be increased by applicable surcharge. The tax and surcharge will be increased by education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge.Equity schemes also attract Securities Transaction Tax (STT) at applicable rates.

Tax benefits under section 80C :

Tax benefits under section 80C (available under UTI-ETSP only)Contribution made will be eligible for deduction of the whole amount paid or deposited subject to a maximum of `1,00,000/- under Section 80 C of Income Tax Act, 1961 for the persons and on the terms and conditions as provided therein.

Investor services All investors could refer their grievances giving full particulars of investment at the following address:Shri G S AroraAssistant Vice President – Department of OperationsUTI AMC Ltd.UTI Tower, Gn Block,Bandra - Kurla Complex,Bandra (East),Mumbai - 400 051.Tel : 6678 6666 Fax: 2652 3031Investors may post their grievances at our website: www.utimf.com or e-mail us at [email protected]

C. COMPUTATION OF NAV(a) The Net Asset Value (NAV) of each of the schemes shall be calculated by determining the value of the concerned

scheme’s assets and subtracting therefrom the liabilities of that scheme taking into consideration the accruals and provisions. NAV shall be declared separately for the different plans & options of the schemes.

(b) The NAV per unit of a scheme shall be calculated by dividing the NAV of that scheme by the total number of units issued and outstanding on the date of calculation under each of the schemes. The NAV shall be rounded off upto four decimal places for all the schemes.

(c) A valuation day is a day other than (i) Saturday and Sunday (ii) a day on which both the stock exchanges (BSE and NSE) and the banks in Mumbai are closed (iii) A day on which the purchase and redemption of units is suspended. If any business day in UTI AMC, Mumbai is not a valuation day as defined above then the NAV will be calculated on the next valuation day and the same will be applicable for the previous business day’s transactions including all intervening holidays.

(d) The NAVs shall be published atleast in two daily newspapers on every business day and will also be available on website of UTI Mutual Fund www. utimf.com and website of AMFI www.amfiindia. com.


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IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the scheme.A. ANNUAL SCHEME RECURRING EXPENSES (a) These are the fees and expenses for operating the schemes. These expenses include Investment Management

and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below:

For all schemes except UTI-NIF The AMC has estimated that upto 2.50% of the daily net assets of a scheme will be charged to the scheme as

expenses. For the actual current expenses being charged, the investor should refer to the website of the UTI Mutual Fund.

Particulars % of Net AssetsFor All schemes –

Existing Plan except UTI-NIF

Investment Management and Advisory Fees

Up to 2.50%

Trustee FeeAudit FeesCustodian FeesRTA FeesMarketing and Selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory AdvertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther ExpensesMaximum total expense ratio (TER) permissible under Regulations 52 (6) (c)Additional expenses under regulation 52(6A) (c) Up to 0.20%Additional expenses for gross new inflows from specified cities under Regulation 52(6A)(b)

Up to 0.30%

For UTI-NIF – Existing Plan The total expenses of the schemes including the investment management and advisory fees shall not exceed one

and half of one percent (1.50%) of the daily net assets. Note: Direct Plan (investment not routed through a distributor) under all schemes shall have a lower expense ratio

excluding distribution expenses, commission etc. and no commission shall be paid from such Plan. Portfolio of the Scheme under the Existing Plan and Direct Plan will be common.

The purpose of the table is to assist the investor in understanding the various costs and expenses that an investor in the scheme will bear directly or indirectly. These estimates have been made in good faith as per the information available to the Investment Manager based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MFs) Regulations.

(b) The total annual recurring expenses of a scheme excluding redemption expenses but including the investment management and advisory fees shall be subject to the following limits:

(i) On the first `100 crores of the daily net assets - 2.50% (ii) On the next `300 crores of the daily net assets - 2.25% (iii) On the next `300 crores of the daily net assets - 2.00% (iv) On the balance of the assets - 1.75%Total Expense ratio (TER) and Additional Total Expenses:(i) Charging of additional expenses based on new inflows from beyond 15 cities 1. Additional TER shall be charged up to 30 bps on daily net assets of the scheme if the new inflows from beyond

top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the


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scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.

2. In case inflows from beyond top 15 cities is less than the higher of (a) or (b) above, additional TER on daily net assets of the scheme shall be charged as follows:

Daily net assets X 30 basis points X New inflows from beyond top 15 cities

365* X Higher of (a) or (b) above * 366, wherever applicable. The additional TER on account of inflows from

beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.

3. Additional expenses, not exceeding 0.20 per cent of daily net assets of the scheme, shall be charged towards Investment Management and Advisory fees charged by the AMC (‘AMC fees’) and for recurring expenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under different heads as mentioned under SEBI Regulations.

4. The ‘AMC fees’ charged to the respective scheme(s) with no sub-limits will be within the TER as prescribed by SEBI Regulations.

5. For further details on TER, please refer to SAI(ii) Service Tax 1. UTI AMC shall charge service tax on investment

and advisory fees to the scheme in addition to the maximum limit of TER.

2. Service Tax on other than investment and advisory fees, if any, shall be borne by the scheme within the maximum limit of TER.

3. Service Tax on entry/exit load, if any, shall be paid out of the load proceeds. Exit load, net of service tax, if any, shall be credited to the scheme.

4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations. As per the current SEBI Regulations, the brokerage and transaction costs which are incurred for the purpose of execution of trade and included in the cost of investment shall not exceed 12 bps in case of cash market transactions and 5 bps in case of derivatives transactions. Any payment towards brokerage and transaction cost, over and above the said 12 bps and 5bps for cash market transactions and derivatives transactions respectively may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. Any

expenditure in excess of the said prescribed limit shall be borne by the AMC or by the trustee or sponsors.

(iii) Investor Education and Awareness UTI Mutual Fund (UTI MF) shall annually set apart

atleast 2 bps on daily net assets within the maximum limit of TER for investor education and awareness initiatives.

B. LOAD STRUCTURE– for all classes of investors (1) Load is an amount which is paid by the investor to

redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or call at 1800 22 1230 (toll free number) or (022) 2654 6200 (non toll free number) or your distributor.

Scheme Entry Load(As

% of NAV)

Exit Load(As % of

NAV)

UTI-Balanced FundUTI-Contra FundUTI-Dividend Yield FundUTI-Equity FundUTI-India Lifestyle FundUTI-Leadership Equity FundUTI-Master Plus Unit SchemeUTI-Mastershare Unit SchemeUTI-Master Value FundUTI-MNC FundUTI-Opportunities FundUTI-Top 100 FundUTI-Wealth Builder Fund – Series II

Nil Less than 1 year – 1%G r e a t e r than or equal to 1 year – Nil

Scheme Entry Load(As % of NAV)


UTI-Nifty Index Fund

Nil Less than 15 days - 1%Greater than or equal to 15 days – Nil

Scheme

Entry Load(As % of

NAV)

Exit Load #(As % of

NAV)UTI-Equity Tax Savings Plan

Nil Nil

# Lock-in-period of 3 years for each investment


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(2) Entry load: In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No./168230/09 dated June 30, 2009 no entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/Systematic Transfer Investment Plans accepted by the Fund.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN holder directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN holder.

Transaction charges Pursuant to SEBI circular no. CIR/IMD/DF/13/2011

dated August 22, 2011, a transaction charge of `100/- for existing investors and `150/- in the case of first time investor in Mutual Funds, per subscription of ̀ 10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s.

There shall be no transaction charge on subscription below `10,000/-.

In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amounts to `10,000/- and above. In such cases, the transaction charge shall be recovered in 3-4 instalments

The transaction charge, if any, shall be deducted by UTI AMC from the subscription amount and paid to the distributor and the balance shall be invested. Allocation of Units under the scheme will be net of Transaction Charges. The Statement of Account (SoA) would also reflect the same.

Distributors shall be able to choose to opt out of charging the transaction charge. However the ‘opt out’ shall be at distributor level and not at investor level i.e., a distributor shall not charge one investor and choose not to charge another investor.

Distributors shall also have the option to either opt in or opt out of levying transaction charge based on category of the product. The various category of product are as given below:

Sr. No.

Category of product

1 Liquid/ Money Market Schemes2 Gilt Schemes3 Debt Schemes4 Infrastructure Debt Fund Schemes5 Equity Linked Saving Schemes (ELSS)6 Other Equity Schemes7 Balanced Schemes8 Gold Exchange Traded Funds9 Other Exchange Traded Funds

10 Fund of Funds investing Overseas11 Fund of Funds – Domestic

Where a distributor does not exercise the option, the default Option will be Opt–out for all above categories of product. The option exercised for a particular product category will be valid across all Mutual Funds.

The ARN holders, if they so desire, can change their option during the special two half yearly windows available viz. March 1st to March 25th and September 1st to September 25th and the new option status change will be applicable from the immediately succeeding month

The upfront commission, if any, on investment made by the investor, shall be paid to the ARN holder directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN holder.

Exit Load: For SIPs registered under scheme the load

structure as mentioned under Clause IV (B) (1) above will be applicable.

The investor is requested to check the prevailing load structure of the scheme before investing.

For any change in load structure AMC will issue an addendum and display it on the website/UTI Financial Centres.

(3) Any imposition or enhancement of load shall be applicable on prospective investments only. The AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors.

At the time of changing the load structure, the Mutual Fund shall consider the following measures to avoid complaints from investors about investment in the scheme without knowing the exit load:

(i) The addendum detailing the changes shall be attached to the Scheme Information Documents and Key Information Memoranda. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.

(ii) Arrangements shall be made to display the addendum in the Scheme Information Document in the form of a notice in all the official points of acceptance and distributors/brokers office.

(iii) The introduction of the exit load alongwith the details may be stamped in the acknowledgement slip issued to the investors on submission of the application form and shall also be disclosed in the statement of accounts issued after the introduction of such load.

(iv) A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated.

(v) Any other measures which the Mutual Fund may feel necessary.


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V. RIGHTS OF UNITHOLDERSPlease refer to SAI for details.VI. PENALTIES, PENDING LITIGATION OR

PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

1. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed.

(a) Penalties imposed against Life Insurance Corporation of India (Amount in `):-

Financial Year

Status Remark

2006-2007 Income Tax Assessment not yet completed

Dividend Tax Demand not raised


2008-2009 Nil Reported (b) Sponsor and Branch: Bank of Baroda, Laxmi

Road, Pune City Name of party: Pune Municipal Corporation

(PMC) Court/Tribunal & Case No. & Year: Supreme

court SLP (C) No. 23299/2010 Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/type of offense & section: Bank

filed a writ petition before Bombay HC challenging the arbitrary demand of the PMC & the provisions under Pune Municipal Corporation (Octroi) Rules 2008 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.

Bank’s reply/defence: Bank paid the amount of octroi of `9,42,200/- but refused to pay penalty amounting to `94,22,000/- (10 times of octroi amount).

Present Status & Remarks: PMC has filed a petition before Hon. Supreme Court against the

order of Bombay HC. Bank has filed its counter affidavit next date has not yet fixed.

(c) Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special

Directorate of Enforcement Name of the Court/Forum & Case no.: CRL

Appeal No. 256/2009 before HC, Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.

Amount involved: `10 lacs Nature of the case/type of offences and Section:

Complaint u/s 6(4), 6(5), 8(1), 64(2) and 73(3) of FERA Act 1973.

Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of Mr. Gurcharan Singh Sethi and Smt. Surinder Kaur. The Directorate Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of `10 lacs was imposed. Bank has denied the allegations on the ground that individual transactions were of less than `10 lacs.

Bank’s Reply/defence: Bank’s contention is that each time deposits are made of the amount of less than 10000 USD, hence there is no violation of provisions of FERA Act, 1973.

Present Status and remarks: On 03.03.2010 interim stay orders have been made absolute. Matter will be listed in due course.

(d) Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special


Appeal No. 325/2008 before HC Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.

Amount involved: ` 5 lacs Nature of the case/type of offences and Section:


Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of one Mr. Sarbir Singh, from 25.01.92 to 31.01.92. The Directorate Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of `5 lacs was imposed. Appeal filed with Appellate Authority, which has been dismissed on 07.12.2007. Criminal Appeal before the Delhi High Court has been filed, which is pending.

Bank’s Reply/defense: Bank’s contention is that each time deposits are made of the amount of less than 10000 USD, hence there is no violation


60

of provisions of FERA Act, 1973. Present Status and remarks: On 03.03.2010

interim stay orders have been made absolute. Matter will be listed in due course.

(e) Sponsor and Branch: Bank of Baroda, Nasik Name of party: Nasik Municipal Corporation

(NMC) Court/Tribunal & Case No./Year: Supreme court

SLP (C) No. 9706/2010 Amount involved: Octroi penalty of ` 5.95 lacs Nature of Case/type of offense & section: Bank

filed a writ petition before Bombay HC challenging the arbitrary demand of the NMC & the provisions under Nasik Municipal Corporation (Octroi) Rules 2005 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.

Bank’s reply/defence: Bank paid the amount of Octroi but refused to pay penalty amounting to (10 times of Octroi amount).

Present Status & Remarks: NMC has filed a petition before Hon. Supreme Court against the order of Bombay HC. Bank has filed its counter affidavit on 5/08/2010 next date has not yet fixed.

(f) State Bank of India (i) A notice under section 47 A(1)(b) read with

section 46(4) of the Banking Regulation Act, 1949 has been received vide RBI letter No. DBS.BMD (V)/5003/1717.04.009/2010 dated October 8, 2010 in respect of foreign exchange derivatives. The matter was examined by Global Market Department and a suitable reply was sent to RBI vide letter No.GM/1840 dated 19.10.2010.

(ii) SBI Canada – Penalty of CAD 12,500/- imposed by Federal Consumer Agency of Canada (FCAC) on account of alleged violation to Borrowing (Banks) Regulation regarding discrepancies in information disclosure document required to provided to the borrowers.

(iii) PT Indomonex Jakarta – 1) Penalty of IDR 0.2 mio (INR 897.00) imposed by

Indonesian Regulator on account of erroneous filing of different figures of RWA on new transactions (Repo) between Publication report and monthly report position as on 30.09.08.

2) Penalty of IDR 30 mio (INR 1.35 lacs) charged by Indonesian Regulator on account of Late reporting of new appointment of the Branch Manager of Main branch to the regulators.

(iv) SBI Canada – Penalty of CAD 750/- imposed by Federal Consumer Agency of Canada (FCAC)

on SBI Canada on account of late and erroneous filing of financial returns for the period 01.01.2008 to 31.03.2008.

2. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. –

(a) The BoB was one of the bankers to the public issue of shares of Jaltarang Motels Limited (“Jaltarang”) in December, 1995. SEBI, by its order dated January 19, 2000 directed the Bank to refund the sum of `4,031,018 being the application money for the shares released by the Bank to the Jaltarang with interest at 15% from March 25, 1996 i.e. the day the Bank allowed withdrawal of the funds by Jaltarang in respect of funds collected from the public issue. The Bank preferred an appeal before the Securities Appellate Tribunal and the Tribunal, by order dated July 27, 2000, rejected the appeal. The bank has filed an appeal (Appeal No.2 of 2000) before the High Court, Mumbai against the said order of the Tribunal. The High Court, Mumbai, on November 13, 2000, granted interim relief of stay of the operation of the order dated July 27, 2000 of the Securities Appellate Tribunal and January 19, 2000 of SEBI and has further directed that the matter be placed on the board for final hearing. The matter is still pending.

(b) The merchant banking division of the BoB was the pre-issue lead manager for the public issue of shares of Trident Steels Limited (“Trident”) in November, 1993. SEBI issued a show cause notice dated April 29, 2004 calling upon the merchant banking division of the Bank to show cause why action should not be taken against it for failing in its duty to exercise due diligence in the above mentioned public issue. SEBI alleged that the merchant banking division of the Bank did not disclose the material fact that 750,000 shares out of the pre issue capital of Trident had been pledged by the directors and holders of those shares to the Industrial Finance Branch of the Bank towards enhancement of various credit facilities extended by the Bank to Trident. In October 1989, the directors and holders of those shares have given an undertaking that as long as the dues of Trident to the Bank are not paid in full, they will not transfer, deal with or dispose off


61

equity or preference shares held by them in the company or any shares that might be acquired in future, without prior written consent of the Bank. BOB Caps, in its reply to the show cause notice, has submitted that it was the obligation of Trident to give true disclosures and that any punitive action will lie solely against Trident, its promoters and directors.

(c) The BoB had acted as lead managers to the public issue of Kraft Industries Limited (“Kraft”) in May 1995. It is alleged that the Managing Director and Promoter of Kraft did not possess the qualifications as mentioned in the prospectus. SEBI has asked for qualification certificates/copies from the Bank. The Managing Director of Kraft has reported having lost the certificates in transit. The Bank has replied accordingly to SEBI.

3. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately.

(a) A writ petition has been filed by UTI Asset Management Company Ltd., UTI Mutual Fund and UTI Trustee Company Private Ltd. challenging the order dated 06.08.2008 passed by the Central Information Commission on the applicability of the Right to Information Act, 2005, which has been stayed by the Honourable High Court, Bombay. The writ has been admitted and stay will continue pending the hearing and final disposal of the petition. The matter will come up for hearing in due course.

(b) There are 14 criminal cases pending related to normal operations of the schemes of UTI MF such as non-transfer of units, non-receipt of unit certificates, non-receipt of redemption proceeds or income distribution, closure of scheme/plan. These cases are not maintainable and judging from our experience such cases are generally dismissed by Courts or withdrawn by the complainant.

(c) There are 27 cases pending at different courts related to suits/petitions filed by a) contract workmen, b) employees association, c) employees/ex-employees etc. These cases are pending at different levels for adjudication.

(d) A Special Leave Petition has been filed by Bajaj Auto Ltd. before the Honourable Supreme Court of India against the final judgement and order dated 09.10.2006 of the Honourable High Court of Bombay in the matter of the winding up of UTI Growth

& Value Fund- Bonus Plan with effect from 01.02.2005 in pursuance to circular dated 12.12.2003 of SEBI. The matter is admitted on 10.07.2008 and will be heard in due course.

(e) Two cases are pending in different courts challenging the termination of Senior Citizens Unit Plan (SCUP), the details of which are given below:

(i) Public Interest Litigation filed by Kalindi Doshi before High Court of Bombay- affidavit in reply has been filed and the case is at admission stage.

(ii) Writ Petition filed by R K Sanghi before High Court of Madhya Pradesh Principal Seat at Jabalpur – affidavit in reply has been filed. Petition will be heard in due course.

Income Tax Related MatterThe company has filed appeals with different Income Tax Authorities in respect of Assessment Years 2005-06, 2006-07, 2007-08, 2008-09 & 2009-10 against which no dues are outstanding as on date since the same have been adjusted against the refund due to the company by Income Tax Department.The Commissioner has passed order u/s 263 for the Assessment Year 2006-07 directing the assessing officer to do a fresh assessment in respect of scheme expenses. The company has filed an appeal before Hon’ble Tribunal against the order of the commissioner. Subsequently the assessing officer has passed the reassessment order raising demand of Rs 23.9 million, against which based on the stay order obtained, Company has paid Rs 11.9 million. The company has again filed an appeal before CIT (A) against such order. The company does not expect the demand to crytalise into liability.UTI-Gold Exchange Traded Fund (UTI-Gold ETF):The Maharashtra Sales Tax authorities have disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of Rs. 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.4. Any deficiency in the systems and operations of the

Sponsor and/or the AMC or the Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency. - NIL

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines thereunder shall be applicable.


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CORPORATE OFFICEUTI Tower, ‘Gn’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. Tel.: 66786666

OFFICIAL POINTS OF ACCEPTANCEUTI FINANCIAL CENTRES

AHMEDABAD REGION

Ahmedabad: 101/105 A&B, Super Mall, Near Lal Bungalow, CG Road, Ahmedabad-380 006, Tel: (079) 26462180/26462905, Ajmer: Uday Jyoti Complex, First Floor, India Motor Circle, Kutchery Road, Ajmer-305 001, Tel: (0145) 2423948, Alwar: Plot No.1, Jai Complex (1st Floor), Above AXIS Bank, Road No.2, Alwar – 301 001, Rajasthan, Tel.:(0144) 2700303/4, Anand: 12-A, First Floor, Chitrangna Complex, Anand – V. V. Nagar Road, Anand – 388 001, Gujarat, Tel.: (02692) 245943 / 944, Bharuch: 103-105, Aditya Complex, 1st Floor, Near Kashak Circle, Bharuch – 392 001, Gujarat, Tel.:(02642) 227331, Bhavnagar: Shree Complex, 6-7 Ground Floor, Opp. Gandhi Smruti, Crescent Circle, Crescent, Bhavnagar – 364 001, Tel.:(0278)-2519961/2513231, Bhilwara: B-6 Ground Floor, S K Plaza, Pur Road, Bhilwara – 311 001, Rajasthan, Tel.: (01482) 242220/21, Bhuj: First Floor 13 & 14, Jubilee Circle, Opposite All India Radio, Banker’s Colony, Bhuj – 370 001, Gujarat, Tel: (02832) 220030, Bikaner: Gupta Complex, 1st Floor, Opposite Chhapan Bhog, Rani Bazar, Bikaner – 334 001, Rajasthan, Tel: (0151) 2524755, Gandhinagar: Shop No.1 & 2, Shree Vallabh Chambers, Nr. Trupti Parlour, Plot 382, Sector 16, Gandhinagar – 382 016, Gujarat Tel : (079) 23240461, 23240786, Jaipur: 2nd Floor, Anand Bhavan, Sansar Chandra Road, Jaipur-302 001, Tel: (0141)-4004941/43 to 46, Jamnagar: “Keshav Complex”, First Floor, Opp. Dhanvantary College, Pandit Nehru Marg, Jamnagar – 361 001, Tel:(0288)-2662767/68, Jodhpur: 51 Kalpataru Shopping Centre, Shastri Nagar, Near Ashapurna Mall, Jodhpur - 342 005,Tel.: (0291)-5135100, Kota: Sunder Arcade, Plot No.1, Aerodrome Circle, Kota-324007, Tel: (0744)-2502242/07, Navsari: 1/4 Chinmay Arcade, Sattapir, Sayaji Road, Navsari – 396 445, Gujarat, Tel: (02637)-233087, Rajkot: Race Course Plaza, Shop No.5,6,7, Ground Floor, Near Income Tax, Rajkot-360 001, Tel:(0281)2433525/244 0701, Sikar: 9-10, 1st Floor, Bhasker Height, Ward No.28, Silver Jubilee Road, Shramdaan Marg, Nr. S K Hospital, Sikar, Rajasthan – 332 001, Tel: (01572) 271044, 271043, Sriganganagar: Shop No.4 Ground Floor, Plot No.49, National Highway No.15, Opp. Bhihani Petrol Pump, Sriganganagar – 335 001, Rajasthan, Tel: (0154) 2481602, Surat: B-107/108, Tirupati Plaza, Near Collector Office, Athwa Gate, Surat-395 001, Tel: (0261) 2474550, Udaipur: Ground Floor, RTDC Bldg., Hotel Kajri, Shastri Circle, Udaipur-313001, Tel: (0294)– 2423065/66/67, Vadodara: G-6 & G-7, “Landmark” Bldg., Transpeck Centre, Race Course Road, Vadodara-390 007, Tel:(0265) 2336962, Vapi: GF 1 & GF 2, Shoppers Stop, Near Jay Tower-1, Imran Nagar, Silvassa Road, Vapi – 396 195, Gujarat, Tel: (0260) 2421315.

BENGALURU REGION

Bengaluru: (1) B-14 & B-15, Gr Floor, Devatha Plaza, 132 Residency Road, Bengaluru - 560 025.Tel. No.:(080) 64535089, (2) 427 / 14-1, Harmony, 9th Main Road, Near 40th Cross, 5th Block, Jayanagar, Bengaluru -560 041, Tel: (080) 22440837, 64516489, (3) No.60, Maruthi Plaza, 8th Main, 18th Cross Junction, Malleswaram West, Bengaluru-560 055, Tel.: (080) 23340672, Belgaum: 1st Floor, ‘Indira’, Dr. Radha Krishna Marg 5th Cross, Subhash Market, Hindwadi, Belgaum - 590 011, Karnataka, Tel.: (0831) 2423637, Bellary: Kakateeya Residency, Kappagal Road, Gandhinagar, Bellary – 583 103, Karnataka, Tel: (08392) 255 634/635, Cuddapah: No. 2/790, Sai Ram Towers, Nagarajpeta, Cuddapah-516 001, Tel: (08562) 222121/131, Davangere: No.998 (Old No.426/1A) “Satya Sadhana”, Kuvempu Road, Lawers Street, K. B. Extension, Davangere - 577 002, Karnataka, Tel.: (08192) 231730/1, Gulbarga: F-8, First Floor, Asian Complex, Near City Bus Stand, Head Post Office Road, Super Market, Gulbarga – 585 101, Karnataka, Tel.: (08472) 273864/865, Guntur: Door No.12-25-170, Ground Floor, Kothapet Main Road, Guntur–522 001, Tel: (0863)-2333819, Hubli: 1st Floor, Kalburgi Square, Desai Cross, T B Road, Hubli-580 029, Dist Dharwad, Karnataka State, Tel: (0836)-2363963/64, Hyderabad: (1) Lala II Oasis Plaza, 1st floor, 4-1-898 Tilak Road, Abids, Hyderabad-500 001, Tel: (040) 24750281/24750381/382, (2) 6-3-679, First Floor, Elite Plaza, Opp. Tanishq, Green Land Road, Punjagutta, Hyderabad-500 082, Tel: (040)-23417246, (3) 10-2-99/1, Ground Floor, Sterling Grand CVK, Road No. 3, West Marredpally, Secunderabad-500 026, Tel: (040) 27711524, Mangalore: 1st Floor, Essel Tower, Bunts Hostel Circle, Mangalore-575 003, Tel: (0824) 2426290, Mysore: No.2767/B, New No. 83/B, Kantharaj Urs Road, Saraswathipuram 1st Main, Opposite to Saraswathi Theatre, Mysore-570 009, Tel: (0821)-2344425, Nellore: Plot no.16/1433, Sunshine Plaza, 1st Floor, Ramalingapuram Main Road, Nellore – 524 002, Andhra Pradesh, Tel: (0861) 2335818/19, Rajahmundry: Door No.7-26-21, 1st Floor, Jupudi Plaza, Maturi Vari St., T. Nagar, Dist. – East Godavari, Rajahmundry – 533101, Andhra Pradesh, Tel.: (0883) 2008399/2432844, Tirupati: D no. 20-1-201-C, Ground Floor, Korlagunta junction, Tirumala Byepass Road, Tirupati-517 501, Andhra Pradesh, Tel.: (0877) 2100607/2221307, Vijaywada: 29-37-123, 1st Floor, Dr. Sridhar Complex, Vijaya Talkies Junction, Eluru Road, Vijaywada-520 002, Tel:(0866) 2444819, Vishakhapatnam: 202, 1st Floor, Door No.9-1-224/4/4, Above Lakshmi Hyundai Car Showroom, C.B.M. Compound, Near Ramatalkies Junction, Visakhapatnam-530 003, Tel : (0891) 2550 275, Warangal: House No.9-2-31, Shop No.23 & 24, 1st Floor, Nirmala Mall, J P N Road, Warangal-506 002, Tel: (0870) 2441099 / 2440766.

CHANDIGARH REGION

Ambala: 5686-5687, Nicholson Road, Ambala Cantt, Haryana, Pin-133 001, Tel.: (0171) 2631780, Amritsar: 69, Court Road, Amritsar-143001, Tel: (0183) 2564388, Bhatinda: 2047, II Floor, Crown Plaza Complex, Mall Road, Bhatinda – 151 001, Punjab, Tel: (0164) 223 6500, Chandigarh: Jeevan Prakash (LIC Bldg.), Sector 17-B, Chandigarh-160 017, Tel: (0172) 2703683, Jalandhar: “Ajit Complex”, First Floor, 130 Ranjit Nagar, G. T. Road, Jalandhar-144 001, Tel: (0181) 22324756, Jammu: 104, B2, South Block, 1st Floor, Bahu Plaza, Jammu – 180 014, Tel.: (0191) 247 0627, Ludhiana: Ground Floor, S CO 28, Feroze Gandhi Market, Ludhiana-141 001, Tel: (0161) 2441264, Panipat: Office no.7, 2nd Floor, N K Tower, Opposite ABM AMRO Bank, G T Road, Panipat – 132 103, Haryana, Tel.: (0180) 263 1942, Patiala: SCO No. 43, Ground Floor, New Leela Bhawan, Patiala, Punjab-147 001, Tel: (0175) 2300341, Shimla: Bell Villa, 5th Floor, Below Scandal Point, The Mall, Shimla, Himachal Pradesh - 171 001, Tel. No.: (0177) 2657 803.

CHENNAI REGION

Chennai: (1) “Ruby Regency”, First Floor, New No.69/4, (Old Door No.65/4), Anna Salai, Chennai-600 002, Tel: (044) 2851 1727/2851 4466, (2) W 123, III Avenue, Annanagar, Chennai – 600 040, Tel: (044) 65720030, (3) 1st Floor, 29, North Usman Road, T Nagar, Chennai-600 017, Tel: (044) 65720011/12, Cochin: Ground Floor, Palackal Bldg., Chittoor Road, Nr. Kavitha International Hotel, Iyyattu Junction, Ernakulam, Cochin-682 011, Kerala, Tel: (0484) 238 0259/2163, 286 8743, Fax: (0484) 237 0393, Coimbatore: U R House, 1st Floor, 1056-C, Avinashi Road, Opp. Nilgiris Dept. Stores, Coimbatore-641 018, Tel: (0422) 2244973, Kottayam: Muringampadam Chambers, Ground Floor, Door No.17/480-F, CMS College Road, CMS College Junction, Kottayam–686 001, Tel.: (0481) 2560734, Kozhikode: Aydeed Complex, YMCA Cross Road, Kozhikode - 673 001, Kerala, Tel.: (0495) 2367284 / 324, Madurai: “Jeevan Jyothi Building”, First Floor, 134 Palace Road, Opp. to Christian Mission Hospital, Madurai - 625 001, Tel.: (0452) 2333317, Salem: No.2/91, Sri Vari Complex, First Floor, Preethee Bajaj Upstairs, New Bus Stand Road, Meyyanur, Salem - 636 004, Tel.: (0427) 2336163, Thiruvananthapuram: T C 15/49(2), 1st Floor, Saran Chambers, Vellayambalam, Thriuvananthapuram-695 010, Tel: (0471) 2723674, Trichur: 26/621-622, Kollannur Devassy Building, 1st Floor, Town Hall Road, Thrissur-680 020, Tel. No.:(0487) 2331 259/495, Tirunelveli: 1st Floor, 10/4 Thaha Plaza, South Bypass Road, Vannarpet, Tirunelveli–627 003. Tel.: (0462) 2500186, Tirupur: 47, Court Street, Sabhapathipuram, Tirupur – 641 601, Tamil Nadu, Tel.: (0421) 223 6337/6339, Trichy: Kingston Park No.19/1, Puthur High Road, (Opp. Aruna Theatre), Puthur, Tiruchirapalli-620 017, Tel.: (0431) 2770713, Vellore: S R Arcade, 1st floor, 15/2 No.30, Officers Line, Vellore – 632 001, Tamil Nadu, Tel.: (0416) 223 5357/5339.

DELHI REGION

New Delhi: (1) G-5-10 Aggarwal Cyber Plaza, Netaji Subhash Place, Pitam Pura, Delhi – 110 034, Tel: (011) 27351001, (2) Savitri Bhawan, 1st & 2nd Floor, Plot no.3 & 4, Preet Vihar Community Centre, Delhi-110 092, Tel: (011) 22529374, 22529398, (3) G-7, Hemkunt Tower (Modi Tower), 98, Nehru Place (Near Paras Cinema), New Delhi-110 019, Tel: (011) 28898128, (4) 13th Floor,


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Jeevan Bharati, Tower II, Connaught Circus, New Delhi – 110 001. Tel: (011) 2332 7497, 2373 9491/2, (5) Bldg. No.4, First Floor, B-1, Community Centre, B-Block, Janak Puri, New Delhi – 110 058, Tel.: (011) 25523246/47/48, Dehradun: 56, Rajpur Road, Hotel Classic International, Dehradun-248 001, Tel: (0135) 2743203, Faridabad: Shop No.6, First Floor, Above AXIS Bank, Crown Complex, 1 & 2 Chowk, NIT, Faridabad-121 001, Tel: (0129) 2424771, Ghaziabad: C-53 C, Main Road, RDC, Opp. Petrol Pump, Ghaziabad - 201001, Uttar Pradesh, Tel: (0120) 2820920/23, Gurgaon: SCO 14, 1st floor, Sector 14, Gurgaon–122 001, Tel: (0124) 2336622, Meerut: 10/8 Ground Floor, Niranjan Vatika, Begum Bridge Road, Near Bachcha Park, Meerut - 250 001, Uttar Pradesh, Tel.: (0121) 648031/2, Moradabad: Shri Vallabh Complex, Near Cross Road Mall, Civil Lines, Moradabad – 244 001, Uttar Pradesh, Tel.: (0591) 2411220, Noida: J-26, Ground Floor, Near Centre Stage Mall, Sector 18, Noida –201 301, Tel: (0120) 2512311 to 314.

GUWAHATI REGION

Agartala: Suriya Chowmohani, Hari Ganga Basak Road, Agartala - 799 001, Tripura, Tel.: (0381) 2387812, Guwahati: 1st Floor, Hindustan Bldg., M.L. Nehru Marg, Panbazar, Guwahati-781 001, Tel: (0361) 254 5870, Shillong: Saket Bhawan, Above Mohini Store, Police Bazar, Shillong-793 001, Meghalaya, Tel.: (0364) 250 0910, Silchar: First Floor, N. N. Dutta Road, Shillong Patty, Silchar, Assam - 788 001, Tel.: (03842) 230082/230091, Tinsukia: Ward No.6, Chirwapatty Road, Tinsukia – 786 125, Assam, Tel.: (0374) 234 0266/234 1026.

KOLKATA REGION

Kolkata: (1) 29, Netaji Subhash Chandra Road, Kolkata-700 001, Tel: (033) 22436571/22134832, (2) Ground Floor, 99 Park View Appt., Rash Behari Avenue, Kolkata-700 029, Tel.: (033) 24639811, (3) AD-55, Sector-1, Salt Lake City, Kolkata-700 064, Tel.: (033) 23371985, Baharampur: 1/5 K K Banerjee Road, 1st Floor, Gorabazar, Baharampur – 742 101, West Bengal, Tel.: (03482) 277163, Balasore: Plot No.570, 1st Floor, Station Bazar, Near Durga Mandap, Balasore – 756 001, Orissa, Tel.: (06782) 241894/241947, Barasat: 57 Jessore Road, 1st Floor, Sethpukur, Barasat, North 24 Paraganas, Pin-700 124, West Bengal, Tel.: (033) 25844583, Bardhaman: Sree Gopal Bhavan, 37 A, G.T.Road, 2nd Floor, Parbirhata, Bardhaman – 713 101, West Bengal, Tel.: (0342) 2647238, Berhampur: 4th East Side Lane, Dharma Nagar, Gandhi Nagar, Berhampur - 760 001, Orissa, Tel.: (0680) 2225094/95, Bhubaneshwar: 1st & 2nd Floor, OCHC Bldg., 24, Janpath, Kharvela Nagar, Nr. Ram Mandir, Bhubaneshwar-751 001, Tel: (0674) 2410995, Bokaro: Plot C-1, 20-C (Ground Floor), City Centre, Sector – 4, Bokaro Steel City, Bokaro – 827 004, Jharkhand, Tel.: (06542) 323865, 233348, Cuttack: Roy Villa, 2nd floor, Bajrakabati Road, P.O.-Buxi Bazar, Cuttack-753 001, Orissa, Tel: (0671) 231 5350/5351/5352, Dhanbad: 111 & 112, Shriram Mall, Shastri Nagar, Bank More, Dhanbad-826 001, Tel.: (0326) 6451 971/2304676, Durgapur: 3rd Administrative Bldg., 2nd Floor, Asansol Durgapur Dev. Authority, City Centre, Durgapur-713216, Tel: (0343) 2546831, Jamshedpur: 1-A, Ram Mandir Area, Gr. & 2nd Floor, Bistupur, Jamshedpur-831 001, Tel: (0657) 2756074, Kalyani: B-12/1 Central Park, Kalyani -741 235, District: Nadia, West Bengal, Tel.: (033) 25025135/6, Kharagpur: M/s. Atwal Real Estate Pvt. Ltd., 1st Floor, M S Tower, O.T. Road, Opp. College INDA, Kharagpur, Paschim Midnapore-721 305, Tel: (0322) 228518, Malda: 10/26 K J Sanyal Road, 1st Floor, Opp Gazole Taxi Stand, Malda – 732 101, West Bengal, Tel.: (03512) 223681/724/728, Ranchi : Shop No. 8 & 9, SPG Mart, Commercial Complex, Old H B Road, Bahu Bazar, Ranchi-834 001, Tel: (0651) 2900 206/07, Rourkela: Shree Vyas Complex, Ground Floor, Panposh Road, Near Shalimar Hotel, Rourkela – 769 004, Orissa, Tel.: (0661) 2401116/2401117, Sambalpur: Plot No.2252/3495, 1st Floor, Budharaja, Opp. Budharaja Post Office, Sambalpur, Orissa-768 004, Tel: (0663) 2520214, Serampore: 6A/2, Roy Ghat Lane, Hinterland Complex, Serampore, Dist. Hooghly – 712 201, West Bengal, Tel.: (033) 26529153/9154, Siliguri: Ground Floor, Jeevan Deep Bldg., Gurunanak Sarani, Sevoke Rd., Silliguri-734 401, Tel: (0353) 2535199.

LUCKNOW REGION

Agra: FCI Building, Ground Floor, 60/4, Sanjay Place, Agra–282 002, Tel: (0562) 2857789, 2858047, Allahabad: 4, Sardar Patel Marg, 1st Floor, Civil Lines, Allahabad-211 001, Tel: (0532) 2561028, Aligarh: 3/339-A Ram Ghat Road, Opp. Atrauli Bus Stand, Aligarh, Uttar Pradesh–202 001, Tel : (0571) 2741511, Bareilly: 116-117 Deen Dayal Puram, Bareilly, Uttar Pradesh-243 005, Tel.: (0581) 2303014, Bhagalpur: 1st floor, Kavita Apartment, Opposite Head Post Office, Mahatma Gandhi Road, Bhagalpur-812 001, Bihar, Tel.: (0641) 2300040/41, Darbhanga: VIP Road, Allalpatti, Opposite Mahamaya Nursing Home, P.O. Darbhanga Medical College, Laheraisarai, Dist – Darbhanga, Bihar – 846 003, Tel.: (06272) 250 033, Gaya: 1st Floor, Zion Complex, Opp. Fire Brigade, Swarajpuri Road, Gaya-823 001, Bihar, Tel: (0631) 2221623, Gorakhpur: Cross Road The Mall, Shop No. 16 - 20, 1st Floor, Bank Road, A. D. Chowk, Gorakhpur - 273 001, Uttar Pradesh, Tel.: (0551) 220 4995 / 4996, Kanpur: 16/77, Civil Lines, Kanpur-208 001, Tel: (0512) 2304278, Lucknow: Aryan Business Park, 2nd floor, 19/32 Park Road (old 90 M G Road), Lucknow-226 001, Tel: (0522) 2238491/2238598, Muzaffarpur: Ground Floor, LIC ‘Jeevan Prakash’ Bldg., Uma Shankar Pandit Marg, Opposite Devisthan (Devi Mandir) Club Road, Muzaffarpur (Bihar), Pin – 842 002, Tel.: (0621) 2265091, Patna: 1st Floor, N.I. Building (LIC Bldg.), Besides Maharaja Kameshwar Complex, Fraser Road, Patna-800 001, Tel: (0612) 2911207, Varanasi: 1st Floor, D-58/2A-1, Bhawani Market, Rathyatra, Varanasi-221 010, Tel: (0542) 2226881.

MUMBAI REGION

Mumbai: (1) Lotus Court Building, 196, Jamshedji Tata Road, Backbay Reclamation, Mumbai-400020, Tel: (022) 22821357, (2) UTI Tower, ‘Gn’ Block, Ground Floor, Bandra-Kurla Complex, Bandra (E), Mumbai-400051, Tel: (022) 66786354/6101, (3) Purva Plaza, Ground Floor, Juntion of S V Road & Shimpoli, Soni Wadi Corner, Borivali (West), Mumbai – 400 092. Tel. No.: (022) 2898 0521/ 5081, (4) Shop No.1-4, Ground Floor, Sai Plaza, Junction of Jawahar Road and R. B. Mehta Road, Near Ghatkopar Rly Station, Ghatkopar (East), Mumbai - 400 077, Tel: (022) 25012256/25010812/715/833, (5) Unit No.2, Block ‘B’, Opp. JVPD Shopping Centre, Gul Mohar Cross Road No.9, Andheri (W), Mumbai-400049, Tel:(022) 26201995/26239841, (6) A-1, Ground Floor, Delphi Orchard Avenue, Hiranandani Business Park, Hiranandani Gardens, Powai, Mumbai–400 076, Tel: (022) 67536797/98, (7) Shop no.2, Ground floor, Green Lawn Apartment, Opp. St., Pius College, Aarey Road, Goregaon (East), Mumbai – 400 063, Tel.: (022) 26866133, (8) Plot No.12, Road No.9 Behind Hotel Tunga Paradise MIDC Marol, Andheri (East), Mumbai – 400 093, Maharashtra, Tel.: (022) 2836 5138, Aurangabad: “Yashodhan”, Near Baba Petrol Pump, 10, Bhagya Nagar, Aurangabad – 431 001, Maharashtra, Tel.: (0240) 2345219 / 29, Jalgaon: First Floor, Plot No-68, Zilha Peth, Behind Old Court, Near Gujrat Sweet Mart, Jalgaon (Maharashtra), Pin - 425 001, Tel.: (257) 2240480/2240486, Kalyan: Ground Floor, Jasraj Commercial Complex, Chitroda Nagar, Valli Peer, Station Road, Kalyan (West) - 421 301, Tel: (0251) 2316063/7191, Kolhapur: 11 & 12, Ground Floor, Ayodhya Towers, C S No 511, KH-1/2, ‘E’ Ward, Dabholkar Corner, Station Road, Kolhapur-416 001, Tel.: (0231) 2666603/2657315, Margao: Shop No. G-6 & G-7, Jeevottam Sundara, 81, Primitive Hospicio Road, Behind Cine Metropole, Margao, Goa-403 601, Tel.: (0832) 2711133, Nasik: Apurva Avenue, Ground Floor, Near Kusumagraj Pratishthan, Tilak Wadi, Nasik-422002, Tel: (0253) 2570251/252, Panaji: E.D.C. House, Mezzanine Floor, Dr. A.B. Road, Panaji, Goa-403 001, Tel: (0832) 2222472, Pune: (1) 1099A, First Floor, Maheshwari Vidya Pracharak Mandal Building, Near Hotel Chetak, Model Colony Road, Shivaji Nagar, Pune-411 016, Tel.: (020) 25670419, (2) City Pride, 1st Floor, Plot No.92/C, D III Block, MIDC, Mumbai-Pune Highway, Kalbhor Nagar, Chinchwad, Pune-411 019, Tel: (020) 65337240, Solapur: 157/2 C, Railway Lines, Rajabhau Patwardhan Chowk, Solapur – 413 003, Maharashtra, Tel.: (0217) 223 11767, Thane: Suraj Arcade, Ground Floor, Next to Deodhar Hospital, Opp. To HDFC Bank, Gokhale Road, Thane (West)-400 602, Tel: (022) 2533 2409, Vashi: Shop no. 4, 5 & 6, Plot no. 9, Ganesh Tower, Sector 1, Vashi, Navi Mumbai – 400 703, Tel.: (022) 27820171/74/77.

NAGPUR REGION

Amravati: C-1, VIMACO Tower, S.T. Stand Road, Amravati – 444 602, Maharashtra, Tel.: (0721) 2553126/7/8, Bhilai: 38 Commercial Complex, Nehru Nagar (East), Bhilai – 490 020, Distt. Durg, Chhattisgarh, Tel.: (0788) 2293222, 2292777, Bhopal: 2nd Floor, V. V. Plaza, 6 Zone II, M. P. Nagar, Bhopal-462 011, Tel: (0755) 2558308, Gwalior: 45/A, Alaknanda Towers, City Centre, Gwalior-474011, Tel: (0751) 2234072, Indore: UG 3 & 4, Starlit Tower, YN Road, Indore-452 001, Tel:(0731) 2533869/4958, Jabalpur: Ground Floor, Ayush Complex, Home Science College Road, Napier Town, Jabalpur, Madhya Pradesh–482 001, Tel: (0761) 2480004, 2480005, Nagpur: 1st Floor, Shraddha House, S. V. Patel Marg, Kings Way, Nagpur-440 001, Tel: (0712) 2536893, Raipur: Vanijya Bhavan, Sai Nagar, Jail Road, Raipur-492 009, Tel: (0771) 2881410/12, Ratlam: Shop No. 3 Ground Floor, Ratlam Plaza, 16/45 New Road, Ratlam – 457 001, Madhya Pradesh, Tel.: (07412) 243041/222771/2.

UTI NRI CELL

UTI Tower, ‘Gn’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai-400 051, Tel: 66786064 • Fax 26528175 •E-mail: [email protected]


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OFFICE OF THE REGISTRAR

M/s. Karvy Computershare Pvt. Ltd.: Narayani Mansion, H. No. 1-90-2/10/E, Vittalrao Nagar, Madhapur, Hyderabad – 500 081, Tel.: (040) 23312454, Fax: (040) 23115503, Email: [email protected]

KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Ashoka Estate, Shop No. 14/A, Upper Ground Floor, Sakri Road Opp. Santoshi Mata Mandir Dhule – 424 002 Tel.: (02562) 282824 / 23 Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.

DUBAI REPRESENTATIVE OFFICE

UTI International Limited, Office No.4, Level 4, Al Attar Business Towers, Near DIFC, Post Box No. 29288, Sheikh Zayed Road, Dubai (UAE), Tel: +971-4- 3857707 • Fax: +971-4-3857702.

AXIS BANK ATMS AND ONLINE PURCHASE (INCLUDING PAYMENT THROUGH INTER BANK MOBILE PAYMENT SYSTEM) FACILITY ARE AN OFFICIAL POINT OF ACCEPTANCE UNDER ALL SCHEMES. THE TERMS AND CONDITIONS OF utimf@atm FACILITY ARE GIVEN IN THE STATEMENT OF ADDITIONAL INFORMATION. Stock Brokers Registered on the Mutual Fund Platform of NSE & BSE as per the list available on the website: www.utimf.com are official points of acceptance under all schemes.

SCHEME INFORMATION DOCUMENT UTI-THEMATIC FUND & UTI-GROWTH SECTORS FUND

UTI - Banking Sector Fund

(An open-ended equity scheme)

This product is suitable for investors who are seeking*:

• Longtermcapitalgrowth

• Investmentprimarilyinequityinstrumentsofcompaniesengagedinbankingandfinancialservicesactivities

• Highrisk (Brown)

UTI - Energy Fund




• Investmentinequityinstrumentsoftheenergysectors


UTI - Infrastructure Fund




• Investmentpredominantlyinequityinstrumentsofcompaniesintheinfrastructuresector


UTI - Mid Cap Fund




• Investmentprimarilyinmidcapequityinstruments


Please read overleaf

UTI-THEMATIC FUND & UTI-GROWTH SECTORS FUND



(YELLOW)investors understand that their principal will be at medium risk


UTI - Pharma & Healthcare Fund




• InvestmentinequityinstrumentsofcompaniesinthePharma&Healthcaresector


UTI - Services Industries Fund




• InvestmentinequityinstrumentsofcompaniesintheServicesIndustriessector


UTI -Transportation and Logistics Fund




• Investmentinequityinstrumentsofthecompaniesengagedinthetransportationandlogisticssector




UTI Mutual Fund




The particulars of the Scheme have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI, nor has SEBI certified the accuracy or adequacy of the Scheme Information Document (SID).

This Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centres (UFCs) / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of

UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com.



This Scheme Information Document is dated November 7, 2013.


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HIGHLIGHTS 5

Why should one invest in the Funds? 5



C. Definitions 12


II. INFORMATION ABOUT THE SCHEMESA. Type of the Schemes 16







H. Who manage the schemes? 22









VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

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HIGHLIGHTSScheme Name UTI-Thematic Fund UTI-Growth Sectors FundNature of the Scheme

An open-ended equity scheme comprising offour funds viz.(a) UTI-Banking Sector Fund(b) UTI-Infrastructure Fund(c) UTI-Mid Cap Fund(d) UTI-Transportation & Logistics Fund.

An open-ended growth oriented equity scheme comprising of three sectors funds viz.(a) UTI-Energy Fund(b) UTI-Pharma & Healthcare Fund(c) UTI-Services Industries Fund

Investment Objective

Investment objective of UTI-Thematic Fund:The scheme aims to provide to investors growth of capital over a period of time as well as to make periodical distribution of income from investment in stocks of respective sectors of the Indian economy.

Investment objective of UTI-Growth Sectors Fund:Investment objective of UTI-Growth Sectors Fund is capital appreciation through investments in equities and equity related instruments of the respective sectors.

Liquidity The schemes will offer subscription and redemption of units on all business days on an ongoing basis.Benchmark Scheme Name Benchmark Scheme Name Benchmark

UTI-Banking Sector Fund CNX BANK Index UTI-Energy Fund UTI Energy IndexUTI-Infrastructure Fund S&P BSE 100 Index UTI-Pharma & Healthcare

FundCNX Pharmaceuticals

UTI-Mid Cap Fund CNX Mid Cap Index UTI-Services Industries Fund

CNX Service SectorUTI-Transportation & Logistics Fund

UTI-Transportation & Logistics Index


NAV will be disclosed on every business day.

Entry / Exit load for all schemes

Period of Holding Entry Load(As % of NAV)


Less than 1 Year Nil 1%

Greater than or equal to 1 Year Nil Nil

Minimum Application amount for all schemes

Minimum amount of initial investment is ` 5000/-.Subsequent minimum amount of investment is ` 1000/-.

Why should one invest in the Funds?In any economy there are certain sectors that perform better than others due to favourable government policies and incentives available to them at a particular point of time, as also the strong internal and global demand for their products/services. Investment in these sectors, when undertaken well in advance should reap benefits of growth in such sectors. Hence, sector funds are perceived as funds with prospects of high growth with possibly medium to high risk.A sector fund provides clarity to the fund manager in choosing investments and also enables him to have a more focused approach in portfolio management. A sector fund also provides risk diversification by way of investments in several stocks of the same sector in a cost-effective manner.

A BRIEF ON THE THEMATIC FUNDS1. UTI-BANKING SECTOR FUND Indian banks continue to exhibit divergent business fundamentals based on their customer focus as retail-based and

corporate-based banks, in addition to the ownership labels they carry of public sector banks(PSBs) and private that they carry. Asset quality of PSBs will continue to be an overhang while some of the corporate-focused private banks may see higher incidence of restructuring. Retail private banks may see an increase in NPLs albeit on a very low base hence asset quality looks to be very much under control in this sub-segment. In this current period of volatile interest rates and slower growth, capital ratios will be of added importance. Private banks which have raised capital are comfortably placed on this front, while a large number of PSBs need capital for growth.

Growth - Credit growth will likely slowdown going forward as the pipeline of infrastructure projects dry up and growth from past sanctions tapers off.


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Profitability-Return ratios will be flattish for private banks while PSBs will see volatility based on treasury-related bumps and asset-quality related overhang. Margins will be steady for private banks in the while PSBs may see limited downside given their low base.

In view of the aforesaid, we will be constructive on private banks and NBFCs.

2. UTI INFRASTRUCTURE FUND Investment Focus & Outlook The fund will be largely invested in the following

sectors: Engineering: Rising Interest rates and policy

hurdles have affected project finalization. Resultant Order inflows have slowed down for companies in engineering space. However we expect decision making would improve eventually with favorable government policies.

Steel: The domestic steel industry is going through a moderate growth phase as domestic demand remains subdued in the short/medium term given low level of activities in the India’s infrastructure space. New capacity addition by the leading steel makers will lead to increase in the supply in the short term resulting in subdued steel realization. However, weak rupee may support the domestic steel realization and also potentially encourage export. The recent recovery in the GDP number of China coupled with moderate recovery in the steel demand in the developed markets have impacted steel realization positively in the international market.

Cement: Cement demand has been muted since the last one year mainly on account slowdown in capital expenditure and infrastructure investment. We expect demand growth to improve going forward led by good monsoons, pre-election spending and a favorable base. Cement prices, which had fallen to low levels in the last quarter, have started improving and we expect this price trend to sustain with improved demand and thus ability of palyers to pass on rising costs. Long term cement demand growth is at 1.2 times GDP growth and with muted GDP growth estimates, capacity utilization levels could remain range bound for the next few years. However, structurally industry looks good with rising entry barriers to incremental capacity, greater industry consolidation and healthier balance sheets for large cement manufacturers.

Aluminium: The global aluminium industry is fairly consolidated with about 10 players accounting for almost 85% of capacity. The domestic per capita consumption of aluminium in India is far lower (< 1kg) as compared to other developing countries. The construction and power sectors would continue to be the demand drivers for aluminium in the coming years and the Indian companies are expected to be the chief beneficiaries.

Power: Sector is currently facing issues related to demand and raw material availability. Despite sufficient base load capacity, India is facing demand issues due to poor health of state electricity board (SEB). Government has taken some positive steps to address these issues. We expect these steps to help SEBs set their balance sheet right and help them enter into long term power purchase agreements. The 12th Five Year Plan has projected a generation capacity augmentation of almost one hundred gigawatts (GW). The outlay on generation, transmission and distribution, including modernization, has been estimated to be about Rs. 10,00,000 crores. If all of these plans are executed efficiently, the power sector will see a massive transformation. We believe that all of this should be positive for the sector in the medium term.

Oil and Gas: The Oil & Gas sector has been a ‘regulated sector with cyclical returns. The cyclicality is more due to policy changes, than business fundamentals. Against a background of high crude prices, currency depreciation and the compulsions of coalition politics, the earnings potential of these companies has been under pressure. However the recent initiatives from Indian Government to free up diesel prices gradually, capping on subsidy on LPG cylinders as well as direct transfer of subsidies should enable PSU oil companies to register better earnings in the coming years. Bold reforms seem inevitable in the Indian oil & gas sector and it is more a question of ‘when’ rather than ‘whether’ these will be implemented. India is the seventh-largest and still among the fastest growing oil markets in the world. Over the years, companies in this sector have built a large infrastructure base that cannot be duplicated easily and therefore acts as a strong entry barrier to new entrants.

Telecom: The tele-density in India has grown from less than 3% at the end of 2002 to 70%+ by mid 2013. The total number of cellular and wire line telephone connections is now more than 700 million. After the significant increase in competitive intensity till 2011 and subsequent SC decision to cancel 122 licenses, call rates, after falling sharply have began to inch up, leading to improved profitability amongst the of top three operators. This has driven EBITDA growth and improvement in their return ratios. Data penetration has also inched up sharply and almost 25% of customers of these operators are using a data service which should drive revenue growth for the industry going forward.

3. UTI MID-CAP FUND Investment Focus & Outlook In developing economies, well-managed, small and

medium sized enterprises experience higher growth rates than their well-established, larger counterparts. If correctly identified, such investments could give substantial capital appreciation over time.


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Unlike large-cap companies many of these companies are under-researched and provide ample opportunities of identifying undervalued companies. Generally, mid-cap companies have established management practices and good products that make them worthy of investment. Mid-cap companies still have room for growth and are also able to withstand downturns and competitive pressures compared to the smaller companies.

Mid-cap stocks across different sectors are poised to garner increased market share, making for an attractive entry point from a long-term perspective.

Further, the mid-cap segment accounts for a sizeable part of the market capitalisation and should form a part of every portfolio to enable the investor to benefit from the growth potential of these stocks.

4. UTI-TRANSPORTATION & LOGISTICS FUND Transportation and Logistics Fund invests in stocks

engaged in the following areas:- Companies principally engaged in providing

transportation services, companies principally engaged in the design, manufacture, distribution or sale of transportation equipment and companies in the logistics sector.

Growth Prospects Auto Sector: Demographics still favour strong growth

for the Indian auto sector over a long period due to low penetration levels and rising income levels. For instance, globally, car sales are strongly related to GDP per capita. It is believed that when GDP per capita crosses a threshold of around $ 1500, car sales begin to show a higher growth over the medium to long term. In addition, India is also increasingly being looked upon as an export hub for small cars globally, with many big global manufacturers already exporting to several countries around the world. Many global auto manufacturers are also looking to cut costs in order to stay competitive and this presents a huge opportunity to the Indian auto ancillary industry.

Logistics Sector: The Indian logistics industry is at an inflection point. This is because corporates realize the cost saving potential offered by logistic solutions, and more so of integrated services, thus driving demand for the sector. Currently, India spends a much higher proportion of its GDP on logistics as compared to the US and other developed markets, thereby indicating the need for improvement in efficiencies and investment in the logistics sector. In addition, change in indirect tax structures, primarily the probable move to GST, higher manufacturing outsourcing, and investments into infrastructure and technology will act as growth catalysts for the industry. These catalysts will enable integrated logistics solution providers to leverage growth in the organized market by gaining

market share from unorganized players and hence the sector represents a good long term investment opportunity.

B. BRIEF ON UTI-GROWTH SECTORS FUND1. UTI-ENERGY FUND UTI-Energy Fund invests in stocks engaged in the

following areas:- • Petro sector covering industries such as oil and

gas drilling and exploration, refining of crude oil, distribution of oil, gas, petro products, pipelines and manufacturing of downstream oil products.

• All types of power generation companies. • Companies which are into production of ethanol. • Business related to storage of energy and

companies involved in business of delivering energy in different forms.

• Industrial manufacturing companies which are into manufacturing of equipment related to energy development (like petro and power), and related areas, pipes/cables and laying them. It will also include manufacturing of bulbs and related systems.

• Consultancy & Finance: Companies involved in consulting and financing of the businesses discussed above.

Growth ProspectsThe Oil & Gas sector is expected to perform well in the medium to long term. India is the seventh-largest oil market and still among the world’s fastest growing. India has historically been an energy-starved nation and is expected to see massive increase in its domestic oil and gas production in the coming years. Both private and public sector companies will see an estimated production growth of 3-5% over the next 1-2 years.Also, about 80% of India’s sedimentary area still remains unexplored. The government’s ‘New Exploration Licensing Policy’ (NELP) initiative has led to several significant discoveries over the last seven years. According to the DGH data, India recorded the fastest gas reserve accretion since the inception of NELP. We believe that there is a lot of potential which can be untapped through exploration and development activities and this should benefit all exploration companies.In addition, the increased gas production should benefit the gas transmission and gas distribution companies on account of higher volumes of gas flowing through pipelines. Regulations, governing gas transmission and city gas distribution are in place, and these guarantee a fixed amount of return on capital employed. Thus we expect companies involved in transmission and distribution to show sustained earnings growth in the years ahead.The Oil & Gas sector has been a ‘regulated sector with cyclical returns. The cyclicality is more due to policy changes,


8

than business fundamentals. Against a background of high crude prices, currency depreciation and the compulsions of coalition politics, the earnings potential of these companies has been under pressure. However the recent initiatives from Indian Government to free up diesel prices gradually, capping on subsidy on LPG cylinders as well as direct transfer of subsidies should enable PSU oil companies to register better earnings in the coming years. Bold reforms seem inevitable in the Indian oil & gas sector and it is more a question of ‘when’ rather than ‘whether’ these will be implemented. India is the seventh-largest and still among the fastest growing oil markets in the world. Over the years, companies in this sector have built a large infrastructure base that cannot be duplicated easily and therefore acts as a strong entry barrier to new entrants.With increased exploration activities and higher investment in the pipeline infrastructure expected, we believe that the companies in the space of oil & gas drilling and exploration services and pipe manufacturing will benefit.2 UTI-PHARMA & HEALTH CARE FUND The pharmaceutical & healthcare sector includes

companies engaged in manufacturing, marketing and /or distributing branded formulations, generic formulations, bulk drugs, OTC drugs & personal hygiene products and are engaged in research and development in the areas of Life Sciences and Biotechnology. Low levels of sanitation and hygiene and lack of basic healthcare facilities prevalent in developing economies like India offer a large market for pharmaceutical and healthcare products while skills in R&D help the companies with generic drug opportunities in developed markets. The pharmaceutical companies, given the nature of their products, are generally less affected by economic recession.

Growth Prospects The generic pharmaceutical sector is expected to

perform well in the developed markets like US in the medium term as drugs having turnover worth billions of dollars are expected to lose patent protection in next 2-3 years. Also the present economic turmoil has put the spotlight on lowering the cost of healthcare in developed countries, which plays to the advantage of Indian companies. The Indian companies are also targeting other opportunities including custom synthesis, contract manufacturing, clinical trials. The recent depreciation in the INR has further boosted the prospects of export oriented pharmaceutical companies.

The Indian market for pharmaceutical drugs is set to grow at 12-13% CAGR for the next few years according to market research agencies, on robust homegrown demand, increased penetration of medical facilities and rising physician reach. Despite a pricing policy overhang, the market has continued to grow robustly and with increasing penetration, growth rates can climb

to a higher trajectory. India also has the potential to be a low-cost research base as it has a vast pool of skilled technicians and scientists needed for basic research. There can be a short-term dip in domestic sale growth as the new pricing policy gets implemented but in the medium to long term, the domestic market should continue to grow at low to mid teen growth rates.

Many Indian pharmaceutical companies are also increasing their emphasis on R&D in the areas of life sciences and biotechnology. In the recent years, some of these companies have demonstrated their capabilities in developing new drug delivery systems. They have also developed potential candidates for new drug molecules although a fully functional approved new drug from India still looks some time away. Their innovations and ideas when sold to MNCs can fetch large inflows of earnings in the form of milestone payments and royalties. MNCs, which do not have a significant presence in India, might seek alliances with Indian companies for manufacturing / marketing specific products in India. Overall, there is a case for significant cross-border M&A activities in the near to medium term.

3. UTI-SERVICES INDUSTRIES FUND India has witnessed a rapid transition from an agrarian

economy into an economy dominated by the services sector, with the latter contributing around 52% of India’s GDP today. Developed economies the world over have seen a gradual transition from dominance of agro based activities, to that of manufacturing and finally emerging as services oriented ones. The sector is very broad based and encompasses various areas such as travel, tourism, transportation, utility service providers, media & entertainment industry, training, consultancy in all fields, banking and finance, software etc.

We remain bullish regarding the prospects of the fund, which is mainly drawing its potential strength from depreciating rupee & robust business opportunities in IT services space, driven by economic recovery in target markets such as USA and UK. Also, in the banking sector, the NBFCs and private sector banks are expected to lead in growth. In telecom, penetration of data service is expected to drive growth. In the media & entertainment space, digitization of satellite broadcasting should continue to drive growth.


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2. As the price / value / interest rates of the securities in which the schemes invest fluctuates, the value of your investment in the schemes may go up or down.


4. The names of the schemes do not in any manner indicate either the quality of the schemes or their future prospects and returns.

5. The sponsors are not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of `10,000/ – made by them towards setting up the Fund.


7. Statements/Observations made in the Scheme Information Document are subject to the laws of the land as they exist at any relevant point of time.

8. Growth, appreciation, dividend and income, if any, referred to in this Scheme Information Document are subject to the tax laws and other fiscal enactments as they exist from time to time.


10. Credit Risk: Bonds / debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central/State governments have lesser to zero probability of credit / default risk in view of the sovereign status of the issuer.

11. Interest-Rate Risk: Bonds / Central Government securities which are fixed income securities, run price risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI, the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/ Central Government securities are also influenced

by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the rupee may also affect security prices. Such rise and fall in price of bonds / central government securities in the portfolio of the schemes may influence the NAVs under the schemes as and when such changes occur.

12. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the schemes might have to incur a significant “impact cost” while transacting large volumes in a particular security.

13. Securities Lending: It is one of the means of earning additional income for these schemes with a lesser degree of risk. The risk could be in the form of non availability of ready securities for sale during the period the securities remain lent. The Funds could also be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities.However, the risk would be adequately covered by taking in of suitable collateral from the borrower by the intermediary involved in the process. The Funds will have a lien on such collateral. It will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

14. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.


16. Investment in overseas markets: (a) The success of investment in overseas markets

depends upon the ability of the fund manager to understand conditions of those markets and analyse the information, which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides market risks of those markets.

(b) The fund manager will consider the risk/reward ratio of the investments in these instruments Risks may include fluctuating currency prices, relevant regulations of exchanges/countries, financial reporting standards, liquidity and political instability, among others. At the same time, these securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products.


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17. Trading in derivatives involves certain specificrisks like:

(a) Credit Risk: This is the risk on default by the counter party. This is usually to the extent of difference between actual position and contracted position. This risk is substantially mitigated where derivative transactions happen through clearing corporation.

(b) Market Risk: Market movement may also adversely affect the pricing and settlement of derivative trades like cash trades.

(c) Illiquidity Risk: The risk that a derivative product may not be sold or purchased at a fair price due to lack of liquidity in the market.

(d) An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the Fund Manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the scheme could be lower.

(e) Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not the notional principal amount.

(f) Participating in derivatives is a highly specialized activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to action of other participants in the market.

(g) Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies.

(h) The risk associated with the use of derivatives are different from or possible greater than, the risk associated with investing directly in securities and other traditional investments.

18. The aggregate value of “illiquid securities” of the scheme, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of the scheme. In normal course of business, the schemes would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

In case of the need for exiting from such illiquid instruments in a short period of time, the NAVs of the schemes could be impacted adversely.

19. In the event of receipt of inordinately large number of redemption requests or a restructuring of a Funds’ portfolio, there may be delays in the redemption of units.

20. Investors may note that AMC/Fund Manager’s investment decisions may not always be profitable, even though it is intended to generate capital appreciation and maximise the returns by actively investing in equity/equity related securities.

21. The value of the Scheme’s investments, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the NAV of the units of the Schemes may fluctuate and can go up or down.

22. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity and equity related investments made by a Scheme which could cause the scheme to miss certain investment opportunities. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The inability of a Scheme to make intended securities purchases due to settlement problems could also cause a Scheme to miss certain investment opportunities. By the same rationale, the inability to sell securities held in a Scheme’s portfolio due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in potential losses to a Scheme, in case of a subsequent decline in the value of securities held in a Scheme’s portfolio.

23. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. Within the regulatory limits, the AMC may choose to invest in unlisted securities that offer attractive yields. This may however increase the risk of the portfolio.


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24. A Scheme may use various derivative products as permitted by the Regulations. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.

25. A Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank of India and Securities and Exchange Board of India. To the extent that some part of the assets of the Fund/s may be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign currencies relative to the Indian Rupee.

The repatriation of capital also may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

26. A scheme intends to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, a scheme will be subject to credit risk as well as settlement risk which might affect the liquidity of a scheme.

27. Different types of securities in which the schemes would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly a scheme’s risk may increase or decrease depending upon its investment pattern. For e.g. Corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA (SO) rated are comparatively less risky than bonds which are AA rated.

28. SectorspecificriskfactorsUTI-ThematicFund (a) UTI-Banking Sector Fund (i) The Bank’s performance is highly correlated

to the performance of the economy and the financial markets which in turn depends on the domestic economic growth, state of the global economy and business & consumer confidence, among other factors. Any event disturbing the dynamic balance of these diverse factors would directly or indirectly affect the performance of the Bank.

(ii) Increased competition in the banking sector has raised the overall standards in respect of the level of quality of services demanded. Thus, the banks are vulnerable to any changes in the quality of services demanded / provided.

(iii) Any changes in the Govt. policy pertaining to taxation / regulations etc might have significant bearing on the sector. Also any change in structural reforms / banking regulations act can have an adverse affect on the working of the banks.

(iv) The financial sector is also vulnerable to the interest rate movements / exchange rate fluctuations which might adversely affect their profitability.

(b) UTI-Infrastructure Fund (i) Sectors like Metals, Building Materials, Oil

& Gas, Chemicals, etc. are exposed to the variations in commodity prices like metal, crude, polymers, etc. Hence any domestic or international factors affecting the price movements will have an adverse affect.

(ii) Any changes in Govt. policy / regulation / reforms etc. affecting infrastructure industries such as Power, Housing, Infrastructure, etc may have a significant bearing on the companies.

c) UTI-Mid Cap Fund (i) Due to general illiquidity in the small cap

securities, realisation of investment objective may take more time than expected.

(ii) These companies being smaller in size may get affected adversely due to prolonged recession / economic slowdown.

(d) UTI – Transportation & Logistics Fund (i) The automobile sector is vulnerable to the

domestic as well as the world economy. Events such as recession, war, monsoon, political upturn, etc. in India as well as in the export markets may adversely affect the companies.

(ii) Taxes and other levies imposed by the GoI on the acquisition and ownership of vehicles as well as increase in fuel prices may have an adverse effect on the demand.

(iii) Excessive competition from domestic as well as international players will have a significant bearing on the sector.

(iv) Price variations in the key input materials of auto components may affect profitability to that extent.

(v) The companies are subject to risks arising from exchange rate fluctuations.

(v) Changes in emission norms affect the costs and hence profitability of auto companies.

29. Sector specific risk factors UTI-Growth SectorsFund

The objective of the scheme is to invest predominantly in the stocks of respective sectors as indicated


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elsewhere in the Scheme Information Document or of those sectors which may be added later; which may be subject to the sector specific risks due to the change in government policies relating to the concerned sector and sector specific new developments in the Indian and the international markets. There is a risk associated with non-diversification of the portfolio of a fund across different sectors of the economy.

(a) Energy Fund A fluctuation in the international crude prices will

impact the margins of oil marketing companies negatively in case they are not able to pass on the higher cost to the consumers. As most of the companies in the Petro sector are in the public sector, any action or inaction on the part of Government may affect the valuation of oil companies. Petrochemicals being commodities, their prices are subject to cyclical fluctuations and thus may affect the profitability of companies engaged in their production.

(b) Pharma and Health Care Fund (i) Pricing of drugs is subject to price control

and any reduction in prices of bulk drugs/formulations manufactured by pharma companies may affect the valuation of the concerned companies adversely.

(ii) Proposed pruning of list of drugs from Drug Price Control Order (DPCO) may take longer than expected.

(iii) High competition in the generics market may impact the margins of Indian pharma companies.

(iv) Other barriers for growth of pharma companies could be inadequate patent infrastructure, weak redressal system for patent infringement etc.

(v) INR appreciation may hit Pharma companies competitiveness and margins.

(c) Services Sector Fund (i) Prolonged recession / economic slow–down

may affect most of the industries in the service sector.

(ii) Increased competition in most of the industries in the service sector, has raised the overall standards in respect of the level of quality of services demanded. Thus, the companies in this sector are vulnerable to any changes in the quality of services demanded / provided.

(iii) Presence of unorganized sector on account of low capital requirements and few entry barriers poses a significant risk to the organized players in some of the industries engaged in service sector.

(iv) Any changes in the Govt. policy pertaining to taxation / regulations etc might have significant bearing on the services sector.


The Schemes shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of a Schemes. The two conditions shall also be complied within each calendar quarter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. DEFINITIONS In these schemes unless the context otherwise

requires: 1. “Acceptance date” or “date of acceptance” with

reference to an application made by an applicant to the UTI Asset Management Company Limited (UTI AMC) for purchase and redemption/changeover/switchover of units means the day on which the UTI Financial Centres (UFCs) / Registrar or the other official points of acceptance as per the list attached with this Scheme Information Document after being satisfied that such application is complete in all respects, accepts the same.


3. “Act” means the Securities and Exchange Board of India Act, 1992, (15 or 1992) as amended from time to time.


5. “Alternate applicant” in case of a minor means the parent other than the parent/step-parent/court guardian who has made the application on behalf of the minor.


7. “Asset Management Company / UTI AMC / AMC / Investment Manager” means the UTI Asset Management Company Limited incorporated under the Companies Act, 1956, (1 of 1956) and


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approved as such by Securities and Exchange Board of India (SEBI) under sub-regulation (2) of Regulation 21 to act as the Investment Manager to the schemes of UTI Mutual Fund.


9. “Bonus Units” means and includes, where the context so requires, a unit issued as fully paid-up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of a scheme.

10. “Book Closure” is a period when the register of unit holders is closed for all transactions viz., redemptions, change in particulars etc. Such Book Closure period will not exceed 15 days in a year.

11. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under the schemes is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/ changeover/switchover of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time.

The AMC reserves the right to declare any day as a Business day for any or all Official Points of Acceptance.

12. “Eligible Trust” means – (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being

an irrevocable trust, which has been created by an instrument in writing and includes 'depository' within the meaning of Clause (e) of Subsection (1) of Section 2 of The Depository Act, 1996.


14. “Fund” means each individual sector fund under UTI Growth Sectors Fund / each individual thematic fund under UTI-Thematic Fund as the case may be.

15. “Fund Manager” means the manager appointed for the day-to-day management and administration of the scheme.


17. “Investor Service Centre” such offices as are designated as Investor Service Centre (ISC) by the AMC from time to time.

18. “Load” is a charge that may be levied as a percentage of NAV at the time of entry into the Scheme or at the time of exiting from the Scheme.


20. “NAV” means Net Asset Value of the Units of the Schemes/Plans calculated in the manner provided in this Scheme Information Document and in conformity with the SEBI Regulations as prescribed from time to time.

21. “Non Resident Indian (NRI)” shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.


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23. “Official points of acceptance” – UTI Financial Centres (UFCs), Offices of the Registrars of the Schemes and any other authorised centre as may be notified by UTI AMC from time to time are the official points of acceptance of purchase/changeover/switchover and redemption applications of the schemes. The cut off time as mentioned in the Scheme Information Document will be applicable at these official points of acceptance. The list of official point of acceptance is attached with this document.

For purchase and redemption or changeover or switchover of units applications received at any authorised collection centers, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV for purchase / redemption / changeover or switchover of units.


25. “Record date” means the date announced by the fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC / Registrars, on the record date shall be eligible for such benefits.

26. “Registrars” means a person whose services may be retained by UTI AMC to act as the Registrar under the scheme, from time to time.

27. “Regulations” or “SEBI Regulations” mean the SEBI (Mutual Funds) Regulations, 1996 as amended from time to time.

28. “Scheme” Under UTI-Thematic Fund shall collectively mean the funds initially offered and subsequently added/terminated/wound up from time to time. Notwithstanding the definition of “Scheme”, each fund, though launched alongwith other funds under the name of UTI-Thematic Fund, will be treated as a separate scheme for the purpose of operations, accounting, determination of dividend distribution, portfolio maintenance, calculation of NAV and other purposes.

Under UTI-GSF “scheme” shall collectively mean Sector Funds initially offered and added/terminated from time to time. Notwithstanding the definition of the “Scheme” under UTI-GSF, each fund, though launched alongwith other funds under the name of UTI Growth Sectors Fund, will be treated as a separate scheme for the purpose of operations, accounting, determination of dividend distribution, portfolio maintenance, calculation of NAV and other purposes.



31. “Sponsors” are Bank of Baroda, Punjab National Bank, Life Insurance Corporation of India and State Bank of India;


33. “Trustee” means UTI Trustee Company Private Limited a company incorporated under the Companies Act, 1956, and approved by SEBI to act as the Trustee to the schemes of UTI Mutual Fund.


35. “Unit” means the interest of the unitholders in a Scheme, which consists of each unit representing one undivided share in the assets of the Scheme.

36. “Unit Capital of a fund” means the aggregate of the face value of units issued under the fund and outstanding for the time being.




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Due Diligence Certificate submitted to SEBI for UTI-THEMATIC FUND & UTI-GROWTH SECTORS FUND



II. all legal requirements connected with the launching of these schemes as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with;



Sd/- Date: November 7, 2013 Vivek MaheshwariPlace : Mumbai Compliance Officer


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II. INFORMATION ABOUT THE SCHEMESA. TYPE OF THE SCHEMES UTI-Thematic Fund and UTI-Growth Sectors Fund are

open-ended equity schemes.B. WHAT ARE THE INVESTMENT OBJECTIVES OF

THE SCHEMES? 1. Investment Objective of UTI-Thematic Fund The scheme aims to provide to investors growth

of capital over a period of time as well as to make periodical distribution of income from investment in stocks of respective sectors of the Indian economy.

(a) UTI-Banking Sector Fund – Investment objective is “capital appreciation” through investments in the stocks of the companies/institutions engaged in the banking and financial services activities.

(b) UTI-Infrastructure Fund – The investment objective of the Scheme is to provide income distribution and / or medium to long term “capital appreciation” by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. However, there is no assurance that the investment objective of the scheme will be achieved.

(c) UTI-Mid Cap Fund – Investment objective is “capital appreciation” by investing primarily in mid cap stocks.

(d) UTI-Transportation & Logistics Fund – Investment Objective is “capital appreciation” through investments in stocks of the companies engaged in the transportation and logistics sector.

2. Investment Objective of UTI – Growth Sectors Fund

Investment objective of UTI-Growth sectors Fund is capital appreciation through investments in equities and equity related instruments of the respective sectors.


1. Asset Allocation pattern of UTI-Thematic Fund: (a) UTI-Banking Sector Fund

Instruments Indicative Allocation(% of Total

Assets)

Risk Profile


Atleast 90%

Medium to High

Equity and equity related instruments of the companies/institutions engaged in the banking services activities

Atleast 65%

High

Cash/money market instruments

Upto 10% Low to Medium

(b) UTI-Infrastructure Fund

Instruments Indicative Allocation(% of Total

Assets)

Risk Profile

Equity & Equity related instruments of companies engaged either directly or indirectly in the Infrastructure sector.

65% - 100% Medium to High

Debt and Money Market Instruments including Securitised Debt*

0% - 35% Low to Medium

* The scheme may invest upto 100% of its debt portfolio in Securitised debt.

The scheme may seek investment opportunity in the ADR/GDR/Foreign Equity and Debt Securities, in accordance with guidelines stipulated in this regard by SEBI and the RBI from time to time. The scheme shall not have an exposure of more than 10% of its net assets in foreign securities subject to regulatory limits. The scheme may take derivatives position based on the opportunities available subject to the regulations / guidelines issued by SEBI from time to time and in line with the overall investment objective of the scheme. These may be taken to hedge the portfolio, rebalance the same or to undertake any other strategy as permitted under the SEBI Regulations.


pattern indicated above may change from time to time, keeping in view the market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short-term periods on defensive consideration.


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Investment focus and asset allocation strategy

The broad investment strategy of the fund will be to invest in equity and equity related securities of companies that are engaged either directly or indirectly in the infrastructure growth of the Indian economy, including those in derivative segment. The scheme aims to build and maintain a diversified portfolio of equity stocks that has the potential to appreciate in the long run. The investment manager will select equity securities on a bottom-up, stock by stock basis within the overall investment objective of the scheme. In picking out individual investment opportunities the investment manager will adhere to the defined universe eligible for investment.

The investment manager will seek both value and growth. The in house research team will help us in identifying such investment opportunities. The company-wise analysis will focus amongst others on the historical and current financial conditions of the company, potential value creation /unlocking of value and its impact of earnings growth, business prospects, strength of management, competitive edge etc. The scheme will invest in companies broadly within the following areas / sectors of the economy namely.

a) Airports & related services b) Banking & other related financial services c) Construction & related industry d) Electrical & Electronic components e) Energy including Coal, Oil & Gas, Petroleum,

Pipelines etc f) Engineering g) Industrial Capital Goods & Products h) Irrigation & Water Management Services i) Metals, Minerals & Construction Materials j) Mining k) Ports l) Power & Power Equipments m) Road & Railways n) Telecom o) Transportation & Logistics p) Urban Infrastructure including Housing &

Commercial Infrastructure. The above list is only indicative and the Fund

Manager will have the discretion to invest in all those sectors / areas which are engaged either

directly or indirectly in the infrastructure growth of the country.

(c) UTI-Mid Cap Fund The Fund would invest, at least 65% of its Net

Assets in equity and equity related instruments issued by companies which are constituents of CNX Midcap Index or CNX 500 but not a part of BSE Sensex (30) or Nifty (50), at the time of investment. Currently, companies having an annual average market capitalisation of less than `75 crores would not be considered for investment in the aforesaid portion of the portfolio, in line with the floor specified in the Benchmark CNX Mid Cap Index. This lower limit of ̀ 75 crores would change in line with the change in the lower limit of the market capitalisation criterion in the Benchmark.

Further, no stocks, which are among the top 50 stocks in terms of market capitalisation, will form part of the aforesaid 65% of the net assets of UTI Mid Cap Fund, at the time of investment.

Upto 35% of the Net Assets would be invested in equity and equity related instruments issued by companies with a potential for consistent growth and are relatively undervalued to their expected long-term earning growth.

Not more than 20% of net assets will be invested in money market instruments.

(d) UTI-Transportation & Logistics Fund

Instruments Indicative Allocation(% of Total Assets)

Risk Profile


Atleast 90% Medium to High

Equity and equity related instruments of the companies principally engaged in providing transportation services, companies principally engaged in the design, manufacture, distribution, or sale of transportation equipment and companies in the logistics sector.

Atleast 80%High

Cash/money market instruments


2. Asset Allocation pattern of UTI – Growth Sectors Fund:

At least 90% of the investible resources of each of the funds will be invested in stocks of the respective sector as under:


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(a) UTI-Pharma & Healthcare Fund: Investment will be made in stocks of companies engaged in manufacturing of Pharmaceuticals – bulk drugs, formulations & OTC drugs, medical equipment and accessories, personal healthcare products and also companies owning/managing hospitals etc.

(b) UTI-Energy Fund: Investment will be made in stocks engaged in the following areas: –

Petro sector covering industries such as oil and gas drilling and exploration, refining of crude oil, distribution of oil, gas, petro products, pipelines and manufacturing of downstream oil products.

All types of Power generation companies. Companies which are into production of Ethanol. Business related to storage of energy and

companies involved in business of delivering energy in different forms. Industrial manufacturing companies which are into manufacturing of equipment related to energy development (like petro and power), and related areas, pipes/cables and laying them. It will also include manufacturing of bulbs and related system.

Consultancy & Finance: Companies involved in consulting and financing these businesses.

(c) UTI-Services Sector Fund: Investment will be made in stocks of companies engaged in the business of banking, finance & insurance, education & training, telecom services, travel & tourism, leisure & entertainment, transportation etc.

Change in Investment Pattern Subject to the Regulations, the asset allocation

pattern indicated above for the sector funds may change from time to time keeping in view market conditions, market opportunities, applicable regulations, and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the unitholders. Such changes in the investment pattern will be for short term and on defensive considerations.

As permitted by SEBI guidelines the upper ceiling under a Fund on investments may be in accordance with the weightage of the scrips in the respective sectoral index/sub index as disclosed in the Scheme Information Document or 10% of the NAV of the scheme whichever is higher.

D. WHERE WILL THE SCHEMES INVEST? 1. The mutual funds can invest in (i) ADRs/GDRs issued by Indian or foreign

companies.

(ii) Equity of overseas companies listed on recognized stock exchanges overseas.

(iii) Initial and follow on public offerings for listing at recognized stock exchanges overseas.

(iv) Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies.

(v) Money market instruments rated not below investment grade.

(vi) Repos in the form of investment, where the counterparty is rated not below investment grade; repos should not however, involve any borrowing of funds by mutual funds.

(vii) Government securities where the countries are rated not below investment grade.

(viii) Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities.

(ix) Short term deposits with banks overseas where the issuer is rated not below investment grade.

(x) Units/securities issued by overseas mutual funds or unit trusts registered with overseas regulators and investing in (a) aforesaid securities, (b) Real Estate Investment Trusts (REITs) listed in recognized stock exchanges overseas or (c) unlisted overseas securities (not exceeding 10% of their net assets).

Under normal circumstances, the scheme shall not have an exposure of more than 10% of its net assets in foreign securities subject to regulatory limits.



2. Participating in Derivative Products: Derivatives: A derivative instrument, broadly, is

a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.


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Derivatives are further classified into (i) Futures (ii) Options (iii) Swaps Futures: A futures contract is a standardized


Options: An option is a derivative instrument which gives its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.

There are two basic types of options, call option and put option.


(b) Put option: A put option gives the buyer of the option the right but not the obligation to sell a given quantity of the underlying asset, at a given price (strike price), on or before a given future date. On expiry of a call option, if the market price of the underlying asset is lower than the strike price the call would expire unexercised. Likewise, if, on the expiry of a put option, the market price of the underlying asset is higher than that of the strike price the put option will expire unexercised.

The buyer/holder of an option can make loss of not more than the option premium paid to the seller/ writer but the possible gain is unlimited. On the other hand, the option seller/writer’s maximum gain is limited to the option premium charged by him from the buyer/holder but can make unlimited loss.



Debt derivatives are as of now customised over the counter products and there is no guarantee that these products will be available on tap.

The Fund may use derivative instruments like Stock/Index Futures, Interest Rate Swaps, and Forward Rate Agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing, within a permissible limit of 50% of portfolio, which may be increased as permitted under the Regulations and guidelines from time to time.


(i) The scheme will use hedging techniques including dealing in derivative products – like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The scheme may take derivatives position based on the opportunities available subject to the guidelines issued by SEBI from time to time and in line with the overall investment objective of the scheme. These may be taken to hedge the portfolio, rebalance the same or to undertake any other strategy as permitted under the SEBI Regulations.

(iii) The Fund manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market. One of the strategies could be to use index futures with a view to increasing/ decreasing the overall level of investment in equities.

(iv) The Fund manager may create a synthetic structure by combining a position in futures and options. For example instead of writing calls by having a long position on the stock the fund manager may go long on the stock future.

(v) The Fund Manager may sell the index forward by taking a short position in index futures to save on the cost of outflow of funds or in the event of negative view on the market.

(vi) As per the current norms of the UTI AMC the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of the scheme. UTI AMC may in future revise the limits within the investment objective of the scheme.

Exposure limits: a. The cumulative gross exposure through equity,

debt and derivative positions should not exceed 100% of the net assets of the scheme.



20








f. Mutual Funds may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme.


Definition of Exposure in case of DerivativePositions

Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:

Position ExposureLong Future Futures Price * Lot Size *

Number of ContractsShort Future Futures Price * Lot Size *

Number of ContractsOption bought Option Premium Paid * Lot

Size * Number of Contracts.

The AMC retains the right to enter into such derivative transactions as may be permitted by the Regulations from time to time. For risks associated with investments in derivatives investors are requested to refer to Risk Factors of this Scheme Information Document.

E. WHAT ARE THE INVESTMENT STRATEGIES? UTI-Banking Sector Fund: Within the banking sector,

the scheme may invest in companies/institutions which are private or public, and Indian or foreign owned. As the benchmark index is skewed in favour of few stocks, the fund could have substantial deviations from the respective weightage in the benchmark index so as to achieve diversification within the sector.

UTI-Energy Fund: The investment universe comprises sectors / sub-sectors including Power Generation & Distribution, Oil Downstream & Upstream, Capital Equipment Manufacturing, Pipe Manufacturing, Gas Distribution etc.

UTI-Infrastructure Fund: The scheme’s endeavour is to pick sectors, which are expected to perform better and select fundamentally strong companies in those sectors. The scheme’s performance is highly linked with the overall economic growth of the country as the sectors in which the scheme invests are directly linked to the GDP growth of India.

UTI-Mid Cap Fund: It is a pure mid cap fund. The entire portfolio is invested in dynamic and well managed, medium sized enterprises with higher growth potential vis-à-vis their well established counterparts. The scheme uses fundamental analysis to select investments. This encompasses analysis of each company’s financial condition, its relative industry standing, as well as market and economic conditions. The scheme will invest in stocks, which constitute the CNX Midcap 200 and CNX 500 index only. The scheme shall not invest in the top 50 stocks by market capitalisation.

UTI-Pharma & Healthcare Fund: The scheme could have companies in the pharmaceutical sector, which are large or small, and Indian or MNC. As the benchmark index is skewed in favour of few stocks, the fund could have substantial deviations from the respective weightages in the benchmark index so as to achieve diversification within the sector. The weightages of above sub-segments will vary depending on valuations and expected growth potential.

UTI-Services Industries Fund: The scheme primarily invests in companies which provide services or produce products wherein, the value addition come more from human resources, than from capital or machines. As the benchmark index is skewed in favour of few stocks, the fund could have substantial deviations from the respective weightages in the benchmark index so as to achieve diversification within the sector.


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UTI-Transportation & Logistics Fund: The investment universe comprises sectors/sub-sectors including Auto/auto ancillary, Railway, Ports, Airports, Roads, Shipping, Courier, Logistics and other ancillary sectors catering to Transportation & Logistics.

Portfolio Turnover policy The portfolio turnover shall be targeted so as to have

return maximisation for the unitholders. At the same time, expenses such as brokerage and transaction cost shall be kept at low level so that it does not affect the earnings of the scheme.

F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the

schemes, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of a scheme UTI-Thematic Fund and UTI-Growth Sectors

Fund are open-ended equity schemes.

(ii) Investment Objective Main Objective – As given in clause II B (1) & (2)

Investment pattern – The tentative Equity/Debt/Money Market portfolio break-up with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations – as given in Clause II C.

(iii) Terms of Issue - Liquidity provision of redemption: Only

provisions relating to redemption as given in Section III (A)- Ongoing Offer Details – Page Nos. 34.

- Aggregate Expense and Fees [as given in clause IV (A) (a) to (c)] charged to the scheme.

- In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Schemes and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) there under and affect the interests of Unitholders is carried out unless:-

(i) A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

(ii) The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.


Sr. No.

Scheme Benchmark Index

1. UTI-Banking Sector Fund

# CNX Bank Index

2. UTI-Infrastructure Fund

S&P BSE 100 Index

3. UTI-Mid Cap Fund * CNX Midcap Index

4. UTI-Transportation & Logistics Fund

$ UTI-Transportation & Logistics Index

5. UTI-Energy Fund $ UTI Energy Index

6. UTI-Pharma & Healthcare Fund

* CNX Pharmaceuticals

7. UTI-Services Industries Fund

* CNX Service Sector

Benchmarks have been chosen on the basis of the investment pattern/objective of the scheme/s and the composition of the index. The benchmarks may be changed in future if benchmarks better suited to the investment objective of the schemes are available.

* The schemes which are benchmarked to the indices as indicated in the Scheme Information Document are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL is not responsible for any errors or omissions or the results obtained from the use of such index and in no event shall IISL have any liability to any party for any damages of whatsoever nature (including lost profits) resulted to such party due to purchase or sale or otherwise of such product benchmarked to such index.

# The Product is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (“IISL”). IISL does not make any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the CNX Bank Index to track general stock market performance in India. The relationship of IISL to the Issuer is only in respect of the licensing of certain trademarks and trade names of its Index which is determined, composed and calculated by IISL without regard to the Issuer or the Product. IISL does not have any obligation to take the needs of the Issuer or the owners of the Product into consideration in determining, composing or calculating the CNX Bank Index. IISL is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product to be issued or in the determination or calculation of the equation by


22

which the Product is to be converted into cash. IISL has no obligation or liability in connection with the administration, marketing or trading of the Product.

IISL do not guarantee the accuracy and/or the completeness of the CNX Bank Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the Product, or any other person or entity from the use of the CNX Bank Index or any data included therein. IISL makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, IISL expressly disclaim any and all liability for any damages or losses arising out of or related to the Product, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

$ The UTI-Energy Fund & UTI-Transportation & Logistics Fund are not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). UTI Energy Index & UTI Transportation & Logistics Index have been exclusively customized for UTI Asset Management Company Ltd. for UTI-Energy Fund and UTI Transportation and Logistics Fund respectively and have been developed and are being maintained as per the specifications and requirements of UTI Asset Management Company Ltd. IISL does not make any representation or warranty, express or implied regarding the advisability of investing in the products linked to the UTI Energy Index & UTI Transportation & Logistics Index and availing the services generally or particularly or the ability of UTI Energy Index & UTI Transportation & Logistics Index to track general stock market performance in India. The relationship of IISL to UTI Asset Management Company Ltd. is with respect to the supply of data and information regarding the UTI Energy Index & UTI Transportation & Logistics Index which are determined, composed and calculated by IISL without regard to UTI Asset Management Company Ltd. and its information product(s) or services offered or distributed. IISL have no obligation or liability in connection with the administration, marketing or trading of the information product(s) based on UTI Energy Index & UTI Transportation & Logistics Index.

IISL does not guarantee the accuracy and/or the completeness of the UTI Energy Index & UTI Transportation & Logistics Index or any data included therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL does not make any warranty, express or implied, as to the results to be obtained by UTI Asset Management Company Ltd. owners of the Product, or any other persons or entities from the use of UTI Energy Index & UTI Transportation & Logistics Index or any data included therein. IISL makes no express or implied warranties and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the UTI Energy Index & UTI Transportation & Logistics Index or any data included therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages.

IISL has taken due care and caution in development, compilation, maintenance and dissemination of the UTI Energy Index & UTI Transportation & Logistics Index as per the requirements, specifications and instructions of the UTI Asset Management Company Ltd. Information has been obtained by IISL from sources which it considers reliable. However, IISL does not guarantee the accuracy, adequacy or completeness of information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IISL is also not responsible for any errors in transmission.

H. WHO MANAGE THE SCHEMES?

Scheme Fund Manager

UTI-Banking Sector Fund Lalit Nambiar

UTI-Infrastructure Fund Sanjay Dongre

UTI-Mid Cap Fund Anoop Bhaskar

UTI-Transportation & Logistics

Fund

Anoop Bhaskar

UTI-Energy Fund Anoop Bhaskar

UTI-Pharma & Healthcare Fund Lalit Nambiar

UTI-Services Industries Fund Lalit Nambiar


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The details of the Fund Managers are as follows:

Name of the Fund Manager

Age(in yrs)


Anoop Bhaskar 45 B.Com., MBA (Finance)

He has over 21 years of work experience in equity research and fund management, of which 19 years are with asset management companies. He was earlier working as Head Equity with Sundaram Asset Management from August, 2003 to March, 2007. He has also worked with Templeton Asset Management as Senior Research Analyst & Portfolio Manager from 1993 to 2003 and prior to that he was working as Manager-Investments at Shriram Financial Services Ltd. from 1992 to 1993.

UTI-Children’s Career Balanced Plan (Equity portfolio);UTI-Equity Fund; UTI-Master Value Fund;UTI-Opportunities Fund.

Sanjay Dongre 44 BE, PGDM He has been in UTI AMC since 1994. He started as a Debt Analyst acting as a support service for fund management activity. He has experience in Investments & Investment Monitoring from August, 1994 till April, 1998. He also worked for a year as Equity Research Analyst covering wide range of corporate and industries. Subsequently, he worked as Equity Dealer for another year, wherein he was involved in handling all the activities relating to secondary equity market operations. Prior to joining UTI he has worked with Reliance Petrochemicals Ltd. as an officer in-charge of the Instrumentation Department. Since July, 2000, he has been working as Fund Manager-Equity with Funds Management.

UTI-Leadership Equity Fund;UTI-Master Plus Unit Scheme;UTI-MEPUS.

Lalit Nambiar 42 B.Com, MMS,CFA

He has been with UTI AMC since December, 2006. He took up portfolio responsibilities in July, 2007. In addition to managing equity portfolios, he also leads the equity research in the capacity of Head (Research). He began his career in June 1994, with IIT InvesTrust Limited as Senior Manager in Research Department. He then joined UTI Securities Limited in October, 1999 and continued till June, 2004 as Senior Analyst in Research Department. He joined SBI Capital Markets Ltd. as AVP in Research Department from January, 2004 to December, 2006.

UTI-Gold Exchange Traded Fund;UTI-India Lifestyle Fund;UTI-Wealth Builder Fund – Series II;UTI-Long Term Advantage Fund – Series I & II.


24

Shri Arpit Kapoor is the dedicated Fund Manager for investment in ADRs / GDRs / Foreign Securities

Age(in yrs)


30 B . T e c h , PGDM, CFA

He joined UTI AMC in 2009 in the Equity Research Team. He is currently working as Fund Manager-cum-Research Analyst since June, 2009. Prior to joining UTI AMC and taking up his MBA, he has worked with Torry Harris Business Solutions, Bangalore as Associate Software Engineer from June, 2005 to June, 2007 and Mobintech A/S, Denmark as Business Analyst from September, 2008 to December, 2008.

Dedicated fund manager for investment in ADRs/GDRs/Foreign securities of all domestic schemes launched or to be launched by the UTI Mutual Fund.

I. WHAT ARE THE INVESTMENT RESTRICTIONS? Subject to SEBI (MFs) Regulations and guidelines on investment from time to time:

(a) No term loans will be advanced by these schemes for any purpose as per regulation 44(3) of SEBI Mutual Funds Regulations 1996.

(b) The scheme shall not make any investment in any fund of fund scheme.

(c) Pending deployment of the investible resources of the scheme in securities in terms of the investment objective stated above investments may be made in money market instruments and short term deposits of scheduled commercial banks in accordance with SEBI guidelines.

(d) The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction. Provided that the schemes may enter into derivatives transactions for the purpose of hedging and rebalancing the portfolio as may be permissible under guidelines issued by SEBI.

(e) The Mutual Fund under all its schemes taken together will not own more than 10% of any Company’s paid up capital carrying voting rights.

(f) The Mutual Fund shall get the securities purchased by a fund transferred in the name of the fund, wherever investments are intended to be of long term nature.

(g) (i) The funds may participate in the securities lending program, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediaries.

(ii) The maximum exposure of a fund to a single approved intermediary in the securities lending programme at any point of time would be 10% of the market value of the security class of the schemes or such limit as may be specified by SEBI.

(iii) If mutual funds are permitted to borrow securities, the schemes may, in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

(h) A fund shall not make any investment in any unlisted security of an associate or group company of the sponsors; or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

(i) Investment in non-publicly offered debt: Depending upon the available yields the fund, may invest in non publicly offered debt securities to the extent to which such investment can be made by the fund.

(j) Based upon the liquidity needs, a fund may invest in Government of India Securities to the extent to which such investment can be made by the schemes.

(k) The aggregate value of “illiquid securities” of scheme, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value. The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of the scheme. In normal course of business, the sector funds would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets. In case of the need for exiting from such illiquid instruments in a short period of time, the NAV of a fund could be impacted adversely.


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(l) The sector funds shall not invest more than 5% of their NAVs in unlisted equity shares or equity related instruments.

No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity shares or equity related instruments of any company:

Provided that, the limit of 10 per cent shall not be applicable for investments in case of index fund or sector or industry specific scheme.

(m) Investment by a fund in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under: A fund may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

Such investment will be consistent with the investment objective of the fund. No investment management fees will be charged by the AMC on such investments.

(n) The sector funds shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorised to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAVs of scheme with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in government securities. Provided further that investments within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

(o) The sector funds shall not invest more than 10% of their NAVs in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 20% of the NAVs of the funds. All such investments shall be made with the prior approval of the Trustees and Board of AMC.

No mutual fund scheme shall invest more than thirty percent of its net assets in money market instruments of an issuer. Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralized borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Boards and the Trustees. The details of such investments shall be communicated by UTI AMC to the Trustees in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Boards of AMC and Trustees shall be required.

(p) Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause II (I) (n) and (o) above. It is further clarified that the investment limits at II (I) (n) and (o) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above investment limits.

J. HOW HAVE THE SCHEMES PERFORMED?(a) UTI-Banking Sector Fund

Performance of the scheme as on October 31, 2013

*Compounded Annualised

Returns

Scheme returns

%

CNX Banks Index %

Last 1 year -3.18 1.81Last 3 years -4.53 -2.37Last 5 years 19.89 20.46



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(b) UTI-Infrastructure Fund



Returns

Scheme returns

%

S&P BSE 100

Index %Last 1 year -9.15 11.56

Last 3 years -11.48 0.53

Last 5 years 4.24 16.88


(c) UTI-Midcap Fund



Returns

Scheme returns

%

CNX Midcap Index %

Last 1 year 4.04 -2.94

Last 3 years -0.32 -6.97

Last 5 years 20.47 16.52


(d) UTI-Transportation & Logistics FundPerformance of the scheme as on October 31, 2013


Returns

Scheme returns

%

UTI Trans-portation & Logistics Index%

Last 1 year 13.52 16.95

Last 3 years 4.35 5.47

Last 5 years 26.87 31.25

Since Inception

16.93 15.55

(e) UTI-Energy Fund



Returns

Scheme returns%

UTI-Energy Index %

1 Year -7.32 -10.37

3 Years -10.29 -14.87

5 Years 6.65 5.20

Since Inception

-7.79 -8.93


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(f) UTI-Pharma & Healthcare Fund



Returns

Scheme returns

%

CNX Pharma- ceuticals

%Last 1 year 22.78 22.93

Last 3 years 11.36 11.45

Last 5 years 25.53 27.04


(g) UTI-Services Industries Fund



Returns

Scheme returns

%

CNX Service Sector

%Last 1 year 16.96 15.64


Last 5 years 18.60 16.27


*Computed on Compounded annualised basis Past performance may or may not be sustained in future


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III. UNITS & OFFERThis section provides details you need to know for investing in the scheme.A. ONGOING OFFER DETAILS

Plans / Options offered In addition to the Existing Plan all the schemes offer ‘Direct Plan’* However, in the case of UTI Banking Sector Fund, among the Existing Plans, only the “Regular Plan” is available for subscription with effect from 1st October 2012.#All the Plans including Direct Plan offer the following Options under all schemes (i) Growth Option Ordinarily no dividend distribution will be made under this option. All income generated

and profits booked will be ploughed back and returns will be reflected through the NAV(ii) Dividend Option with Payout and Reinvestment facilities In case where neither of the options is exercised by the applicant/unitholder at the time

of making his investment or subsequently he will be deemed to be under the Growth Option and his application will be processed accordingly. If no option i.e. Payout or Reinvestment of income distribution is indicated in the application form, it will be considered as under Payout Option and processed accordingly.

# Fresh Subscriptions has been discontinued with effect from 1st October 2012 under UTI-Banking Sector Fund–Institutional Plan: The existing Investors under UTI-Banking Sector Fund - Institutional Plan shall be allowed to continue in the discontinued Plan/Option till they exit.Further, the Dividend Reinvestment facility/option in Institutional Plan/options is withdrawn and the dividend as and when declared under this Plan will be compulsorily paid out in such cases even if it is under reinvestment facility/option.Further, under the above Plans & Options, the dividend is proposed to be declared once in a month, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996. However, there is no assurance or guarantee to the unit holders, as to the rate and frequency of dividend. UTI AMC reserves the right to declare dividend at any other frequency, as it may deem fit, under the above revised Plans & Options.

*Direct Plan:Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.All categories of Investors (whether existing or new Unitholders) are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid from Direct Plan.Portfolio of the Scheme under the Existing plan and Direct Plan will be commonHow to apply: Investors subscribing under Direct Plan of the scheme will have to indicate “Direct Plan” against the Scheme name in the application form, as for example, “UTI-Banking Sector Fund - Direct Plan”.Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for Existing plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.Scheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the Existing plan and the Direct Plan except that:


29


(b) However, no exit load shall be levied for switch of investments from existing plan made directly without an ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan of the scheme (subject to statutory taxes and levies, if any). The holding period for applicability of load will be considered from the date of initial investment in the Existing plan.

(c) No exit load shall be levied in case of switches from Direct Plan to Existing plan.Dividend Policy 1. Dividend distribution

(a) Dividend distribution, if any, under the schemes will be made subject to availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution.

(b) UTI-Growth Sectors Fund

(i) The dividend distribution for each sector fund will be made annually subject to each of such funds having distributable dividend not less than `1.00 per unit.

(ii) If in any year the net dividend of any of the sector funds is not sufficient to make distribution at the above level, no distribution will be made for that year and the entire distributable amount of the concerned sector fund will be carried forward and added to the next year’s distributable amount of that fund.

(iii) Since each sector fund is managed separately the rate of return under the different sectors could vary and therefore the dividend distribution declared under each sector fund could be different.

2. Capitalisation and issue of Bonus units

Bonus units may be issued under any of the scheme as may be decided by the Trustee from time to time.

3. Reinvestment of dividend distributed

Unitholders, if they so desire, will have facility to reinvest dividend, if any, payable to them, into further units of that scheme.

4. Rollover facility

Rollover facility offers a facility to unitholders to redeem entire or a part of their outstanding unit holding and simultaneously investing the entire proceeds or upto face value of units redeemed on the rollover date at the same NAV in the same scheme. No load will be required to be paid on redemption proceeds to the extent of amount invested under the rollover facility.


Restriction on Third Party Payments

Third party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions.

“Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made.

For further details, please refer to SAI.


30


An application for issue of units may be made by any resident or non-resident Indian as well as non-individuals as indicated below:(a) a resident individual or a NRI or a person of Indian origin residing abroad, either singly

or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court;


(c) an association of persons or body of individuals whether incorporated or not;(d) a Hindu Undivided Family – both resident and non-resident;(e) a body corporate including a company formed under the Companies Act, 1956 or

established under State or Central Law for the time being in force;(f) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc.;(g) an eligible trust including Private Trust being irrevocable trust and created by an

instrument in writing;(h) a society as defined under the scheme;(i) a Financial Institution;(j) an Army / Navy / Air Force / Paramilitary Fund;(k) a partnership Firm; (An application by a partnership firm shall be made by not more than two partners of

the firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorized by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)

(l) FIIs registered with SEBI;(m) Mutual Funds registered with SEBI;(n) Scientific and Industrial Research Organisations;(o) Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the

permission of Government of India/Reserve Bank of India;(p) Other schemes of UTI Mutual Fund subject to the conditions and limits prescribed by

SEBI Regulations(q) Such other individuals / institutions / body corporate etc., as may be decided by the

AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations


(s) Qualified Foreign Investors(QFIs) subject to terms and conditions stated below The Fund reserves the right to include / exclude, new / existing categories of investors

to invest in the schemes from time to time subject to SEBI Regulations, if any.Note: Neither this Scheme Information Document nor the units have been registered in any jurisdiction including the United States of America. The distribution of this Scheme Information Document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of this Scheme Information Document are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme Information Document or any accompanying application form in such jurisdiction may treat this Scheme Information Document or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly this Scheme Information Document does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.


31

It is the responsibility of any persons in possession of this Scheme Information Document and any persons wishing to apply for units pursuant to this Scheme Information Document to inform themselves of and to observe, all applicable laws and Regulations of such relevant jurisdiction.

For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,


2. Foreign Nationals are required to comply (including taking necessary approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, know your customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions.

UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.

Holding Basis: In the event an account has more than one registered holder the first named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines.

Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.

In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.

Qualified Foreign Investors (QFIs) shall mean a person resident in a country that is compliant with Financial Action Task Force (FATF) standards and that is a signatory to International Organization of Securities Commission’s (IOSCO’s) Multilateral Memorandum of Understanding, provided that

- Such person is not resident in India and

- Such person is not registered with SEBI as Foreign Institutional Investor or sub‐account.

Explanation: For the above purpose,

1. The term “Person” shall carry the same meaning under Section 2(31) of the Income Tax Act, 1961.

2. The phrase “resident in India” shall carry the same meaning as in the Income Tax Act, 1961

3. “resident” in a country, other than India, shall mean resident as per the direct tax laws of that country.


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A] Updation / Change of address: Investors are requested to update their change of address within 30 days from the date

of change. In case of Know Your Client (KYC) complied folios, Investors are required to submit

the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com}, as may be specified by them, from time to time.

In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.

For further details, refer to SAI Further, in the case of non-KYC complied folios, Investors are required to submit self

attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:

Proof of identity: PAN card with photograph, Photo ration card, Unique Identification Number (UID)

(Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.

Proof of old as well as new address: Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank

passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.

B] Updation / Change of bank details: Investors are requested to update/change their bank details using the Form for

registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:

B.1) Proof of identity: PAN card with photograph, Photo ration card, Unique Identification Number (UID)

(Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State/ Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council et., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.

B.2) Proof of new bank account details: “Cancelled” original cheque leaf bearing account number and first unit holder name

printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.

B.3) Proof of existing/old bank account details: “Cancelled” original cheque leaf bearing account number and first unit holder name

printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.


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B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:

Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable.

B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.

C] Cooling period: In case the change of address and/or Updation / change of bank details are submitted

together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 working days from the date of such redemption request.

The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non-submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.

Updating/change of bank details in case of non-KYC complied folios In case of non-KYC complied folios, the request to update/change of bank details shall

be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.

For further details, refer to SAIOngoing price for subscription (purchase) / switch-in (from other schemes/plans of the mutual fund) by investors.This is the price you need to pay for purchase/ switch-in.

The face value of a unit is `10/- and units will be issued in fractions up to three decimal places.Purchase on all business days at the applicable NAV. No entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/Systematic Transfer Plans accepted by the Fund.

Mode of Payment – Cash / Transfer of funds through NEFT/RTGS

Cash payment to the extent of `20,000/- per investor, per Mutual Fund, per financial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Permanent Account Number (PAN)/bank accounts), subject to the following procedure.i. Investors who desire to invest upto `20,000/- per financial year shall contact any of our

UFCs and obtain a Form for Deposit of Cash and fill-up the same.ii. Investors shall then approach the designated branch of Axis Bank along with the duly

filled-in Form for Deposit of Cash and deposit the cash.iii. Axis Bank will provide an Acknowledgement slip containing the details of Date & Time of

deposit, Unique serial number, Scheme Name, Name of the Investor and Cash amount deposited. The Investors shall attach the Acknowledgement slip with the duly filled-in application form and submit them at the UFCs for time stamping.

Transfer of funds through National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) for Investment amount of `2 lacs and above : Investor shall ensure that the payment is made from one of his/her registered bank accounts in the folio. If the name of the remitter/account number from where the amount is remitted is not matching with the registered / to be registered bank accounts details, such remittances shall be treated as third party payments and such applications are liable to be rejected. In such cases, UTI MF will refund the amount to the remitter within 30 calendar days from the date of receipt of the funds, as per the details made available to UTI MF by the remitting Bank.For further details, please refer to SAI.


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Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.This is the price you will receive for redemptions/switch outs.Example: If the applicable NAV is ` 10, exit load is 2% then redemption price will be:` 10* (1-0.02) = ` 9.80

Redemption on all business days at the applicable NAV subject to prevailing exit load.

Cut off timing for subscriptions / redemptions / switchesThis is the time before which your application (complete in all respects) should reach the official points of acceptance.

Purchase: For Purchases less than ` 2 lacsOperation Cut-off Timing Applicable NAV

Valid applications with local cheques / demand drafts payable at par at the place where the application is received.

Upto 3 p.m. Closing NAV of the day of receipt of the application.


After 3 p.m. Closing NAV of the next business day.

Valid applications received with outstation cheques / demand drafts (for the schemes/investors as permitted in the Scheme Information Document) not payable at par at the place where the application is received.

Within business hours.

Closing NAV of the day on which cheque / demand draft is credited to the scheme/Plan.

Purchase : For Purchases of ` 2 lacs and aboveOperation Cut-off Timing Applicable NAV

The funds are available for utilization before cut off and valid applications received with cheques /demand drafts

Upto 3 p.m. Closing NAV of the day on which the funds are available for utilization before cut off time shall be applicable irrespective of the time of receipt of the application.

The above mentioned rule will be applicable irrespective of the date of debit to investor’s account. `2 lacs shall be considered after considering multiple applications received from the investor under all the schemes/plans on the day and also under all modes of investment i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN registered with UTI Mutual Fund.Redemption:

Operation Cut-off Timing Applicable NAVValid applications received Upto 3 p.m. Closing NAV of the day of receipt of

the application.Valid applications received After 3 p.m. Closing NAV of the next business

day.


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Book Closure Period / Record date

The purchase and redemption of units under all the schemes shall remain open on all business days throughout the year except during book closure period/s not exceeding 15 days in a year. Besides, record date/s for any scheme may be announced for distribution/s of dividend, if any, during the year.

Where can the applications for purchase / redemption / switches be submitted?

The details of official points of acceptance are given on the back cover page. It is mandatory for investors to mention their bank account particulars in their applications / requests for redemption.In addition to the circumstances mentioned in the Statement of Additional Information, UTI AMC shall have the right to accept and / or reject at its sole discretion an application for issue of units if the applicant does not clearly indicate which Fund / Scheme he chooses to invest.

How to Apply Please refer to the SAI and Application form for the instructions.Minimum amount for purchase/redemption/ switches

(a) Minimum amount for purchase under all Plans and Options of the respective Schemes

(i) Any application for initial investment shall be for a minimum of `5000/- or such other amount as may be decided from time to time

(ii) Amount of Subsequent minimum investment under a folio in all the schemes is `1000/- and in multiples of `1/- without any upper limit.

Minimum Investment amount under the Direct Plan: In case of already existing investments under the Existing Plan, if the investor wants

to further invest in the Direct Plan he/she will be required to invest the minimum investment amount of the scheme, as applicable for that Scheme/Plan/Option/facility etc.

(b) Minimum amount for Switchover (i) In case an investor wishes to switchover from one fund to one or more other fund(s)

under the scheme he may apply for the switchover by submitting his request in the switchover slip duly signed.

(ii) Unitholders of these funds may be permitted to switchover their investment partially or fully, to scheme/s of UTI MF or vice versa and on such terms as may be announced by UTI AMC from time to time.

(iii) In case of partial switchover from one scheme to the other scheme/s, the condition of minimum investment holding prescribed from time to time under both the schemes has to be satisfied. However, this minimum investment amount requirement is not applicable in case of switchover from Existing Plan to Direct Plan or vice versa under the same scheme and same option.

Know Your Customer (KYC)

Know Your Customer (KYC) Norms Common Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI. However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual Fund.KYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:


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1. Instances where no action is required a) In the case of those individual investors and non-individual investors, other than

Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.


2. Instances where partial action is required a) All those Individual Investors who wish to open a new folio with UTI Mutual Fund

after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.


3. Instances where complete KYC compliance is required a) For existing investors as well as new investors who are not yet KYC Compliant, are

required to submit the KYC Application from duly filled in with requisite documentary proofs to KRAs along with completion of IPV process, to comply with uniform KYC requirements as stipulated by SEBI in case they intend to make purchase/additional purchase/switches/SIP etc. with UTI Mutual Fund.


PAN-Exemptionformicrofinancialproducts Only individual Investors (including NRIs, Minors & Sole proprietary firms) who do

not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable.

Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.

Minimum balance to be maintained and consequences of non maintenance

Partial redemption under a folio is permitted subject to the unitholder maintaining the prescribed minimum balance to be reckoned with reference to the redemption price applicable as on the date of acceptance of the redemption application. Where the balance amount so calculated is found to be less than the prescribed minimum balance, UTI AMC may compulsorily redeem the entire outstanding holding of the unitholder without any fresh application for redemption of the balance holding and pay the proceeds to the unitholder.


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Special Products available

Systematic Investment Plan (SIP) / Micro SIP – Available under all schemes.Systematic Transfer Investment Plan (STRIP) – Available under all schemes.Systematic Withdrawal Plan (SWP) - Available under all schemes.Dividend Transfer Plan (DTP) - Available under all schemes.Demat Facility – Available under all schemes.Please refer to Statement of Additional Information (SAI) for SIP, Micro SIP, SWP, DTP & STRIP detailsAutomatic Trigger Facility(a) The following are the four types of Trigger Options available: (i) Value Trigger: As & when the investment reaches a specified value. For example

if `10,000/- is invested and the unit holder wants to encash when the investment becomes `15000/-. The specified value is `15,000/-.

(ii) Appreciation Trigger: On appreciation of capital by an indicated percentage (in whole numbers like 10, 11 etc.). For example if an investor invests `10,000/- and wants to encash when the capital is appreciated by 10% (only appreciation amount) his units will be redeemed at the applicable redemption price and paid 10% of capital appreciation i.e. `1,000/-. He will be paid full redemption value of his units if he opts for full redemption of units. Fractions indicated if any will be ignored.

(iii) Date Trigger: Redemption on an indicated date. For example 30-12-2013. (iv) Stop-loss Trigger: On depreciation of capital by an indicated percentage (in whole

numbers like 10, 11 etc.). For example if an investor invests `10,000/- and wants to encash when the capital is depreciated by 10%, his full units will be redeemed at the applicable redemption price and paid.

(b) A separate request for trigger facility has to be made for each investment in a folio.

(c) All Trigger requests will be accepted at UTI Financial Centres / Registrars handling the target scheme only.

(d) Trigger Facility is available to the ‘individual’ as well as ‘non-individual’ unitholders upto the payment value of `10 lakhs per event per folio (per investor identification number).

(e) For fresh applications the trigger will be effective only after 5 business days from the date of acceptance in the scheme/Fund. For existing investors in case of exercising trigger facility at a later date, trigger facility will become operative after a gap of 5 business days from the date of receipt of the request.

(f) Change / Cancellation of trigger will be effective only after a gap of 5 business days from the date of receipt of the request.

(g) Units under trigger option can be redeemed fully or partially any time. In such event, the trigger facility will be automatically cancelled and the unitholder will be informed of the same, while sending the redemption cheque.

(h) Trigger Facility is not available if the Folio is under Lien or marked “STOP” on the advice of I.T Authorities / Court or any other reason.

(i) Once the mandate is given for Automatic Trigger Facility, which involves redemption of units, it will be treated as full discharge for redemption of units, whenever, such opted event takes place.

(j) Redemption amount will be paid only to the first unit holder as per normal existing practice.

(k) The value will be paid by repurchasing units at the redemption price prevailing on the day following the day of event of trigger in the case of value trigger, appreciation trigger and stop-loss trigger and at the redemption price prevailing on the specified date in the case of date trigger.


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(l) If the option date as per option a (iii) above happens to be a holiday, then redemption will be effected as on the immediate following business day.(l) If the option date as per option a (iii) above happens to be a holiday, then redemption will be effected as on the immediate following business day.

(m) Each allotment of Accumulated Income Units (AIUs) / bonus units will be treated as a separate investment. Accordingly, a separate Trigger request for each allotment has to be made, if each AIU/bonus allotment has to be brought under Trigger facility.

(n) The unit holder holding Unit Certificates has to convert the unit certificate into Statement of Account (SOA) for availing Automatic Trigger Facility. Only after receipt of SOA the request for Automatic Trigger Facility can be made.

(o) The Automatic Trigger Facility is subject to SEBI Regulations.

(p) If the Automatic Trigger selected by the unitholder is not activated and / or implemented due to reasons which are beyond the control of UTI AMC, the AMC would not be responsible for the same. The AMC may initiate adjustments to correct any credit / payment entries or otherwise made in error to a unitholder.

Automatic Trigger Facility is only a facility extended by the AMC for the convenience of unitholders and does not form part of any scheme / fund objectives.

The AMC reserves the right to amend / terminate this facility at any time, keeping in view business/operational exigencies.

Statement of Account (SoA)

(a) SoA will be a valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft any issue of units to such unitholders will be cancelled and treated having not been issued if the cheque/draft is returned unpaid.








(e) For those unit holders who have provided an e-mail address/mobile number:-The AMC shall continue to allot the units to the unit holders whose application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later then five business days from the date of receipt of the request from the unit holders.


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The unit holder will be required to download and print the SoA/other correspondences after receiving e-mail from the Mutual Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered SoA/other correspondences, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternate means. Failure to advise UTI Mutual Fund of such difficulty within 24 hours after receiving the e-mail, will serve as an affirmation regarding the acceptance by the Unit holder of the SoA/other correspondences.It is deemed that the Unit holder is aware of all securities risks including possible third party interception of the SoA/other correspondences and the content therein becoming known to third parties.Under no circumstances, including negligence, shall the Mutual Fund or anyone involved in creating, producing, delivering or managing the SoA of the Unit Holder, be liable for any direct, indirect, incidental, special or consequential damages that may result from the use of or inability to use the service or out of the breach of any warranty. The use and storage of any information including, without limitation, the password, account information, transaction activity, account balances and any other information available on the Unit holder’s personal computer is at risk and sole responsibility of the Unit holder.The unitholder may request for a physical account statement by writing/calling the AMC/R&T.

Friend in Need “Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors.For further details, please refer to SAI

Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.In case of delay in payment of dividend amount, The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).

Redemption The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date of redemption.In case of funds received through cash payment mode, the redemption or repurchase proceeds shall only be to the designated bank account.



Exit load on death of an unitholder

In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI.


Units issued under UTI-Thematic Fund and UTI-Growth Sectors Fund are not transferable/pledgeable/assignable except as stated in the Statement of Additional Information.Units of the schemes held in dematerialised form shall be freely transferable from one demat account to another demat account. For details of terms and conditions governing such transferability of units, kindly refer to the SAI.In addition to the existing facilities, the facility to transact in units of Schemes is extended for investors having demat account through clearing members of National Stock Exchange and Bombay Stock Exchange for accepting Purchase and Redemption transactions and through NSDL and CDSL for accepting Redemption Transactions. For details of terms and conditions, kindly refer to the Statement of Additional Information.Investment in the Units of the schemes through SIP route under demat mode also is available.The facility of conversion of units held in Dematerialisation (Demat) mode into physical by way of Rematerialisation (Remat) for investments held under various options of the Scheme(s) including units held under Systematic Investment Plan (SIP) is available.For further details please refer to SAI.


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B. PERIODIC DISCLOSURESNet Asset ValueThis is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance.

The Mutual Fund shall declare the Net asset value of the scheme on every business day on AMFI’s website www.amfiindia.com and also on the website of UTI Mutual Fund, www.utimf.com.The NAVs shall be calculated for all business days and released to the Press.

Monthly Portfolio Disclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of the month for all its schemes on its website on or before the tenth day of the succeeding month.


The Mutual Fund shall within one month from the close of each half year, (i.e. 31st March and 30th September), host a soft copy of its unaudited financial results on its website.The Mutual Fund shall publish an advertisement disclosing the hosting of such financial results on the website, in atleast two newspaper one national English daily newspaper having nationwide circulation and one in a newspaper having wide circulation published in the language of the region where the Head Office of UTI MF is situated.The Mutual Fund shall also, within one month from the close of each half year, (i.e. 31st March and 30th September), publish by way of an advertisement a complete statement of its scheme portfolio in one English daily circulating in the whole of India and in a newspaper published in the language of the region where the head office of UTI MF is situated.




TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/ authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.For further details on taxation please refer to the clause on Taxation in the SAIEquity Fund:Tax on Dividend

Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.By virtue of proviso to section 115 (R) (2) of the Act, equity oriented funds are exempt from income distribution tax.Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax. The Mutual Fund will receive income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.


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Capital Gains:

Securities Transaction Tax

Long Term Capital Gain:As per section 10(38) of the Act, any income arising from the transfer of a long term capital asset being a unit of an Equity Oriented Fund chargeable to Securities Transaction Tax (STT) shall not form part of total income therefore, exempt from Income Tax.

Short Term Capital Gain:Capital gains arising from the transfer of short term capital assets being unit of an equity oriented fund shall be liable to income tax @ 15% under section 111 A and section 115 AD of the Act. The said tax rate would be increased by applicable surcharge. The tax and surcharge will be increased by education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge.

Equity schemes also attract Securities Transaction Tax (STT) at applicable rates.

For further details on Taxation, please refer to SAI.Investor services All investors could refer their grievances giving full particulars of

investment at the following address:

Shri G S AroraAssistant Vice President – Department of OperationsUTI AMC Ltd., UTI Tower,Gn Block, Bandra - Kurla Complex,Bandra (East), Mumbai - 400 051.Tel : 6678 6666Fax: 2652 3031Investors may post their grievances at our website: www.utimf.com or e-mail us at [email protected]

C. COMPUTATION OF NAV (a) The Net Asset Value (NAV) of the units issued under each fund shall be calculated by determining the value of the

assets of the fund and subtracting therefrom the liabilities of that fund taking into consideration the accruals and provisions. NAV shall be declared separately for different options of a fund.

(b) The NAV per unit shall be calculated by dividing the NAV of the fund by the total number of units issued and outstanding on the valuation day. The NAV will be rounded off upto four decimal places.


(d) The NAVs shall be published atleast in two daily newspapers having nationwide circulation on every business day and will also be available on web-site of UTI Mutual Fund, www.utimf.com and web-site of AMFI namely www.amfiindia.com.


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IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the schemes.A. ANNUAL SCHEME RECURRING EXPENSES (a) These are the fees and expenses for operating the schemes. These expenses include Investment Management


The AMC has estimated that upto 2.50% of the daily net assets of a scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual fund.

Particulars % of Net AssetsFor All schemes – Existing Plan


Up to 2.50%

Trustee FeeAudit FeesCustodian FeesRTA FeesMarketing and Selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory AdvertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther ExpensesMaximum total expense ratio (TER) permissible under Regulations 52 (6) (c)Additional expenses under regulation 52(6A) (c) Up to 0.20%Additional expenses for gross new inflows from specified cities under Regulation 52(6A)(b) Up to 0.30%

Note: Direct Plan (investment not routed through a distributor) shall have a lower expense ratio excluding distribution expenses, commission etc. and no commission shall be paid from such Plan. Portfolio of the Scheme under the Existing Plan and Direct Plan will be common.

The purpose of the table is to assist the investor in understanding the various costs and expenses that an investor in the scheme will bear directly or indirectly. These estimates have been made in good faith as per the information available to the Investment Manager based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations.


(i) On the first `100 crores of the daily net assets - 2.50% (ii) On the next `300 crores of the daily net assets - 2.25% (iii) On the next `300 crores of the daily net assets - 2.00% (iv) On the balance of the assets - 1.75% (c) Total Expense ratio (TER) and Additional Total Expenses: Chargingofadditionalexpensesbasedonnewinflowsfrombeyond15cities 1. Additional TER shall be charged upto 30 bps on daily net assets of the scheme if the new inflows from beyond

top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.


43



______________________________________ 365* X Higher of (a) or (b) above

* 366, wherever applicable. 3. Additional expenses, not exceeding 0.20 per

cent of daily net assets of the scheme, shall be charged towards Investment Management and Advisory fees charged by the AMC (‘AMC fees’) and for recurring expenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under different heads as mentioned under SEBI Regulations.


5. In addition to the limits indicated above, brokerage and transaction costs not exceeding

1. 0.12 per cent in case of cash market transactions, and

2. 0.05 per cent in case of derivatives transactions

shall also be charged to the schemes/plans. Aforesaid brokerage and transaction costs are included in the cost of investment which are incurred for the purpose of execution of trade. Any payment towards brokerage and transaction cost, over and above the aforesaid brokerage and transaction costs shall be charged to the schemes/plans within the maximum limit of TER as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. Any expenditure in excess of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the AMC or by the Trustee or Sponsors

6. For further details on TER, please refer to SAI.(ii) Service Tax 1. UTI AMC shall charge service tax on investment




4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within

the limit prescribed under SEBI Regulations.(iii) Investor Education and Awareness UTI Mutual Fund (UTI MF) shall annually set apart


B. LOAD STRUCTURE (1) Load is an amount which is paid by the investor to

redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or call at 1800 22 1230 (toll free number) or (022) 2654 6200 (non toll free number) or your distributor.

Entry/ Exit load for all schemes: Entry Load (as % of NAV): Nil In accordance with the requirements specified by

the SEBI circular no. SEBI/IMD/CIR No./168230/09 dated June 30, 2009, no entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/Systematic Transfer Investment Plans accepted by the Fund

Exit Load

Period of Holding Exit Load(As % of

NAV)Less than 1 Year 1%

Greater than or equal to 1 Year Nil

For SIPs registered under scheme, the load structure as mentioned under Clause IV (B) (1) above will be applicable.


For any change in load structure, AMC will issue an addendum and display it on the website/UTI Financial Centres.

(2) Transaction charges Pursuant to SEBI circular no. CIR/IMD/

DF/13/2011 dated August 22, 2011, a transaction charge of `100/- for existing investors and `150/- in the case of first time investor in Mutual Funds, per subscription of `10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.


44


In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amounts to `10,000/- and above. In such cases, the transaction charge shall be recovered in 3-4 instalments.

The transaction charge, if any, shall be deducted by UTI AMC from the subscription amount and paid to the distributor and the balance shall be invested. Allocation of Units under the scheme will be Net of Transaction Charges. The Statement of Account (SoA) would also reflect the same.

If the investor has not ticked in the Application form whether he/she is an existing/new investor, then by default, the investor will be treated as an existing investor and transaction charges of ̀ 100/- will be deducted for investments of `10,000/- and above and paid to distributor/financial advisor etc., whose information is provided by the investor in the Application form. However, where the investor has mentioned ‘Direct Plan’ against the scheme name, the Distributor code will be ignored and the Application will be processed under ‘Direct Plan’ in which case no transaction charges will be paid to the distributor.

Opt in/Opt out by Distributors: Distributors shall be able to choose to opt out of

charging the transaction charge. However the ‘opt out’ shall be at distributor level and not at investor level i.e., a distributor shall not charge one investor and choose not to charge another investor.


Sr. No.

Category of product

1 Liquid/ Money Market Schemes

2 Gilt Schemes

3 Debt Schemes

4 Infrastructure Debt Fund Schemes

5 Equity Linked Saving Schemes (ELSS)

6 Other Equity Schemes

7 Balanced Schemes

8 Gold Exchange Traded Funds

9 Other Exchange Traded Funds

10 Fund of Funds investing Overseas

11 Fund of Funds – Domestic


The ARN holders, if they so desire, can change their option during the special two half yearly windows available viz. March 1st to March 25th and September 1st to September 25th and the new option status change will be applicable from the immediately succeeding month.

Upfront commission, if any, on investment made by the investor, shall be paid directly by the investor to the AMFI registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor.

(3) Any imposition or enhancement of exit load shall be applicable on prospective investments only. The AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors.

At the time of changing the exit load, the Mutual Fund shall consider the following measures to avoid complaints from investors about investment in the scheme without knowing the exit load:

(i) The addendum detailing the changes shall be attached to the Scheme Information Documents and Key Information Memorandum. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.

(ii) Arrangements shall be made to display the addendum in the scheme information document in the form of a notice in all the official points of acceptance and distributors/brokers office.

(iii) The introduction of the exit load along with the details may be stamped in the acknowledgement slip issued to the investors on submission of the application form and shall also be disclosed in the statement of accounts issued after the introduction of such load.



V. RIGHTS OF UNITHOLDERS Please refer to SAI for details.


45


1. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed.


Financial Year Status Remark2006-2007 Income Tax Assessment not

yet completedDividend Tax Demand not

raised2007-2008 Income Tax Assessment not

yet completed2008-2009 Nil Reported

(b) Penalties and Proceedings against Bank of Baroda: (i) Pune Region: Sponsor and Branch: Bank of Baroda, Laxmi Road,

Pune City Name of Complainant: Pune Municipal Corporation

(PMC) Court/Tribunal / Case No. & Year: Supreme court SLP

(C) No. 23299/2010 Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/Type of offence & section: Bank filed

a writ petition before Bombay HC challenging the arbitrary demand of the PMC & the provisions under Pune Municipal Corporation (Octroi) Rules 2008 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.


Present Status & Remarks: Hon’ble SC after hearing the Counsels was of the view that there is conflicting judgments on the issue and the same requires some time for hearing 13/10/2011. The Hon’ble SC said since bank has already paid the Octroi and matter involved herein is only about penalty imposed by corporation, let the matter come up for hearing in regular course. Next date of hearing not yet given.

Total No. of Cases: 1

Total amount involved / claimed amt: ` 94.22 lacs

No. of cases where the provisioning is made: Nil

Amount of Provisioning (` in lacs) : Nil

(ii) Nagpur Region:

Sponsor and Branch: Bank of Baroda, RO, Nagpur

Name of Complainant: Office of the Nagpur Municipal Corporation, Nagpur

Court/Tribunal / Case No. & Year: High Court Bombay, Nagpur Bench 5011/2010

Amount involved: ` 8.85 lacs

Nature of Case/Type of offence & section: Section 154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited `2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.

Bank’s reply/defence: Octroi duty for the gold coins is paid at Mumbai. Corporation has not complied with the statutory rules of NMC Act while taking action against Bank. Assistant commissioner has no legal authority or power to adjudicate as to whether evasion has taken place. Findings of the octroi commissioner


46

is arrived without any show cause notice and without any opportunity of being heard infringing the principal of natural justice.

Present Status & Remarks: High court has granted stay on the execution of the bill for penal octroi duty dated 02/09/2010. Last date of hearing was fixed on 27/01/2012 for arguments. Case is adjourned till final decision of Supreme Court on the case wherein appeal is filed by NMC Octroi Dept. challenging the decision of division bench in the similar action taken against Hindustan Petroleum. Hence next date not available.

Amount of provisioning made / required: `2.92 lacs



No. of cases where the provisioning is made: 1

Amount of Provisioning: ` 2.92 lacs

(iii) Aurangabad Region:

Sponsor and Branch: Bank of Baroda, Nasik

Name of Complainant: Nasik Municipal Corporation (NMC)

Court/Tribunal / Case No. & Year: Supreme court SLP (C) No. 9706/2010

Amount involved: Octroi penalty of ` 5.95 lacs

Nature of Case/type of offense & section: Bank filed a writ petition before Bombay HC challenging the arbitrary demand of the NMC & the provisions under Nasik Municipal Corporation (Octroi) Rules 2005 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.


Present Status & Remarks: Matter was listed before Registrar on 07.01.2011. Since the pleading in the matter is not completed Registrar has adjourned the matter to 18.02.2011. Next date of hearing not yet available.




Amount of Provisioning (` in lacs): Nil

(iv) Ahmedabad Region:

Sponsor and Branch: Bank of Baroda, Nandini Complex

Name of the party/complainant: Income Tax

Name of the Court/Forum & Case no.: High Court of Gujarat / Tax Appeal No 2028 & 2029 of 2010

Amount involved (`): 65,75,664

Nature of the case/type of offences and Section: Appeal filed against the erstwhile South Gujarat Local Area Bank, which is merged to BOB in 2004.

Details/brief nature of the case: I T Dept assessed that SGLAB are following regularly hybrid system of accounting and it had maintained a separate account for interest on sticky loans, as such it is not covered by decision of High court of Gujarat.

Bank’s Reply/defence: Branch has received the copy of appeal memo and matter is posted to 12/12/2011. We have entrusted the matter to advocate. Present Status and remarks: Nil

(v) Region-DMR-1 (NZ):

i. Sponsor and Branch: Bank of Baroda, IBB branch

Name of the party/complainant: Special Directorate of Enforcement

Name of the Court/Forum & Case no.: CRL Appeal No. 256/2009 before HC, Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.

Amount involved: ` 10 lacs

Nature of the case/type of offences and Section: Complaint u/s 6(4), 6(5), 8(1), 64(2) and 73(3) of FERA Act 1973.

Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of Mr. Gurcharan Singh Sethi and Smt. Surinder Kaur. The Directorate of Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of `10 lacs was imposed. Bank has denied the allegations on the ground that individual transactions were of less than `10 lacs.



ii. Sponsor and Branch: Bank of Baroda, IBB branch


Name of the Court/Forum & Case no.: CRL Appeal


47

No. 325/2008 before HC Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.




Bank’s Reply/defense: Bank’s contention is that each time deposits are made of the amount of less than 10000 USD, hence there is no violation of provisions of FERA Act, 1973.



Total amount involved: ` 15 lacs

iii. Sponsor and Branch: Bank of Baroda, Eastern Zone, Camac Street

Name of the party: Special Director of Enforcement Directorate

Court/Tribunal & Case no./Year: Enforcement Directorate

Amount involved/claimed: ` 10 Lacs

Nature of the case/type of offences and Section: Breach of provisions of FERA

Details/brief nature of the case: Bank had given loan of `2.55 crores to M/s. Corpus Credit & Leasing Ltd., against FCNR FDR of $1 million (US) belonging to Mrs. And Mr. Bhagwandas & Devbala Pawani held with Camac Street Branch. The then Chief Manager procured the said FDR of Pawanis from their International Branch and handed over the same to borrower. Investigations conducted under provisions of FERA revealed that the signatures of Mrs And Mr Pawani on the account opening form did not match with those on the consent letter, discharged FCNR FDR. Chief Manager had not verified the genuineness of the documents collected from Noticee No. 4 either from the Pawanis or from International Branch, Bank of Baroda, Dubai.

Bank’s Reply/defence: Bank followed all the directions of RBI and remittance of $ 1 million (US) was received by Bank through authorized banking channel and was genuine. Further, the proceeds of the FCNR FDR, along with interest thereon, was paid by the Bank to the Pawanis on maturity, in accordance with established remittance. Hence, there was no violation of FERA. The loan granted to the borrower company M/s. Corpus Credit & Leasing Ltd. was a rupee loan and involved no outgo of foreign exchange.

Present Status and remarks: Special Director has imposed a penalty of `10,00,000 (Rupees Ten Lakhs) on the Bank for violation of FERA. Bank filed an appeal against the same before the Appellate Authority for Foreign Exchange, Ministry of Law, Justice & Company Affairs. Came up for hearing for the first time on 24.11.11, where the delay in payment of fees was condoned. Last date was been fixed in February 2012 for hearing on waiver of penalty imposed on Bank. Last date was 11.04.2012 for hearing. Next date would be advised after formation of Board for hearing the matter.

(c) Penalties and Proceedings against State Bank of India:-

(i) A notice under section 47 A (1) (b) read with section 46(4)(i) of the Banking Regulation Act 1949, Reserve Bank of India imposed a penalty of `10.00 lacs along with 19 other Banks for contravention of various instructions issued in respect of derivatives, such as, failure to carry out due diligence in regard to suitability of products, selling derivative products to users not having risk management polices and not verifying the underlying/adequacy of underlying and eligible limits under past performance route.

(ii) Bank of Mauritius imposed a penalty of MUR 100,000/- i.e. equivalent of `175, 000/- for a violation reported in December 2012. This was due to non-adherence of guidelines on advertisement by Bank of Mauritius.


(a) The BoB was one of the bankers to the public issue of shares of Jaltarang Motels Limited (“Jaltarang”) in December, 1995. SEBI, by its order dated January


48

19, 2000 directed the Bank to refund the sum of `4,031,018 being the application money for the shares released by the Bank to the Jaltarang with interest at 15% from March 25, 1996 i.e. the day the Bank allowed withdrawal of the funds by Jaltarang in respect of funds collected from the public issue. The Bank preferred an appeal before the Securities Appellate Tribunal and the Tribunal, by order dated July 27, 2000, rejected the appeal. The bank has filed an appeal (Appeal No.2 of 2000) before the High Court, Mumbai against the said order of the Tribunal. The High Court, Mumbai, on November 13, 2000, granted interim relief of stay of the operation of the order dated July 27, 2000 of the Securities Appellate Tribunal and January 19, 2000 of SEBI and has further directed that the matter be placed on the board for final hearing. The matter is still pending.

(b) The merchant banking division of the BoB was the pre-issue lead manager for the public issue of shares of Trident Steels Limited (“Trident”) in November, 1993. SEBI issued a show cause notice dated April 29, 2004 calling upon the merchant banking division of the Bank to show cause why action should not be taken against it for failing in its duty to exercise due diligence in the above mentioned public issue. SEBI alleged that the merchant banking division of the Bank did not disclose the material fact that 750,000 shares out of the pre issue capital of Trident had been pledged by the directors and holders of those shares to the Industrial Finance Branch of the Bank towards enhancement of various credit facilities extended by the Bank to Trident. In October 1989, the directors and holders of those shares have given an undertaking that as long as the dues of Trident to the Bank are not paid in full, they will not transfer, deal with or dispose off equity or preference shares held by them in the company or any shares that might be acquired in future, without prior written consent of the Bank. BOB Caps, in its reply to the show cause notice, has submitted that it was the obligation of Trident to give true disclosures and that any punitive action will lie solely against Trident, its promoters and directors.


State Bank of India(d) SEBI served show cause notice under rule 4 of the

adjudication Rules for the deficiencies observed in

Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has filed Consent Application with SEBI on 7th March 2013.


a. A writ petition has been filed by UTI Asset Management Company Ltd., UTI Mutual Fund and UTI Trustee Company Private Ltd. challenging the order dated 06.08.2008 passed by the Central Information Commission on the applicability of the Right to Information Act, 2005, which has been stayed by the Honourable High Court, Bombay. The writ has been admitted and stay will continue pending the hearing and final disposal of the petition. The matter will come up for hearing in due course.

b. There are 14 criminal cases pending related to normal operations of the schemes of UTI MF such as non-transfer of units, non-receipt of unit certificates, non-receipt of redemption proceeds or income distribution, closure of scheme/plan. These cases are not maintainable and judging from our experience such cases are generally dismissed by Courts or withdrawn by the complainant.

c. There are 27 cases pending at different courts related to suits/petitions filed by a) contract workmen, b) employees association, c) employees/ex-employees etc. These cases are pending at different levels for adjudication.

d. A Special Leave Petition has been filed by Bajaj Auto Ltd. before the Honourable Supreme Court of India against the final judgement and order dated 09.10.2006 of the Honourable High Court of Bombay in the matter of the winding up of UTI Growth & Value Fund- Bonus Plan with effect from 01.02.2005 in pursuance to circular dated 12.12.2003 of SEBI. The matter is admitted on 10.07.2008 and will be heard in due course.

e. Two cases are pending in different courts challenging the termination of Senior Citizens Unit Plan (SCUP), the details of which are given below:

i. Public Interest Litigation filed by Kalindi Doshi before High Court of Bombay- affidavit in reply has been filed and the case is at admission stage.

ii. Writ Petition filed by R K Sanghi before High Court of Madhya Pradesh Principal Seat at Jabalpur – affidavit in reply has been filed. Petition will be heard in due course.


49

Income Tax Related Matter The company has filed appeals with different Income

Tax Authorities in respect of Assessment Years 2005-06, 2006-07, 2007-08, 2008-09 & 2009-10 against which no dues are outstanding as on date since the same have been adjusted against the refund due to the company by Income Tax Department.

The Commissioner has passed order u/s 263 for the Assessment Year 2006-07 directing the assessing officer to do a fresh assessment in respect of scheme expenses. The company has filed an appeal before Hon’ble Tribunal against the order of the commissioner. Subsequently the assessing officer has passed the reassessment order raising demand of Rs.23.9 million, against which based on the stay order obtained, Company has paid Rs. 11.9 million. The company has again filed an appeal before CIT (A) against such order. The company does not expect the demand to crystallize into liability.

UTI-Gold Exchange Traded Fund (UTI-Gold ETF): The Maharashtra Sales Tax authorities have

disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of ` 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.

4. Any deficiency in the systems and operations of the Sponsor and/or the AMC or the Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency. - NIL

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines there under shall be applicable.


50



AHMEDABAD REGION


BENGALURU REGION


CHANDIGARH REGION


CHENNAI REGION


DELHI REGION

New Delhi: (1) G-5-10 Aggarwal Cyber Plaza, Netaji Subhash Place, Pitam Pura, Delhi – 110 034, Tel: (011) 27351001, (2) Savitri Bhawan, 1st & 2nd Floor, Plot no.3 & 4, Preet Vihar Community


51

Centre, Delhi-110 092, Tel: (011) 22529374, 22529398, (3) G-7, Hemkunt Tower (Modi Tower), 98, Nehru Place (Near Paras Cinema), New Delhi-110 019, Tel: (011) 28898128, (4) 13th Floor, Jeevan Bharati, Tower II, Connaught Circus, New Delhi – 110 001. Tel: (011) 2332 7497, 2373 9491/2, (5) Bldg. No.4, First Floor, B-1, Community Centre, B-Block, Janak Puri, New Delhi – 110 058, Tel.: (011) 25523246/47/48, Dehradun: 56, Rajpur Road, Hotel Classic International, Dehradun-248 001, Tel: (0135) 2743203, Faridabad: Shop No.6, First Floor, Above AXIS Bank, Crown Complex, 1 & 2 Chowk, NIT, Faridabad-121 001, Tel: (0129) 2424771, Ghaziabad: C-53 C, Main Road, RDC, Opp. Petrol Pump, Ghaziabad - 201001, Uttar Pradesh, Tel: (0120) 2820920/23, Gurgaon: SCO 14, 1st floor, Sector 14, Gurgaon–122 001, Tel: (0124) 2336622, Meerut: 10/8 Ground Floor, Niranjan Vatika, Begum Bridge Road, Near Bachcha Park, Meerut - 250 001, Uttar Pradesh, Tel.: (0121) 648031/2, Moradabad: Shri Vallabh Complex, Near Cross Road Mall, Civil Lines, Moradabad – 244 001, Uttar Pradesh, Tel.: (0591) 2411220, Noida: J-26, Ground Floor, Near Centre Stage Mall, Sector 18, Noida –201 301, Tel: (0120) 2512311 to 314.

GUWAHATI REGION


KOLKATA REGION


LUCKNOW REGION


MUMBAI REGION


NAGPUR REGION



52

UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Ashoka Estate, Shop No. 14/A, Upper Ground Floor, Sakri Road Opp. Santoshi Mata Mandir Dhule – 424 002 Tel.: (02562) 282824 / 23 Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Ratnagiri: Karvy Computershare Pvt. Ltd., C/o V L Ayare, Chief Agent for UTI Mutual Fund, Gala No.3, Shankeshwar Plaza, Nachane Road, Ratnagiri – 415 639, Tel.: (02352) 270502, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.



AXIS BANK ATMS AND ONLINE PURCHASE FACILITY (INCLUDING PAYMENT THROUGH INTERBANK MOBILE PAYMENT SYSTEM-IMPS) ARE AN OFFICIAL POINT OF ACCEPTANCE UNDER ALL SCHEMES. THE TERMS AND CONDITIONS OF utimf@atm FACILITY ARE GIVEN IN THE STATEMENT OF ADDITIONAL INFORMATION. Registered Stock Brokers of NSE & BSE as per the list available on the website: www.utimf.com are of ficial points of acceptance under all schemes.

SCHEME INFORMATION DOCUMENT OF COMMON INCOME SCHEMES

UTI - Bond Fund(An open-ended pure debt fund)The product is suitable for investors who are seeking*:• Regularreturnsforlong-term• Investmentpredominantlyinmediumtolongtermdebtaswellasmoneymarketinstruments• Lowrisk (Blue)

UTI - Dynamic Bond Fund(Anopen-endedincomescheme)The product is suitable for investors who are seeking*:• Optimalreturnswithadequateliquidityovermedium-term• Investmentindebt/moneymarketinstruments• Lowrisk (Blue)

UTI - Floating Rate Fund(Anopen-endedIncomeScheme)The product is suitable for investors who are seeking*:• Regularincomeovershort-term• Investment in floatingratedebt/moneymarket instruments, fixedratedebt/moneymarket instruments

swapped for floating rate return• Lowrisk (Blue)

UTI - Gilt Advantage Fund(Anopen-endedGiltScheme)The product is suitable for investors who are seeking*:• Long-termcreditriskfreereturn• InvestmentinsovereignsecuritiesissuedbytheCentralGovernmentand/oraStateGovernmentand/or

anysecurityunconditionallyguaranteedbytheCentralGovernmentand/oraStateGovernment• Lowrisk (Blue)

UTI - G-SEC Fund(An open-ended dedicated gilt fund)The product is suitable for investors who are seeking*:• Shorttermcreditriskfreereturn• InvestmentinCentralGovernmentSecurities,TreasuryBills,CallMoneyandRepo• Lowrisk (Blue)

UTI - Income Opportunities Fund(Anopen-endedIncomescheme)The product is suitable for investors who are seeking*:• Reasonableincomeandcapitalappreciationoverlong-term• Investmentindebtandmoneymarketinstrumentsacrossdifferentmaturities&creditrating• Lowrisk (Blue)

Please read overleaf

SCHEME INFORMATION DOCUMENT FOR COMMON INCOME SCHEMES

UTI - MIS-Advantage Plan(Anopen-endedincomescheme)The product is suitable for investors who are seeking*:• Long-termcapitalappreciationandregularincomeovermedium-term• Investmentinequityinstruments(maximum-25%)andfixedincomesecurities(debtandmoneymarket

securities)• Mediumrisk (Yellow)

UTI - Monthly Income Scheme(Anopen-endeddebtorientedscheme)The product is suitable for investors who are seeking*:• Regularincomeovermedium-term• Investmentinequityinstruments(maximum-15%)andfixedincomesecurities(debtandmoneymarket

securities)• Mediumrisk (Yellow)

UTI - Short Term Income Fund(Anopen-endedincomescheme)The product is suitable for investors who are seeking*:• Steadyandreasonableincomeovershort-term• Investmentinmoneymarketsecurities/highqualitydebt• Lowrisk (Blue)

UTI - Treasury Advantage Fund(Anopen-endedIncomeScheme)The product is suitable for investors who are seeking*:• Capitalpreservationandliquidityforshort-term• Investmentinqualitydebtsecurities/moneymarketinstruments• Lowrisk (Blue)

UTI - Unit Scheme for Charitable & Religious Trusts & Registered Societies (UTI-C.R.T.S)(Anopen-endedincomescheme)The product is suitable for investors who are seeking*:• Regularincomeoverlong-term• Investmentinequityinstruments(maximum-30%)anddebt/moneymarketinstruments• Mediumrisk (Yellow)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them


(BLUE)investors understand that their principal will be at low risk

(YELLOW)investors understand that their principal will be at medium risk

(BROWN)investors understand that their principal will be at high risk

COMMON INCOME SCHEMES

UTI Mutual Fund



UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Website: www.utimf.com



The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI

Mutual Fund, Tax and Legal issues and general information on www.utimf.com.



This Scheme Information Document is dated November 21, 2013.

UTI-COMMON INCOME SCHEMES

4


HIGHLIGHTS 5

I. INTRODUCTION

A. Risk Factors 9


C. Definitions 15


II. INFORMATION ABOUT THE SCHEMES

A. Type of the Schemes 19







H. Who manages the schemes? 37



III. UNITS AND OFFER

A. Ongoing Offer Details 44



IV. FEES AND EXPENSES

A. Annual Scheme Recurring Expenses 66

B. Load Structure For All Classes Of Investors 68



69


5

Highlights

Scheme Name UTI - Bond Fund UTI-Dynamic Bond Fund


The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits.

The investment objective of the scheme is to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized.

Benchmark CRISIL Composite Bond Fund Index CRISIL Composite Bond Fund Index

Loads Entry Load

(As % of NAV)

Exit Load

(As % of NAV)

Investment of any amount:

Entry Load : Nil

*Exit Load :

<= 89 days - 0.75%

> 89 days - NIL

* including investments through SIPs/STRIPs

Nil<=365 days 1.00%

>365 days NIL

Minimum Amount of Initial Investment

1. Growth Option - `1,000/-

2. Dividend Option - `20,000/- and in multiples of `1/- under all the options.

Subsequent Minimum Investment Amount is `1,000/- and in multiples of `1/-.

Minimum initial investment amount is ̀ 10,000/- and in multiples of `1/-.

Scheme Name UTI-Floating Rate Fund (Short Term Plan) UTI-Gilt Advantage Fund


To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments.

However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

To generate credit risk-free return through investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest.

Benchmark CRISIL Liquid Fund Index I-Sec Li-Bex

Loads Entry Load : Nil

Exit Load : NIL

Entry Load : NIL

Exit Load : NIL


6


1. UTI Floating Rate Fund-(Short Term Plan) - Regular Plan

2. UTI Floating Rate Fund-(Short Term Plan) - Direct Plan

Both the plans offer the following options:

a) Growth Option

b) Daily Dividend Reinvestment Option

c) Weekly Dividend Reinvestment Option

d) Flexi Dividend Option (with payout and reinvestment facilities)

Minimum amount of initial investment is ` 5,000/- and in multiples of Re.1/- thereafter.

Default option will be Growth Option.

Growth Plan & Dividend Plan -

Minimum amount of initial investment `5,000/- and in multiples of `1/- .

Additional purchases of Units by existing Unitholders under all the Plans can be for any amount in multiples of `1/- and subject to a minimum of `1,000/-.

Scheme Name UTI-G-Sec Fund-Short Term Plan UTI-Income Opportunities Fund


To generate credit risk-free return by way of income or growth by investing in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/ created by the Central Government.

The investment objective of the scheme is to generate reasonable income and capital appreciation by investing in debt and money market instruments across different maturities and credit ratings. There is no assurance that the investment objective of the scheme will be achieved.

Benchmark I-Sec Si-BEX (1-3 years) given by ICICI Securities

CRISIL Short Term Bond Fund Index

Load Entry Load : NilExit Load : Nil

Entry Load

(As % of NAV)


Nil <= 365 days 1.25%

> 365 days & <= 548 days 0.75%

> 548 days NilMinimum Amount of Initial Investment

The plan has following optionsa) Growth Option – `1,000/- b) Periodic Dividend Option – `10,000/- c) Daily Dividend Option - `10,000/-And in multiples of `1/- under both the options.Subsequent Minimum Investment Amount `1,000/- and in multiples of `1/-

Minimum initial investment is `5,000/- and in multiples of `1/- thereafter without any upper limit


7

Scheme Name UTI-MIS Advantage Plan UTI-Monthly Income Scheme (UTI-MIS)Investment Objective

To generate regular income through investments in fixed income securities and capital appreciation / dividend income through investment of a portion of net assets of the scheme in equity and equity related instruments so as to endeavour to make periodic income distribution to Unit holders.

This is an open-end debt oriented scheme with no assured returns. The scheme aims at distributing income, if any, periodically.

Benchmark CRISIL MIP Blended Index CRISIL MIP Blended Index (15% of Nifty Index returns and 85% to Composite Bond Index Fund)

Load Entry Load

(As % of NAV)


Entry Load

(As % of NAV)


Nil <= 90 days 1.50% Nil <= 90 days 1.50%

> 90 days & <= 180 days 1.25% > 90 days & <= 180 days 1.25%

> 180 days & <= 365 days 1.00% > 180 days & <= 365 days 1.00%

> 365 days Nil > 365 days Nil


Monthly Dividend Plan and Monthly Payment Plan:

`25,000/- per application and in multiples of `1/- thereafter. Flexi Dividend Plan and Growth Plan:

`5,000/- per application and in multiples of `1/- thereafter.Subsequent minimum investment in the same folio is `1,000/- and in multiples of `1/-.

1. Dividend Option – `10,000/-

2. Growth Option – `1,000/- and in multiples of `1/- under all the options.

Subsequent amount of investment in the same folio `1,000/- and in multiples of `1/-

Scheme Name UTI-Short Term Income Fund (UTI-STIF) UTI-Treasury Advantage FundInvestment Objective

The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

The scheme will endeavour to generate an attractive return for its investors consistent with capital preservation and liquidity by investing in a portfolio of quality debt securities money market instruments and structured obligations.

Benchmark CRISIL Short Term Bond Fund Index CRISIL Liquid Fund IndexLoad Entry Load : Nil

Exit Load : <= 90 days : 0.75%>90 days & <= 180 days : 0.50%> 180 days : NIL

Entry Load : NilExit Load : Nil


Minimum amount of investment is `30,000/- and in multiples of `1/-.Subsequent minimum investment amount is ̀ 10,000/- and in multiples of `1/-.

Minimum amount of investment is `1 lac and in multiples of `1/- thereafter.Subsequent minimum investments Subsequent minimum additional investment is `10,000/- and in multiples of `1/ thereafter.


8

Scheme Name UTI-Unit Scheme for Charitable & Religious Trusts & Registered Societies

(UTI-CRTS)

Investment Objective To primarily provide regular income to unitholders of the scheme. Funds collected under the scheme shall generally be invested as follows:(i) Not less than 70% of the funds in debt instruments including money market instruments of

low to medium risk profile. (ii) Not more than 30% of the funds in equities and equity related instruments. The risk profile of

equity investments could be high.Benchmark CRISIL Debt Hybrid (75:25)

Load Period of Holding Entry Load(As % of NAV)


Less than 1 year Nil 1%Greater than or equal to 1 year

Nil


Minimum initial investment is `10,000/- and in multiples of `1/- or such other amount as may be prescribed by the UTI AMC from time to time.Subsequent amount of investment in the same folio `1,000/- and in multiples of `1/- thereafter.

Features Common to all schemesLiquidity The schemes will offer subscription and redemption of units on every business day on an ongoing

basis. Purchase and Redemption under the scheme will be open throughout the year except during the book closure period/s not exceeding 15 days in a year or such period as may be prescribed by SEBI from time to time.


NAV will be declared on every business day.


9



2. As the price / value / interest rates of the securities in which the schemes invests fluctuate, the value of your investment in the schemes may go up or down.


4. The name of the schemes does not in any manner indicate either the quality of the schemes or their future prospects and returns.

5. The sponsors are not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of `10,000/- made by them towards setting up the Fund.


7. Statements/Observations made in this Scheme Information Document are subject to the laws of the land as they exist at any relevant point of time.



10. As with any investment in securities, the NAVs of the Units issued under the Schemes can go up or down depending on various factors that may affect the values of the Scheme’s investments. In addition to the factors that affect the value of individual securities, the NAVs of the Schemes can be expected to fluctuate with movements in the broader bond markets and may be influenced by factors affecting bond markets in general, such as, but not limited to, changes in interest rates, changes in governmental policies and increased volatility in the bond and money markets.

11. Investors may note that AMC/Fund Manager’s investment decisions may not always be profitable, even though it is intended to maximise the returns by actively investing in equity/equity related securities.

12. Credit Risk: Bonds/debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default

as the worst case. Securities issued by Central/State governments have lesser to zero probability of credit / default risk in view of the sovereign status of the issuer.

13. Interest-Rate Risk: Bonds/ Government securities which are fixed return securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI, the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/ Government securities are also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the rupee may also affect security prices. Such rise and fall in price of bonds/ government securities in the portfolio of the schemes may influence the NAVs under the schemes as and when such changes occur.

14. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the fund might have to incur a significant “impact cost” while transacting large volumes in a particular security. The schemes would aim to invest in a higher proportion of liquid and traded debt instruments including Government Securities. As the Indian Debt market is characterised by high degree of illiquidity, the proposed aggregate holding of assets considered “illiquid”, including debt securities (for which there is no active established market), could be more than 10% of the value of the net assets of the scheme. In normal course of business, the scheme would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

15. Re-investment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme or from maturities in the Scheme are re-invested. The additional income from re-investment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be re-invested will fall.



10

17. Securities Lending: It is one of the means of earning additional income for these schemes with a lesser degree of risk. The risk could be in the form of non-availability of ready securities for sale during the period the securities remain lent. The schemes would be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities. However, the risk would be adequately covered by taking in of suitable collateral from the borrower by the intermediary involved in the process. The schemes will have a lien on such collateral. They will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

18. Investment in overseas markets: The success of investment in overseas markets depends upon the ability of the fund manager to understand conditions of those markets and analyse the information which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides market risks of those markets.

19. Government securities where a fixed return is offered, run price-risk like any other fixed income security. When interest rates decline, the value of a portfolio of fixed income securities can be expected to rise. Conversely, when interest rates rise, the value of a portfolio of fixed income securities can be expected to decline. The extent of such fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. The new level of interest rate is determined by the rates at which government raises new money and / or the price levels at which the market is already dealing in the existing securities. However, Government securities are unique in the sense that their credit risk always remains zero.

20. As the liquidity of the investments made by the Schemes could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for redemption of Units may be significant in the event of an inordinately large number of redemption requests or a restructuring of the Schemes. In view of the above, the Trustee has the right, at its sole discretion, to limit redemptions (including suspending redemptions) under certain circumstances, as described under the title “Right to Limit Redemptions” in the SAI.

21. Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger amount of liquidity risks, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. The AMC may choose to invest in unlisted securities that offer attractive yields. This may increase the risk of the portfolio.

22. As the portfolio will primarily consist of debt securities, investing in the Schemes will involve certain specific risks and special considerations in addition to those normally associated with making investments in securities. There can be no assurance that the Schemes can achieve their objectives.

23. The NAVs of the units of the Schemes, to the extent that the schemes are invested in debt and money market securities (also referred to as fixed income securities) will be affected by changes in the general level of interest rates. When interest rates decline, the value of a portfolio of fixed income securities can be expected to rise. Conversely, when interest rates rise, the value of a portfolio of fixed income securities can be expected to decline.

24. Debt securities are subject to the risk of an issuer’s inability to meet principal and interest payments on the obligations (credit risk). Debt securities may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (market risk). The Investment Manager will place considerable emphasis on the credit rating of the issuer and therefore will only invest in securities that are rated investment grade by a regulated credit rating agency such as CRISIL, ICRA, CARE etc, or in unrated debt securities, which the Investment Manager believes to be of equivalent quality. Market risk will be addressed by analysing various economic trends in order to seek to determine the likely future course of interest rates. While it is the intent of the Investment Manager to invest primarily in highly rated debt securities, the Schemes may from time to time invest in higher yielding, lower rated securities. This would enhance the degree of risk.

25. Lower rated or unrated securities are more likely to react to developments affecting the market and the credit risk than the highly rated securities, which react primarily to movements in the general level of interest rates. Lower rated securities also tend to be more sensitive to economic conditions than higher rated securities. The Investment Manager will consider both credit risk and market risk in making investment decisions.

26. Zero coupon or deep discount bonds are debt obligations that do not entitle the holder to any periodic payment of interest prior to maturity of a specified date when the securities begin paying current interest and therefore are generally issued and traded at a discount to their face values. The discount depends on the time remaining until maturity or the date when securities begin paying current interest. It also varies depending on the prevailing interest rates, liquidity of the security


11

and the perceived credit risk of the issuer. The market prices of zero coupon securities are generally more volatile than the market prices of securities that pay interest rates periodically and are likely to respond to changes in interest rates to a greater degree than other coupon bearing securities having similar maturities and credit quality.

27. As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rate hence the risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio.

28. The credit risk factors pertaining to lower rated securities also apply to lower rated zero coupon or deferred interest bonds. Such bonds carry an additional risk in that, unlike bonds that pay interest throughout the period to maturity, the Schemes would not realise any cash until interest payment on the bonds commence and if the issuer defaults the Schemes may not obtain any return on its investment.

29. The value of the Scheme’s investments may be affected generally by factors affecting capital markets such as price and volume volatility in the stock markets interest rates, currency exchange rates, foreign investments, changes in Government policies, taxation, political, economic or other developments and closure of the stock exchanges. There is also risk of loss due to lack of adequate external systems for transferring, pricing, accounting and safekeeping or record keeping of securities. Consequently the NAVs of the Schemes may fluctuate and the value of the Units may go down as well as up.

30. Except for any security of an associate or group company, the Schemes have the power to invest in securities which are not quoted on a stock exchange (“unlisted securities”) which in general are subject to greater price fluctuations, less liquidity and greater risk than those which are traded in the open market. Unlisted securities may lack a liquid secondary market and there can be no assurance that the Schemes will realise their investments in unlisted securities at a fair value.

31. The liquidity of the investments by the Schemes may be restricted by trading volumes, settlement periods and transfer procedures. The inability to sell the money market or debt securities due to the absence of a well developed and liquid secondary market for such securities, may result at times in losses to the Schemes, should there be a subsequent decline in the value of such securities until the time at which they are sold.

32. From time to time subject to the SEBI Regulations, the Sponsors, the mutual funds managed by them, their affiliates/associates and the AMC, Trustee Company or any other unitholder may invest either directly or indirectly in the Schemes. These entities may acquire a substantial portion of the Units and may collectively constitute a major investor in the Schemes. Accordingly, redemption of Units held by these entities may have an adverse impact on the value of the Units of the Schemes because the timing of such redemptions by such an investor may impact the ability of other Unit holders to redeem their respective Units. As per the SEBI Regulations, in case the AMC invests in the Schemes, it shall not be entitled to charge any fees on its investment.

33. Trading in debt and equity derivatives involves certain specific risks like:


b. Market Risk: Market movement may also adversely affect the pricing and settlement of derivative trades like cash trades.

c. Illiquidity Risk: The risk that a derivative may not be sold or purchased at a fair price due to lack of liquidity in the market.

d. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the Fund Manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the scheme could be lower.

e. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not for the notional principal amount.

f. Participating in derivatives is a highly specialised activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to the action of other participants in the market.

g. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities.


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Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies.


34. The aggregate value of “illiquid securities” of a scheme which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of a scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

The schemes would aim to invest in a higher proportion of liquid and traded debt instruments including Government Securities. As the Indian Debt market is characterised by high degree of illiquidity, the proposed aggregate holding of assets considered “illiquid”, including debt securities (for which there is no active established market), could be more than 10% of the value of the net assets of the scheme. In normal course of business, the schemes would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

In case of the need for exiting from such illiquid debt instruments in a short period of time, the NAVs of the schemes could be impacted adversely.

35. In the event of receipt of inordinately large number of redemption requests or of a restructuring of the portfolio of the Schemes, there may be delays in the redemption of units.

36. Risk factors on investment in Derivative Instruments

The Schemes may use various derivative products, from time to time, in an attempt to protect the value of the portfolio and enhance Unit holders’ interest. Derivative products are specialised instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. (Pl. see paragraph on Derivatives and Hedging products).

Some of the risks associated with Interest Rate Swaps (IRS) and Forward Rate Agreements (FRAs) are as below:

(i) Counter party Risk: This refers to the risk of credit and settlement. Specifically it refers to the event that the counter party in the IRS/FRA deal is unable to meet its commitment and defaults on its obligations.

(ii) Basis Risk: Basis risk is the risk of mismatch i.e. the risk that arises when the underlying asset / liability is not perfectly correlated with the derivative position.

For Floating Rate Instruments - During the life of a floating rate security or a swap, the underlying benchmark index may become less active and may not capture the actual movement in interest rates or at times the benchmark may cease to exist. These types of events may result in loss of value in the portfolio.

(iii) Liquidity Risk: This refers to the risk associated with the ease with which a derivative position can be unwound.

For Floating Rate Instruments - Due to the evolving nature of the floating rate market, there may be an increased risk of liquidity risk in the portfolio from time to time. In case of downward movement of interest rates, floating rate debt instruments will give a lower return than fixed rate debt.

37. Risk Factors of investment in Overseas Financial Assets

Currency Risk:

Moving from Indian Rupee (INR) to any other currency entails currency risk. To the extent that the assets of the schemes will be invested in securities denominated in foreign currencies, the Indian rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of those foreign currencies relative to the Indian Rupee (If Indian rupee appreciates / depreciates against these foreign currencies). The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. The schemes may have to pay applicable taxes on gains from such investments.

Interest Rate Risk:

The pace and movement of interest rate cycles of various countries, though loosely co-related, can differ significantly. Hence by investing in securities of countries other than India, the Schemes could be exposed to their interest rate cycles.

Credit Risk:

The credit though existent is substantially reduced since the regulations stipulate investments only in papers rated AAA by reputed international rating agencies such as S&P, Moody’s , Fitch etc . To manage


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risks associated with foreign currency and interest rate exposure, the Mutual Fund may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be stipulated by SEBI / RBI from time to time.

38. The value of the investments of the schemes may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the NAVs of the units of the Schemes may fluctuate and can go up or down.

39. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity and equity related investments made by the Scheme which could cause the scheme to miss certain investment opportunities. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The inability of a Scheme to make intended securities purchases due to settlement problems could also cause the Scheme to miss certain investment opportunities. By the same rationale, the inability to sell securities held in the Scheme’s portfolio due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in potential losses to the Scheme, in case of a subsequent decline in the value of securities held in the Scheme’s portfolio.

40. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. Within the regulatory limits, the AMC may choose to invest in unlisted securities that offer attractive yields. This may however increase the risk of the portfolio.

41. A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable. The Schemes may use various derivative products as permitted by the Regulations. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.

42. The Schemes may also invest in ADRs / GDRs / foreign debt securities as permitted by Reserve Bank of India and Securities and Exchange Board of India. To the extent that some part of the assets of the scheme may be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

43. The schemes intend to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, the schemes will be subject to credit risk as well as settlement risk, which might effect the liquidity of the schemes.

44. Different types of securities in which the schemes would invest as given in the scheme information document carry different levels and types of risk. Accordingly the scheme’s risk may increase or decrease depending upon its investment pattern. For e.g. corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA (SO) rated are comparatively less risky than bonds which are AA rated.

45. Risk Factors specific to investments in Securitised Papers:

Types of Securitised Debt vary and carry different levels and types of risks. Credit Risk on Securitised Bonds depends upon the Originator and varies depending on whether they are issued with Recourse to Originator or otherwise. A structure with Recourse will have a lower Credit Risk than a structure without Recourse. Underlying assets in Securitised Debt may assume different forms and the general types of receivables include Auto Finance, Credit Cards, Home Loans or any such receipts. Credit risks relating to these types of receivables depend upon various factors including macro economic factors of these industries and economies. Specific factors like nature and adequacy of property mortgaged against these borrowings, nature of loan agreement/ mortgage deed in case of Home Loan, adequacy of documentation in case of Auto Finance and Home Loans, capacity of borrower to meet its obligation on borrowings in case of Credit Cards and intentions of the borrower influence the risks relating to the asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail base on underlying assets especially when securitised assets are created by high credit rated tranches, risk profiles of Planned


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Amortisation Class tranches (PAC), Principal Only Class Tranches (PO) and Interest Only class tranches (IO) will differ depending upon the interest rate movement and speed of prepayment. Various types of major risks pertaining to Securitised Papers are as below:

Liquidity & Price risk

Presently, secondary market for securitised papers is not very liquid. This could limit the ability of the investor to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure.

Delinquency and Credit Risk

Securitised transactions are normally backed by pool of receivables and credit enhancement as stipulated by the rating agency, which differ from issue to issue. The Credit Enhancement stipulated represents a limited loss cover to the Investors. These Certificates represent an undivided beneficial interest in the underlying receivables and there is no obligation of either the Issuer or the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. No financial recourse is available to the Certificate Holders against the Investors’ Representative. Delinquencies and credit losses may cause depletion of the amount available under the Credit Enhancement and thereby the Investor Payouts may get affected if the amount available in the Credit Enhancement facility is not enough to cover the shortfall. On persistent default of a Obligor to repay his obligation, the Servicer may repossess and sell the underlying Asset. However many factors may affect, delay or prevent the repossession of such Asset or the length of time required to realize the sale proceeds on such sales. In addition, the price at which such Asset may be sold may be lower than the amount due from that Obligor.

Prepayment Risk

Asset securitisation is a process whereby commercial or consumer credits are packaged and sold in the form of financial instruments. Full prepayment of underlying loan contract may occur during the tenure of the paper. In the event of prepayments, investors may be exposed to changes in tenor and reinvestment risk.

46. RISK FACTOR SPECIFIC FOR UTI-DYNAMIC BOND FUND

Interest-Rate Risk: Any fund investing in fixed income securities run the price risk. This fund being managed dynamically with active and more frequent duration calls could have a higher risk in case of wrong calls. However the Fund Manager based on his experience and market intelligence would be in a better position to mitigate the fund’s risk.

Higher Transaction Cost: As this fund is dynamically managed there is higher portfolio turnover which could lead to higher transaction cost. However the fund would endeavor to keep the costs low with the use of technology & other measures.

47. RISK FACTOR SPECIFIC FOR UTI-FLOATING RATE FUND

a) Price-Risk or Interest Rate Risk

Fixed income securities such as bonds, debentures and money market instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates.

Floating rate debt instruments, on account of periodical interest rate reset, carry a lower interest rate risk as compared to fixed rate debt instruments. Consequently in a downward interest rate scenario the returns on floating rate debt instruments may not be better than those on fixed rate debt instruments.

b) Spread Risk

In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. However, depending upon the market conditions, the spreads may move adversely or favourably leading to fluctuation in the NAV.

48. RISK FACTOR SPECIFIC FOR UTI-GILT ADVANTAGE FUND

The AMC, on behalf of the respective Plans, may also invest in Government Securities issued by G-7 nations and other Foreign Governments as and when permitted by the concerned regulatory authorities in India.

49. Risk mitigation measure for UTI-Income Opportunities Fund

Interest Rate Risk / Reinvestment Risk: Fund seeks to mitigate the interest rate risk & reinvestment risk by keeping the maturity of the scheme in line with the interest rate expectations by maintaining a medium portfolio maturity. The average maturity of its portfolio of the scheme would not exceed 8 years.

Credit Risk: The scheme would also invest in AA/ A rated securities which carry a higher credit risk than AAA rated securities. However AA/ A rated portfolio would be positioned towards mispriced credit with stable to upside potential. Moreover historical default ratio in these securities are still low according to rating agencies.


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Liquidity Risk: Liquidity risk would be mitigated through adequate maintenance of liquid securities based on potential outflows. Higher exit load would discourage short term flows.

Concentration Risk: The scheme would have modest presence of issuers with reasonable limits which would mitigate the credit concentration risk.

Portfolio Risk: By monitoring the return deviation and adequately managing all the above risks namely interest rate risk, reinvestment risk & credit cum concentration risk the scheme would mitigate the overall portfolio risk.


The Schemes / Plans shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Schemes / Plans. The two conditions shall be complied within each calendar quarter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. DEFINITIONS

In the schemes unless the context otherwise requires:

1. “Acceptance date” or “date of acceptance” with reference to an application made by an applicant to the UTI Asset Management Company Ltd. (UTI AMC) for purchase or redemption/changeover/switchover of units means the day on which the UTI Financial Centres (UFCs)/Registrar or the official points of acceptance as per the list attached with this Scheme Information Document or notified hereafter, after being satisfied that such application is complete in all respects, accepts the same;

2. “Accounting Year” of UTI Mutual Fund is from April to March;

3. “Act” means the Securities and Exchange Board of India Act, 1992, (15 of 1992) as amended from time to time;

4. “Alternate applicant” in case of a minor means the parent other than the parent/step-parent/court guardian who has made the application on behalf of the minor and in case of mentally handicapped person, the alternate applicant mentioned in the application form when units are purchased for the benefit of mentally handicapped person;


6. “Applicable NAV” unless stated otherwise in the Scheme Information Document, Applicable NAV for the respective plans is the Net Asset Value as of the Day as of which the purchase or redemption is sought by the Investor and determined by the Fund (for details please refer to page no. 56).

7. “Applicant” means an investor who is eligible to participate in the schemes and who is not a minor or a mentally handicapped person and shall include the alternate applicant mentioned in the application form.



10. “Bonus Unit” means and includes, where the context so requires, a unit issued as fully paid up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of these schemes.

11. “Book Closure” is a period when the register of unit holders is closed for all transactions viz. Purchases, redemptions, changeover, switchover etc. such Book Closure period will not exceed 15 days in a year.

12. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under a scheme / plan is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/changeover/switchover of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time or (v) a day on which the concerned office of the investment advisor is closed.



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13. “Charitable purpose” includes relief for the poor, education, medical relief and the advancement of any other object of general public utility not involving carrying on of any activity for profit.


15. “Dividend” Income distributed by the Schemes on the Units.

16. “Distributable surplus” means the Gains that has been realised on a marked to market basis and is carried forward to the balance sheet at market value, arising out of appreciation on investments which is readily available for distribution to the unit holders as Income.

17. “Educational Trust” means any Trust established under any law for the time being in force (not being a Private Trust) for the purposes of contributing towards education both mental and physical.

18. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes ` depository’ within the meaning of Clause (e) of Sub-section (1) of Section 2 of The Depository Act, 1996.

19. “FII” Foreign Institutional Investor, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, as amended from time to time.


21. “Fixed Income Securities” Debt Securities created and issued by, inter alia, the Central Government, a State Government, Local Authorities, Municipal Corporations, PSUs, Public Companies, Private

Companies, Bodies Corporate, Unincorporated SPVs and any other entities which may be recognised / permitted, which yield a fixed rate by way of interest, premium, discount or a combination of any of them.

22. Floating Rate Debt Instruments - are debt securities issued by the Central and/or a State Government, Corporates or PSUs or other eligible issuers with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed between the issuer and the fund. The interest on such instruments may also be in the nature of fixed basis points over the benchmark gilt yields or other approved benchmarks yields such as MIBOR etc.

23. “Fund Manager” means the manager appointed for the day-to-day management and administration of a scheme.

24. Government securities or Gilts - Security created and issued by the Central Government and / or a State Government or any other security prescribed as a Government Security under the Public Debt Act, 1944.




28. “Mentally handicapped Person” means any individual who suffers from mental disability of such a nature which prevents him from carrying out normal activities of life.


30. “NAV” means Net Asset Value per Unit of the Schemes and the Plans / Options therein, calculated in the manner provided in this Scheme Information Document and in conformity with the SEBI Regulations as prescribed from time to time.

31. Net distributable income” means income after charging all expenses, contributions, prior years adjustments and all provisions, whether charged to revenue account or not.

32. “Non-profit making companies” shall mean companies set up under Section 25 of the Companies Act, 1956.

33. “Non-Resident Indian (NRI)” shall have the meaning


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as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.


35. “Official points of acceptance” UTI Financial Centres (UFCs), Offices of the Registrars of the Scheme and any other authorized center as may be notified by UTI AMC from time to time are the official points of acceptance of purchase/changeover/swithover and redemption applications of the scheme. The cut off time as mentioned in this Scheme Information Document will be applicable at these official points of acceptance. The list of official points of acceptance is attached with this document.

For purchase, redemption, switchover or changeover of units applications received at any authorised collection centers, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV.


37. “Record Date” means the date announced by the Fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC/Registrars, on the record date are eligible for such benefits.

38. “Registered Society” shall mean a society registered under the Societies Registration Act of 1860.

39. “Registrars” means a person whose services may be retained by UTI AMC to act as the Registrar under the schemes, from time to time.


41. “Repo / Reverse Repo” Sale/purchase of Securities with simultaneous agreement to repurchase / resell them at a later date.

42. “Scheme Information Document” this document issued by UTI Mutual Fund offering units of schemes convered under this document for subscription.

43. “Schemes” mean UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Floating Rate Fund, UTI-Gilt Advantage Fund, UTI-G-Sec Fund, UTI-Income Opportunities Fund, UTI-MIS-Advantage Plan, UTI-Monthly Income Scheme, UTI-Short Term Income Fund, UTI-Treasury Advantage Fund and UTI-CRTS.



46. “Sponsors” are Bank of Baroda, Life Insurance Corporation of India, Punjab National Bank, and State Bank of India;

47. Switchover - Redemption of Units in one Scheme (including Plans / Options therein) against purchase of Units in another Scheme wherever permissible.



50. “Trustee” means UTI Trustee Company Private Limited, a company incorporated under the Companies Act, 1956 and approved by SEBI to act as the Trustee to the schemes of UTI Mutual Fund.


52. “Unit Capital” means the aggregate of the face value of units issued under the scheme/plan and outstanding for the time being.



55. In this Scheme Information Document, all references to “dollars” or “$” refers to United States dollars, and “`” Refers to Indian Rupees. A “crore” means “ten million” and a “lakh” means a “hundred thousand”.

56. All other expressions not defined herein but defined in the Act/ Regulations shall have the respective meanings assigned to them by the Act/ Regulations.


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Due Diligence Certificate submitted to SEBI for UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Floating Rate Fund, UTI-Gilt Advantage Fund, UTI-G-Sec Fund, UTI-Income Opportunities Fund, UTI-MIS-Advantage Plan, UTI-Monthly Income Scheme, UTI-Short Term Income Fund, UTI-Treasury Advantage Fund and UTI-CRTS


I. the draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

II. all legal requirements connected with the launching of the schemes as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with;



Sd/- Date: 21st November, 2013 Vivek Maheshwari Place: Mumbai Compliance Officer


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II. INFORMATION ABOUT THE SCHEMESA. TYPE OF THE SCHEMES

1) UTI-Bond Fund is an open-ended debt fund.2) UTI-Dynamic Bond Fund is an open-ended

income scheme.3) UTI-Floating Rate Fund is an open-ended income

scheme.4) UTI-Gilt Advantage Fund is an open-ended gilt

scheme.5) UTI-G-Sec Fund is an open-ended dedicated gilt

fund.6) UTI-Income Opportunities Fund is an open-

ended income scheme with no assured returns.7) UTI-MIS-Advantage Plan is an open-ended

income scheme with no assured returns. 8) UTI-Monthly Income Scheme is an open-ended

debt oriented scheme with no assured returns.9) UTI-Short Term Income Fund is an open-ended

income scheme.10) UTI-Treasury Advantage Fund is an open-ended

income scheme.11) UTI-CRTS is an open-ended income scheme.

B. WHAT ARE THE INVESTMENT OBJECTIVES OF THE SCHEMES?

(1) UTI-Bond Fund


(2) UTI-Dynamic Bond Fund

The investment objective of the scheme is to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be realized.

(3) UTI-Floating Rate Fund

The investment objective of the Scheme is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments.

However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns.

(4) UTI-Gilt Advantage Fund

The investment objective of the scheme is to generate credit risk-free return through investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest.

However there can be no assurance that the investment objective of the Scheme will be achieved.

(5) UTI-G-Sec Fund

The investment objective of the scheme is to generate credit risk-free return by way of income or growth by investing in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/created by the Central Government.

(6) UTI-Income Opportunities Fund

The investment objective of the scheme is to generate reasonable income and capital appreciation by investing in debt and money market instruments across different maturities and credit ratings. There is no assurance that the investment objective of the scheme will be achieved.

(7) UTI-MIS-Advantage Plan

The investment objective of the Scheme is to generate regular income through investments in fixed income securities and capital appreciation / dividend income through investment of a portion of net assets of the scheme in equity and equity related instruments so as to endeavour to make periodic income distribution to Unit holders.

Income may be generated through Coupon payments, amortization of discount on debt instruments, receipt of dividends or the purchase and sale of securities in the underlying portfolio. Under normal market conditions investment will be made in fixed income securities, money market instruments, cash and cash equivalents while at the same time maintaining a limited exposure to equity markets. The Scheme will endeavor to enhance overall returns through appropriate investments upto a maximum of 25% of Net Assets into equity and equity related instruments.


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However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee/ indicate any returns.

(8) UTI-Monthly Income Scheme

UTI-Monthly Income Scheme (MIS) is an open-ended debt oriented scheme with no assured returns. The scheme aims at distributing income, if any, periodically.

(9) UTI-Short Term Income Fund

The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

(10) UTI-Treasury Advantage Fund

The scheme will endeavour to generate an attractive return for its investors consistent with capital preservation and liquidity by investing in a portfolio of quality debt securities, money market instruments and structured obligations.

(11) UTI-CRTS

Investment objective of the scheme is to primarily provide regular income to unitholders of the scheme. Funds collected under the scheme shall generally be invested as follows:

(i) Not less than 70% of the funds in debt instruments including money market instruments of low to medium risk profile.

(ii) Not more than 30% of the funds in equities and equity related instruments. The risk profile of equity investments could be high.


1. Asset Allocation pattern of the schemes are as follows:

(a) UTI-Bond Fund


Risk profile

Minimum Maximum Debt Instruments (including securitised debt) 75 100 Low to MediumMoney Market Instruments (including cash/call money)

0 25 Low to Medium

Change in Investment Pattern

Subject to the Regulations, the asset allocation pattern indicated above may change from time to time keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the unitholders. Such changes in the investment pattern will be for short term and on defensive considerations.

(b) UTI-Dynamic Bond Fund


Risk profile

Minimum Maximum Money Market, Debentures and Securitised Debt with residual maturity of less than one year.

0 99 Medium to Low

Debt Instruments including Securitised Debt* with maturity more than one year

1 100 Medium

*Debt Securities will also include Securitised Debt, which may go up to 100% of the portfolio.

The Fund may use derivative instruments like Stock/Index Futures, Interest Rate Swaps and Forward Rate Agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing, within a permissible limit of 50% of portfolio, which may be increased as pemitted under the Regulations and guidelines from time to time.


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Total investments in debt, money market instruments, units of mutual fund scheme and gross notional exposure in derivatives shall not exceed 100% of the net assets of the scheme.

(c) UTI-Floating Rate Fund

Under normal circumstances, the asset allocation and deviation under the Scheme would be as follows:


Risk Profile

Minimum Maximum

Fixed Rate Debt Securities (including Securitised Debt, Money Market Instruments & Floating Rate Debt Instruments swapped for fixed rate returns)

0 35 Low to Medium

Floating Rate Debt securities (including Securitised Debt, Money Market Instruments & Fixed Rate Debt instruments swapped for floating rate returns)

65 100 Low to Medium

The above stated percentages are only indicative and not absolute.

Under normal circumstances at least 65% of the total portfolio will be invested in floating rate debt securities / money market instruments. This may be by way of direct investment in floating rate assets or fixed rate assets swapped for floating rate returns by using derivatives. It is the intention of the Scheme that the investments in securitised debt will not, normally exceed 60% of the net assets of the plan.

The Scheme may have an exposure of upto 90% of its net assets in foreign securities. The AMC with a view to protecting the interests of the investors may increase exposure in foreign securities upto 100% as deemed fit from time to time. However, the exposure in foreign securities would not exceed the maximum amount permitted from time to time.

The portfolio of the Short Term Plan will normally be skewed towards short-term maturities with higher liquidity.

The Fund Manager would decide on the appropriate asset allocation for the Scheme, within the above indicated pattern, depending on market conditions. In bullish conditions, the exposure to Fixed Rate Debt Securities (including securitised debt & money market instruments) would be increased and in bearish conditions the exposure to Floating Rate debt instruments (including securitised debt & money market instruments) would be increased thus providing an effective hedge against adverse movements.

The above indicated asset allocation pattern may be modified in the interest of investors. The same will be reviewed by the AMC on a quarterly basis and will be rebalanced to its normal position in a time frame as may be decided by the AMC. Nevertheless, the AMC will endeavour to achieve a normal asset allocation pattern in a maximum period of 6 months.

In addition to the securities stated in the table above, the Scheme may enter into repos / reverse repos with respect to the securities that it will invest in or as may be permitted by the RBI from time to time. A part of the net assets may be invested in the call money market or in an alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements. Pending deployment as per investment objective, the monies under the Scheme may be invested in short-term deposits of Scheduled Commercial Banks.

Change in Investment Pattern :

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only.

Any such change in the asset allocation affecting the investment profile of the Scheme shall be affected only in accordance with the provisions of Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996.


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(d) UTI-Gilt Advantage Fund Under normal circumstances, the asset allocation and deviation under the Scheme would be as follows:


Risk profile

Minimum Maximum

Government of India dated Securities and Treasury Bills 75 100 Sovereign

State Government dated Securities 0 25 Low to Medium

The above stated percentages are only indicative and not absolute.

In addition to the securities stated in the table above, the respective Plans may enter into repos / reverse repos in the securities that they will invest in or as may be permitted by the RBI. From time to time the respective Plans may hold cash. A part of the net assets may be invested in the call money market or in an alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements. Investments in call money market run a risk of default by the counterparties. However this risk, in the opinion of the Fund Manager is very low.

The Fund Manager would decide on the appropriate asset allocation for the Scheme, within the above-indicated pattern, depending on market conditions. The above indicated asset allocation pattern may be modified in the interest of investors. The same will be reviewed by the AMC on a quarterly basis and will be rebalanced to its normal position in a time frame as may be decided by the AMC. Nevertheless, the AMC will endeavor to achieve a normal asset allocation pattern in a maximum period of 6 months.

Change in Investment Pattern

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only.

In particular, the Investment Manager would review the asset allocation pattern and carry out re-balancing as may be required if

(i) Investments in Government of India dated Securities and Treasury Bills falls below 75% of the Net Assets of the Scheme for a consecutive period of 30 days.

(ii) Investments in State Government dated securities exceeds 25% of the Net Assets of the Scheme for a consecutive period of 30 days.

Any such change in the asset allocation affecting the investment profile of the Scheme shall be affected only in accordance with the provisions of Regulation 18(15A) of and SEBI (Mutual Funds) Regulations, 1996.

(e) UTI-G-Sec Fund


Equity and Equity Linked Instruments

The schemes will not invest in Equity and Equity Linked Instruments.

Debt Securities 100% investment in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/created by the Central Government.

Money Market Instruments While no fixed allocation will normally be made for investment in money market instruments, the investment in money market instruments will be kept to the minimum generally to meet the liquidity needs of the scheme.


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i. To ensure total safety, the scheme will not invest in any other securities such as shares, debentures or bonds issued by any entity.

ii. As the investments made under the scheme are in securities issued by the Central Government there is no risk of default of payment of the principal or interest amount.

iii. The maturity profile of the investment will be guided by the need for maximisation of the returns and liquidity needs of the scheme.

iv. The scheme may seek to underwrite either directly or through an intermediary any issue of Central Government securities or participate in their auction if and to the extent permitted by SEBI/RBI, subject to the prevailing rules and regulations specified in that respect.

(f) UTI-Income Opportunities Fund

Instruments Indicative Allocation(% of total Assets)

Risk Profile

Debt instruments** Minimum - 35% Maximum- 100% Low to medium

Money Market instruments Minimum - 0% Maximum - 65% Low

*The scheme may invest upto 50% of its net assets in securities carrying a rating below AA (or equivalent). However all the securities will be of investment grade by accredited / registered credit rating agencies.

**The scheme may invest upto 50% of its debt portfolio in domestic securitised debt.

“The Scheme shall not have exposure in fixed income securities in excess of 30% of the net assets in any sector as per sectoral classification as prescribed by AMFI. However this limit is not applicable for

1. AAA rated instruments of PSU Banks and AAA rated instruments of Public Financial Institutions (PFIs), if the investment in respect of the above mentioned 30% limit is in securities of NBFC (issuer), the issuer NBFC being rated AAA (Long term) and A1+ (Short term)

2. Collateralized Borrowing and Lending Obligations (CBLO)

3. Certificate of Deposits issued by Banks

4. Government Securities

5. Treasury Bills”.

The cumulative gross exposure through debt and derivative positions shall not exceed 100% of the net assets of the scheme.

The scheme does not intend to invest in repo in corporate debt securities.

Investment would be restricted to a maximum of 10% of the net assets of the scheme in respect of Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies. Investments in Foreign Debt securities would be made in accordance with the SEBI Circular No SEBI / IMD / Cir No 7 / 104753 / 07 dated September 26, 2007.


Change in investment pattern Subject to SEBI Regulations, the asset allocation pattern indicated above may change from time to time,

keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short-term periods on defensive consideration.



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(g) UTI-MIS-Advantage Plan Investment Focus: To achieve the investment objective, the assets under the Scheme will be invested in a

wide range of fixed income and money market instruments. The Scheme may also invest a small part of its assets in equity / equity related instruments. Further the Scheme may also invest in financial derivatives such as Stock and Index Options and Futures, IRS & FRAs that are permitted or may become permissible under SEBI/RBI Regulations.

Debt securities include, but are not limited to, debt obligations of Central, State or local governments, statutory bodies, banks, public sector undertakings, development financial institutions, private sector corporate entities and securitised debt.

Money market securities include, but are not limited to, treasury bills, government securities with unexpired maturity of one year or less, commercial paper, certificate of deposit, commercial bills arising out of genuine trade transactions (accepted / co-accepted by banks), fixed deposits with scheduled commercial banks, call/notice money, permitted securities under repo / reverse repo agreement, usance bill and any other like instruments as may be permitted by RBI / SEBI from time to time.

Asset Allocation - Under normal circumstances, the asset allocation and deviation under the Scheme would be as follows:


Risk profile

*Debt and Money Market instruments (including securitised debt)


Equity & equity related instruments Upto 25% Medium to High

The above stated percentages are only indicative and not absolute. *Note: It is the intention of the Scheme that the investments in securitised debt will not, normally exceed 60%

of the net assets of the respective plans. The Scheme may have an exposure of upto 90% of its net assets in foreign securities. The AMC with a view

to protecting the interests of the investors may increase exposure in foreign securities upto 100% as deemed fit from time to time. However, the exposure in foreign securities would not exceed the maximum amount permitted from time to time.

The Fund Manager would decide on the appropriate asset allocation for the Scheme, within the above indicated pattern, depending on market conditions. The above indicated asset allocation pattern may be modified in the interest of investors. The same will be reviewed by the AMC on a quarterly basis and will be rebalanced to its normal position in a time frame as may be decided by the AMC. Nevertheless, the AMC will endeavor to achieve a normal asset allocation pattern in a maximum period of 6 months.

In addition to the securities stated in the table above, the Scheme may enter into repos / reverse repos with respect to the securities that it will invest in or as may be permitted by the RBI from time to time. A part of the net assets may be invested in the call money market or in an alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements. Scheme may on defensive consideration invest up to 100% of its net assets in cash and cash equivalent instruments. Pending deployment as per investment objective, the monies under the Scheme may be invested in short-term deposits of Scheduled Commercial Banks in accordance with SEBI guidelines.

The indicative duration of debt investments under the Scheme based on the current market structure is expected to be up to 5 years. Considering the dynamic market structure and future developments, the Fund Managers would modify the duration profile of the investments in the Scheme from time to time in the best interest of the investors. This would be consistent with the active portfolio management philosophy of the Scheme.

All the plans under this scheme will be managed under a common portfolio. Change in Investment Pattern Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time,

keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only.


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Any such change in the asset allocation affecting the investment profile of the Scheme shall be effected only in accordance with the provisions of Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996.

(h) UTI-Monthly Income Scheme


Risk profile

Minimum Maximum Debt (Government Securities and Money Market instruments including Corporate rated debts)

85 100 Low to Medium

Equity/Equity Related Instruments 0 15 High

1. To minimise the credit risk in debt instruments, investment would be made only in investment grade papers rated AA and above, at the time of investment.

2. The Equity investment universe would include stocks of companies with strong fundamentals and growth potential.

(i) UTI-Short Term Income Fund

No investment will be made in equity instruments.

The scheme will invest in the following securities:

Securities/Instruments Indicative Allocation (% of total assets)

Minimum MaximumGovernment Securities issued by Central &/or State Govt. and other fixed income/debt Securities including but not limited to corporate bonds and securitised debt.

30 100

Money Market Instruments 0 70

Investment in Securitised Debt upto 100% of debt portfolio.i) UTI-Short Term Income Fund would keep the average maturity of its portfolio upto 4 years.ii) The asset allocation and average maturity of the portfolio are indicative and can be altered for short term

periods on defensive consideration.

(j) UTI-Treasury Advantage Fund

Investment Pattern: The Scheme will invest the entire net assets in debt and money market securities (including securitised debt) with flexibility to invest in the whole spectrum of debt and money market instruments. This is intended to reduce risk while maintaining current income. Risk will also be reduced through diversification of the portfolio. Accordingly, the scheme may be fully invested in money market instruments during periods of high volatility including expectations of large redemptions and uncertain prospects in the debt instruments market.

Asset Allocation and Risk Profile - Under normal circumstances, it is anticipated that the asset allocation shall be as follows:


Risk profile

Minimum Likely Max. Upto Debt Securities (including Securitised debt)

- 80 90 Low to Medium

Money Market (including cash / call money)

10 20 100 Low to Medium

The subtotal of securitised debt would be a maximum of 25% of the corpus.


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Change in Investment Patterns

The investments made by the Scheme shall be within the parameters laid down under the SEBI Regulations. Further, it must be clearly understood that the above referred percentages are not absolute and they can vary substantially depending upon the perception of the Investment Manager on the capital and financial markets. Therefore, in certain periods during the tenure of the Scheme, to protect the interest of the Unit holders, the entire or part of the corpus may be held in cash or invested in money market instruments. The Trustees may, from time to time at their absolute discretion, review and modify the strategy provided such modification is in accordance with the SEBI Regulations. Such change in the asset allocation shall be in accordance with Regulation 15A of the SEBI Regulation.

(k) UTI-CRTS


Risk profile

Minimum Maximum Debt 70 100 Low to MediumEquity 0 30 High

Provided however that depending on the market conditions the fund manager may raise investment in equity upto 40% of the assets for a period not exceeding six months from the date when the exposure was less than or equal to 30%.

(l) Limits on sectoral exposure of portfolios of schemes A Scheme’s exposure in fixed income securities in a particular sector, as per the sectoral classification

prescribed by AMFI, (excluding investments in Bank CDs, CBLO, G-Secs, TBills and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 30% of the net assets of the scheme.

Provided that an additional exposure to financial services sector (over and above the limit of 30%) not exceeding 10% of the net assets of the scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only.

Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/exposure in HFCs shall not exceed 30% of the net assets of the scheme.

(m) Investment in Money Market Instruments under all the schemes (except UTI-STIF): While no fixed allocation will normally be made for investment in money market instruments, the investment in

money market instruments will be kept to the minimum generally to meet the liquidity needs of the schemes.(n) The schemes retain the option to alter the asset allocation for short term periods on defensive considerations.

D. WHERE WILL THE SCHEMES INVEST? 1. The mutual funds can invest in

i. ADRs/GDRs issued by Indian or foreign companies.ii. Equity of overseas companies listed on recognized stock exchanges overseas.iii. Initial and follow on public offerings for listing at recognized stock exchanges overseas.iv. Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt

instruments with rating not below investment grade by accredited/registered credit rating agencies.v. Money market instruments rated not below investment grade.vi. Repos in the form of investment, where the counterparty is rated not below investment grade; repos should

not however, involve any borrowing of funds by mutual funds.vii. Government securities where the countries are rated not below investment grade.viii. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with

underlying as securities.ix. Short term deposits with banks overseas where the issuer is rated not below investment grade.



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The schemes may invest in ADRs/GDRs upto 10% of the funds of the scheme.


Investment in overseas securities shall be made in accordance with the requirements stipulated by SEBI and RBI from time to time. The fund manager will consider the risk/reward ratio of the investments in these instruments. Risks may include fluctuating currency prices, relevant regulations of exchanges/countries, financial reporting standards, liquidity and political instability, among others. At the same time, these securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products.

2. The corpus of UTI-Income Opportunities Fund can be invested in any (but not exclusively) of the following instruments.

* Securities issued /guaranteed by the Central, State, and Local governments (including but not limited to coupon bearing bonds, Zero coupon bonds and treasury bills).

* Corporate debt (Public & private sector).

* Debt obligations of domestic government agencies and statutory bodies which may or may not carry a central /state govt guarantee.

* Debt obligation of banks (public & private sector) and financial institution.

* Money market instruments as permitted by SEBI and or RBI.

* Obligations/Term Deposits of banks (both public and private sector) and development financial institutions.

* Certificate of deposit (CDs).

* Commercial paper (CPs).

* Bills of Exchange/ promissory notes.

* Securitised Debt.

* Collateralized borrowing and lending obligations (CBLO).

* Securities with floating rate instruments.

* Derivative instruments as permitted by SEBI/RBI.

* Any other fixed income securities.

* any other instruments as may be permitted by RBI/SEBI other regulatory authorities from time to time.

The securities as mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through initial public offers, private placements, secondary market transactions, rights offer or negotiated deals.

The scheme based on views on debt markets and other market conditions may review the above pattern of investment and rebalance the portfolio of the scheme. However, at all times the portfolio will adhere to the overall investment objective of the scheme.

UTI-Income Opportunities Fund retains the option to alter the asset allocation for short-term periods on defensive considerations.

3. Debt and Money Market in India(a) Debt Instrument Characteristics : A Debt Instrument is basically an obligation

which the borrower has to service periodically and generally has the following features:

Face Value : Stated value of the paper / Principal Amount

Coupon : Zero; fixed or floating

Frequency : Semi-annual; annual, sometimes quarterly

Maturity : Bullet, staggered

Redemption : FV; premium or discount

Options : Call/Put

Issue Price : Par (FV) or premium or discount


(b) Debt Market Structure : The Indian Debt market comprises of the

Money Market and the Long Term Debt Market.

Money market instruments have a tenor of less than one year while debt market instruments typically have a tenor of more than one year.


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Government securities includes central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers). The Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt. are through on-tap sales.



Securitised Debt Instruments – Asset securitisation is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables.

The instrument, which is issued, includes loans or receivables maturing only after all receivables are realised. However depending on timing of underlying receivables, the average tenure of the securitized paper gives a better indication of the maturity of the instrument.

(c) Regulators:

The RBI operates both as the monetary authority and the debt manager to the government. In its role as a monetary authority, the RBI participates in the market through open-market operations as well as through Liquidity Adjustment Facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

(d) Market Participants:

Given the large size of the trades, the debt market has remained predominantly a wholesale market.

Primary Dealers

Primary Dealers (PDs) act as underwriters in the primary market, and as market makers in the secondary market.

Brokers

Brokers bring together counterparties and negotiate terms of the trade.

Investors

Banks, Insurance Companies, Mutual Funds are important players in the debt market. Other players are Trusts, Provident and pension funds.


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(e) Types of security issuance and eligible investors:

Issuer Instruments Yields (as on 15.10.2013)

Maturity Investors

Central Government Dated Securities 8.40% - 9.05% 1-30 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Central Government T-Bills 8.70% - 8.95% 364/91 days Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

State Government Dated Securities 9.35% - 9.45% 10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals

PSUs Corporates Bonds 9.45% - 9.60% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII


Bonds 9.50% - 9.90% 1-10 years Banks, MFs, Corporates, Individuals, FII


9.00% - 9.75 % 15 days to 1 yr Banks, MFs, Fin Inst, Corporates, Individuals, FIIs


8.80% - 9.40% 15 days to 1 yr Banks, Insurance Co, PFs, MFs, PDs, Individuals

Banks Bonds 9.45% - 9.65% 10-15 years Banks, Companies, MFs, PDs, Individuals

(f) Trading Mechanism:

Government Securities and Money Market Instruments

Currently, Government Securities (G-Sec) trades are predominantly routed though NDS-OM which is a screen based anonymous order matching systems for secondary market trading in G Sec owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

4. Participating in Derivative Products:

Derivatives: A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.

Derivatives are further classified into

Futures

Options

Swaps

Futures: A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future.

Options: An option is a derivative instrument, which gives its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.






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Exposure limits:

a. The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the net assets of the scheme.




e. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following








Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions


Swaps: The exchange of a sequence of cash flows that derive from two different financial instruments. For example, the party receiving fixed in an ordinary Interest Rate Swap receives the excess of the fixed coupon payment over the floating rate payment. Of course, each payment depends on the rate, the relevant day count convention, the length of the accrual period, and the notional amount.

Debt derivatives are as of now customised over the counter products and there is no guarantee that these products will be available on tap. The provision for trading in derivatives is an enabling provision and it is not binding on the Schemes to undertake trading on a day to day basis.


(i) These schemes will use hedging techniques including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The schemes intend to use derivatives only for the purpose of hedging and/or re-balancing of the portfolio against any anticipated move in the equity and debt markets. A hedge is primarily designed to offset a loss on a portfolio with a gain in the hedge position.

(iii) As per the current norms of UTI AMC, the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of the scheme for UTI-Income Opportunities Fund. UTI AMC may in future revise the limits within the SEBI (MFs) Regulations in keeping with the investment objective of the scheme. Such derivative position will comply with overall limits and norms of SEBI Circular No Cir / IMD / DF / 11 / 2010 dated August 18, 2010.

(iv) The Fund manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market.

(v) The Fund Manager may sell the index forward by taking a short position in index futures to save on the cost of outflow of funds or in the event of negative view on the market.


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may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:



Number of ContractsOption bought Option Premium Paid

* Lot Size * Number of Contracts.


5. Benefits of Investment in Overseas Financial Assets:

Diversificationofrisk

Investing in Foreign Debt Securities allows the investor to move away from a single country, single currency and single market format.

Bettercreditquality

Since the investment in Foreign Debt Securities will only be in papers rated AAA by S&P or Moody’s or Fitch IBCA etc. the credit quality of such papers will be superior to the papers available domestically.

Widerchoiceofinvestmentopportunities

The overseas debt markets allows investors access to a choice of investment avenues / instruments. These markets are also typically more liquid than domestic markets. The Mutual Fund may, where necessary appoint intermediaries as sub-managers, sub-custodians, etc. for managing and administering such investments. The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses.

6. All scheme investments will be in transferable securities (whether in capital markets or money markets) or bank deposits or in money at call or in privately placed debentures as securitised debt.

7. UTI-Dynamic Bond Fund - The corpus of the Scheme can be invested in any (but not exclusively) of the following instruments:

i. Securities issued/guaranteed by the Central, State and Local Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

ii. Corporate debt (public and private sector).iii. Debt obligations of domestic government

agencies and statutory bodies which may or may not carry a central/state govt. guarantee.

iv. Debt obligation of banks (public & private sector) and financial institution.

v. Money market instruments as permitted by SEBI and or /RBI.

vi. Obligations / Term Deposits of banks (both public and private sector) and development financial institutions.

vii. Certificate of Deposits (CDs).viii. Commercial Paper (CPs).ix. Bills of Exchange / promissory notes.x. Securitised Debt.xi. Call Moneyxii. Securities with floating rate instruments.xiii. Derivative instruments as permitted by SEBI/RBIxiv. Any other fixed income securities.xv. Any other instruments as may be permitted by

RBI / SEBI other Regulatory Authorities from time to time.

The securities as mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through initial public offers, private placements, secondary market transactions, rights offer or negotiated deals.


UTI-Dynamic Bond Fund retains the option to alter the asset allocation for short-term periods on defensive considerations.

8. UTI-Floating Rate Fund-The corpus of the Scheme would be invested only in Debt / Money market instruments and Government securities. Subject to the Regulations, the corpus of the Schemes could be invested in any (but not exclusively) of the following securities: i. Securities created and issued by the Central and

State Governments and / or Repos / Reverse Repos in such Government Securities as may be permitted by RBI (including but not limited to fixed or floating coupon bearing bonds, zero coupon bonds and treasury bills).

ii. Securities guaranteed by the Central and State Governments (including but not limited to fixed or floating coupon bearing bonds, zero coupon bonds and treasury bills).


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iii Fixed/Floating Money market instruments permitted by SEBI / RBI, having maturities of up to one year and more than one year, in call money market or in alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements.

iv. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee (including but not limited to fixed or floating coupon bearing bonds, zero coupon bonds and treasury bills).

v. Corporate debt (of both public and private sector undertakings) including bonds, debentures, Notes, strips, etc., (including but not limited to fixed or floating coupon bearing bonds, zero coupon bonds and treasury bills).

vi. Obligations of banks (both public and private sector) and development financial institutions (including but not limited to fixed or floating coupon bearing bonds, zero coupon bonds and treasury bills).

vii. Certificate of Deposits (CDs).

viii Commercial Paper (CPs).

ix. Securitised Debt.

x. The non-convertible part of convertible securities.

xi. Any other domestic fixed / floating income securities including structured obligations.

xii. Any international fixed / floating income securities.

xiii Pass through, Pay through or other Participation Certificates representing interest in a pool of assets including receivables.

xiv. Any other like instruments as may be permitted by RBI / SEBI / such other Regulatory Authority from time to time.

The above securities is an indicative list and the portfolio of the Scheme can be invested in similar other securities which meets the investment pattern / focus of the Scheme. The securities mentioned above could be listed or unlisted, secured or unsecured, rated or un-rated and of varying maturity. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement, rights offers or negotiated deals.

9. UTI-MIS Advantage Plan

a. Debt securities may be listed or unlisted, rated or unrated, publicly offered or privately placed or securitised debt securities. Securitised debts include investments in Asset backed securities

but exclude mortgage-backed securities. Investment manager will invest in securities of shorter or longer maturity at its discretion.

b. The corpus of the Scheme would be invested in financial securities like debt & money market instruments, equity shares, preference shares including derivatives i.e. options, futures and other investments permitted by the Regulations from time to time, with the objective of income generation and capital appreciation. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities:

i. Equity and equity related securities including partly and fully convertible bonds and debentures and warrants carrying the right to obtain equity shares.

ii. Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government. Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iii. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iv. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee.

v. Corporate debt (of both public and private sector undertakings).

vi. Obligations of banks (both public and private sector) including term deposits with the banks as permitted by SEBI / RBI from time to time and development financial institutions.

vii. Money market instruments permitted by SEBI/RBI, having maturities of up to one year, in call money market or in alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements.

viii. Certificate of Deposits (CDs).

ix. Commercial Paper (CPs).

x. Securitised Debt.

xi. The non-convertible part of convertible securities.


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xii. Pass through, Pay through or other Participation Certificates representing interest in a pool of assets including receivables.

xiii. Any other domestic fixed income securities.

xiv. ADRs/GDRs issued by Indian Companies, subject to the guidelines issued by Reserve Bank of India and Securities and Exchange Board of India.

xv. Any other like instruments as may be permitted by SEBI / RBI / such other Regulatory Authority from time to time.

xvi. Units of Mutual Fund.

The above securities is an indicative list and the portfolio of the Scheme can be invested in similar other securities which meets the investment pattern / focus of the Scheme. The securities mentioned above could be listed or unlisted, secured or unsecured, rated or un-rated and of varying maturity. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement, rights offers or negotiated deals.

10. UTI-MIS Only

As mentioned II C (1) (g) above, to minimise the credit risk in debt instruments, investment would be made only in investment grade papers rated AA and above, at the time of investment. Whenever any downgrading of the ratings of the investment paper takes place, efforts will be made by the fund manager of the scheme to exit from such instruments depending on the liquidity and market conditions. However despite the best efforts of the fund manager if it is not possible to exit from the asset consequent to downgrading below AA, the same would be reported to the Board of Directors of UTI AMC and would also be conveyed to the unitholders through half yearly / annual communication.

11. For UTI-Treasury Advantage Fund

The corpus of the Scheme will be invested in accordance with the Scheme features in transferable securities in the money market or in the capital market, in a mix of debt instruments of Government /quasi Government entities and corporate issuers. Securitised debt would also be an approved category for investment. The Scheme will purchase securities in the primary market i.e. through IPOs and Rights issues as well as those traded in secondary markets. The Scheme may also invest in securities sold directly by an issuer or acquired in a negotiated transaction.

It is expected that under normal market conditions, on an aggregate basis, up to 90-95% will be invested in

debt securities and money market instruments and the balance would be held in cash. However depending on the perceptions of the market, the Investment Manager may invest the entire or a major part of the portfolio, in money market instruments and/or in cash.

12. For All Schemes

Pending deployment of funds of a scheme in securities in accordance with the investment objectives of the scheme, a mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks and other liquid instruments, subject to the Regulations and applicable Money Market Guidelines.

The AMC/Trustee may alter these above stated restrictions from time to time to the extent the SEBI Regulations change, so as to permit the Schemes to make their investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. All investments of the Schemes will be made in accordance with the SEBI Regulations and any other regulations that may be applicable from time to time.

13. Investment in Illiquid Securities

The liquidity of the Scheme’s money market investment and other debt securities may be restricted due to the absence of a well developed and liquid secondary market for such securities. As the liquidity of the Scheme’s securities could be restricted by any or all of factors such as trading volumes, settlement periods and transfer procedures, the aggregate of such holdings could exceed 10% of the value of the net assets of the Schemes. The Trustees have the right in their sole discussion to limit redemptions under certain circumstances (Please see ‘Right to Limit Redemptions’ in the SAI).

14. Underwriting by the Schemes (For UTI-GAF, UTI-MIS-Advantage Plan & UTI-Treasury Advantage Fund)

The Schemes may undertake underwriting activities in order to augment its income after complying with the approval and compliance process specified in the SEBI Regulations and any other applicable guidelines. The total underwriting obligations of the Schemes at any time, shall not exceed the total value of the net assets under the Schemes together with undistributed profits lying to its credit. The decision to take up any underwriting commitment shall be made as if the Schemes are actually investing in that particular security and as such, all investment restrictions and prudential guidelines relating to investments individually and in aggregate as mentioned in the SEBI Regulations shall in so far as may be applicable apply to underwriting commitments which may be undertaken under the Schemes.


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To the extent that a scheme undertakes underwriting obligations, it runs a risk of devolvement of the issue.

15. Borrowing for UTI-Gilt Advantage Fund

Under the SEBI Regulations, the Mutual Fund is allowed to borrow to meet the temporary liquidity requirements of its Scheme for the purpose of repurchase or redemption of Units or the payment of dividend to the Unit holders. Further, as per the SEBI Regulations, the Mutual Fund shall not borrow more than 20% of the Net Assets of the Scheme and the duration of such borrowing shall not exceed a period of six months.

Being a scheme dedicated exclusively to investments in Government securities, the Scheme will be eligible to avail on any day from the RBI liquidity support upto 20% of the outstanding value of its investments in Government securities (as at the close of the business on the previous business day) under its guidelines issued vide letter IDMC No. 2741/03.01.00/95-96 dated April 20, 1996. Liquidity support under these guidelines is available through reverse repurchase agreements in eligible Central Government dated securities and Treasury Bills of all maturities

The Scheme may raise such other borrowings after approval by the Trustee from any entity including Sponsor / Group / Associate Companies, at market related rates prevailing at the time and applicable to similar borrowings. The security for such borrowings, if required, will be as determined by the Trustee. Such borrowings, if raised, may result in a cost, which would be dealt with in consultation with the Trustee.

E. WHAT ARE THE INVESTMENT STRATEGIES?

1. Investment focus and asset allocation strategy

(a) UTI-Bond Fund

The Scheme does active duration management by investing typically in medium to long term maturity corporate bonds and G-Secs. However, fund manager has the flexibility to invest in short end of the curve if the investment environment i.e. not conducive for long or medium duration papers.


UTI-Dynamic Bond Fund will be an innovative long-term investment option that provides the much-needed flexibility to counter a dynamic environment by actively managing its portfolio in line with the evolving interest rate scenario.

It has the ability to mimic a Cash Fund when

interest rates are rising thereby preserving capital and it can generate the attractive returns of an Income Fund when interest rates are declining. It will be a fund which could be positioned between a short term fund and a medium/long term fund.

(c) UTI-Floating Rate Fund

The Scheme will have an appropriate mix of Fixed Rate Debt / Money market securities and Floating Rate Debt/ Money market securities (subject to the investment pattern given below) depending on the prevailing market outlook to generate stable returns.

Debt securities include, but are not limited to, debt obligations of Central, State or local governments, statutory bodies, banks, public sector undertakings, development financial institutions, private sector corporate entities and securitised debt.

Money market securities include, but are not limited to, treasury bills, government securities with unexpired maturity of one year or less, commercial paper, certificate of deposit, commercial bills arising out of genuine trade transactions (accepted / co-accepted by banks), fixed deposits with scheduled commercial banks, call/notice money, permitted securities under repo / reverse repo agreement, usance bill and any other like instruments as may be permitted by RBI / SEBI from time to time.

(d) UTI-Gilt Advantage Fund

The portfolio of the Scheme and the plans thereunder shall be focused on investments in sovereign securities issued by the Central Government and/or a State Government, with a strategy to generate returns free of credit risk.

Investment Strategy and Risk Control - UTI-GAF shall invest in Government Securities, which are generally free from credit risk. Fund Management therefore shall predominantly involve interest rate risk management. The factors affecting yields and therefore prices of the government securities are both global and local and broadly encompass the following:

i. Macroeconomic indicators

ii. Fiscal policy and fiscal situation

iii. Interest rate trends

iv. Shape of the yield curve


35

v. Monetary policy and its effect on the economy

vi. Liquidity conditions in the money market

vii. Market Sentiment due to political situation and other developments

The investment team at the UTI AMC shall continuously analyse these factors affecting yields and shall (re) structure and position the portfolio, based on the analysis. In the absence of significant credit risks the management decision process has to predominantly consider interest rate risk.

(e) UTI-G-Sec Fund

The fund does not invest in state government securities and generally has a low portfolio churn. The UTI-G-Sec STP aims at low volatility of returns by investing in short term gilts. The maximum average maturity of the portfolio of UTI-G-Sec STP is capped at 3 years.


The scheme would seek to invest in debt instruments of varying credit rating with the intent of generating returns and at the same time ensuring reasonable liquidity. The scheme would invest in a reasonably diversified portfolio comprising debt instruments like debentures, securitized debt in the form of well seasoned pools / single loan PTCs etc to capitalize on investment opportunities in debt segment which are currently mispriced and which in the view of the fund manager has a potential for some rectification.

(g) UTI-MIS-Advantage Plan

The fund follows a bottom-up approach for the equity portfolio. Debt portfolio objective is to generate regular income and provide capital preservation.

Investment Strategy and Risk control

The Scheme proposes to invest primarily in debt and money market instruments and a limited portion of its net assets into equity and equity related instruments. The Scheme seeks to generate regular returns through investments primarily in Debt and Money Market Instruments and attempts to enhance returns through investments between 0-25% of its net assets in equity/equity related instruments, depending upon the perceived market outlook.


The scheme emphasis is on preserving capital and paying out income under the income option. Hence a more conservative style of management of the funds is adopted. The fund will aim to be low on volatility and consistency in generating returns. Equity component capped at 15% with a higher weightage to Large Cap stocks.

(i) UTI-Short Term Income Fund

It aims to generate reasonable returns with low risk and high liquidity from a portfolio of Money Market securities and high quality of debt. The fund attaches importance to low credit risk and portfolio diversification. The fund intends to maintain the average maturity of the portfolio upto 4 years.


UTI Tresury Advantage Fund is categorised as an Ultra Short Term Fund in terms of investment treasury investing predominently in Money market instruments. The endeavour is to keep the average maturity of the fund below a year and give stable returns with very low volatility.

(k) UTI-CRTS

This is a fund with a conservative tilt and a medium term horizon. The scheme has a diversified equity portfolio primarily in large cap companies. The debt portfolio is designed with the objective of providing stability of returns to the fund.

2. Portfolio Turnover policy for all scheme except UTI-Dynamic Bond Fund and UTI-Income Opportunities Fund

The portfolio management style of the schemes is conducive to a low portfolio turnover rate. However, the schemes will take advantage of the opportunities that present themselves from time to time because of the inefficiencies in the securities markets. A high portfolio turnover rate in the equity component of the portfolio of schemes investing in equity may represent arbitrage opportunities that exist for scrips held in the portfolio. The AMC will endeavour to balance the increased cost on account of higher portfolio turnover with the benefits derived therefrom.

UTI-Dynamic Bond Fund The scheme portfolio mangement style would

result in a fairly high portfolio turnover rate as the fund is dynamically managed. The AMC will endeavour to balance the increased cost on account of higher portfolio turnover with the benefits derived therefrom.


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UTI-Income Opportunities Fund

The portfolio turnover shall be targeted so as to have return maximisation for the unitholders. At the same time, expenses such as brokerage and transaction cost shall be kept at low level so that it does not affect the earnings of the scheme.

The Fund Manager shall review the portfolio for adherence with the above asset allocation pattern and rebalance the portfolio within 30 days to confirm to the above limits. In case if the Fund Manager is not able to rebalance the portfolio within 30 days, then the same would be reported to the AMC & Trustee Board in the forthcoming meeting for their directions.

F: FUNDAMENTAL ATTRIBUTES

Following are the Fundamental Attributes of the schemes, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of a scheme

1) UTI-Bond Fund is an open-ended debt fund.

2) UTI-Dynamic Bond Fund is an open-ended income scheme.

3) UTI-Floating Rate Fund is an open-ended income scheme.

4) UTI-Gilt Advantage Fund is an open-ended gilt scheme.

5) UTI-G-Sec Fund is an open-ended dedicated gilt fund.

6) UTI-Income Opportunities Fund is an open ended income scheme with no assured returns.

7) UTI-MIS-Advantage Plan is an open-ended income scheme with no assured returns.

8) UTI-MIS is an open-ended debt oriented Scheme with no assured returns.

9) UTI-Short Term Income Fund is an open-ended income scheme.

10) UTI-Treasury Advantage Fund is an open-ended income scheme.

11) UTI-CRTS is an open-ended income scheme.

(ii) Investment Objective

Main Objective – as given in Clause II B

Investment pattern - as given in Clause II C (1) (a to k), while retaining the option to alter the asset allocation for a short term period on defensive considerations.

(iii) Terms of Issue

Liquidity provision of redemption: Only provisions relating to redemption as given in Section III (A) – Ongoing Offer Details – Page Nos. 56.

Aggregate fees [as given in clause IV A (b)] and expenses [as given in IV A (b) and (c)] charged to the scheme.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme/s and the Plan(s)/Options thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s)/Options thereunder and affect the interests of Unitholders is carried out unless:

1) A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

2) The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.


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Sr. No. Scheme Benchmark Index

1. UTI-Bond Fund CRISIL Composite Bond Fund Index2. UTI-Dynamic Bond Fund CRISIL Composite Bond Fund Index3. UTI-Floating Rate Fund-Short Term Plan CRISIL Liquid Fund Index4. UTI-Gilt Advantage Fund I-Sec Li-Bex5. UTI-G-Sec-Short Term Plan I-Sec Si-Bex (1-3 years) given by ICICI Securities6. UTI-Income Opportunities Fund CRISIL Short Term Bond Fund Index7. UTI-MIS-Advantage Plan CRISIL MIP Blended Index8. UTI-MIS CRISIL MIP Blended Index (15% to Nifty Index

returns and 85% to Composite Bond Index Fund)9. UTI-Short Term Income Fund CRISIL Short Term Bond Fund Index

10. UTI-Treasury Advantage Fund CRISIL Liquid Fund Index11. UTI-CRTS CRISIL Debt Hybrid (75:25)

Benchmarks have been chosen on the basis of the investment pattern/objective of the scheme/s and the composition of the indices.

UTI AMC reserves the right to change the benchmark/s in future if benchmark/s better suited to the investment objective of the schemes are available.

H. WHO MANAGES THE SCHEMES?

(a) Shri Amandeep Chopra is the Fund Manager of UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Gilt Advantage Fund, UTI-G-Sec STP, UTI-Income Opportunities Fund & UTI-MIS Advantage Plan.

(b) Shri Sudhir Agarwal is the Fund Manager of UTI-Floating Rate Fund-STP, UTI-Short Term Income Fund & UTI-Treasury Advantage Fund.

(c) Shri Amandeep Chopra (debt portfolio) and Shri V. Srivasta (equity portfolio) are the Fund Managers of UTI-Monthly Income Scheme and UTI-CRTS.

(d) Shri Arpit Kapoor is the dedicated Fund Manager for investment in ADRs / GDRs / Foreign Securities.

Name & Age (in yrs)


Amandeep Chopra 43 yrs

B.Sc., MBA He has over 23 years of experience in Funds Management having worked in the areas of Investment Research and Funds Management. Prior to erstwhile Unit Trust of India, he has worked as Production Co-ordinator with Aaina Exports Ltd. from May, 1990 to January 1991, as Quality Control Inspector with Stenay Ltd. from February, 1991 to August, 1991.

UTI Balanced Fund (Debt Portfolio),UTI Childrens Career Balanced Plan (Debt Portfolio),UTI Fixed Income Interval Funds,UTI Mahila Unit Scheme,UTI Retirement Benefit Pension Fund (Debt Portfolio),UTI ULIP.

V. Srivasta39 yrs

B.Com.,ICWA, ACA,PGDM

He has been with UTI AMC since 2002. He has around 4 years of experience in the Equity Securities Research handling variety of sectors. Last 4 years in the fund management as fund manager for offshore funds. He is looking after fund management of Hybrid Schemes as an adhoc arrangement and report to Head of Fixed Income. Prior to joining UTI AMC, he has worked with Ford, Rhodes Parks & Co., Chartered Accountants for 3 years and as Officer-Audit in Madras Cements Ltd.

UTI Balanced Fund (Equity Portfolio),UTI Retirement Benefit Pension Fund (Equity Portfolio).


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Sudhir Agarwal 31 yrs

M.Com, CFA, P G D B A , C A I I B - I , C e r t i f i c a t e Examination of IIB for the Employees of UTI

He joined UTI AMC in 2009 after 8 years of experience. He has previously worked with CARE (Credit Analysis and Research Ltd.), Transparent Value LLC and Tata Asset Management Company Ltd in different roles.

Arpit Kapoor28 yrs

B.Tech, PGDM, CFA




These investment limitation / parameters (as expressed /linked to the net asset / net asset value / capital) shall in the ordinary course apply as at the date of the most recent transaction or commitment to invest and changes do not have to be effected merely because, owing to appreciation or depreciation in value of the securities or by appreciation / depreciation in the Net Asset Value due to purchases / redemption in the Schemes or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the fund any such limits would thereby be breached.

All investment restrictions shall be applicable at the time of making an investment. Subject to SEBI (MFs) Regulations and guidelines on investment from time to time.

(a) The schemes (except UTI-STIF) shall not invest more than 15% of their NAVs in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity by SEBI. Such investment limit may be extended to 20% of the NAV of respective schemes with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in government securities. Provided further that investments within such limits can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

UTI-Short Term Income Fund shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below AA- by a credit rating agency authorised to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAV with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in central government securities. Provided further that investments within such limits can be in mortgaged backed securitised debt which are rated not below ‘AA-‘ by a credit rating agency registered with SEBI.

(b) The schemes shall not invest more than 10% of their NAVs in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the respective schemes. All such investments will be made with the prior approval of the Trustees and Board of the AMC.

No mutual fund scheme shall invest more than thirty percent of its net assets in money market instruments of an issuer. Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralised borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Board and the Trustee. The details of such investments shall be communicated by UTI AMC to the Trustee in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Board of AMC and Trustee shall be required.


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For UTI-Short Term Income Fund:

UTI AMC has appropriate in-built systems control and continuous review mechanism to ensure that counterparty risk exposure arising out of all financial transactions including OTC derivative and repo transactions are within the limits as specified above. Internal control mechanisms ensure adherence to these limits and type of exposures ie., the scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below AA- and the scheme shall not invest more than 10% of their NAVs in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the scheme.

(c) Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause II (I) (a) and (b) above. It is further clarified that the investment limits at II (I) (a) and (b) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above investment limits.

(d) No term loans will be advanced by this scheme for any purpose as per SEBI regulation 44(3) of SEBI (Mutual Fund) Regulations 1996.

(e) The schemes shall not make any investment in any fund of fund scheme.

(f) The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction unless allowed by SEBI.

However, the schemes may enter into derivatives transactions for the purpose of hedging and re-balancing the portfolio as may be permissible under the guidelines issued by SEBI.

(g) The Mutual Fund under all its schemes taken together will not own more than 10% of any Company’s paid up capital carrying voting rights.

(h) Separate demat accounts have been opened in the names of the schemes. The total holding of the schemes are held in the names of the schemes.

(i) UTI Mutual Fund shall, get the securities purchased by the scheme transferred in the name of the scheme, whenever investments are intended to be of long-term nature.

(j) 1) The schemes may participate in the securities lending program, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediary. In the case of UTI Income Opportunities Fund, the maximum gross exposure of the Scheme to the securities lending programme at any point of time would be restricted to 20% of the net assets of the scheme or such limit as may be specified by SEBI.

2) The maximum exposure of the schemes to a single intermediary in the securities lending program at any point of time would be 10% of the market value of the security class of the schemes or such limit as may be specified by SEBI.,

3) If mutual funds are permitted to borrow securities the schemes may in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

(k) The schemes shall not make any investment in any unlisted security of an associate or group company of the sponsors or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

(l) Investment in non-publicly offered debt: Depending upon the available yield the schemes permitted to invest in debt securities would be investing in non-publicly offered debt securities to the extent to which such investment can be made by the schemes.

(m) Based upon the liquidity needs, the schemes may invest in Government of India/State Government Securities without any restriction on the extent to which such investments can be made. UTI-G-Sec Fund will invest only in Government of India Securities.

(n) The aggregate value of “illiquid securities”, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.


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The schemes would aim to invest in a higher proportion of liquid and traded debt instruments including Government Securities. As the Indian Debt market is characterised by high degree of illiquidity, the proposed aggregate holding of assets considered “illiquid”, including debt securities (for which there is no active established market), could be more than 10% of the value of the net assets of the scheme. In normal course of business, the schemes would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

In case of the need for exiting from such illiquid debt instruments in a short period of time, the NAVs of the schemes could be impacted adversely.

(o) UTI-MIS Advantage Plan, UTI-MIS and UTI-CRTS shall not invest more than 10% of its NAV in equity shares or equity related instruments of any company.

(p) UTI-MIS, UTI-MIS-Advantage Plan and UTI-CRTS shall not invest more than 5% of it’s NAV in the unlisted equity shares or equity related instruments.

(q) UTI-Income Opportunities Fund shall not invest more than thirty percent of its net assets in money market instruments of an issuer as per SEBI guidelines provided that such limit shall not be applicable for investments in Government securities, treasury bills, and collateralized borrowing and lending obligations.

(r) Under UTI-Income Opportunities Fund, transfers of investments from one scheme to another scheme in the same mutual fund shall be allowed only if

a) Such transfers are done at the prevailing market price for quoted instruments on spot basis - “Spot basis” shall have same meaning as specified by stock exchange for spot transactions.

b) The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.

(s) Investment by these schemes in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under:

A scheme may invest in another scheme under the same Asset Management Company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by

all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

Such investment will be consistent with the investment objective of the scheme. No fees will be charged by the AMC on such investments.

(t) Pending deployment of funds of the schemes in securities in accordance with the investment objectives as stated above, the schemes may invest in short term deposits of scheduled commercial banks in accordance with SEBI guidelines.

J. HOW HAVE THE SCHEMES PERFORMED?

(a) UTI-Bond Fund




Option (%)

CRISIL Comp.

Bond Fund Index (%)


Since Inception

8.56 NA


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Option (%)

CRISIL Comp.

Bond Fund Index (%)

Last 1 year 8.06 4.89Last 3 years 9.28 6.80


(c) UTI-Floating Rate Fund-STPPerformance of the scheme as on October 31, 2013


Scheme Returns

(%)

CRISIL Liquid Fund Index (%)



(d) UTI-Gilt Advantage Fund-Long Term Plan




Option (%)

I-Sec Li-Bex

(%)


Since Inception 8.15 NA

(e) UTI-G-Sec Fund – Short Term Plan




Option (%)

I-Sec Si-Bex (%)




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Option (%)

CRISIL Short Term Bond Fund Index (%)

Since Inception

7.68 7.84

UTI-Income Opportunities Fund has come into existence on November 19, 2012 only.

(g) UTI-MIS-Advantage Plan




Option (%)

CRISIL MIP

Blended Index (%)


Since Inception

9.33 7.10





Option (%)

CRISIL MIP

Blended Index (%)



(i) UTI-Short Term Income FundPerformance of the scheme as on October 31, 2013

Com-pounded

Annualised Returns*


Regular (%)

CRISIL Short Term Bond Fund Index (%)

Last 1 year 9.73 8.29Last 3 years 10.30 8.23

Since Inception

9.03 6.97


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(%)

CRISIL Liquid Fund

Index (%)Last 1 year 9.47 8.84Last 3 years 9.40 8.48Last 5 years 8.02 7.19


(k) UTI-CRTS



Scheme Returns

(%)

CRISIL Debt Hybrid

(75:25) (%)

Last 1 year 8.58 9.52


Last 5 years 14.25 10.67


* Computed on compounded annualised basis using NAV of Growth Option.

Past performance may or may not be sustained in future


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III. UNITS & OFFERThis section provides details you need to know for investing in the schemes.

A. ONGOING OFFER DETAILS

Plans / Options offered 1. UTI-Bond Fund – Existing Plan 2. UTI-Bond Fund – Direct Plan Both the plans offers following options:

(a) Growth Option

(b) Dividend Option (with payout & reinvestment facilities)

Default Option – Growth Option

1. UTI-Dynamic Bond Fund – Existing Plan 2. UTI-Dynamic Bond Fund – Direct Plan Both the plans offers following options:

(a) Growth Option

(b) Dividend Option (with payout and reinvestment facilities)


1. UTI-Floating Rate Fund – Short Term Plan – Regular Plan

2. UTI-Floating Rate Fund – Short Term Plan – Direct Plan

Short-Term Plan: The investment plan is suitable for investors

whose investment holding period is expected to be for a short period of time. The indicative duration of investments in the Short Term Plan shall not exceed 2 years.

Considering the dynamic debt market structure and future developments, the Fund Manager would modify the duration profile of the investments in the Plan from time to time in the best interest of the Scheme.

Both the plans offers following options:

(a) Growth Option

(b) Daily Dividend Reinvestment Option

(c) Weekly Dividend Reinvestment Option

(d) Flexi Dividend Option (with payout and reinvestment facilities)

Default option will be Growth Option.

1. UTI-Gilt Advantage Fund-Long Term Plan-Existing Plan

2. UTI-Gilt Advantage Fund-Long Term Plan-Direct Plan


(a) Growth Plan

(b) Dividend Plan (with payout & reinvestment facilities)

Default Plan – Growth Plan

1. UTI-G-Sec Fund-Short Term Plan-Existing Plan2. UTI-G-Sec Fund-Short Term Plan-Direct Plan


(a) Growth Option

(b) Periodic Dividend Option (with payout & reinvestment facilities)

(c) Daily Dividend Reinvestment Option (compulsory reinvestment of dividend)


1. UTI-Income Opportunities Fund-Existing Plan2. UTI-Income Opportunities Fund-Direct Plan


(a) Growth Option



1. UTI-MIS Advantage Plan-Existing Plan 2. UTI-MIS Advantage Plan-Direct Plan Both the plans offers following plans namely the:

(a) Growth Plan

(b) Flexi Dividend Plan (with payout & reinvestment facilities)

(c) Monthly Dividend Plan (with payout & reinvestment facilities)

(d) Monthly Payment Plan

Default Plan – Growth Plan

1. UTI-Monthly Income Scheme-Existing Plan 2. UTI-Monthly Income Scheme-Direct Plan Both the plans offers following options:

(a) Growth Option



1. UTI-Short Term Income Fund-Institutional Option-Existing Plan

2. UTI-Short Term Income Fund-Institutional Option-Direct Plan

The following sub options are available under Institutional Option.

(a) Growth Sub-Option

(b) Dividend Sub-Option (with payout & reinvestment facilities)

(c) Flexi Dividend Sub-Option (with payout & reinvestment facilities)


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Payout facility is available subject to the minimum outstanding investment value of ` 30,000/-.

Default Sub-Option – Dividend Sub-Option (Reinvestment)

1. UTI-Treasury Advantage Fund-Instituitional Plan-Existing Plan

2. UTI-Treasury Advantage Fund-Instituitional Plan-Direct Plan


(a) Growth Option

(b) Daily Dividend Option

(c) Weekly Dividend Option

(d) Monthly Dividend Option

(e) Quarterly Dividend Option

(f) Annual Dividend Option and

(g) Bonus Option

However, only dividend reinvestment option is available under daily frequency.

Both Dividend payout & reinvestment options are available under Weekly, Monthly, Quarterly & Annual frequencies.

Default Option – Daily Dividend Reinvestment Option

1. UTI-CRTS-Existing Plan2. UTI-CRTS-Direct Plan


(a) Growth Option

(b) Dividend Option (with payout & reinvestment facilities).


**Direct Plan: Direct Plan is only for investors who purchase/subscribe

units directly with the Fund and is not available for investors who route their investments through a Distributor.

All categories of Investors (whether existing or new Unitholders) as pemitted under this SID are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).

The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid/charged from Direct Plan.

Portfolio of the Scheme under the existing plan and Direct Plan will be common

How to apply: Investors subscribing under Direct Plan of UTI-Bond Fund will have to indicate “Direct Plan” against the Scheme name in the application form, as for example., “UTI-Bond Fund - Direct Plan”.

Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for existing plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.

Scheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the existing plan and the Direct Plan except that:


(b) However, no exit load shall be levied for switch of investments from existing plan made directly without an ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan of the scheme (subject to statutory taxes and levies, if any). The holding period for applicability of load will be considered from the date of initial investment in the existing plan.

(c) No exit load shall be levied in case of switches from Direct Plan to existing plan.

Existing Investments prior to 1st January 2013 Dividend will continue to be reinvested in the Existing

Plan only in respect of Investments made without Distributor code where the Investor has opted for the Dividend Reinvestment facility

Minimum Investment amount under the Direct Plan: In case of already existing investments under the

Existing Plan, if the investor wants to further invest in the Direct Plan he/she will be required to invest the minimum investment amount of the scheme, as applicable for that Scheme/Plan/Option/facility etc.

However, this minimum investment amount requirement is not applicable in case of switchover from Existing Plan to Direct Plan or vice versa under the same Scheme and same Option.


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Details of Schemes / Plans / Options Where Fresh Subscriptions has been Discontinued with effect from 1st October 2012

Scheme Name Discontinued Plans / Options Revised Plan / Option Name (for existing Unit holders before 1st October 2012)

1. UTI-Floating Rate Fund–Short Term Plan

Institutional Plan-

(a) Daily Dividend Option

(b) Weekly Dividend Option

Instituitional Plan-

(a) Periodic Dividend Option

(b) Flexi Dividend Option

2. UTI-Gilt Advantage Fund- Long Term Plan

PF Plan-

(a) Prescribed Date Auto Redemption Option (PDAR)

(b) Prescribed Appreciation Auto Redemption Option (PAAR)

(c) Growth Option

(d) Dividend Option

No change under PF Plan

3. UTI-Short Term Income Fund Regular Option-

(a) Growth Sub-Option

(b) Monthly Dividend Sub-Option

Regular Option-

(a) No change

(b) Dividend Sub-Option

4. UTI-Treasury Advantage Fund (a) Growth Plan

(b) Bonus Plan

(c) Daily Dividend Plan

(d) Weekly Dividend Plan

(e) Monthly Dividend Plan

(f) Quarterly Dividend Plan

(g) Annual Dividend Plan

(a) No change

(b) No change

(c) Periodic Dividend Plan

(d) Flexi Dividend Plan

(e) No change

(f) No change

(g) No change

The existing Investors under the aforesaid Schemes/Plans where Plans/Options are discontinued shall be allowed to continue in the discontinued Plan/Option till they exit. Further, the Dividend Reinvestment facility/option in respect of the above discontinued schemes & plans/options/sub-options/renamed/revised plans & options is withdrawn and the dividend as and when declared under these Plans etc will be compulsorily paid out in such cases even if it is under reinvestment facility/option. Further, under the above Plans & Options, the dividend is proposed to be declared once in a month, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996. However, there is no assurance or guarantee to the unit holders, as to the rate and frequency of dividend. UTI AMC reserves the right to declare dividend at any other frequency, as it may deem fit, under the above revised Plans & Options.


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Details of Plans / Options offered

UTI-Bond Fund offers two Plans1. Existing Plan2. Direct PlanThe investors will have two options to invest in: (i) Dividend Option - Dividend will be distributed quarterly

or at such intervals as may be decided by the UTI AMC from time to time. There is also an option to reinvest the dividend distributed under the plan.

(ii) Growth Option - Realised capital appreciation and income earned by the scheme will be ploughed back in the scheme and will be reflected through appreciation in NAV of the option. There will be no dividend distribution under this option. The unitholders will, however, have facility to make monthly withdrawal by repurchasing units under Systematic Withdrawal Plan.

UTI-Dynamic Bond Fund offers two Plans1. Existing Plan2. Direct PlanThe investors will have two options to invest in: (i) Growth Option Ordinarily no dividend distribution will be made under

this option. All income generated and profits booked will be ploughed back and returns will be reflected through the NAV.

(ii) Dividend Option with Payout and Reinvestment facilities.

In case where neither of the options is exercised by the applicant/unitholder at the time of making his investment or subsequently he will be deemed to be under the Growth Option and his application will be processed accordingly.

UTI-Gilt Advantage Fund-Long Term PlanThe scheme offers the Long-Term PlanThe details of the plan is: This Investment Plan is suitable for investors whose

investment holding period is expected to be greater than one year. It is envisaged to invest the proceeds of the Long Term Plan in sovereign securities issued by the Central Government and /or State Government with medium to long term maturities. The fund manager shall evaluate the market conditions based on liquidity / bid-offer spreads / ease of availability of quote etc. and position the funds investments accordingly. The underlying objective shall always be to act in the best interests of the unitholders.

Investment Plans 1. Existing Plan2. Direct Plan Both the above Plans offer Growth Plan and Dividend

Plan (with Payout and reinvestment facilities).a) Growth Plan The Growth Plan is for those investors who do not

wish to have any regular income by way of dividends

and instead seek cumulative growth by way of capital appreciation. Under the Growth Plan, therefore, no dividends will be declared and profits made would remain invested therein and get reflected in the NAV. Investors under this option can avail of the benefits of indexation and concessional capital gains taxation. Investors should, however, check with their tax advisors regarding the applicability of such benefits in their individual case before opting for this plan/option.

b) Quarterly Dividend Plan Under this Plan/Option, it is proposed to be declared

quarterly dividend on the 15th day of the last month of each quarter (i.e. quarter ending September, December, March and June). If this is not a business day then the record date would be the next business day. There is no assurance or guarantee that the dividend will be declared. The AMC reserves the right to change the record date (i.e. 15th day of the last month of each quarter) from time to time.

UTI-G-Sec Fund – Short Term Plan offers two Plans1. Existing Plan2. Direct PlanThe plan has following options: (a) Dividend Option - Dividend will be distributed annually

or at such intervals as may be decided by UTI AMC from time to time. There is also an option to reinvest the dividend.

(b) Growth Option - Realised capital appreciation and income earned by the scheme will be ploughed back in the scheme and will be reflected through appreciation in NAV of the scheme. There will be no income distribution under this option.

Attractiveness of Gilt Fund: The spread between returns provided by corporate debt and gilts has been reducing in recent times. Looking at the risk-return trade-off, gilts are emerging as an attractive investment avenue. Many institutions like Provident Funds, Trusts & Societies are required compulsorily to invest a part of their funds in government securities and generally prefer safety and liquidity over returns. These institutions may come across problems in acquiring government securities as the minimum deal size in the gilt segment is generally `5 crore. They may also not be able to get the right price and have difficulty in selling them as well. These institutions usually have to scout for securities or wait till they can find a secured investment as per their requirement. Gilt funds are more professionally managed. Hence open-end gilt funds, which are NAV driven on a daily basis, can be used for investing PF money effectively. Gilt funds are expected to earn higher returns by undertaking active trading in government securities as against the passive buy and hold method. Hence investing in government securities through a dedicated G-Sec fund could be a better option.

UTI-Floating Rate Fund, UTI-Income Opportunities Fund, UTI-Monthly Income Scheme, UTI-Short Term Income Fund & UTI-CRTSPlans/Options as given above are offered.


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UTI-MIS Advantage Plan offers two Plans1. Existing Plan2. Direct Plan Following are the plans under UTI-MIS-Advantage

Plan-Existing Plan and UTI-MIS-Advantage Plan-Direct Plan. All plans under the scheme will be managed by common portfolio. The details of the plans offered are as under -

(i) Monthly Dividend Plan - Under this plan/option it is envisaged to declare dividends on a monthly basis subject to availability of distributable surplus computed in accordance with SEBI Regulations.

(ii) Flexi Dividend Plan - Under the Flexi Dividend Plan the Fund will endeavour to declare dividends from time to time subject to availability of distributable surplus. The quantum of dividend would be as decided and approved by the AMC / Trustees from time to time.

(iii) Monthly Payment Plan - Under the Monthly Payment Plan, the Scheme intends to make monthly payments to investors by redeeming units. The investor can opt for receiving monthly payouts beginning the last business day of the month following the month of investment subject to the declaration of the dividend under the Monthly Dividend Plan.

Under the Plan, the investor will provide standing instructions to the AMC to redeem such Units as equivalent in value terms to the amount of Gross dividend per unit (total of Net dividend in the hands of the investor and dividend tax paid by the AMC) that the Fund will be declaring under the Monthly Dividend Plan, from his existing balance of Units as on the record date of the dividend. The redemption of the Units not being in the nature of the dividends payments, the Fund will not be required to pay the dividend tax on such redemptions being paid to the Unit holders. On receipt of such instructions, the AMC will redeem at monthly rests appropriate part of the unit holdings of the investor and dispatch the redemption proceeds.

In addition to the monthly payment, the unit holders, if they so, desire and to meet their cash requirements, may also seek for the redemption of their investments under the Scheme in normal course.

This Plan involves no dividend payments and hence the fund would not pay any distribution tax on the redemption proceeds.

Gains or losses on the payments received by the investors within the first 12 months from the date of investments would be considered as a short term capital gain / loss. Gains/losses on the payments received after the first 12 months would be considered as a long-term capital gain/loss and taxed accordingly. However no TDS is required to be deducted on such gains (as per the prevalent taxation laws – please refer section on taxation of SAI for more details).

(iv) Growth Plan: The Growth Plan is for those investors who do not wish to have any regular income by way of dividends and instead seek cumulative growth by way of capital appreciation. Under the Growth Plan, therefore, no dividends will be declared and profits

made would remain invested therein and get reflected in the NAV. Investors under this option can avail of the benefits of indexation and concessional capital gains taxation. Investors should, however, check with their tax advisors regarding the applicability of such benefits in their individual case before opting for this plan/option.

Dividends UTI-MIS-Advantage Plan – Monthly Dividend Plan

would endeavour to declare dividends every month and under the UTI-MIS-Advantage Plan – Flexi Dividend Plan the AMC/Trustees will endeavour to declare dividends from time to time. The distribution of dividends will be made out of the net surplus of the respective plan subject to availability of distributable profits, as computed in accordance with SEBI Regulations. The remaining net surplus after considering the dividend and tax, if any, payable thereon will remain invested in the respective plan and be reflected in the NAV. Dividends, if declared, will be paid out of the net surplus of the respective plan to those Unitholders whose names appear in the Register of Unitholders on the record date to be decided by the AMC/Trustees.

The investors under the Monthly Dividend Plan and Flexi Dividend Plan will have the option to receive the payout of their dividend by way of Dividend warrant which can be encashed or credited or by way of direct credit into their bank accounts maintained with certain banks with whom the AMC has direct credit arrangements. Dividend proceeds / credited will be dispatched within 30 days from the date of declaration of the dividend. Dividends for the Re-investment facility will be automatically re-invested in the Plans at the Applicable NAV based prices.

UTI-Treasury Advantage Fund-Institutional Plan offers two Plans1. Existing Plan2. Direct PlanThe plan has following options:(i) Growth Option The Growth Option is for those investors who do not

wish to have any regular income by way of dividends and instead seek cumulative growth by way of capital appreciation. Under the Growth Option, therefore, no dividends will be declared and profits made would remain invested therein and get reflected in the NAV. Investors under this option can avail of the benefits of indexation and concessional capital gains taxation. Investors should, however, check with their tax advisors regarding the applicability of such benefits in their individual case before opting for this option.

(ii) Bonus option Under this option it is proposed to declare periodic

bonus, provided declaration of such bonus is not contrary to the provisions of the SEBI Regulations. The actual declaration of bonus, rate and frequency is at the sole discretion of the AMC/Trustees and the periodicity may be altered. Bonus may be declared in fractional units. There is no assurance or guarantee that bonus will be declared.


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Pursuant to the allotment of bonus units, the NAV of the units in the Bonus Option would fall in proportion to the bonus units allotted, however the total value of the units held by the investor would remain the same. The same is shown by way of an example as under –

Units NAV (in `)

Value (in `)

Investment prior to issuance of bonus units

1000 20.00 20000.00

Post issue of bonus units (issuance of bonus for e.g. 1:1 i.e. one unit for every one unit held by the unit holder)

2000 10.00 20000.00

(The example given above in the table is only for the purpose of understanding the implication of issuance of bonus and should not be construed as indicative of any bonus likely to be issued under the Option.)

The record dates for the purpose of determining the eligibility of unitholders in the Bonus Option to receive the Bonus that may be declared will be announced by way of display on the Fund’s web-site-www.utimf.com and at the UFCs and offices of the Registrar. The AMC reserves the right to change the record dates declared already. The AMC would also issue necessary press releases/ notices for intimation of the record date.

Bonus, if declared, would be allotted to those unitholders whose names appear in the Register of unitholders in the Bonus Option, on the record date.

As per the opinion received by the Fund, declaration of bonus does not tantamount to distribution of income. As a result, the Fund will not be paying any distribution tax on the bonus declared. It must be clearly understood that the tax status expressed above is based on the opinion received by the Fund. However, the Fund does not make any representation on the tax status, the procedures for ascertaining the tax benefits nor does the Fund make any representation regarding any legal interpretations. In view of individual nature of tax benefits, each investor is advised to consult their own tax advisor with respect to the specific tax implications arising out of their participation in the Bonus Option.

(iv) Annual Dividend Option Under this option dividend is proposed to be declared

once a year, subject to availability of distributable profits, as computed in accordance with SEBI Regulations. The AMC reserves the right to declare dividend at any other frequency.

(v) Quarterly Dividend Option Under this Option, it is proposed to declare quarterly

dividend on the 15th day of the last month of each quarter (i.e. quarter ending September, December, March and June). If this is not a business day then the record date would be the next Business day. There is no assurance or guarantee that the dividend will be declared. The AMC reserves the right to change the record date (i.e.15th day of the last month of each quarter) from time to time.

(vi) Daily Dividend Option, Weekly Dividend Option and Monthly Dividend Option

Dividend is proposed to be declared on a daily, weekly and monthly basis subject to availability of distributable surplus.

Dividend Policy

(a) Dividend distribution:1. Dividend distribution, if any, under the Dividend

Option of the scheme/s will be made subject to availability of distributable surplus at such intervals as is indicated under the scheme or as may be decided by UTI AMC and approved by the Trustees from time to time.

2. Under UTI-Bond Fund, dividend distribution under Dividend Option, may be made every calendar quarter or at such other intervals as may be decided by UTI AMC and approved by the Trustees from time to time.

3. Under UTI-Floating Rate Fund – STP would endeavour to declare dividends on daily and Weekly basis.

Under the Daily / Weekly Dividend Options, it is envisaged to declare dividends on a daily / weekly basis respectively subject to availability of distributable surplus computed in accordance with SEBI Regulations.

The dividend declared under both the Daily Dividend Option and Weekly Dividend Option would be compulsorily re-invested in the Scheme by way of additional units at the prevailing ex-dividend NAV per unit. The dividend so re-invested shall be constructive payment of dividend to the unit holders and constructive receipt of the same amount from each unitholder, for re-investment of units. The AMC/Trustee reserve the right to declare dividend at any other frequency.

Under the Flexi Dividend Option, dividend is proposed to be declared at such frequencies as may be decided by UTI AMC Ltd and approved by the the Trustees from time to time, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996. However, there is no assurance or guarantee to the unit holders, as to the rate and frequency of declaration of dividend.

The default option for the scheme would be the Growth Option.

4. Under UTI-G-Sec Fund-STP- (i) Periodic Dividend Option: Under this Option,

dividend is proposed to be declared at such frequencies as may be decided by UTI AMC and approved by the Trustees from time to time, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996.

(ii) Daily Dividend Option: Under this option, dividend is proposed to be declared and reinvested into units daily, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996.


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However, under both the aforesaid Options, there is no assurance or guarantee to the unit holders, as to the rate and frequency of dividend. UTI AMC reserves the right to declare or not to declare dividend at any frequency, as it may deem fit, under these Options.

5. Under UTI-Income Opportunities Fund: The unitholder shall have a choice to join either the Growth Option or the Dividend Option.

(i) Dividend Option: Dividend distribution, if any, under the schemes will be made subject to availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution. Under this Payout and Reinvestment facilities are available.

(ii) There is no assurance or guarantee to the Unit holders as to the rate of dividend distribution.

(iii) Though it is the intention of the scheme/s to make periodical dividend distribution, there may be instance when no dividend distribution could be made.

6. Under UTI-MIS: (i) dividend distribution if any, will be made every

month or at such intervals as may be decided by UTI AMC from time to time.

(ii) If dividend distribution amount under UTI-MIS is for an amount less than `100 (rupees one hundred only), the same may be carried forward and distributed alongwith subsequent dividend distribution when the total of such amount exceeds `100 or at the time of redemption of units whichever is earlier at the discretion of UTI AMC.

7. Under UTI-Short Term Income Fund : - Under the Flexi Dividend Sub Option, dividend is proposed to be declared at such frequencies as may be decided by UTI AMC Ltd and approved by the Trustees from time to time, subject to availability of distributable surplus, as computed in accordance with SEBI (MFs) Regulations 1996. However, there is no assurance or guarantee to the unit holders, as to the rate and frequency of declaration of dividend. UTI AMC Ltd reserves the right to declare or not to declare dividend at any frequency, as it may deem fit, under the Flexi Dividend Sub Option.

8. Under UTI-CRTS: (i) The scheme shall distribute a minimum of 75% of

the net annual distributable income of the scheme periodically at such rates as may be decided.

(ii) UTI AMC may declare interim dividend distribution/s payable on such date/s or at the end of such period/s as the Trustee may fix and deem fit.

(b) Dividend Sweep under UTI-Floating Rate Fund, UTI-GAF, UTI-MIS-Advantage Plan and UTI-Treasury Advantage Fund

The dividends (net of TDS) earned by the Unitholder will be sweeped/transferred into any of the above Schemes or Plans. This facility helps the unitholder

to build up his wealth continuously. No load will be applicable for sweep in, even if the Scheme in which the sweep is taking place has an entry load.

Investors may avail any of the above facilities by ticking the appropriate box in the Application Form or may contact the UFCs or offices of the Registrar for further details.

(c) Capitalisation and issue of Bonus units under Growth and Dividend Options of UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-G-Sec Fund, UTI-Income Opportunities Fund, UTI-MIS and UTI-STIF.

Bonus units may be issued under the scheme/s, as may be decided by the Trustees from time to time

d) Reinvestment of dividend distributed Unitholders of the schemes, if they so desire, will (have

facility to reinvest dividend, if any, payable to them, into further units of the scheme. However, dividend distribution, if any, under UTI-MIS to the unitholders who have invested less than `30,000/- shall be compulsorily re-invested.

e) Growth Option Ordinarily under this option no dividend distribution will

be made and all accrued and earned income will be reflected through growth in the NAV of the respective schemes.


Applicants: under UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-G-Sec Fund, UTI-Income Opportunities Fund, UTI-MIS and UTI-Short Term Income Fund(a) An application for units may be made by any resident

or non-resident Indian as well as non-individuals as indicated below:(i) a resident individual or an NRI or person of Indian

origin residing abroad either singly or jointly with another (for UTI-MIS and UTI-STIF) or upto two other individuals (for other schemes) on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court,

(ii) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on ‘Joint’ or ‘Anyone or Survivor’ basis,

(iii) a Hindu Undivided Family both resident and non-resident,

(iv) a body corporate including a company formed under the Companies Act, 1956 or established under State or Central Law for the time being in force,

(v) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc,

(vi) an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing,


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(vii) a society as defined under the scheme,(viii) a Financial Institution, (ix) an Army/Navy/Air Force/Paramilitary Fund,(x) a partnership firm, (An application by a partnership firm shall be made

by not more than two (under UTI-STIF)/three partners of the firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorised by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide).

(xi) a FII registered with SEBI, (Not available under UTI-MIS)

(b) Apart from those listed above, the following types of applicants can also invest under UTI-Dynamic Bond Fund and UTI-Income Opportunities Fund:(i) an association of persons or body of individuals

whether incorporated or not, (ii) Mutual Funds registered with SEBI,(iii) Scientific and Industrial Research Organisation,(iv) Multilateral Funding Agencies / Bodies Corporate

incorporated outside India with the permission of the Government of India / Reserve Bank of India,

(v) Other schemes of UTI Mutual Fund subject to the conditions and limits prescribed by SEBI Regulations,

(vi) Such other individuals / institutions / body corporate etc., as may be decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.

In the case of UTI Income Opportunities Fund, subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their Associates and the AMC may acquire units of the Scheme. The AMC shall not be entitled to change any fees on its investments in the Scheme

(c) Apart from those listed at (a) above, the following types of applicants can also invest under UTI-Short Term Income Fund:(i) an association of persons or body of individuals

whether incorporated or not, (ii) a mutual fund including a mutual fund of UTI

AMC,(iii) Provident / Pension / Gratuity Fund as and when

permitted,(iv) Any other institution.

(d) Apart from those listed at (a) above, the following types of applicants can also invest under UTI-Dynamic Bond Fund and UTI-G-Sec Fund: (i) Non-government provident funds, superannuation

funds & gratuity funds as also other provident

funds, pension funds, superannuation funds and gratuity funds (For UTI-G-Sec Fund),

(ii) International Multilateral Agencies approved by the Government of India (For UTI-G-Sec Fund),

(iii) Scientific and Industrial Research Organisations.(e) An individual for the benefit of another individual

who is a mentally handicapped person, can also invest under UTI–Bond Fund & UTI-MIS.

(f) An association of persons or body of individuals whether incorporated or not, can also invest under UTI-MIS.

(g) Application for units under UTI-CRTS may be made only by:(i) a charitable or religious trust, or an Endowment

which is administered or controlled or supervised by or under the provisions of any Central or State enactment which is for the time being in force;

(ii) a registered society;(iii) any other body either established under or

controlled by a State or Central Act and carrying out any charitable purpose (referred to as specified investors hereinafter);

(iv) an educational trust;(v) a school, college, university;(vi) a non profit company set up under section 25 of

the Companies Act, 1956;(h) Applications for purchase of units shall be made

by such persons as are duly authorised in this behalf by the charter of establishment, rules and regulations, etc., governing the specified investors.

(i) Applications for units shall be accompanied by such documents as the UTI AMC may prescribe in this behalf from time to time.

(j) Applicants: under UTI-Floating Rate Fund, UTI-Gilt Advantage Fund, UTI-MIS-Advantage Plan and UTI-Treasury Advantage Fund

The following qualified persons (subject to, wherever relevant, purchase of units of mutual funds being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for subscription to the Units of the Schemes.(i) Resident Adult Individuals either singly or jointly

(not exceeding three);(ii) Minors through parent / lawful guardian;(iii) Companies, Bodies Corporate, Public Sector

Undertakings, Private Trusts, Association of Persons or Bodies of Individuals and Societies registered under the Societies Registration Act, 1860 (so long as the purchase of Units is permitted under the respective constitutions);


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(iv) Partnership Firms;(v) Karta of Hindu Undivided Family (HUF);(vi) Banks and Financial Institutions;(vii) Religious and Charitable Trusts, Wakfs or

Endowments and Registered Societies (including Registered Co-operative Societies) (subject to receipt of necessary approvals as required);

(viii) Non-Resident Indians (NRIs)/ Persons of Indian Origin residing abroad (PIOs) on repatriation and non-repatriation basis;

(ix) Foreign Institutional Investors (FIIs) Registered with SEBI on repatriation basis;

(x) Army, Air Force, Navy and other para-military units and bodies created by such institutions;

(xi) Scientific and Industrial Research Organisations;(xii) International Multilateral Agencies / Bodies

Corporate incorporated outside India with the permission of the Government of India / Reserve Bank of India;

(xiii) Mutual Funds registered with SEBI including other schemes of UTI Mutual Fund;

(xiv) Other Associations, Institutions, Bodies, etc. who are permitted to invest in this Scheme as per their respective constitution;

(xv) Trustee, AMC, Sponsor and their associates may subscribe to Units under these Schemes;

(xvi) Such other individuals / institutions / body corporate etc., as may be decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.

The following category of investors are permitted to invest under UTI-Gilt Advantage Fund:

Provident Funds, Pension Funds, Superannuation Funds and Gratuity Funds.

Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme.

The fund reserves the right to include/exclude, new/existing categories of investors to invest in the schemes from time to time, subject to SEBI Regulations, if any.

Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee’s / AMC’s Sole discretion.

Note: 1. NRIs/PIOs/FIIs have been granted a general

permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in /redeeming units of the schemes subject to conditions set out in the aforesaid regulations.

2. Returned cheques are liable not to be presented again for collection, and the accompanying Application Forms are liable to be rejected. In case the returned cheques are presented again, the necessary charges are liable to be debited to the investor.

3. In case of non individual applicants such as Body Corporate, Company, Eligible Institutions, Society, Trust, Partnership Firm, Banks, etc., no documents/resolution is normally called for, except a declaration in the application itself or separately that “the applicant is empowered to invest and the signatories have necessary authorisation to invest on behalf of the applicant”.

4. Joint Applicants - In the event an Account has more than one registered owner, the first-named holder (as determined by reference to the original Application Form) shall receive the Account Statements, all notices and correspondence with respect to the Account, as well as the proceeds of any redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units. Applicants can specify the ‘mode of holding’ in the application form as ‘Jointly’ or ‘First or Survivor’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’ or ‘First or Survivor’, redemption requests would have to be signed by Unit holders as per mode of holding in application form. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit Holders will have the power to make redemption requests, without it being necessary for all the Unit Holders to sign the same.

Note: Neither this Scheme Information Document nor the units have been registered in any jurisdiction including the United States of America. The distribution of this Scheme Information Document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of this Scheme Information Document are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme Information Document or any accompanying application form in such jurisdiction may treat this Scheme Information Document or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly this Scheme Information Document does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. It is the responsibility of any persons in possession of this Scheme Information Document and any persons wishing to apply for units pursuant to this Scheme Information Document to inform themselves of and to observe, all applicable laws and Regulations of such relevant jurisdiction.


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Investment by Individuals – Foreign Nationals (not available under UTI-CRTS)For the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,1. Foreign Nationals shall be resident in India as per the

provisions of the Foreign Exchange Management Act, 1999.


UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.Holding Basis: In the event an account has more than one registered holder the first-named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines.Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.


Restriction on Third Party PaymentsThird party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions. “Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made.The exceptions, inter-alia, includes:- Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding `50,000/- (each

regular purchase or per SIP installment). Further, this restriction is not applicable for payment made by a guardian whose name is registered in the records of UTI Mutual Fund in that folio.For further details, please refer to SAI.

Ongoing price for subscription (purchase) / switch-in (from other schemes/plans of the mutual fund) by investors.

This is the price you need to pay for purchase/switch-in.The face value of a unit is `10/- for UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Gilt Advantage Fund, UTI-G-Sec Fund, UTI-Income Opportunities Fund, UTI-MIS-Advantage Plan, UTI-Monthly Income Scheme and UTI-Short Term Income Fund, `1000/- for UTI-Floating Rate Fund and UTI-Treasury Advantage Fund and `100/- for UTI-CRTS. Units will be issued in fractions upto three decimal places for all the schemes except UTI-Floating Rate Fund. For UTI-Floating Rate Fund units will be issued in fractions upto four decimal places. Purchase on all business days at the applicable NAV. The bank draft charges, if any, will have to be borne by the applicant under UTI-Floating Rate Fund and UTI-STIF.


Cash payment to the extent of `20,000/- per investor, per Mutual Fund, per financial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Permanent Account Number (PAN)/bank accounts, subject to the following procedure.i. Investors who desire to invest upto `20,000/- per

financial year shall contact any of our UFCs and obtain a Form for Deposit of Cash and fill-up the same.

ii. Investors shall then approach the designated branch of Axis Bank along with the duly filled-in Form for Deposit of Cash and deposit the cash


Transfer of funds through National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) for Investment amount of `2 lacs and above :

Investor shall ensure that the payment is made from one of his/her registered bank accounts in the folio. If the name of the remitter/account number from where the amount is remitted is not matching with the registered / to be registered bank accounts details, such remittances shall be treated as


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third party payments and such applications are liable to be rejected. In such cases, UTI MF will refund the amount to the remitter within 30 calendar days from the date of receipt of the funds, as per the details made available to UTI MF by the remitting Bank.For further details, please refer to SAI.

Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.This is the price you will receive for redemptions/switch outs.Example: If the applicable NAV is ` 10, exit load is 2% then redemption price will be:` 10* (1-0.02) = ` 9.80

Redemption on all business days at the applicable NAV subject to prevailing exit load.Under UTI-CRTS at the time of redemption of units, certified copy of the resolution of the concerned governing body authorising redemption and authorisation of the concerned official(s) to comply with the formalities for redemption and collect the redemption cheque will have to be submitted.

Know Your Customer (KYC) NormsCommon Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI. However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual Fund.KYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:1. Instances where no action is required

a) In the case of those individual investors and non-individual investors, other than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.

b) Existing investors of UTI MF, who are already KYC

compliant as per UTI MF’s records on or before 31.12.2011, may continue to invest for their future transactions (including additional purchases, Systematic Investment Plans [SIPs], etc.) under the existing folios which are KYC Compliant.

2. Instances where partial action is required a) All those Individual Investors who wish to open a

new folio with UTI Mutual Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.


3. Instances where complete KYC compliance is requireda) For existing investors as well as new investors

who are not yet KYC Compliant, are required to submit the KYC Application from duly filled in with requisite documentary proofs to KRAs along with completion of IPV process, to comply with uniform KYC requirements as stipulated by SEBI in case they intend to make purchase/additional purchase/switches/SIP etc. with UTI Mutual Fund.


PAN-Exemption for micro financial productsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable. Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.


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A] Updation / Change of address: Investors are requested to update their change of

address within 30 days from the date of change. In case of Know Your Client (KYC) complied folios,

Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com}, as may be specified by them, from time to time.

In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.

For further details, refer to SAI. Further, in the case of non-KYC complied folios,

Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:

Proof of identity: PAN card with photograph, Photo ration card, Unique

Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.

Proof of old as well as new address: Landline Telephone bill, Electricity Bill, Gas Bill, Demat

account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.

B] Updation / Change of bank details: Investors are requested to update/change their bank

details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:

B.1) Proof of identity: PAN card with photograph, Photo ration card, Unique

Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State/Central Government and its Departments,

Statutory/ Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.

B.2) Proof of new bank account details: “Cancelled” original cheque leaf bearing account

number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.

B.3) Proof of existing/old bank account details: “Cancelled” original cheque leaf bearing account

number and first unit holder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.

B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:

Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable.

B.5)In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.

C] Cooling period: In case the change of address and/or Updation /

change of bank details are submitted together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 business days from the date of such redemption request.

The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non-submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.


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Updating/change of bank details in case of non-KYC complied foliosIn case of non-KYC complied folios, the request to update/change of bank details shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI


Applicable NAVPurchase : For Purchases less than `2 lacs

Operation Cut-off Timing

Applicable NAV


Upto 3 p.m. Closing NAV of the day of receipt of the application




Within Business

Hours

Closing NAV of the day on which c h e q u e /demand draft is credited to the Scheme/Plan.

Purchase : For Purchases of `2 lacs and aboveOperation Cut-off

TimingApplicable

NAVThe funds are available for utilization before cut off and valid applications received with cheques /demand drafts

Upto 3 p.m. Closing NAV of the day on which the funds are available for u t i l i z a t i o n before cut off time shall be a p p l i c a b l e i r respec t i ve of the time of receipt of the application.

The above mentioned rule will be applicable irrespective of the date of debit to investor’s account. ` 2 lacs shall be considered after considering multiple applications received from the investor under all the plans/options of the scheme on the day and also under all modes of investment i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN registered with UTI Mutual Fund.

Redemption :

Operation Cut-off Timing

Applicable NAV

Valid applications received Upto 3 p.m. Closing NAV of the day of receipt of the application.

Valid applications received After 3 p.m. Closing NAV of the next business day.

Redemption requests: Where, under a scheme, units are held under both the Existing and Direct Plans, the redemption/switch request shall clearly mention the plan. If no Plan is mentioned, it would be processed on a first in first out (FIFO) basis considering both the Plans.Tax consequences: Switch / redemption may entail tax consequences. Investors should consult their professional tax advisor before initiating such requests and take an independent decision accordingly

Book Closure Period / Record dateThe purchase and redemption of units under all the schemes shall remain open on all business days throughout the year except during book closure period/s not exceeding 15 days in a year. Besides, record date/s for any scheme may be announced for distribution of dividend, if any, during the year.

Where can the applications for purchase/redemption switches be submitted?

The details of official points of acceptance are given on the back cover page. It is mandatory for investors to mention their bank account particulars in their applications/requests for redemption.The Trustees/AMC shall have the absolute discretion to accept/reject any application for purchase of units, if in the opinion of the Trustees/AMC, increasing the size of the Scheme’s Unit Capital is not in the general interest of the unitholders, or the Trustee/AMC for any reason believes it would be in the best interest of the schemes or the unitholder to accept/reject such an application.

How to Apply

Please refer to the SAI and Application Form for the instructions.


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Purchase/Redemption of Units of UTI MF Schemes through Stock Exchange Infrastructure

Units of all the schemes (except UTI-CRTS) will be permitted to be transacted through clearing members of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) who are registered on the Mutual Fund platform of NSE/BSE and also empanelled with UTI MF for accepting Purchase and Redemption transactions and through National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for accepting Redemption Transactions.Such brokers will be considered as Official Points of Acceptance (OPA). The cut off time as mentioned in the SID will be applicable for such transactions.However, in the case of UTI MIS and UTI MIS Advantage Plan, purchase Application below `1 Crore only will be allowed.Investment in the units of the schemes through SIP route under demat mode (except UTI-CRTS) also is available.For further details please refer to SAI.

Remat FacilityThe facility of conversion of units held in Dematerialisation (Demat) mode into physical by way of Rematerialisation (Remat) for investments held under various options of the Scheme(s) / Plan(s) including units held under Systematic Investment Plan (SIP) is available except in the case of UTI-CRTS.For further details refer to SAI.

Minimum amount for purchase / redemption / switches

1. Minimum Initial Investment: A. UTI-Bond Fund: Growth Option – `1000/- Dividend Option – `20,000/- and in multiples of

`1/- under all the options. B. UTI-Dynamic Bond Fund: Growth Option & Dividend Option – `10,000/-

and in multiples of `1/- C. UTI-Floating Rate Fund-STP: Regular Plan & Existing Plan - `5,000/- and in

multiples of `1/- thereafter under both the Plans. D. UTI-Gilt Advantage Fund: Growth Plan & Dividend Plan – `5000/- and in

multiples of `1/- E. UTI-G-Sec Fund: Growth Option – `1,000/- Periodic Dividend Option & Daily Dividend

Option – `10,000/- and in multiples of `1/- under all the options.

F. UTI-Income Opportunities Fund: Growth & Dividend Option – `5,000/- and in

multiples of `1/- thereafter without any upper limit under both the options.

G. UTI-MIS-Advantage Plan: Monthly Dividend Plan & Monthly Payment

Plan – `25,000/- Flexi Dividend Plan & Growth Plan – `5000/-

and in multiples of Re.1/- thereafter under all the plans.

H. UTI-MIS: Growth Option – `1,000/-* Dividend Option – `10,000/-# * For UTI-MIS-Growth Option, in respect of

investments made through duly Authorised Entities, which have entered into an arrangement with UTI AMC, the requirement of minimum amount of `1,000/- and periodicity of payment may be relaxed and further, the exit load may also not be made applicable by UTI MF.

# Dividend distribution, if any, on the value of investment below `30,000 amount will be compulsorily re-invested.

I. UTI-Short Term Income Fund: Institutional Option – `30,000/- and in multiples

of `1/- J. UTI-Treasury Advantage Fund: Institutional Plan - Minimum amount of investment

is `1 lac and in multiples of `1/- K. UTI-CRTS: Dividend Option and Growth Option Minimum amount of investment is `10,000/- and

in multiples of `1/- for all the options or such other amount as may be prescribed from time to time.

Systematic Withdrawal Plan under Growth Option–Monthly & Quarterly Withdrawal - Minimum amount of investment is `1 lac and in multiples of `1/-.

The Schemes may change the minimum investment requirements as deemed necessary.

The provision of “Minimum Application Amount”, as specified above is not applicable in the case of transaction through Systematic Investment Plan (SIP).

2. Subsequent investment under a folio: After having invested minimum amount initially,

the amount of subsequent investment under all the schemes (except UTI-Short Term Income Fund & UTI-Treasury Advantage Fund) under all plans/options is `1,000/- and in multiples of ̀ 1/- thereafter under a folio.

For UTI-Short Term Income Fund: Subsequent


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minimum additional investment amount is `10,000/- and in multiples of `1/-.

For UTI-Treasury Advantage Fund: Subsequent minimum additional investment is `10,000/- and in multiples of `1/-.

3. Minimum Redemption Amount: UTI-Dynamic Bond Fund – Minimum amount of

redemption/switches is `1,000/- & in multiples of `1/-. UTI-Floating Rate Fund - `1000/- and in multiples of

`1/-. UTI-Income Opportunities Fund - `1000/- to be

reckoned at prevailing NAV on the date of redemption /switches.

UTI-Short Term Income Fund – `10,000/- UTI-Gilt Advantage Fund, UTI-Treasury Advantage

Fund and UTI-MIS-Advantage Plan – i) Minimum redemption amount is `1000/- or

equivalent units. Under UTI-Treasury Advantage Fund- Institutional Plan, redemption can be for any amount in multiples of `1000/-.

ii) Right to Close a Unit holder’s Account The Mutual Fund may close a Unit holder’s account

whenever, due to redemptions, the value of the account falls below the minimum account balance and the Unit holder fails to purchase sufficient Units to bring the value of the account up to the minimum balance or more, in the next 30 days. A written notice shall be sent by the Mutual Fund to the Unit holder intimating that the balance in his account has fallen below the minimum balance and within the given time frame the Unit holders should replenish the account by purchase of fresh Units.

Minimum balance to be maintained and consequences of non maintenance

Partial redemption under a folio is permitted subject to the unitholder maintaining the prescribed minimum balance to be reckoned with reference to the redemption price applicable as on the date of acceptance of the redemption application. Where the balance amount so calculated is found to be less than the prescribed minimum balance, UTI AMC may compulsorily redeem the entire outstanding holding of the unitholder without any fresh application for redemption of the balance holding and pay the proceeds to the unitholder. Units will be redeemed on First-in-First-Out (FIFO) basis and the unitholder’s unitholding account will be debited to that extent. In the case of redemption of a part of the unit holding UTI AMC will issue a fresh statement of account for the balance of units held by the unitholder.UTI-Bond Fund - In case of UTI-Bond Fund if as a result of partial redemption of units held under the Dividend Option the balance unit holding of any unitholder falls below the value of `20,000/- (to be reckoned at the NAV on the date

of such partial redemption) the mode of dividend distribution would automatically get changed from payout option to re-investment option. If such unitholder desires to rejoin the payout option he will have to invest additional amount to the extent of shortfall with a minimum of `1000/- irrespective of the actual shortfall and give a fresh mandate.UTI-MIS-Dividend Option - If as a result of partial redemption of units held under the UTI-MIS-Dividend Option, the balance unit holding of any unitholder falls below the value of `30,000/- (to be reckoned at the NAV on the date of such partial redemption) the mode of dividend distribution would automatically get changed from payment option to re-investment option. If such unitholder desires to rejoin the payment option he will have to invest additional amount to the extent of shortfall and give a fresh mandate.UTI-Short Term Income Fund – The minimum account balance to be maintained under UTI-STIF- Institutional Option is Nil.

Special Products Available

Systematic Investment Plan (SIP) Available except under UTI-Treasury Advantage Fund-Instituitional Plan, and UTI-CRTS.Micro SIP:- Available except under UTI-Dynamic Bond Fund, UTI Income Opportunities Fund, UTI Treasury Advantage Fund-instituitional Plan and UTI CRTS SchemesThe minimum amount of each investment for SIP under UTI-Floating Rate Fund-Short Term Plan Regular-Growth Option is `2500/- (for monthly option) and `7500/- (for quarterly option) and in multiples of ̀ 1/-. The load applicable under SIP is the same as that for regular investments for the scheme.Demat & Remat facility:- Available except under UTI-CRTS.Investment in the units of the schemes through SIP route under demat mode also is available.Systematic Transfer Investment Plan (STRIP): This facility is available under all Plans / Options / Sub plans and Sub options of the Source Schemes – UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Floating Rate Fund-STP, UTI-Gilt Advantage Fund – LTP, UTI-G-Sec Short Term Plan, UTI-Income Opportunities Fund, UTI-MIS Advantage Plan, UTI-Monthly Income Scheme, UTI-Short Term Income Fund and UTI-Treasury Advantage Fund. UTI-CRTS is a destination scheme under STRIP.UTI STRIP Advantage: UTI-Treasury Advantage Fund and UTI-Floating Rate Fund are the source schemes under STRIP Advantage.Systematic Withdrawal Plan (SWP): Systematic Withdrawal Plan (SWP) is available in the Growth Option / Dividend Payout and Reinvestment Option of UTI-Bond Fund – Regular Plan, UTI-Floating Rate Fund-Short Term Plan- Regular, UTI-Gilt Advantage Fund-Long Term Plan, UTI-G-Sec Short Term Plan, UTI-Income Opportunities Fund, UTI-MIS-Advantage Plan-Growth Plan, UTI-Monthly


59

Income Scheme, UTI-Treasury Advantage Fund and UTI-CRTS. Not available under UTI-Dynamic Bond Fund.Dividend Transfer Plan (DTP): Available under all schemes except UTI-Dynamic Bond FundPayment through NEFT/RTGS: Investment amount shall be `2 lacs and above to avail this facility.Investments through systematic routes:(a) In case of Systematic Investment Plan (SIP) / Systematic

Transfer Investment Plan (STRIP)/ Dividend Transfer Plans (DTP), registered prior to January 1, 2013, without any distributor code under the Existing Plan of all Schemes, installments falling on or after January 1, 2013 will automatically be processed under the Direct Plan.

The terms and conditions of the existing registered enrolment shall continue to apply.

(b) In case of the following facilities which were registered under the Existing Plan prior to 1st January, 2013, the future installments shall continue under the Existing Plan:

i. All trigger facilities (registered with Distributor Code) and

ii. Systematic Transfer Investment Plan/ facilities (registered with Distributor Code).

iii. Dividend Transfer Plans (registered from a folio where investments were made both with Distributor code)

In case such investors wish to invest under the Direct Plan through these facilities, they would have to cancel their existing enrolments and register afresh for such facilities.Please refer to Statement of Additional Information (SAI) for further details regarding SIP/Micro SIP, STRIP, UTI-STRIP Advantage, SWP, DTP and NEFT/RTGS.

Withdrawal on Events under UTI-Gilt Advantage Fund, UTI-Floating Rate Fund, UTI-Treasury Advantage Fund and UTI-MIS Advantage Plan:

Withdrawal on Events - The Unitholders of the Schemes can also benefit from the facilities offered under Withdrawal on Events. These facilities allow the unitholder to specify an event on happening of which the instruction given by the unitholder would be carried out. The investor needs to specify separate and single instruction for each of the transaction carried out with the Fund and the instructions so given shall be operative for the specific transaction.(a) Facility to specify Maturity Date - The Schemes

will permit the unitholder to specify, a “maturity date” depending upon the period for which they want to hold the units. The Scheme will automatically initiate action instructed by the Unitholder, at the Applicable NAV on the maturity date specified by the unitholder. If such specified date is not a Business Day, then the instruction shall be effected at the Applicable NAV on

the immediate next Business Day.(b) Facility to specify Desired Value - The Schemes

will permit the unit holder to specify a “Desired Investment Value” (value of the units held based on the prevalent NAV) on reaching of which, the Schemes will automatically initiate the action instructed by the Unitholder. As and when the value of the units (based on the prevalent NAV per unit) held by the investor reaches the “Desired Investment Value”, the Schemes would automatically initiate action at the Applicable NAV subject to applicable load. This facility can be availed for appreciation or depreciation in the investment value.

(c) Capital Gains Distribution Facility / Capital Gains Re-investment Facility – Under this option (available in Growth Plans only) all units, as and when they complete requisite period for realisation of long term capital gain (Currently 366 days) will be redeemed at the Applicable NAV.

The units so redeemed would be subtracted from the unit balance of the unit holder. The original amount shall be invested in the Scheme at the same NAV, at which redemption was processed without application of any load. As regards, the capital gains portion, the Unit holder can choose to have the same re-invested in the scheme, at the Applicable NAV on the next business day or distributed to them.

However, being open-ended schemes, unit holders may redeem their units on any other business day.

The Unitholder can opt for the following action to be taken by the fund on happening of the specified event (except for (c) mentioned above)

i) Optiontoseekredemption Under this option, the specified amount shall be

redeemed and the redemption proceeds shall be sent to the unitholder.

ii) OptiontoSwitchtootherPlanwithintheSchemeoranotherSpecifiedSchemeoftheMutualFund

Under this option, the specified amount shall be switched to other Plan within the Scheme or other schemes specified by UTI AMC. All switch requests shall be governed by the provisions of the transferee Scheme as detailed in the provisions under Switching Option.

iii) Optiontogetalerted Under this option, the investor may desire to get

alerted regarding happening of the specified event. As and when the specified event occurs, an e-mail shall be sent to the unit holder informing him about the same. E-mail address of the investors is a must for this option.

The required action shall be taken at the Applicable NAV, subject to applicable load. In case unitholder


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fails to specify the choice of the action, the same shall be taken as option to redeem and redemption proceeds shall be paid to the unitholder at the Applicable NAV, subject to applicable load.

Investors desiring to avail any of the above facilities may contact the UFCs for further details

Automatic Trigger Facility (available under UTI-G-Sec Short Term Plan):a) The facility can be availed of by unitholders under both

the Growth and Dividend Options.(b) Only Date Trigger at the end of each calendar quarter

viz 31st March, 30th June, 30th September and 31st December is available i.e. redemption on an indicated date. For example 30-12-2013.

(c) Minimum amount for the trigger facility is the minimum investment prescribed under the concerned plan / option.

(d) A separate request for trigger facility has to be made for each investment in a folio.

(e) All Trigger requests will be accepted at UTI Financial Centres / Registrar handling the scheme only.

(f) Trigger Facility is available to the ‘individual’ as well as ‘non-individual’ unitholders.

(g) For fresh applications the trigger will be effective only after 5 business days from the date of acceptance in the scheme. For existing investors in case of exercising trigger facility at a later date, trigger facility will become operative after a gap of 5 business days from the date of receipt of the request.

(h) Change / Cancellation of trigger will be effective only after a gap of 5 business days from the date of receipt of the request.

(i) Units under trigger option can be redeemed fully or partially any time. In such event, the trigger facility will be automatically cancelled and the unitholder will be informed of the same, while sending the redemption cheque.

(j) Trigger Facility is not available if the Folio is under Lien or marked “STOP” on the advice of I.T Authorities / Court or any other reason.

(k) Once the mandate is given for Trigger Facility, it will be treated as full discharge for redemption of units, on the opted date.

(l) Redemption amount will be paid only to the first unitholder as per normal existing practice.

(m) The value will be paid by repurchasing units at the redemption price prevailing on the specified date.

(n) If the option date happens to be a holiday for the NAV purpose then redemption will be effected as on the immediate following business day.

(o) The unitholder holding Unit Certificate has to convert the unit certificate into Statement of Account (SoA) for availing Trigger Facility. Only after receipt of SoA the

request for Trigger Facility can be made.(p) The Trigger Facility is subject to SEBI Regulations.(q) If the Trigger selected by the unitholder is not activated

and / or implemented due to reasons which are beyond the control of UTI AMC, the AMC would not be responsible for the same. The AMC may initiate adjustments to correct any credit / payment entries or otherwise made in error to a unitholder.

(r) Trigger Facility is only a facility extended by the AMC for the convenience of unitholders and does not form part of scheme objectives.

(s) The AMC reserves the right to amend / terminate this facility at any time, keeping in view business / operational exigencies.

Statement of Account (SoA)(a) SoA will be a valid evidence of admission of the

applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft any issue of units to such unitholders will be cancelled and treated having not been issued if the cheque/draft is returned unpaid.







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(e) For those unit holders who have provided an e-mail address/mobile number:-

The AMC shall continue to allot the units to the unit holders whose application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later then five business days from the date of receipt of the request from the unit holders.




The unitholder may request for a physical account statement by writing/calling the AMC/R&T

Friend in Need

“Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors.For further details, please refer to SAI.

Dividend

The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.In case of delay in payment of dividend amount, The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).

RedemptionThe redemption or repurchase proceeds shall be dispatched to the unitholders within 10 business days from the date of redemption.In case of funds received through Cash Payment, the redemption or repurchase proceeds shall be remitted only to the designated bank account.Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI.

Delay in payment of redemption proceedsThe Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).

Rollover Facility

Rollover facility offers a facility to unitholders to redeem entire or a part of their outstanding unit holding and simultaneously investing the entire proceeds or upto face value of units redeemed on the rollover date at the same NAV in the same scheme. No deferred sales charge will be required to be paid on redemption proceeds to the extent of amount invested under the rollover facility. This facility enables the unitholders to recognise the capital appreciation as income/gain in their books periodically in a tax efficient manner. A SoA covering both the transactions, purchase as well as redemption on the rollover date will be issued to the unitholders.

Changeover/Switchover

Unitholders under any of the schemes may be permitted to changeover from Dividend Option to Growth Option or vice versa of the said scheme at NAV / NAV based price at such periodicity and on such date(s) as may be decided by UTI AMC from time to time. Partial changeover in such cases is not allowed.Minimum Investment amount under the Direct Plan:In case of already existing investments under the Existing


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Plan, if the investor wants to further invest in the Direct Plan he/she will be required to invest the minimum investment amount of the scheme, as applicable for that Scheme/Plan/Option/facility etc. However, this minimum investment amount requirement is not applicable in case of switchover from Existing Plan to Direct Plan or vice versa under the same Scheme and same Option.UTI AMC may also permit the unitholders to switchover their investment partially or fully to any other scheme/s of UTI MF or vice versa as may be allowed from time to time on such terms as may be announced. In case of partial switchover from one scheme to the other scheme/s, the condition of holding minimum investment prescribed under both the schemes has to be satisfied.


Transferability of units held in Dematerialised formUnits of the schemes (except UTI-CRTS) held in dematerialised form shall be freely transferable from one demat account to another demat account. For details of terms and conditions governing such transferability of units, kindly refer to the Statement of Additional Information.For UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Gilt Advantage Fund, UTI-G-Sec Fund, UTI-MIS Advantage Fund, UTI-MIS, UTI-Floating Rate Fund, and UTI-CRTS1. Units issued under the above schemes are not

transferable.2. Units covered by the SoA issued to unitholders

after 01.10.2001 under UTI-Bond Fund will not be transferable.

3. Units issued under UTI-Floating Rate Fund, UTI-MIS & UTI-CRTS are not transferable/pledgeable/assignable. Further details given in the SAI.

4. Pledge/Assignment of units permitted only in favour of banks/other financial institutions under UTI-Bond Fund and UTI-G-Sec

The unitholders may pledge/assign units in favour of banks/other financial institutions as a security for raising loans. Units can be pledged by completing the requisite forms/formalities, as may be required, whereupon UTI AMC will record a pledge/charge/lien against units pledged. The pledger will not be allowed to redeem units so pledged until the bank/ financial institutions to which the units are pledged provides a written authorisation to UTI AMC that the pledge/charge/lien may be removed. However, if pledged units are received for redemption/transfer, from the member, UTI AMC has right to redeem or transfer such units.

5. For pledge/assignment of units held in dematerialised form, the members should approach their Depository Participants (DPs).

6. Unitholders of UTI Bond Fund who have acquired units before 01.10.2001 will first have to exchange SoA with unit certificates which will be issued within 30 days

from the date of receipt of such request on a plain paper. Transfer of units in such cases will be subject to following and such other terms & conditions as may be stipulated by UTI AMC from time to time:-

(a) Transfers to be effected only by and between transferors and transferees who are capable of holding units. UTI AMC shall not be bound to recognise any other transfer.

(b) Every instrument of transfer shall be signed by the transferor (all the transferors in case of joint holding) and the transferee (all the transferees in case of joint purchase).

(c) The transferor shall be deemed to hold units until the name of the transferee is entered into the register of unitholders by UTI AMC.

(d) UTI AMC may require such evidence as it may consider necessary in support of the title of the transferor or his right to transfer units.

(e) Duly stamped prescribed transfer deed with the relative unit certificate is lodged with any of the offices of UTI AMC or office of the Registrar appointed for the purpose. Provided, that under special circumstances, UTI AMC may allow transfer of units without an instrument of transfer on such terms and conditions and on such transferee providing such proof as may be specified by UTI AMC.

f) UTI AMC may, subject to compliance with such requirements as it may deem necessary, dispense with the production of the original unit certificate, should it be lost, stolen or destroyed.

(g) Upon registration of transfer of units all instruments of transfer and the unit certificates may be retained by UTI AMC.

(h) UTI AMC on recognising and registering a transfer may endorse the original unit certificate or issue a fresh unit certificate/ SoA to the transferee.

(i) Under special circumstances, holding of units by a company or other body corporate with another company or body corporate or an individual/individuals, none of whom is a minor, may be considered by UTI AMC.

(j) Subject to the provisions contained herein above, UTI AMC shall register the transfer and return the unit certificate along with income distribution warrant, if any, and where the transferee is eligible to get such dividend to the transferee within 30 days from the date of lodgement of the unit certificate together with the relevant instrument of transfer.

(k) In case of joint transferees, the SoA and all payments in respect of the transferred holding will be sent/made only in the name of the first unitholder.


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For UTI-Gilt Advantage Fund, UTI-MIS Advantage Plan and UTI-Treasury Advantage Fund(i) Pledge of Units The Units under the Schemes may be offered as

security by way of a pledge/charge in favour of scheduled banks, financial institutions or any other body, all specifically approved by the Mutual Fund. The AMC and under instructions from them, the Registrar, will note and record such pledged Units. However, the disbursement of such loans will be at the entire discretion of the concerned bank/financial institutions/any other regulatory body and the Mutual Fund assumes no responsibility therefor.

Under a specific authorisation by a Unitholder and subject to the procedures prescribed in this regard, the AMC may instruct the Registrar to mark a lien for a specific period on the Units standing to a Unitholder’s account in consideration of the Unitholder availing of any special services offered by the AMC such as Odd-Lot share exchange facility, whereby eligible securities will be tendered by the Unitholder as constructive payment for the Units of the Schemes.

The Pledgor will not be able to redeem Units that are pledged until the entity to which the Units are pledged provides written authorisation to the Mutual Fund that the pledge/lien charge may be removed. As long as Units are pledged, the pledgee will have complete authority to redeem such Units.

(ii) Transfer of Units Transfer of units for UTI-Treasury Advantage Fund The Units of the schemes are transferable. If a

transferee becomes a holder of the unit by operation of law or upon enforcement of a pledge then the Trustee shall subject to production of such evidence which in their opinion is sufficient proceed to effect the transfer within 30 days from the date of lodgement if the intended transferee is other wises eligible to hold the Units. A person becoming entitled to hold the Units consequence of the death, insolvency or winding of the sole holder or the survivor of joint holder upon producing evidence to the satisfaction of the Mutual Fund shall be registered as a Unit holder.

Disclaimer : Transmission of units / payment of sums standing to the credit of the deceased unitholder in favour of the surviving unitholders shall discharge the mutual fund and the Asset Management Company of all liability towards the estate of the deceased unitholder and his / her successors and legal heirs. Further, if either the mutual fund or the Asset Management Company incur any loss whatsoever arising out of any litigation or harm that it may suffer in relation to the transmission, they will be entitled to be indemnified absolutely from the deceased unitholder’s estate.

Transfer of Units for UTI-GAF and UTI-MIS-Advantage Plan

Being open-ended Schemes, on any Business Day, the Mutual Fund redeems and issues Units on an ongoing basis, a transfer facility is not required.

(iii) Transfer/Pledge/Assignment of Units under UTI-Dynamic Bond Fund and UTI-Income Opportunities Fund – Please refer to SAI for details.

(iv) Transfer/Pledge/Assignment of Units under UTI-Short Term Income Fund

The facility of Transfer of Units held under Physical mode and Pledge/Assignment of units issued in both dematerialized (Demat) and Physical form, for all Plans/Options of the Scheme, is allowed.

(v) Transmission of the Units If a transferee becomes a holder of the Units by

operation of law, or upon enforcement of a pledge, or due to the death, insolvency or winding up of the affairs of a sole holder or the survivors of a joint holder, then subject to the production of evidence which in the opinion of the Mutual Fund is sufficient, the Mutual Fund will effect the transfer if the intended transferee is otherwise eligible to hold the Units. Units shall be transmitted in favour of the surviving jointholder(s) upon the execution of suitable indemnities in favour of the mutual fund and the Asset Management Company by the surviving jointholder(s).

Disclaimer : Transmission of units / payment of sums standing to the credit of the deceased unitholder in favour of the surviving unitholders shall discharge the mutual fund and the Asset Management Company of all liability towards the estate of the deceased unitholder and his / her successors and legal heirs. Further, if either the mutual fund or the Asset Management Company incur any loss whatsoever arising out of any litigation or harm that it may suffer in relation to the transmission, they will be entitled to be indemnified absolutely from the deceased unitholder’s estate.

(vi) Listing Being open ended Schemes under which purchase

and redemption of Units will be made on continuous basis by the Mutual Fund, the Units of the Schemes are not proposed to be listed on any stock exchange. However, the Mutual Fund may at its sole discretion list the Units under the Schemes on one or more stock exchanges at a later date.

Requirement for admission into any of the schemes

Application under Power of Attorney:If any application form is signed by a person holding a power of attorney empowering him to do so, the original power of attorney or an attested copy of the same, should be submitted along with the application, unless the power of attorney has already been registered in the books of the Registrar.


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In respect of UTI-Bond Fund & UTI-MIS:

(i) Where an application is made by an individual for the benefit of another individual who is a mental ly handicapped person, UTI AMC shall act on the statements furnished and in doing so UTI AMC shall be deemed to be acting in good faith.

(ii) UTI AMC shall be entitled to deal only with the applicant and in the event of his death, the alternate applicant for all practical purposes and any payment in respect of the units by UTI AMC to the said applicant or the alternate applicant shall be a good discharge to UTI AMC.

(iii) Persons applying for units under UTI Bond Fund & UTI-MIS on behalf of a minor / mentally handicapped person shall satisfy UTI AMC about their eligibility to make an application and comply with all requirements as laid down by UTI AMC, such as submission of the birth certificate, school leaving certificate / passport in case of minor or oculist or psychiatrist’s certificate in case of mentally handicapped or such other certificates as issued by a statutory authority as decided by UTI AMC from time to time.

Please refer SAI for further details.

For UTI-Gilt Advantage Fund, UTI-MIS Advantage Plan and UTI-Treasury Advantage Fund

(a) Depository Services

Units of the Schemes may, if decided by the Trustees, be issued through a Depository Participant in the dematerialised form. Under such circumstances, Units will be transferable in accordance with the provisions of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 and as may be amended from time to time.

(b) Power to introduce Changes

The Trustee may change the minimum investment requirements or any other features of the schemes. It may also change the transaction timings as deemed necessary. Any such change however shall be applicable to Units subscribed to, from the date of such change. The Trustee may introduce any other mode of subscription on an on-going basis keeping in mind the convenience of the investors.

(c) Householdings

Normally, newsletters/annual reports are sent to each Unit holder, which results in certain households with one or more unit holders as the Unit holders of the Schemes getting multiple copies. It is the intent of the AMC to cull the database and send each such “household” a single newsletter/annual report. The AMC feels that this will not inconvenience the Unit holders. In case it does, please write to the AMC, for additional copies.

(d) Schemes to be binding on the Unit Holders

Subject to the Regulations, the Trustee may, from time to time, add or otherwise vary or alter all or any of the features, investment options/plans and terms of the Schemes after obtaining necessary permissions and approvals and Unit Holders (where necessary), and the same shall be binding on all the Unit Holders of the Schemes and any person or persons claiming through or under it as if each Unit Holder or such person expressly had agreed that such features, options/plans and terms shall be so binding. Any additions/variations/alterations shall be done only in accordance with SEBI Regulation.

B. PERIODIC DISCLOSURES

Net Asset ValueThis is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance.

The Mutual Fund shall declare the Net asset value of the scheme on every business day on www.utimf.com and AMFI’s website www.amfiindia.com.

The NAV shall be calculated for all business days and released to the Press.



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Half Yearly Disclosure : Portfolio / Financial Results


Additional Disclosure : The Mutual Fund shall, in addition to the total commission and expenses paid to distributors, make additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio of AUM to gross inflows on its website on an yearly basis. In case, the data mentioned above suggests that a distributor has an excessive portfolio turnover ratio, ie., more than two times the industry average, the AMC shall conduct additional due-diligence of such distributors. The Mutual Fund shall also submit the data to AMFI and the consolidated data in this regard shall be disclosed on AMFI website.



Taxation The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/ authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. For further details on taxation please refer to the clause on Taxation in the SAI.Tax on Dividend

Capital Gains:

Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.As per section 115R of the Act, dividend distribution tax shall be levied at 25% plus surcharge for distribution made to individuals or HUF and for any other person @ 30% plus surcharge. Further education cess @ 2% and secondary and higher education cess @ 1% would be charged on amount of tax plus surcharge. Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax. The Mutual Fund will receive income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.Long Term Capital Gains:As per Section 48 and 112 of the Income Tax Act, 1961, long term capital gains in respect of units held for more than 12 months is chargeable to tax @ 20% after factoring the benefit of cost inflation index or tax @ 10% without indexation, whichever is lower, plus surcharge if applicable. The tax and surcharge will be increased by education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge. Short Term Capital Gains:Units held for not more than twelve months preceeding the date of their transfer are short term capital assets. Capital gains arising from the transfer of short term capital assets will be subject to tax at the normal rates of tax applicable to such assessee.


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Investor services All investors could refer their grievances giving full particulars of investment at the following address:Shri G S Arora Assistant Vice President – Dept. of Operations,UTI Asset Management Company Ltd.,UTI Tower, Gn Block, Bandra-Kurla Complex,Bandra (East), Mumbai – 400 051.Tel: 022-6678 6666 Fax: 022-26523031Investors may post their grievances at our website: www.utimf.com or e-mail us at [email protected]

C. COMPUTATION OF NAV(a) The Net Asset Value (NAV) of each of the schemes shall be calculated by determining the value of the concerned

scheme’s assets and subtracting therefrom the liabilities of that scheme taking into consideration the accruals and provisions.

(b) The NAV per unit of a scheme shall be calculated by dividing the NAV of that scheme by the total number of units issued and outstanding on the valuation day for that schemes. The NAV shall be rounded off upto four decimal places for all the schemes. NAV shall be declared separately for the different Plans and options of all the schemes.

(c) A valuation day is a day other than (i) Saturday and Sunday (ii) a day on which both the stock exchanges (BSE and NSE) and the banks in Mumbai are closed (iii) a day on which the purchase and redemption of units is suspended. If any business day in UTI AMC, Mumbai is not a valuation day as defined above then the NAV will be calculated on the next valuation day and the same will be applicable for the previous business day’s transactions including all intervening holidays.

(d) The NAVs shall be published atleast in two daily newspapers having nationwide circulation on every business day and will also be available on website of UTI Mutual Fund www.utimf.com and website of AMFI www.amfiindia.com.

IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the schemes. A. ANNUAL SCHEME RECURRING EXPENSES(a) These are the fees and expenses for operating the schemes. These expenses include Investment Management and

Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below:

The AMC has estimated that upto 2.25% of the daily net assets of a scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual fund.

Particulars % of Net Assets For All schemes –

Existing Plan Investment management and advisory fees

Up to 2.25%

Trustee feeAudit FeesCustodian FeesRTA FeesMarketing and selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory advertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther expensesMaximum total expense ratio (TER) permissible under regulations 52 (6) (c) Additional expenses under regulation 52(6a) (c) Up to 0.20%additional expenses for gross new inflows from specified cities under regulation 52(6a)(b) Up to 0.30%


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Average Daily Net Assets UTI-G-Sec Fund UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Floating Rate Fund, UTI-GAF, UTI-Income Opportunities Fund, UTI-MIS-Adv. , UTI-MIS,

UTI-Short Term Income Fund, UTI-TAF & UTI-CRTS On the first `100 crore 1.00% 2.25%On the next ` 300 crore 1.00% 2.00%On the next ` 300 crore 1.00% 1.75%On the balance of the assets 1.00% 1.50%

(c) Total Expense ratio (TER) and Additional Total Expenses:(i) Charging of additional expenses based on new inflows from beyond 15 cities

1. Additional TER shall be charged upto 30 bps on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.


Daily net assets X 30 basis points X New inflows from beyond top 15 cities ______________________________________ 365* X Higher of (a) or (b) above * 366, wherever applicable.3. Additional expenses, not exceeding 0.20 per cent of daily net assets of the scheme, shall be charged towards

Investment Management and Advisory fees charged by the AMC (‘AMC fees’) and for recurring expenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under different heads as mentioned under SEBI Regulations.


5. In addition to the limits indicated above, brokerage and transaction costs not exceeding1. 0.12 per cent in case of cash market transactions, and2. 0.05 per cent in case of derivatives transactions


6. For further details on TER, please refer to SAI.(ii) Service Tax

1. UTI AMC shall charge service tax on investment and advisory fees to the scheme in addition to the maximum limit of TER.


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4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations.



B. LOAD STRUCTURE FOR ALL CLASSES OF INVESTORS

(1) Load is an amount which is paid by the investor to subscribe to the units or to redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or call at 1800 22 1230 (toll free number) or (022) 2654 6200 (non toll free number) or your distributor.

Entry / Exit Load for all Schemes Entry Load (as % of NAV) : NIL In accordance with the requirements specified by

the SEBI circular no. SEBI/IMD/CIR No./168230/09 dated June 30, 2009 no entry load will be charged for purchase/additional purchase/switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/ Micro SIP/ Systematic Transfer Investment Plans accepted by the Fund

Exit Load

UTI-Bond Fund UTI-Dynamic Bond Fund

Less than or equal to 365 days : 1.00%Greater than 365 days : NIL

<=89 days : 0.75%> 89 days : NIL

UTI-Floating Rate Fund-STP

UTI-Gilt Advantage Fund-Long Term Plan

NIL NIL

UTI-G-Sec Short Term Plan & UTI-Treasury

Advantage Fund

UTI-Income Opportunities Fund

NIL<= 365 days : 1.25%> 365 days & <= 548 days : 0.75%> 548 days : NIL

UTI-MIS Advantage Plan &

UTI-Monthly Income Scheme

UTI-Short Term Income Fund

Investment of any amount<=90 days : 1.50%> 90 days &<=180 days : 1.25%>180 days & <= 365 days : 1.00%> 365 days : NIL

<= 90 days : 0.75%>90 days &<= 180 days : 0.50%> 180 days : NIL

UTI-CRTS

Less than 1 Year 1%

Greater than or equal to 1 Year Nil

Switch in/out, Systematic Investment Plan (SIP)/Micro SIP, Systematic Transfer Plan (STRIP), UTI-STRIP Advantage and Systematic Withdrawal Plan (SWP) will also attract Load like regular Purchases and Redemption.



(2) Transaction charges Pursuant to SEBI circular no. CIR/IMD/DF/13/2011

dated August 22, 2011, a transaction charge of ` 100/- for existing investors and ` 150/- in the case of first time investor in Mutual Funds, per subscription of ` 10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.

There shall be no transaction charge on subscription below ` 10,000/-.

In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amounts to ` 10,000/- and above. In such cases, the transaction charge shall be recovered in 3-4 instalments.


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If the investor has not ticked in the Application form whether he/she is an existing/new investor, then by default, the investor will be treated as an existing investor and transaction charges of `100/- will be deducted for investments of `10,000/- and above and paid to distributor/financial advisor etc., whose information is provided by the investor in the Application form. However, where the investor has mentioned ‘Direct Plan’ against the scheme name, the Distributor code will be ignored and the Application will be processed under ‘Direct Plan’ in which case no transaction charges will be paid to the distributor.




Sr. No.

Category of product


2 Gilt Schemes

3 Debt Schemes




7 Balanced Schemes









At the time of changing the exit load, the Mutual Fund shall consider the following measures to avoid complaints from investors about investment in the scheme without knowing the exit load:(i) The addendum detailing the changes shall

be attached to the Scheme Information Documents and Key Information Memorandum. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.





V. RIGHTS OF UNITHOLDERS Please refer to SAI for details.


1. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee


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Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed.(a) Penalties imposed against Life Insurance

Corporation of India (Amount in `):-


yet completedDividend Tax

Demand not raised


2008-2009 Nil Reported(b) Penalties and Proceedings against Bank of

Baroda:- (i) Pune Region:

Sponsor and Branch: Bank of Baroda, Laxmi Road, Pune City

Name of Complainant: Pune Municipal Corporation (PMC)


Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/Type of offence & section: Bank


Bank’s reply/defence: Bank paid the amount of octroi of ` 9,42,200/- but refused to pay penalty amounting to ` 94,22,000/- (10 times of octroi amount).



Total amount involved / claimed amt: ` 94.22 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil(ii) Nagpur Region: Sponsor and Branch: Bank of Baroda, RO,

Nagpur Name of Complainant: Office of the Nagpur

Municipal Corporation, Nagpur Court/Tribunal / Case No. & Year: High Court

Bombay, Nagpur Bench 5011/2010 Amount involved: ` 8.85 lacs Nature of Case/Type of offence & section:

Section 154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited ` 2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.

Bank’s reply/defence: Octroi duty for the gold coins is paid at Mumbai. Corporation has not complied with the statutory rules of NMC Act while taking action against Bank. Assistant commissioner has no legal authority or power to adjudicate as to whether evasion has taken place. Findings of the octroi commissioner is arrived without any show cause notice and without any opportunity of being heard infringing the principal of natural justice.



71

Amount of provisioning made / required: ` 2.92 lacs

Total No. of Cases: 1 Total amount involved / claimed amt: ` 8.85 lacs No. of cases where the provisioning is made: 1 Amount of Provisioning: ` 2.92 lacs (iii) Aurangabad Region: Sponsor and Branch: Bank of Baroda, Nasik Name of Complainant: Nasik Municipal

Corporation (NMC) Court/Tribunal / Case No. & Year: Supreme court





Total No. of Cases: 1 Total amount involved / claimed amt: ` 5.95 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil(iv) Ahmedabad Region: Sponsor and Branch: Bank of Baroda, Nandini

Complex Name of the party/complainant: Income Tax Name of the Court/Forum & Case no.: High Court

of Gujarat / Tax Appeal No 2028 & 2029 of 2010 Amount involved (`): 65,75,664 Nature of the case/type of offences and Section:

Appeal filed against the erstwhile South Gujarat Local Area Bank, which is merged to BOB in 2004.

Details/brief nature of the case: IT Dept assessed that SGLAB are following regularly hybrid system

of accounting and it had maintained a separate account for interest on sticky loans, as such it is not covered by decision of High court of Gujarat.

Bank’s Reply/defence: Branch has received the copy of appeal memo and matter is posted to 12/12/2011. We have entrusted the matter to advocate.

Present Status and remarks: Nil(v) Region-DMR-1 (NZ):i. Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special








ii. Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special





Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of one Mr. Sarbir Singh, from 25.01.92 to 31.01.92. The Directorate


72

Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of `5 lacs was imposed. Appeal filed with Appellate Authority, which has been dismissed on 07.12.2007. Criminal Appeal before the Delhi High Court has been filed, which is pending.



Total No. of Cases: 2 Total amount involved: ` 15 lacsiii. Sponsor and Branch: Bank of Baroda, Eastern

Zone, Camac Street Name of the party: Special Director of

Enforcement Directorate Court/Tribunal & Case no./Year: Enforcement

Directorate Amount involved/claimed: ` 10 Lacs Nature of the case/type of offences and Section:

Breach of provisions of FERA Details/brief nature of the case: Bank had given

loan of `2.55 crores to M/s. Corpus Credit & Leasing Ltd., against FCNR FDR of $1 million (US) belonging to Mrs. And Mr. Bhagwandas & Devbala Pawani held with Camac Street Branch. The then Chief Manager procured the said FDR of Pawanis from their International Branch and handed over the same to borrower. Investigations conducted under provisions of FERA revealed that the signatures of Mrs And Mr Pawani on the account opening form did not match with those on the consent letter, discharged FCNR FDR. Chief Manager had not verified the genuineness of the documents collected from Noticee No. 4 either from the Pawanis or from International Branch, Bank of Baroda, Dubai.





(ii) Bank of Mauritius imposed a penalty of MUR 100,000/- i.e. equivalent of `175,000/- for a violation reported in December 2012. This was due to non-adherence of guidelines on advertisement by Bank of Mauritius.


(a) The BoB was one of the bankers to the public issue of shares of Jaltarang Motels Limited (“Jaltarang”) in December, 1995. SEBI, by its order dated January 19, 2000 directed the Bank to refund the sum of `4,031,018 being the application money for the shares released by the Bank to the Jaltarang with interest at 15% from March 25, 1996 i.e. the day the Bank allowed withdrawal of the funds by Jaltarang in respect of funds collected from the public issue. The Bank preferred an appeal before the Securities


73

Appellate Tribunal and the Tribunal, by order dated July 27, 2000, rejected the appeal. The bank has filed an appeal (Appeal No.2 of 2000) before the High Court, Mumbai against the said order of the Tribunal. The High Court, Mumbai, on November 13, 2000, granted interim relief of stay of the operation of the order dated July 27, 2000 of the Securities Appellate Tribunal and January 19, 2000 of SEBI and has further directed that the matter be placed on the board for final hearing. The matter is still pending.



State Bank of India (d) SEBI served show cause notice under rule 4

of the adjudication Rules for the deficiencies observed in Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has

filed Consent Application with SEBI on 7th March 2013.










74

Income Tax Related Matter The company has filed appeals with different

Income Tax Authorities in respect of Assessment Years 2005-06, 2006-07, 2007-08, 2008-09 & 2009-10 against which no dues are outstanding as on date since the same have been adjusted against the refund due to the company by Income Tax Department.

The Commissioner has passed order u/s 263 for the Assessment Year 2006-07 directing the assessing officer to do a fresh assessment in respect of scheme expenses. The company has filed an appeal before Hon’ble Tribunal against the order of the commissioner. Subsequently the assessing officer has passed the reassessment order raising demand of ` 23.9 million, against which based on the stay order obtained, Company has paid Rs. 11.9 million. The company has again filed an appeal before CIT (A) against such order. The company does not expect the demand to crystallize into liability.

UTI-Gold Exchange Traded Fund (UTI-Gold ETF):

The Maharashtra Sales Tax authorities have disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of ` 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.


Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the Guidelines there under shall be applicable.


75

AHMEDABAD REGION


BENGALURU REGION


CHANDIGARH REGION

Ambala: 5686-5687, Nicholson Road, Ambala Cantt, Haryana, Pin-133 001, Tel.: (0171) 2631780, Amritsar: 69, Court Road, Amritsar-143001, Tel: (0183) 2564388, Bhatinda: 2047, II Floor, Crown Plaza Complex, Mall Road, Bhatinda – 151 001, Punjab, Tel: (0164) 223 6500, Chandigarh: Jeevan Prakash (LIC Bldg.), Sector 17-B, Chandigarh-160 017, Tel: (0172) 2703683, Jalandhar: “Ajit Complex”, First Floor, 130 Ranjit Nagar, G. T. Road, Jalandhar-144 001, Tel: (0181) 22324756, Jammu: 104, B2, South Block, 1st Floor, Bahu Plaza, Jammu – 180 014, Tel.: (0191) 247 0627, Ludhiana: Ground Floor, S CO 28, Feroze Gandhi Market, Ludhiana-141 001, Tel: (0161) 2441264, Panipat: Office no.7, 2nd Floor, N K




76

Tower, Opposite ABM AMRO Bank, G T Road, Panipat – 132 103, Haryana, Tel.: (0180) 263 1942, Patiala: SCO No. 43, Ground Floor, New Leela Bhawan, Patiala, Punjab-147 001, Tel: (0175) 2300341, Shimla: Bell Villa, 5th Floor, Below Scandal Point, The Mall, Shimla, Himachal Pradesh - 171 001, Tel. No.: (0177) 2657 803.

CHENNAI REGION


DELHI REGION

New Delhi: (1) G-5-10 Aggarwal Cyber Plaza, Netaji Subhash Place, Pitam Pura, Delhi – 110 034, Tel: (011) 27351001, (2) Savitri Bhawan, 1st & 2nd Floor, Plot no.3 & 4, Preet Vihar Community Centre, Delhi-110 092, Tel: (011) 22529374, 22529398, (3) G-7, Hemkunt Tower (Modi Tower), 98, Nehru Place (Near Paras Cinema), New Delhi-110 019, Tel: (011) 28898128, (4) 13th Floor, Jeevan Bharati, Tower II, Connaught Circus, New Delhi – 110 001. Tel: (011) 2332 7497, 2373 9491/2, (5) Bldg. No.4, First Floor, B-1, Community Centre, B-Block, Janak Puri, New Delhi – 110 058, Tel.: (011) 25523246/47/48, Dehradun: 56, Rajpur Road, Hotel Classic International, Dehradun-248 001, Tel: (0135) 2743203, Faridabad: Shop No.6, First Floor, Above AXIS Bank, Crown Complex, 1 & 2 Chowk, NIT, Faridabad-121 001, Tel: (0129) 2424771, Ghaziabad: C-53 C, Main Road, RDC, Opp. Petrol Pump, Ghaziabad - 201001, Uttar Pradesh, Tel: (0120) 2820920/23, Gurgaon: SCO 14, 1st floor, Sector 14, Gurgaon–122 001, Tel: (0124) 2336622, Meerut: 10/8 Ground Floor, Niranjan Vatika, Begum Bridge Road, Near Bachcha Park, Meerut - 250 001, Uttar Pradesh, Tel.: (0121) 648031/2, Moradabad: Shri Vallabh Complex, Near Cross Road Mall, Civil Lines, Moradabad – 244 001, Uttar Pradesh, Tel.: (0591) 2411220, Noida: J-26, Ground Floor, Near Centre Stage Mall, Sector 18, Noida –201 301, Tel: (0120) 2512311 to 314.

GUWAHATI REGION


KOLKATA REGION



77

LUCKNOW REGION


MUMBAI REGION


NAGPUR REGION


UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-


78

3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Ashoka Estate, Shop No. 14/A, Upper Ground Floor, Sakri Road Opp. Santoshi Mata Mandir Dhule – 424 002 Tel.: (02562) 282824 / 23 Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Ratnagiri: Karvy Computershare Pvt. Ltd., C/o V L Ayare, Chief Agent for UTI Mutual Fund, Gala No.3, Shankeshwar Plaza, Nachane Road, Ratnagiri – 415 639, Tel.: (02352) 270502, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO-7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.


79


UTI International Limited, Office No. 4, Level 4, Al Attar Business Towers, Near DIFC, Post Box No. 29288, Sheikh Zayed Road, Dubai (UAE), Tel: +971-4-3857707 • Fax: +971-4-3857702.

ONLINE PURCHASE FACILITY (INCLUDING PAYMENT THROUGH INTERBANK MOBILE PAYMENT SYSTEM-IMPS) ARE AN OFFICIAL POINT OF ACCEPTANCE UNDER ALL SCHEMES. THE TERMS AND CONDITIONS OF utimf@atm FACILITY ARE GIVEN IN THE STATEMENT OF ADDITIONAL INFORMATION. Registered Stock Brokers of NSE & BSE as per the list available on the website: www.utimf.com are of ficial points of acceptance under all schemes. Mutual Fund Distributors registered with the Mutual Fund and permitted by the recognized stock exchange concerned.

AXIS BANK ATM IS AN OPA ONLY FOR REDEMPTIONS. FOR TERMS AND CONDITIONS REFER TO SAI.

THIS PORTION HAS BEEN INTENTIONALLY LEFT BLANK


80

THIS P

AGE HAS B

EEN INTENTIO

NALLY LEFT BLANK

UTI – Banking & PSU Debt Fund (An open ended income scheme with no assured return)

Offer of Units of `10/-each for cash during the New Fund Offer Period and at NAV based prices upon re-opening.The product is suitable for investors who are seeking*:v To generate steady & reasonable income over short to medium termv Investment in predominantly Debt & Money Market Securities issued by Banks & Public Sector Undertakings (PSUs)v Low risk (Blue)* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as:


(YELLOW) investors understand that their principal will be at medium risk


UTI Mutual Fund




New Fund Offer Opens on : Monday, January 27, 2014 New Fund Offer Closes on : Thursday, January 30, 2014 Scheme Re-Opens for Continuous Purchase and Redemption on : Thursday, February 06, 2014

New Fund Offer will not be kept open for more than 15 days The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centres (UFCs) /Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com


The Scheme Information Document should be read in conjunction with the SAI and not in isolation.This Scheme Information Document is dated January 09, 2014.

UTI – BANKING & PSU DEBT FUND

2


HIGHLIGHTS 3

I. INTRODUCTIONA Risk Factors 4

B Requirement of minimum investors in the Scheme 6

C Definitions 6

D Due Diligence by the Asset Management Company 9

II. INFORMATION ABOUT THE SCHEMEA Type of the Scheme 10

B What is the investment objective of the Scheme? 10

C How will the Scheme allocate its assets? 10

D Where will the Scheme invest? 12

E What are the Investment Strategies? 14

F Fundamental Attributes 15

G How will the Scheme Benchmark its performance? 15

H Who manages the scheme? 15

I What are the Investment Restrictions? 15

J How has the Scheme performed? 16

K How the scheme is different from the existing open ended liquid and income schemes 17

III. UNITS AND OFFERA New Fund Offer (NFO) 20

B Ongoing Offer Details 26

C Periodic Disclosures 33

D Computation of NAV 35

IV. FEES AND EXPENSESA New Fund Offer (NFO) Expenses 35

B Annual Scheme Recurring Expenses 35

C Load Structure 37



38


3

HIGHLIGHTS :

Investment Objective The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt & money market securities by Banks and Public Sector Undertakings (PSUs).

Plan(s) and Option(s) The scheme offers Regular Plan and *Direct Plan.Both Plans offer Growth Option and Dividend Option with Dividend Payout and Dividend Reinvestment facility.*Direct Plan:There will be a separate plan for direct investments i.e. investments not routed through a distributor. This plan shall have a lower expense ratio excluding distribution expenses, commission etc. and have a separate NAV. No commission shall be paid/charged from Direct Plan.Portfolio of the Scheme under the Regular Plan and Direct Plan will be common.

Liquidity The scheme will offer subscription and redemption of units at applicable NAV on every business day on an ongoing basis, within 5 business days from the date of allotment.

Benchmark CRISIL Short Term Bond Fund Index

Transparency / NAV Disclosure The AMC will calculate and disclose the first NAV within a period of 5 business days from the date of allotment. Subsequently, the NAV will be calculated and disclosed on every business day.

Loads Entry Load : Not Applicable (as per SEBI guidelines)Exit Load : Less than or equal to (<=) 30 days : 0.25%; Greater than (>) 30 days - NIL

Minimum Application Amount Minimum initial investment under both Plans and Options is `5,000/- and in multiples of `1/- thereafter without any upper limit.Subsequent minimum investment amount is `1000/- and in multiples of `1/- thereafter with no upper limit under all the Plans and Options.


4

I. INTRODUCTIONA. RISK FACTORSStandard Risk Factors:1. Investment in Mutual Fund Units involves investment


2. As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down.

3. Past performance of the Sponsors/AMC/Mutual Fund does not guarantee future performance of the scheme.

4. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns.

5. The sponsors are not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of `10,000/- made by them towards setting up the Fund.

6. The present scheme is not a guaranteed or assured return scheme.


8. Growth, appreciation, dividend and income, if any, referred to in this scheme information document are subject to the tax laws and other fiscal enactments as they exist from time to time.

9. The NAVs of the Scheme may be affected by changes in the general market conditions, factors and forces affecting capital market, in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures.

10. Credit Risk: Bonds /debentures as well as other money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central government have lesser to zero probability of credit/ default risk in view of the sovereign status of the issuer.

11. Interest - Rate Risk: Bonds/ Central Government securities which are fixed income securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI and the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The

prices of Bonds/ Central Government securities are also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the Rupee may also affect security prices. Such rise and fall in price of bonds/central government securities in the portfolio of the scheme may influence the NAV of the scheme as and when such changes occur. For a close ended scheme, where the maturity of the debt securities in the portfolio are in line with the maturity period of the scheme, the interest rate risk may not be there, if the investment is held upto maturity.

12. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the Scheme might have to incur a significant “impact cost” while transacting large volumes in a particular security.

13 Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.


15. Trading in derivatives involves certain specific risks like:




d. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the fund manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the schemes could be lower.

e. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less, as they are limited to the


5

interest stream and not the notional principal amount.

f. Participating in derivatives is a highly specialized activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to the action of other participants in the market.


h. The risk associated with the use of derivatives are different from or possible greater than, the risk associated with investing directly in securities and other traditional investments.

16. The aggregate value of “illiquid securities” of the scheme, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of the scheme. In normal course of business, the scheme would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

In case of the need for exiting from such illiquid instruments in a short period of time, the NAV of the scheme could be impacted adversely.

17. In the event of receipt of inordinately large number of redemption request or of a restructuring of the schemes portfolio, there may be delay in the redemption of units.

18. Scheme specific Risk factors and Risk Mitigation Measures.

a. The value of the Scheme’s investments, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing

on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the NAV of the Units of the Scheme may fluctuate and can go up or down.

b. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity and equity related investments made by the Scheme which could cause the scheme to miss certain investment opportunities. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The inability of the Scheme to make intended securities purchases due to settlement problems could also cause the Scheme to miss certain investment opportunities. By the same rationale, the inability to sell securities held in the Scheme’s portfolio due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in potential losses to the Scheme, in case of a subsequent decline in the value of securities held in the Scheme’s portfolio.

c. Securities, which are not quoted on the exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. Within the regulatory limits, the AMC may choose to invest in unlisted securities that offer attractive yields. This may however increase the risk of the portfolio.

d. The Scheme may use various derivative products as permitted by the Regulations. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Other risks include the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.

e. The scheme intends to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, the scheme will be subject to credit risk as well as settlement risk, which might effect the liquidity of the scheme.

As the said scheme is an open ended scheme, the above mentioned in Point No. b to f, can be mitigated as mentioned below.

Interest Rate Risk / Reinvestment Risk: Scheme would manage the interest rate risk & reinvestment risk by adequately matching the


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duration of assets in line with the duration of the scheme.

Credit Risk: Scheme would predominantly invest in highly rated securities where there is an internal credit comfort which would reduce the probability of credit risk.

Concentration Risk: The scheme would have modest presence of issuers with reasonable limits which would mitigate the credit concentration risk.

Portfolio Risk: By monitoring the return deviation and adequately managing all the above risks namely interest rate risk, reinvestment risk & credit cum concentration risk the scheme would mitigate the overall portfolio risk.

f. Different types of securities in which the scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly the scheme’s risk may increase or decrease depending upon its investment pattern. For e.g. corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA (SO) rated are comparatively less risky than bonds which are AA rated.

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

The Scheme/Plan shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). However, if such limit is breached during the NFO of the Scheme, the Fund will ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme / Plan(s) does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme / Plan(s) shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the

requirements prescribed by SEBI from time to time in this regard.


reference to an application made by an applicant to the UTI Asset Management Company Limited (UTI AMC) for purchase or redemption of units means the day on which the UTI Financial Centres (UFCs)/Registrar or the other official points of acceptance (as per the list attached with this document) after being satisfied that such application is complete in all respects, accepts the same.



4. “Applicant” means an investor who is eligible to participate in the scheme and who is not a minor and shall include the alternate applicant mentioned in the application form.

5. “Alternate applicant” in case of a minor means the parent/step-parent/court guardian who has made the application on behalf of the minor.



8. “Bank refers to both scheduled and non-scheduled commercial banks which are regulated under Banking Regulation Act, 1949.

(a) Scheduled Commercial Banks are grouped under following categories:

(i) State Bank of India and its Associates (ii) Nationalised Banks (iii) Foreign Banks (iv) Regional Rural Banks (v) Other Scheduled Commercial Banks. (b) Non-Scheduled Commercial Banks

Note: Banks in the groups (i) & (ii) above are known as public sector banks whereas, other scheduled commercial banks mentioned at group (v) above are known as private sector banks.


7

Bank does not include Urban Co-operative Banks and NBFCs.



11. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange(s) with reference to which the valuation of securities under the scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/switchover/changeover of unit is suspended by the Trustee or (v) a day on which the concerned office of the investment advisor is closed.

12. The AMC reserves the right to declare any day as a Business day or otherwise for UTI Banking & PSU Debt Fund at any or all collection centres.

13. “Distributable Surplus” means the Gains that has been realised on a marked to market basis and is carried forward to the balance sheet at market value, arising out of appreciation on investments which is readily available for distribution to the unit holders as Income.

14. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes 'depository'

within the meaning of clause(e) of Sub-section (1) of Section 2 of The Depository Act, 1996.


16. “Fund Manager” means the manager appointed for the day-to-day management and administration of the scheme. The Fund Manager shall be the dedicated Fund Manager as per SEBI Regulations.




20. “NAV” means Net Asset Value of the Units of the Scheme calculated in the manner provided in this Scheme Information Document and in conformity with the SEBI Regulations as prescribed from time to time.

21. “New Fund Offer or NFO or New Fund Offer Period “means offer of the units of the UTI-Banking & PSU Debt Fund during the New Fund Offer Period.

22. “Non Resident Indian (NRI)” shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.

23. “Number of units deemed to be in issue” means the aggregate of the number of units issued and still remain ing outstanding.


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24. “Official points of acceptance” UTI Financial Centres (UFCs), Offices of the Registrars of the Schemes any other authorised centre as may be notified by UTI AMC from time to time are the official points of acceptance of purchase /redemption/changeover/ switchover applications of the schemes. The cut off time as mentioned in this Scheme Information Document will be applicable at these official points of acceptance. The list of official points of acceptance is attached with this document.

25. For purchase/ redemption / changeover /switchover of units applications received at any authorized collection centre, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV for purchase/redemption/changeover/switchover of units.

26. “Public Sector undertaking” A Sector Undertaking (PSU) means a company in which not less than fifty-one per cent of the paid-up share capital is held by either the Central Government, or by any State Government (s) or partly by the Central Government and partly by one or more State Governments and includes a company which is a subsidiary of a Government company as thus defined. or A PSU is a company in which the Central Government or one or more State Government (s) either singly or together, exercise control over management or exercise power to appoint majority of directors.


28. “Record date” The date announced by the fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC/Registrars on the record date shall be eligible for such benefits.



31. “Scheme” means the UTI-Banking & PSU Debt Fund.

32. “Scheme Information Document” this document issued by UTI Mutual Fund offering units of schemes covered under this document for subscription;


34. “Society” means a society established under the Societies Registration Act of 1860(21 of 1860) or any other society established under any State or Central law for the time being in force

35. “Sponsors” are Bank of Baroda, Life Insurance Corporation of India, Punjab National Bank, and State Bank of India.


37. “Time” all time referred to in the scheme information document stands for Indian Standard Time.

38. “Trustee” means UTI Trustee Company Private Limited a company set up under the Companies Act, 1956 and approved by SEBI to act as the Trustee to the schemes of UTI Mutual Fund.





43. In this scheme information document , unless the context otherwise requires, (i) the singular includes the plural and vice versa, (ii) reference to any gender includes a reference to all other genders, (iii) heading and bold typeface are only for convenience and shall be ignored for the purposes of interpretation.


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Due Diligence Certificate submitted to SEBI for UTI – Banking & PSU Debt Fund


I. the Draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds)

Regulations, 1996, and the guidelines and directives issued by SEBI from time to time;

ii. all legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc.

issued by the Government and any other competent authority in this behalf, have been duly complied with;

iii. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors

to make a well informed decision regarding investment in the proposed scheme;

iv. all the intermediaries named in the Scheme Information Document and Statement of Additional Information are

registered with SEBI and their registration is valid, as on date.

Sd/- Date: May 10, 2013 Vivek MaheshwariPlace : Mumbai Compliance Officer


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II. INFORMATION ABOUT THE SCHEMEA. TYPE OF THE SCHEME UTI-Banking & PSU Debt Fund is an open ended

income scheme with no assured returns.B. WHAT IS THE INVESTMENT OBJECTIVE OF THE

SCHEME? Investment objective: The investment objective of

the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of predominantly debt & money market securities by Banks and Public Sector Undertakings (PSUs).

Investment Policies: In the manner as indicated in clause II (I) of this SID.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?

1. Asset allocation:

Type of Instruments Indicative Allocation(% of Total

Assets)

Risk Profile

Debt and Money Market Securities issued by Banks and Public Sector Undertakings (PSUs)

80% to 100%

Low to Medium

Debt (including government securities) and Money Market Securities issued by entities other than Banks and Public Sector Undertakings (PSUs)

0%-20% Low to Medium

Total investments in debt, money market instruments, units of mutual fund scheme and gross exposure in derivatives shall not exceed 100% of the net assets of the scheme.

As per the current norms of UTI AMC, the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of the scheme. UTI AMC may in future revise the limits within the SEBI (MFs) Regulations in keeping with the investment objective of the scheme. Such derivative position will comply with overall limits and norms of SEBI Circular No Cir / IMD / DF / 11 / 2010 dated August 18, 2010. In case of any deviation the AMC will achieve a normal asset allocation pattern in a maximum period of 30 days.

The scheme shall not invest in repo / reverse repo of corporate debt securities, Securitised Debt, Foreign Securities and credit default swaps

“The Scheme shall not have exposure in fixed income securities in excess of 30% of the net assets in any sector as per sectoral classification as prescribed by AMFI. It will also ensure that total exposure of debt schemes of mutual funds in a particular sector

(excluding investments in Bank CDs, CBLO, G-Secs, TBills and AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed 30% of the net assets of the scheme. An additional exposure to financial services sector (over and above the limit of 30%) not exceeding 10% of the net assets of the scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only.

The additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed 30% of the net assets of the scheme as per SEBI Guideline contained in Circular No CIR/IMD/DF/24/2012 dated November 19, 2012.


The Fund Manager would decide on the appropriate asset allocation for the Scheme, within the above indicated pattern, depending on market conditions. The above indicated asset allocation pattern may be modified in the interest of investors. The same will be reviewed by the AMC on a quarterly basis and will be rebalanced to its normal position in a time frame as may be decided by the AMC. Nevertheless, the AMC will achieve a normal asset allocation pattern in a maximum period of 30 days. However, if the rebalancing does not occur within the maximum period of 30 days the same shall be reported to Board of Directors of UTI Trustee Company Private Limited.

In addition to the securities stated in the table above, a part of the net assets may be invested in the call money market or in an alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements. Pending deployment as per investment objective, the monies under the Scheme may be invested in short-term deposits of Scheduled Commercial Banks in accordance with SEBI guidelines.

Change in Investment Pattern Subject to the SEBI Regulations, the asset allocation

pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager; the intention being at all times to seek to protect the interests of the Unit holders. Such


11

changes in the investment pattern will be for short term and for defensive considerations only. In case of any deviation the AMC will achieve a normal asset allocation pattern in a maximum period of 30 days.

Any such change in the asset allocation affecting the investment profile of the Scheme shall be effected only in accordance with the provisions of Regulation 18(15A) of SEBI (Mutual Funds) Regulations, 1996.

2. Debt market in India (i) Debt Instrument Characteristics: A Debt Instrument is basically an obligation


Face Value : Stated value of the paper /Principal Amount

Coupon : Zero; fixed or floating Frequency : Semi-annual; annual, sometimes

quarterly Maturity : Bullet, staggered Redemption : FV; premium or discount Options : Call/Put Issue Price : Par (FV) or premium or discount A debt instrument comprises of a unique series

of cash flows for each paper, terms of which are decided at the time of issue. Discounting these cash flows to the present value at various applicable discount rates (market rates) provides the market price.


Market and the Long Term Debt Market. Money market instruments have a tenor of

less than one year while debt market instruments typically have a tenor of more than one year.



Government securities include central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers) The Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt. are through on-tap sales.



Securitised Debt Instruments - Asset securitisation is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables.


(iii) Regulators: The RBI operates both as the monetary authority and the debt manager to the government. In its role as a monetary authority, the RBI participates in the market through open-market operations as well as through Liquidity Adjustment facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

(iv) Market Participants: Given the large size of the trades, the debt market

has remained predominantly a wholesale market.


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Primary Dealers Primary dealers (PDs) act as underwriters in the primary market, and as market makers in the secondary market. Brokers Brokers bring together counterparties and negotiate terms of the trade. Investors Banks, Insurance Companies, Mutual Funds are important players in the debt market. Other players are Trusts,

Provident and pension funds. (v) Types of Security Issuances and Eligible Investors


Maturity Investors

Central Government

Dated Securities


Central Government


State Government

Dated Securities


PSUs Corporates

Bonds 9.55%-9.65% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Corporates(AAA rated)



8.50% - 9.80% 15 days to 1 yr Banks, MFs, Fin Inst, Corporates, Individuals, FIIs


8.30%-9.25% 15 days to 1 yr Banks, Insurance Co, PFs, MFs, PDs, Individuals

Banks Bonds 9.45%-9.65% 10-15 years Banks, Companies, MFs, PDs, Individuals

(vi) Trading Mechanism Government Securities and Money Market Instruments Currently, G-Sec trades are predominantly routed though NDS-OM which is a screen based anonymous order

matching systems for secondary market trading in Government Securities owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

D. WHERE WILL THE SCHEME INVEST?1 (i) The corpus of the scheme can be invested in any (but not exclusively) of the following instruments in the

PSU and Banking Sector. l Money market instruments as permitted by SEBI and or RBI. l Repos in the form of investment (excluding repo in corporate bonds), where the counterparty is rated not

below investment grade in accordance with directions/ guidelines issued by RBI and SEBI from time to time. Repos should not however, involve any borrowing of funds by mutual funds

l Debt instruments of domestic government agencies and statutory bodies which may or may not carry a central /state govt guarantee.

l Debt instruments of banks (public & private sector) and financial institution. l Certificate of deposit (CDs). l Commercial paper (CPs). l Term Deposits of banks (both public and private sector) and development financial institutions. l Corporate debt (Public sector). 1 (ii) The corpus of the scheme can be invested in any (but not exclusively) of the following other instruments. l Securities issued /guaranteed by the Central, State, and Local governments (including but not limited to

coupon bearing bonds, Zero coupon bonds and treasury bills). l Corporate debt (Private sector).


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l Collateralized borrowing and lending obligations (CBLO).

l Securities with floating rate instruments. l Short term deposits with banks overseas

where the issuer is rated not below investment grade

l Derivative instruments as permitted by SEBI/RBI.

l Government securities where the countries are rated not below investment grade

l Any other instruments as may be permitted by RBI/SEBI other regulatory authorities from time to time.

The securities as mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated or unrated (post investment in portfolio) and of any maturity. The securities may be acquired through initial public offers, private placements, secondary market transactions, rights offer or negotiated deals.

The Fund will not invest in the securities issued by the companies in the Aviation, Gems & Jewellery and Real Estate Sectors.

The fund manager will consider the risk/reward ratio of the investments in these instruments. Risks may include fluctuating currency prices, relevant regulations of exchanges/countries, financial reporting standards, liquidity and political instability, among others. At the same time, these securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products.


2. Participating in Derivative Products: (i) The scheme may use hedging techniques

including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The scheme may take derivatives position based on the opportunities available and in line with the overall investment objective of the scheme. These would be used only for hedging the portfolio and rebalance the same.

(iii) As per the current norms of UTI AMC, the value of derivative contracts outstanding

at any point of time will be limited to 25% of the net assets of the scheme. UTI AMC may in future revise the limits within the SEBI (MFs) Regulations in keeping with the investment objective of the scheme. Such derivative position will comply with overall limits and norms of SEBI Circular No Cir / IMD / DF / 11 / 2010 dated August 18, 2010. In case of any deviation the AMC will achieve a normal asset allocation pattern in a maximum period of 30 days.

(iv) Derivatives: A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, fixed income index (if any), interest rate etc. Thus a derivative instrument derives its value from some underlying variable.



Illustration for Interest Rate Swap: In a plain vanilla fixed-to-floating interest rate

swap, party A makes periodic interest payments to party B based on a variable interest, say MIBOR plus 50 basis points. Party B in turn makes periodic interest payments based on a fixed rate of say 6%. The payments are calculated over the notional amount. The first rate is called variable, because it is reset at the beginning of each interest calculation period to the then current reference rate, such as say MIBOR.

The scheme may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions will be an entity recognised as a market maker by RBI. Further the value of the notional principal in such cases will not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counter party in such transactions will not exceed 10% of the net assets of the scheme.

The Fund may use derivative instruments like Fixed Income Index (if any), Futures, Interest Rate Swaps and Forward Rate Agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing, as permitted under the Regulations and guidelines from time to time.


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(i) The scheme may use hedging techniques including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The scheme may take derivatives position based on the opportunities available and in line with the overall investment objective of the scheme. These may be taken to hedge the portfolio and rebalance the same.

(iii) As per the current norms of UTI AMC, the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of the scheme. UTI AMC may in future revise the internal limits within the SEBI (MFs) Regulations (as mentioned below from Circular - Cir/IMD/DF/11/2010 dated August 18, 2010 ) in keeping with the investment objective of the scheme.

Exposure limits: a. The cumulative gross exposure through





e. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following




(iv) The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of

the existing position against which hedge has been taken.




h. Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:

Position Exposure

Long Future Futures Price * Lot Size * Number of Contracts

Short Future Futures Price * Lot Size * Number of Contracts

Option bought Option Premium Paid * Lot Size * Number of Contracts.


E. WHAT ARE THE INVESTMENT STRATEGIES? Investment focus and asset allocation strategy The scheme would seek to invest in debt instruments

which offer superior levels of yields at lower levels of risks with the intent of maximizing returns and at the same time ensuring reasonable liquidity.

Portfolio Turnover Policy The portfolio turnover shall be targeted so as to have

return maximisation for the unitholders. At the same


15

time, expenses such as brokerage and transaction cost shall be kept at low level so that it does not affect the earnings of the scheme.

F: FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the scheme, in terms of Regulation 18(15A) of the SEBI (MF) Regulations: (i) Type of Scheme: UTI-Banking & PSU Debt Fund is an open ended income scheme with no assured returns. (ii) Investment objective: Main Objective – As given in clause II B Investment pattern – The tentative portfolio break-up with minimum and maximum asset allocation, while

retaining the option to alter the asset allocation for a short term period on defensive considerations – as given in Clause II C.

(iii) Terms of issue: Liquidity provisions such as redemption as provided under clause III (B) Ongoing Offer Details as given on page

no. 26 and 27. Aggregate fees and expenses charged to the scheme as given in IV (B) of SID. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure that no change

in the fundamental attributes of the scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fees and expenses payable or any other change which would modify the scheme(s) and Plan(s) / Option(s) thereunder and affect the interest of the unitholders, is carried out unless -

A written communication about the proposed change is sent to each unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

The unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? CRISIL Short Term Bond Fund Index is the benchmark for UTI-Banking & PSU Debt Fund. Benchmark has been chosen as the benchmark on the basis of the investment pattern/objective of the scheme, the

composition of the index and as the fund intends to invest primarily in Debt and Money Market Securities issued by Banks and Public Sector Undertakings with an average maturity of upto 5 years. A benchmark may be changed in future if a benchmark better suited to the investment objective of the scheme is available.

H. WHO MANAGES THE SCHEME? Shri Sudhir Agarwal is the fund manager.

Name Age(in yrs)


Sudhir Agarwal

31 M.Com, CFA, PGDBA, CAIIB-I, Certificate Examination of IIB for the Employees of UTI

He joined UTI AMC in 2009 after 8 years of experience. He has previously worked with CARE (Credit Analysis and Research Ltd.), Transparent Value LLC and Tata Asset Management Company Ltd in different roles.

UTI-Floating Rate Fund-STPUTI-Short Term Income FundUTI-Treasury Advantage Fund

I. WHAT ARE THE INVESTMENT RESTRICTIONS? Subject to SEBI (MFs) Regulations and guidelines thereunder from time to time; (a) The Scheme/s shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which

are rated not below investment grade by a credit rating agency authorized to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAV of Scheme/s with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in government securities.

(b) The Scheme/s shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the Scheme/s. All such investments shall be made with the prior approval of the Trustees and Board of the AMC.


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No Mutual Fund Scheme shall invest more than 30% of its Net Assets in Money Market Instruments of an Issuer. Provided that such limit shall not be applicable for investments in Government Securities, Treasury bills & collateralized borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Boards and the Trustees. The details of such investments shall be communicated by UTI AMC to the Trustees in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Board of AMC and Trustees shall be required.

(c) Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause II (I) (a) and (b) above. It is further clarified that the investment limits at II (I) (a) and (b) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above investment limits.

(d) Pending deployment of funds of the Scheme/s in securities in terms of the investment objective of the scheme as stated above, the funds of the Scheme/s may be invested in short term deposits of scheduled commercial banks in accordance with SEBI Circular SEBI/IMD/MC No.3/10554/2012 dated May 11, 2012

(e) No term loans will be advanced by the Scheme/s for any purpose as per SEBI Regulation 44(3) of SEBI (Mutual Funds) Regulations 1996.

(f) UTI Mutual fund shall, get the securities purchased by a scheme transferred in the name of the concerned scheme, wherever investments are intended to be of long term nature.

(g) The Scheme shall not make any investment in any fund of fund scheme.

(h) The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction unless allowed by SEBI.

However, the scheme may also enter into derivatives transactions as may be permissible

under the guidelines issued by SEBI. (i) If mutual funds are permitted to borrow securities,

the scheme may, in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

(j) The Scheme shall not make any investment in any unlisted security of an associate or Group Company of the sponsors; or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

(k) Based upon the liquidity needs, the scheme may invest in Government of India Securities to the extent to which such investment can be made by the scheme.

(l) The Scheme shall not invest more than thirty percent of its net assets in money market instruments of an issuer as per SEBI guidelines provided that such limit shall not be applicable for investments in Government securities, treasury bills, and collateralized borrowing and lending obligations.

(m) Investment by this scheme in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under:

A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

Transfers of investments from one scheme to another scheme in the same mutual fund shall be done at (a) at the prevailing market price for quoted instruments on spot basis.

(b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.

Such investment will be consistent with the investment objective of the scheme. No investment management fees will be charged by the AMC on such investments.

J. HOW HAS THE SCHEME PERFORMED? This scheme is a new scheme and does not have any

performance track record.


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K. HOW THE SCHEME IS DIFFERENT FROM THE EXISTING OPEN ENDED LIQUID AND INCOME SCHEMES

Name of the existing scheme Average AUM for the quarter as on 31/12/2013

No of Folios as on 31/12/2013

UTI-Bond Fund ` 3204.99 Crs. 66652

UTI Dynamic Bond Fund ` 705.70 Crs. 5991

UTI-Floating Rate Fund – Short Term Plan ` 3388.08 Crs. 45205

UTI-Gilt Advantage Fund – Long Term Plan ` 180.97 Crs. 4367

UTI-G-Sec Fund ` 38.19 Crs. 1900

UTI-Liquid Cash Plan `16578.94 Crs. 2727

UTI-Short Term Income Fund ` 2731.40 Crs. 10074

UTI-Treasury Advantage Fund ` 6091.95 Crs. 9532

UTI-Money Market Fund ` 2962.50 Crs. 19408

Name of the existing scheme

Asset Allocation Pattern Primary Investment Pattern Differentiation

UTI-Bond FundDebt Instruments (including securitised debt)- 75% to 100%Money Market Instruments (including cash/call money) - 0% to 25%


UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs, while the UTI Bond Fund does not have such portfolio restrictions.

UTI Income Opportunities Fund

Debt instruments* – 35% to 100%Money Market instruments – 0% to 65%*The scheme may invest up to 50% of its net assets in securities carrying a rating below AA (or equivalent).

The investment objective of the scheme is to generate reasonable income and capital appreciation by investing in debt and money market instruments across different maturities and credit ratings.

UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs, while the UTI Income Opportunities Fund does not have such portfolio restrictions. UTI Credit Opportunities Fund may invest up to 50% of its net assets in securities carrying a rating of AA- (or equivalent) or below

UTI Dynamic Bond Fund

Debt Instruments including Securitised Debt* with maturity more than one year – 1% to100%Money Market, Debentures and Securitised Debt with residual maturity of less than one year. – 0% to 99%

The scheme aims to generate optimal returns with adequate liquidity through active management of the portfolio. The scheme provides the flexibility to counter a dynamic environment by actively managing its portfolio in line with the evolving interest rate scenario

UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs, while the UTI Dynamic Bond Fund does not have such portfolio restrictions. UTI Dynamic Bond Fund does not have such portfolio restrictions and has the flexibility to take securitized debt up to 100%


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UTI-Floating Rate Fund – Short Term Plan

Floating Rate Debt securities (including Securitised Debt, Money Market Instruments & Fixed Rate Debt instruments swapped for floating rate returns) – 65% to 100%Fixed Rate Debt Securities (including Securitised Debt, Money Market Instruments & Floating Rate Debt Instruments swapped for fixed rate returns)– 0% to 35%

To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments.

UTI Floating Rate Fund is a scheme which primarily invest in floating rate instruments (including Securitised Debt, Money Market Instruments & Fixed Rate Debt instruments swapped for floating rate returns) while UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs.

UTI-Gilt Advantage Fund – Long Term Plan

Government of India dated Securities and Treasury Bills – 75% to 100%State Govt. dated securities – 0% to 25%

To generate credit risk-free return through investment in sovereign securities issued by the Central and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest.

UTI Gilt Advantage Fund is a Gilt Fund investing only in government securities while UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs.

UTI-G-Sec Fund STP

Debt Securities - 100% investment in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/created by the Central Government.

To generate credit risk-free return by way of income or growth by investing in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/ created by the Central Government.

UTI G-Sec Fund STP is a Gilt Fund investing only in government securities while UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs.

UTI-Liquid Cash Plan

Debt Securities (including Central Govt. securities) – 0% to 35%Money Market Instruments – 65% to 100%

The Scheme seeks to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

UTI Liquid Fund Cash Plan is a Liquid Fund while UTI Banking & PSU Debt Fund is an income fund which has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs

UTI-Short Term Income Fund

Government Securities issued by Central &/or State Govt. and other fixed income/debt Securities including but not limited to corporate bonds and securitised debt.– 30% to 100%Money Market Instruments – 0% to 70%

The Scheme seeks to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

UTI Banking & PSU Debt Fund has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs, while UTI Short Term Income Fund does not have such portfolio restriction and invests in short term debt instruments. The average maturity of the portfolio would be kept below 4 years


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UTI-Treasury Advantage Fund

Debt Securities (including Securitised debt)– likely 80% Max up to 90%

Money Market (including cash / call money) – Min 10% Likely 20% Max up to 100%

The scheme will endeavour to generate an attractive return for its investors consistent with capital preservation and liquidity by investing in a portfolio of quality debt securities money market instruments and structured obligations.

UTI Treasury Advantage Fund does not have portfolio restriction like UTI Banking & PSU Debt Fund and is an ultra short term fund investing in ultra short term debt instruments.

UTI-Money Market Fund

Instruments / Securities

Maximum Exposure (% of Net Assets)

To provide highest possible current income – consistent with preservation of capital and providing liquidity – from investing in a diversified portfolio of short-term money market securities.

UTI Money Market Fund is a Liquid Fund while UTI Banking & PSU Debt Fund is an income fund which has portfolio restrictions like invest in predominantly securities issued by Banks & PSUs

Govt. Dated Securities

75

Private Corporate Debt

75

PSU Bonds 75Mortgaged backed Securities

75

FI & Banking Sector Bonds

75

Call Money 100Treasury Bills 100Commercial Paper

75

Certificates of Deposit

75

Repo Transactions

100

Bills Rediscounting

50


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III. UNITS AND OFFERThis section provides details you need to know for investing in the scheme.A. NEW FUND OFFER (NFO)

New Fund Offer PeriodThis is the period during which a new scheme sells its units to the investors.

NFO opens on: Monday, January 27, 2014NFO closes on: Thursday, January 30, 2014New Fund Offer will not be kept open for more than 15 days

New Fund Offer Price:This is the price per unit that the investors have to pay to invest during the NFO.

During the New Fund Offer period, the units of the scheme will be sold at face value i.e. `10/- per unit.

Minimum Amount for Application in the NFO

Minimum initial investment amount under both plans is `5,000/- and in multiples of `1/- thereafter.Subsequent minimum investment amount is `1000/- and in multiples of `1/- thereafter with no upper limit under all the Plans and Options.

Minimum Target amountThis is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. However, if AMC fails to refund the amount within 5 days, interest as specified by SEBI (currently 15% p.a.) will be paid to the investors from the expiry of five days from the date of closure of the subscription period.

An amount of `20 crore is targeted to be raised during the New Fund Offer Period of the Scheme. Over subscription above `20 crore will be retained in full. If the targeted amount of `20 crore is not subscribed to, UTI AMC shall refund the entire amount collected under the scheme by an account payee cheque/refund order or by any other mode of payment as may be decided by UTI AMC within 5 days from the close of the New Fund Offer period of the scheme. In the event of any failure to refund such amount within 5 days from the close of the New Fund Offer period of the scheme, UTI AMC shall be liable to pay to the concerned applicant interest @ 15% p.a. or such rate as may be prescribed by SEBI from time to time from the 6th day of the date of closure of the New Fund Offer period of the scheme till the date of despatch of refund order.

Maximum Amount to be raised (if any)This is the maximum amount which can be collected during the NFO period, as decided by the AMC

No maximum limit. Over subscription above ̀ 20 crore will be retained in full.

Plan(s) and Option(s) offered The scheme offers following plansRegular PlanDirect PlanBoth the plans offer following options(i) Growth Option(ii) Dividend Option with Payout and Reinvestment facilities.In case where neither of the options is exercised by the applicant/unitholder at the time of making his investment or subsequently he will be deemed to be under the Growth Option and his application will be processed accordingly.Direct Plan:Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid / charged from Direct Plan.How to apply: Investors subscribing under Direct Plan will have to indicate “Direct Plan” against the Scheme name in the application form as for example “UTI-Banking & PSU Debt Fund –Direct Plan”.Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for Regular Plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct PlanFor further details on Direct Plan, please refer to SAI


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Dividend Policy The unitholder shall have a choice to join either the Growth Option or the Dividend Option.(i) Growth Option: Ordinarily no dividend distribution will be made under this option. All

income generated and profits booked will be ploughed back and returns shall be reflected through the NAV.

(ii) Dividend Option: Dividend distribution, if any, under the schemes will be made subject to

availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution. Under this Payout and Reinvestment facilities are available.

For all the dividends declared, if the dividend amount payable to the unit holders under the ‘Dividend Payout’ option under a folio is less than ` 250/- and where complete bank account details are not available or facility of electronic credit is not available with Investor’s Bank/Bank Branch, then such amount will be compulsorily reinvested wherever reinvestment option is available under the scheme and an account statement will be sent to the investors at their Registered Address.

(iii) Reinvestment facility: Unitholders, if they so desire, will have facility to reinvest dividend, if

any, payable to them, into further units of that scheme. There is no assurance or guarantee to the Unit holders as to the rate of

dividend distribution. Though it is the intention of the scheme/s to make periodical dividend

distribution, there may be instances when no dividend distribution could be made.

Additional Mode of Payment during NFO Investors may apply for the UTI-Banking & PSU Debt Fund through Applications Supported by Blocked Amount (ASBA) process during the NFO period by filling in the ASBA form and submitting the same to their respective banks, which in turn will block the subscription amount in the said account as per the authority contained in ASBA form and undertake other tasks as per the procedure specified therein. (The details of banks’ branches accepting ASBA form are available on the websites of BSE (www.bseindia.com), NSE (www.nseindia.com) and SEBI (www.sebi.gov.in) or at your nearest UTI Financial Centre.) For applicants applying through ASBA, on allotment, the amount will be unblocked in their respective bank accounts and account will be debited to the extent required to pay for allotment of Units applied in the application form.

Allotment Subject to the receipt of the specified Minimum Subscription Amount for the Scheme, full allotment will be made to all valid applications received during the New Fund Offer. The Trustee reserves the right, at their discretion without assigning any reason thereof, to reject any application. Allotment will be completed within 5 (Five) Business days after the closure of the New Fund Offer(a) At the time of joining the scheme the UTI AMC shall arrange to issue

to the applicant, a statement of account indicating his admission to the scheme/plan and other relevant details within a period not later than 5 Business days from the New Fund Offer.

(b) Every unitholder will be given a membership/folio number, which will be appearing in SOA for his initial investment. Further investments in the same name(s) and in the same order would be registered under the same folio, if folio number is mentioned by the unitholder. In all future correspondence with the UTI AMC the unitholder shall have to quote the membership/folio number.

(c) SOA will be valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realization of cheque/draft such issue of units will be cancelled if the cheque/draft is returned unpaid and treated having not been issued.

(d) The NRI applicant may choose to receive the SOA at his/her Indian/foreign address or at the address of his/her relative resident in India.


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(e) UTI AMC shall send the SOA at the address mentioned in the application form and recorded with UTI AMC and shall not incur any liability for loss, damage, mis-delivery or non-delivery of the SOA.

(f) If a unitholder desires to have a unit certificate (UC) in lieu of SOA the same would be issued to him within 30 days from the date of receipt of such request.

(g) In case the unit certificate or SOA is mutilated/defaced/lost, UTI AMC may issue a duplicate SOA on receipt of a request to that effect from the unitholder on a plain paper or in the manner as may be prescribed from time to time.

Refund If application is rejected, full amount will be refunded within 5 business days of closure of NFO. If refunded later than 5 Business days, interest @ 15% p.a. for delay period will be paid and charged to the AMC.


ApplicantAn application for issue of units may be made by any resident or non-resident Indian as well as non-individuals as indicated below:(a) a resident individual or a NRI or a person of Indian origin residing abroad,

either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court;


(c) an association of persons or body of individuals whether incorporated or not;

(d) a Hindu Undivided Family - both resident and non-resident;(e) a body corporate including a company formed under the Companies

Act, 1956 or established under State or Central Law for the time being in force;

(f) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc.;

(g) an eligible trust including Private Trust being irrevocable trust and created by an instrument in writing;

(h) a society as defined under the scheme;(i) a Financial Institution;(j) an Army/Navy/ Air Force/Paramilitary Fund;(k) a partnership Firm; (An application by a partnership firm shall be made by not more than

three partners of the firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorised by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)

(l) FIIs registered with SEBI;(m) Mutual Funds registered with SEBI;(n) Scientific and Industrial Research Organisations;(o) Multilateral Funding Agencies / Bodies Corporate incorporated outside

India with the permission of Government of India/Reserve Bank of India;(p) Other schemes of UTI Mutual Fund subject to the conditions and limits

prescribed by SEBI Regulations.(q) Such other individuals / institutions / body corporate etc., as may be

decided by the AMC from time to time, so long as wherever applicable they are in conformity with SEBI Regulations.



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The fund reserves the right to include/exclude, new/existing categories of investors to invest in the schemes from time to time, subject to SEBI Regulations, if any.Non-acceptance of subscriptions from US Persons including Qualified Foreign Investors (QFIs) registered in USA and Canada and Residents of Canada in the Schemes of UTI MF.As per the requirements of the Securities and Exchanges Commission (‘SEC’) of USA, person falling within the definition of the term ‘US Person’ under the Securities Act of 1933 of U.S.A (‘Act’) and corporations or other entities organized under the law of the U.S. are not permitted to make investments in securities not registered under the Act [The term ‘US Person’ means any person who is a U.S. person within the meaning of Regulation S under the Act or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislation, rules etc as may be in force from time to time].Further, as per the Canadian Securities Administrator (CSA), prior registration of a fund with CSA is mandatory before its marketing or selling to residents of Canada.The Schemes of UTI MF are presently not registered under the relevant laws, as applicable in the territorial jurisdiction of U.S. or in any provincial or territorial jurisdiction of Canada.US Persons, corporations and other entities organized under the applicable laws of the U.S including Qualified Foreign Investors (QFIs) registered in USA and Canada and Residents of Canada as defined under the applicable laws of Canada are not allowed to invest in units of any of the Schemes of UTI MF and should also note the following:a. No fresh purchases (including Systematic Investment Plans and

Systematic Transfer Plans) /additional purchases/switches in any Schemes of UTI MF would be allowed. However, existing Unit Holder(s) will be allowed to redeem their units from the Schemes of the Fund. If existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada, then such Unit Holder(s) will not be able to purchase any additional Units in any of the Scheme of the Fund.

b. All existing registered Systematic Investment Plans and Systematic Transfer Plans would be ceased from the effective date.

c. For transactions through Stock Exchange platform, while transferring units from the broker account to investor account, if the investor has U.S./Canadian address then the transactions would be rejected.

d. In case UTI Asset Management Company Ltd. (UTI AMC) / UTI Mutual Fund subsequently indentifies that the subscription amount is received from U.S. Person(s) including Qualified Foreign Investors (QFIs) registered in USA and Canada or Resident(s) of Canada, in that case the UTI AMC/UTI MF at its discretion shall summarily redeem all the units held by such person/s in the respective Scheme/s of UTI MF at applicable Net Asset Value as on the date of redemption.

For further details refer to SAI/relevantAddendumInvestment by Individuals – Foreign NationalsFor the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,1. Foreign Nationals shall be resident in India as per the provisions of the

Foreign Exchange Management Act, 1999.


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UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.Holding Basis: In the event an account has more than one registered holder the first named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines.Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.


A] Updation / Change of address:Investors are requested to update their change of address within 30 days from the date of change.In case of Know Your Client (KYC) complied folios, Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com], as may be specified by them, from time to time.In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAIFurther, in the case of non-KYC complied folios, Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.

Proof of old as well as new address:Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.


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B] Updation / Change of bank details:Investors are requested to update/change their bank details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:B.1) Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.B.2) Proof of new bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.B.3) Proof of existing/old bank account details:“Cancelled” original cheque leaf bearing account number and first unitholder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable.B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.C] Cooling period:In case the change of address and/or Updation / change of bank details are submitted together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 business days from the date of such redemption request.The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non-submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.Updating/change of bank details in case of non-KYC complied foliosIn case of non-KYC complied folios, the request to update/change of bank details shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI


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Where can you submit the filled up applications.

Name and Address of Registrar:M/s. Karvy Computershare Pvt. Ltd.Narayani Mansion,H. No. 1-90-2/10/E,Vittalrao Nagar, Madhapur,Hyderabad - 500 081.Tel.: 040 – 23312454,Fax: 040 - 23115503,Email:[email protected] details of Official Points of Acceptance are given on the back cover page.

Custodian of the Scheme The Trustees have appointed Stock Holding Corporation of India Ltd (SCHIL) as the Custodian of the scheme.

How to Apply Please refer to the SAI and Application form for the instructions.

Listing Units of the scheme shall not be listed in view of continuous redemption facility being offered to unitholders.

Special Products / facilities available during the NFO

Systematic Investment Plan – Not AvailableSystematic Withdrawal Plan – Not AvailableSystematic Transfer Investment Plan – Not Available

B. ONGOING OFFER DETAILS

Ongoing Offer Period

This is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period.

Within 5 Business days from the date of allotment.

Ongoing price for subscription (purchase) / switch-in (from other schemes/plans of the mutual fund) by investors.

This is the price you need to pay for purchase/switch-in.

The face value of a unit is `10/- and units will be issued in fractions up to three decimal places.

Purchase on all business days at the applicable NAV. No entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment Plans / Systematic Transfer Investment Plans accepted by the Fund.

Ongoing price for redemption (sale) / switch outs (to other schemes / plans of the Mutual Fund) by investors.

This is the price you will receive for redemptions / switch outs.

Example: If the applicable NAV is `10, exit load is 2% then redemption price will be: ` .10* (1-0.02) = `9.80

Redemption of units at NAV based prices subject to prevailing exit load commencing not later than 5 Business days from the Date of Allotment.


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Cut off timing for subscriptions / redemptions / switchesThis is the time before which your application (complete in all respects) should reach the official points of acceptance.

Purchase : For Purchases less than ` 2 lacs:

Operation Cut-off Timing Applicable NAV







Closing NAV of the day on which cheque / demand draft is credited to the scheme/Plan.

Purchase : For Purchases of ` 2 lacs and above:


Valid applications received with cheques /demand drafts and the funds are available for utilization before cut off

Upto 3 p.m. Closing NAV of the day on which the funds are available for utilization before cut off time shall be applicable i r r e s p e c t i v e of the time of receipt of the application.

The above mentioned rule will be applicable irrespective of the date of debit to investor’s account. ` 2 lacs shall be considered after considering multiple applications received from the investor under all the schemes/plans on the day and also under all modes of investment i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN registered with UTI Mutual Fund.Redemption:


Valid applications received Upto 3 p.m. Closing NAV of the day of receipt of the application.

Valid applications received After 3 p.m. Closing NAV of the next business day.



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The details of official points of acceptance are given on the back cover page. In addition to the circumstances mentioned in the SAI, the Trustee/AMC shall have the absolute discretion to accept/reject any application for purchase of units, if in the opinion of the Trustee/AMC, increasing the size of the Scheme’s Unit Capital is not in the general interest of the Unit holders, or the Trustee/AMC for any other reason believes it would be in the best interest of the scheme or the unitholders to accept / reject such an application.It is mandatory for investors to mention their bank account particulars in their applications/request for redemption.


Restriction on Third Party PaymentsThird party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions. “Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made.Bank Mandate registration as part of the new folio creationIn order to reduce the risk of frauds and operational risks and thereby protect the interests of the Unit holders/Investors from fraudulent encashment of redemption/dividend proceeds, Investors are required to submit any of the prescribed documents (along with original document for verification) in support of the bank mandate mentioned in the application form for subscription under a new folio, in case these details are not the same as the bank account from which the investment is madeIn case, the application for subscription does not comply with the above requirements, UTI AMC, at its sole and absolute discretion, may reject/not process such application and may refund the subscription amount to the bank account from where the investment was made and shall not be liable for any such rejection/refundFor further details on documents to be submitted under the process to identify third party payments etc, please refer to SAI/relevant Addenda

Minimum amount for purchase/redemption/ switches

(a) Minimum amount for purchase under both plans: Minimum amount of investment is ` 5,000/- and in multiple of ` 1/-

thereafter without any upper limit. Subsequent minimum investment amount is `1000/- and in multiples

of `1/- thereafter with no upper limit under all the Plans and Options.(b) Minimum amount of redemption/switches: In case of partial redemption the condition of holding minimum

investment prescribed under the scheme has to be satisfied. Unitholders may be permitted to switchover their investment partially

or fully to any other scheme/s of UTI MF or vice versa on such terms as may be announced by UTI AMC from time to time. In case of partial switchover from one scheme to the other scheme/s, the condition of holding minimum investment prescribed under both the schemes has to be satisfied.


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Mode of Payment- Cash Cash payment to the extent of ` 20,000/- per investor, per Mutual Fund, per financial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Permanent Account Number (PAN)/bank accounts), subject to the following procedure.i. Investors who desire to invest upto ` 20,000/- per financial year shall

contact any of our UFCs and obtain a Form for Deposit of Cash and fill-up the same.



For further details please refer to SAI.Know Your Customer (KYC) Know Your Customer (KYC) Norms

Common Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.

Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI.

However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual Fund

KYC guidelines are not applicable to investors coming under Micro Pension products.

In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:

1. Instances where no action is required

a) In the case of those individual investors and non-individual investors, other than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.



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2. Instances where partial action is required a) All those Individual Investors who wish to open a new folio with

UTI Mutual Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.


3. Instances where complete KYC compliance is required a) For existing investors as well as new investors who are not yet

KYC Compliant, are required to submit the KYC Application from duly filled in with requisite documentary proofs to KRAs along with completion of IPV process, to comply with uniform KYC requirements as stipulated by SEBI in case they intend to make purchase/additional purchase/switches/SIP etc. with UTI Mutual Fund.


PAN-Exemption for micro financial productsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto ` 50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable.Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.Details of Beneficial OwnershipIn terms of SEBI Master Circular on AML/CFT dated December 31, 2010, ‘Beneficial Owner’ has been defined as a natural person/s who ultimately own, control or influence a client and / or persons on whose behalf a transaction is being conducted, which includes persons who exercise ultimate effective control over a legal person or arrangement.Further, the Prevention of Money Laundering Rules, 2005 (PMLR 2005) read with Prevention of Money Laundering Act, 2002 also require that all the beneficial owner(s) shall identify themselves with the intermediary through whom his/her/their investments are made in the scheme.In order to comply with the above Act/Rules/Regulations, the following Client Due Diligence (CDD) process is being implemented with effect from January 1, 2014.


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Applicability:It is applicable to all categories of investors except a) Individuals and b) listed companies.Providing information about beneficial ownership will be applicable to all the investments received from January 1, 2014, from the above category of investors.Above information shall be provided by the investors to UTI Asset Management Company Ltd (UTI AMC) / its Registrar, till the same is taken over by KYC Registering Authority (KRA).Details of the identity of all natural person(s) such as their Name(s), PAN number/Passport details, Address etc together with a self attested PAN Card copy is to be provided by the Investor to the Official Points of Acceptance (OPAs) of the UTI MF Schemes while submitting the Application Form. Such natural persons include those who are acting alone or together, or through one or more juridical person and exercising control through ownership or who ultimately has a controlling ownership interest.In case of any change in the beneficial ownership, the investor will be responsible to intimate UTI AMC / its Registrar / KRA as may be applicable immediately about such change.For further details regarding manner of determination of beneficial ownership in doubtful cases (relating to investors other than Trust and Foreign investors), investments by Trust and Foreign Investors and for other details regarding disclosure of information regarding beneficial ownership etc., please refer to SAI/relevant Addendum.



Special Products available Systematic Investment Plan – AvailableSystematic Withdrawal Plan – AvailableSystematic Transfer Investment Plan – Available (Source Scheme)Please refer to the Statement of Additional Information (SAI) for SIP / Micro SIP, SWP and STRIP details.The minimum amount of each investment for SIP under both the Plan(s) is same as minimum initial investment amount under the scheme.



(c) The AMC shall issue to the investor whose application has been accepted, a SoA specifying the number of units allotted. UTI AMC shall issue a SoA within 5 business days from the date of acceptance of an application.

(d) The AMC will issue a Consolidated Account Statement(CAS) for each calendar month to the investor in whose folios transactions has taken place during that month and such statement will be issued on or before the 10th day of the succeeding month detailing all the transactions and holding at the end of month including transaction charges paid to the distributor, if any, across all schemes of all mutual funds.


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Further, CAS as above, will also be issued every half yearly(September/March), on or before the 10th day of succeeding month detailing holding at the end of the sixth month, across all schemes of all mutual funds, to all such investors in whose folios no transactions has taken place during that period


However, Folios under Micropension arrangement shall be exempted from the issuance of CAS.



The AMC shall continue to allot the units to the unit holders whose application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later than five business days from the date of receipt of the request from the unit holders.





Friend In Need “Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors. For further details, please refer to SAI.

Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.In case of delay in payment of dividend amount, The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).


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Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within 10 business days from the date of redemption.In case of funds received through Cash Payment, the redemption or repurchase proceeds shall be remitted only to the designated bank account.Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI

Delay in payment of redemption / repurchase proceeds


Book Closure Period/Record Date Book closure period/s not exceeding 15 days in a year for Scheme.

Transfer/Pledge/Assignment of Units Units of the scheme held in dematerialised form shall be freely transferable from one demat account to another demat account. For details of terms and conditions governing such transferability of units, kindly refer to the SAI.In addition to the existing facilities, the facility to transact in units of Scheme is extended for investors having demat account through clearing members of National Stock Exchange and Bombay Stock Exchange for accepting Purchase and Redemption transactions and through NSDL and CDSL for accepting Redemption Transactions. For details of terms and conditions, kindly refer to the Statement of Additional Information/relevant addendum.Investment in the Units of the schemes through SIP route under demat mode also is available.The facility of conversion of units held in Dematerialisation (Demat) mode into physical by way of Rematerialisation (Remat) for investments held under various options of the Scheme including units held under Systematic Investment Plan (SIP) is available.For further details please refer to SAI.

C. PERIODIC DISCLOSURES


The Mutual Fund shall declare the Net asset value of the scheme before 9 p.m. on every business day on website of UTI Mutual Fund, www.utimf.com and on website of AMFI namely www.amfiindia.com. The NAV shall be calculated for all business days. The NAV shall be published in atleast two daily newspapers having nationwide circulation on every business day.





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Additional Disclosure: The Mutual Fund shall, in addition to the total commission and expenses paid to distributors, make additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio of AUM to gross inflows on its website on a yearly basis.In case, the data mentioned above suggests that a distributor has an excessive portfolio turnover ratio, i.e., more than two times the industry average, the AMC shall conduct additional due-diligence of such distributors.The Mutual Fund shall also submit the data to AMFI and the consolidated data in this regard shall be disclosed on AMFI website.

Annual Report An abridged annual report in respect of the scheme shall be mailed to the Unit holders not later than four months from the date of closure of the relevant accounting year and the full annual report shall be made available for inspection at UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. A copy of the full annual report shall also be made available to the Unit holders on request on payment of nominal fee, if any.


TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. For further details on taxation please refer to the clause on Taxation in the SAI.Income SchemeTax on Dividend

Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.As per section 115R of the Act, income distribution tax shall be levied at 25% plus surcharge for distribution made to individuals. Further education cess @ 2% and secondary and higher education cess @ 1% would be charged on amount of tax plus surcharge.Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax. The Mutual Fund will receive income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.

Capital GainsLong Term

Short Term

Any long term capital gain arising on redemption of units by residents is subject to treatment indicted under Section 48 and 112 of the Act. Long term capital gains in respect of units held for more than 12 months is chargeable to tax @ 20% after factoring the benefit of cost inflation index or tax @10% without indexation, whichever is lower. The said tax rate is to be increased by surcharge, if applicable.Units held for not more than twelve months proceeding the date of their transfer are short term capital assets. Capital gains arising from the transfer of short term capital assets will be subject to tax at the normal rates of tax applicable to such assessee.

Investor services All investors could refer their grievances giving full particulars of investment at the following address:Shri G S AroraAssistant Vice President, Dept. of OperationsUTI AMC Ltd., UTI Tower, Gn Block, Bandra - Kurla Complex,Bandra (East), Mumbai - 400 051.Tel : (022) 6678 6666 Fax: (022) 265 23031Investors may post their grievances at our website: www.utimf.com or Email us at [email protected].


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C. COMPUTATION OF NAV (a) The Net Asset Value (NAV) of the scheme shall be calculated by determining the value of the scheme’s assets

and subtracting there from the liabilities of that scheme taking into consideration the accruals and provisions. NAV shall be declared separately for the different plans and options of the scheme.

(b) The NAV per unit of a scheme shall be calculated by dividing the NAV of that scheme by the total number of units issued and outstanding on the date of calculation under the scheme. The NAV shall be rounded off upto four decimal places.


(d) The NAVs shall be published atleast in two daily newspapers having nationwide circulation on every business day and will also be available on website of UTI Mutual Fund www.utimf.com and website of AMFI www.amfiindia.com.

IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the scheme.

A. NEW FUND OFFER (NFO) EXPENSES The scheme has to meet the sales, marketing and other such expenses connected with sales and distribution of the

scheme from the entry load. As No Entry Load is being charged, all New Fund Offer Expenses would be borne by AMC

B. ANNUAL SCHEME RECURRING EXPENSES: (a) These are the fees and expenses for operating the scheme. These expenses include Investment Management


The AMC has estimated that upto 2.25 % of the daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of UTI Mutual Fund.

Particulars % of Net AssetsUTI-Banking &

PSU Debt Fund – Regular Plan


Up to 2.25%

Trustee FeeAudit FeesCustodian FeesRTA FeesMarketing and Selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory AdvertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther ExpensesMaximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) and (6) (a)Additional expenses under regulation 52(6A) (c) Up to 0.20%Additional expenses for gross new inflows from specified cities Up to 0.30%


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At least 30% of the TER is charged towards distribution expenses/ commission in the Regular Plan. The TER of the Direct Plan will be lower to the extent of the abovementioned distribution expenses/ commission (at least 30%) which is charged in the Regular Plan.


Additional TER shall be charged upto 30 bps on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher.

The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment

(2) The total annual recurring expenses of the scheme excluding redemption expenses, whether initially borne by the Mutual Fund or by the AMC, but including the Investment Management and Advisory Fees shall be subject to the following limits:

(i) On the first `100 crore of the daily net assets of the scheme - 2.25%

(ii) On the next `300 crore of the daily net assets of the scheme - 2.00%

(iii) On the next `300 crore of the daily net assets of the scheme - 1.75%

(iv) On the balance of the assets of the scheme - 1.50%

(3) Total Expense ratio (TER)

(i) Charging of additional expenses based on new inflows from beyond 15 cities

1. Additional TER shall be charged up to 30 bps on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses on account of new inflows from beyond top 15 cities.



365* X Higher of (a) or (b) above

* 366, wherever applicable.

The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.


4. The ‘AMC fees’ charged to the scheme with no sub-limits will be within the TER as prescribed by SEBI Regulations.

5. For further details on TER, please refer to SAI

(ii) Service Tax 1. UTI AMC shall charge service tax on investment and advisory fees to the scheme in addition to the maximum

limit of TER.



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4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations. As per the current SEBI Regulations, the brokerage and transaction costs which are incurred for the purpose of execution of trade and included in the cost of investment shall not exceed 12 bps in case of cash market transactions and 5 bps in case of derivatives transactions. Any payment towards brokerage and transaction cost, over and above the said 12 bps and 5bps for cash market transactions and derivatives transactions respectively may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. Any expenditure in excess of the said prescribed limit shall be borne by the AMC or by the trustee or sponsors.



C. LOAD STRUCTURE(1) Load is an amount which is paid by the investor to

subscribe to the units or to redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or call at 1800 22 1230 (toll free number) or (022) 2654 6200 (non toll free number) or your distributor.

In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009.



Nil (any application size)

Less than or equal to (<=) 30 days : 0.25%;Greater than (>) 30 days : NIL

Transaction charges Pursuant to SEBI circular no. CIR/IMD/DF/13/2011

dated August 22, 2011, a transaction charge of `100/- for existing investors and `150/- in the case of

first time investor in Mutual Funds, per subscription of `10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.


In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amounts to `10,000/- and above. In such cases, the transaction charge shall be recovered in 3-4 instalments

The transaction charge, if any, shall be deducted by UTI AMC from the subscription amount and paid to the distributor and the balance shall be invested. Allocation of Units under the scheme will be Net of Transaction Charges. The Statement of Account (SOA) would also reflect the same.


Distributors shall be able to choose to opt out of charging the transaction charge. However the ‘opt out’ shall be at distributor level and not at investor level i.e., a distributor shall not charge one investor and choose not to charge another investor.

Distributors shall also have the option to either opt in or opt out of levying transaction charge based on category of the product. The various category of product are as given below

Sr. No. Category of product1 Liquid/ Money Market Schemes2 Gilt Schemes3 Debt Schemes4 Infrastructure Debt Fund Schemes5 Equity Linked Saving Schemes (ELSS)6 Other Equity Schemes7 Balanced Schemes8 Gold Exchange Traded Funds9 Other Exchange Traded Funds



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Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor.

Any imposition or enhancement in the load shall be applicable on prospective investments only.

(2) The investor is requested to check the prevailing load structure of the scheme before investing. For any change in load structure AMC will issue an addendum and display it on the website/UTI Financial Centres.

(3) The AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors.

(4) At the time of changing the exit load structure, the Mutual Fund shall consider the following measures to avoid complaints from investors about investment in the scheme without knowing the loads:

(i) The addendum detailing the changes shall be attached to the scheme information documents and key information memorandum. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all scheme information documents and key information memoranda already in stock.


(iii) The introduction of the exit load alongwith the details may be stamped in the acknowledgement slip issued to the investors on submission of the application form and shall also be disclosed in the statement of accounts issued after the introduction of such load.



V. RIGHTS OF UNITHOLDERSPlease refer to SAI for details.




Financial Year

Status Remark


Dividend Tax Demand not raised2007-2008 Income Tax Assessment not

yet completed2008-2009 Nil Reported

(b) Penalties and Proceedings against Bank of Baroda:-

(i) Pune Region:

Sponsor and Branch: Bank of Baroda, Laxmi Road, Pune City

Name of Complainant: Pune Municipal Corporation (PMC)



Nature of Case/Type of offence & section: Bank filed a writ petition before Bombay HC challenging the arbitrary demand of the PMC & the provisions under Pune Municipal Corporation (Octroi) Rules 2008 imposing penalty being


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contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.




Total amount involved / claimed amt: ̀ 94.22 lacs


Amount of Provisioning (` in lacs) : Nil

(ii) Nagpur Region:

Sponsor and Branch: Bank of Baroda, RO, Nagpur

Name of Complainant: Office of the Nagpur Municipal Corporation, Nagpur

Court/Tribunal / Case No. & Year: High Court Bombay, Nagpur Bench 5011/2010

Amount involved: ` 8.85 lacs

Nature of Case/Type of offence & section: Section 154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited ` 2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing

to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.



Amount of provisioning made / required: ̀ 2.92 lacs



No. of cases where the provisioning is made: 1

Amount of Provisioning: ` 2.92 lacs

(iii) Aurangabad Region:

Sponsor and Branch: Bank of Baroda, Nasik

Name of Complainant: Nasik Municipal Corporation (NMC)



Nature of Case/type of offense & section: Bank filed a writ petition before Bombay HC challenging the arbitrary demand of the NMC & the provisions under Nasik Municipal Corporation (Octroi) Rules 2005 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to


40

impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949. Bank’s reply/defence: Bank paid the amount of Octroi but refused to pay penalty amounting to (10 times of Octroi amount).





Amount of Provisioning (` in lacs): Nil

(iv) Ahmedabad Region:

Sponsor and Branch: Bank of Baroda, Nandini Complex

Name of the party/complainant: Income Tax

Name of the Court/Forum & Case no.: High Court of Gujarat / Tax Appeal No 2028 & 2029 of 2010

Amount involved (`): 65,75,664

Nature of the case/type of offences and Section: Appeal filed against the erstwhile South Gujarat Local Area Bank, which is merged to BOB in 2004.



Present Status and remarks: Nil

(v) Region-DMR-1 (NZ):

i. Sponsor and Branch: Bank of Baroda, IBB branch


Name of the Court/Forum & Case no.: CRL Appeal No. 256/2009 before HC, Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.








Name of the Court/Forum & Case no.: CRL Appeal No. 325/2008 before HC Delhi in Comp/ u/s 8(1), 64(2) and also read with sections 6(4), 6(5), 49 and 73(3) of FERA, 1973.







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Total amount involved: ` 15 lacs

iii. Sponsor and Branch: Bank of Baroda, Eastern Zone, Camac Street

Name of the party: Special Director of Enforcement Directorate

Court/Tribunal & Case no./Year: Enforcement Directorate

Amount involved/claimed: ` 10 Lacs

Nature of the case/type of offences and Section: Breach of provisions of FERA

Details/brief nature of the case: Bank had given loan of `2.55 crores to M/s. Corpus Credit & Leasing Ltd., against FCNR FDR of $1 million (US) belonging to Mrs. And Mr. Bhagwandas & Devbala Pawani held with Camac Street Branch. The then Chief Manager procured the said FDR of Pawanis from their International Branch and handed over the same to borrower. Investigations conducted under provisions of FERA revealed that the signatures of Mrs And Mr Pawani on the account opening form did not match with those on the consent letter, discharged FCNR FDR. Chief Manager had not verified the genuineness of the documents collected from Noticee No. 4 either from the Pawanis or from International Branch, Bank of Baroda, Dubai.


Present Status and remarks: Special Director has imposed a penalty of `10,00,000 (Rupees Ten Lakhs) on the Bank for violation of FERA. Bank filed an appeal against the same before the Appellate Authority for Foreign Exchange, Ministry of Law, Justice & Company Affairs. Came up for hearing for the first time on 24.11.11, where the delay in payment of fees was condoned. Last date was been fixed in February 2012 for hearing on waiver of penalty imposed on Bank. Last date

was 11.04.2012 for hearing. Next date would be advised after formation of Board for hearing the matter.





(a) The BoB was one of the bankers to the public issue of shares of Jaltarang Motels Limited (“Jaltarang”) in December, 1995. SEBI, by its order dated January 19, 2000 directed the Bank to refund the sum of `4,031,018 being the application money for the shares released by the Bank to the Jaltarang with interest at 15% from March 25, 1996 i.e. the day the Bank allowed withdrawal of the funds by Jaltarang in respect of funds collected from the public issue. The Bank preferred an appeal before the Securities Appellate Tribunal and the Tribunal, by order dated July 27, 2000, rejected the appeal. The bank has filed an appeal (Appeal No.2 of 2000) before the High Court, Mumbai against the said order of the Tribunal. The High Court, Mumbai,


42

on November 13, 2000, granted interim relief of stay of the operation of the order dated July 27, 2000 of the Securities Appellate Tribunal and January 19, 2000 of SEBI and has further directed that the matter be placed on the board for final hearing. The matter is still pending.




of the adjudication Rules for the deficiencies observed in Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has

filed Consent Application with SEBI on 7th March 2013.









43




The Commissioner has passed order u/s 263 for the Assessment Year 2006-07 directing the assessing officer to do a fresh assessment in respect of scheme expenses. The company has filed an appeal before Hon’ble Tribunal against the order of the commissioner. Subsequently the assessing officer has passed the reassessment order raising demand of Rs 23.9 million, against which based on the stay order obtained, Company has paid Rs 11.9 million. The company has again filed an appeal before CIT (A) against such order. The company does not expect the demand to crystallize into liability.


The Maharashtra Sales Tax authorities have disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act

2002 for a sum of ` 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.


The Board of Directors of UTI Trustee Co (P) Ltd wide Circular resolution dated March 26, 2013 approved the launch of the scheme and have ensured that UTI- Banking & PSU Debt Fund approved by them is a new product offered by UTI Mutual Fund and is not a minor modification of the existing scheme/fund/product.



44


OFFICIAL POINTS OF ACCEPTANCE

UTI FINANCIAL CENTRESAHMEDABAD REGION

Ahmedabad: 101/105 A&B, Super Mall, Near Lal Bungalow, CG Road, Ahmedabad-380 006, Tel: (079) 26462180/26462905, Ajmer: Uday Jyoti Complex, First Floor, India Motor Circle, Kutchery Road, Ajmer-305 001, Tel: (0145) 2423948, Alwar: Plot No.1, Jai Complex (1st Floor), Above AXIS Bank, Road No.2, Alwar – 301 001, Rajasthan, Tel.:(0144) 2700303/4, Anand: 12-A, First Floor, Chitrangna Complex, Anand – V. V. Nagar Road, Anand – 388 001, Gujarat, Tel.: (02692) 245943 / 944, Bharuch: 103-105, Aditya Complex, 1st Floor, Near Kashak Circle, Bharuch – 392 001, Gujarat, Tel.:(02642) 227331, Bhavnagar: Shree Complex, 6-7 Ground Floor, Opp. Gandhi Smruti, Crescent Circle, Crescent, Bhavnagar – 364 001, Tel.:(0278)-2519961/2513231, Bhilwara: B-6 Ground Floor, S K Plaza, Pur Road, Bhilwara – 311 001, Rajasthan, Tel.: (01482) 242220/21, Bhuj: First Floor 13 & 14, Jubilee Circle, Opposite All India Radio, Banker’s Colony, Bhuj – 370 001, Gujarat, Tel: (02832) 220030, Bikaner: Gupta Complex, 1st Floor, Opposite Chhapan Bhog, Rani Bazar, Bikaner – 334 001, Rajasthan, Tel: (0151) 2524755, Gandhinagar: Shop No.1 & 2, Shree Vallabh Chambers, Nr. Trupti Parlour, Plot 382, Sector 16, Gandhinagar – 382 016, Gujarat Tel : (079) 23240461, 23240786, Jaipur: 2nd Floor, Anand Bhavan, Sansar Chandra Road, Jaipur-302 001, Tel: (0141)-4004941/43 to 46, Jamnagar: “Keshav Complex”, First Floor, Opp. Dhanvantary College, Pandit Nehru Marg, Jamnagar – 361 001, Tel:(0288)-2662767/68, Jodhpur: 51 Kalpataru Shopping Centre, Shastri Nagar, Near Ashapurna Mall, Jodhpur - 342 005,Tel.: (0291)-5135100, Kota: Sunder Arcade, Plot No.1, Aerodrome Circle, Kota-324007, Tel: (0744)-2502242/07, Navsari: 1/4 Chinmay Arcade, Sattapir, Sayaji Road, Navsari – 396 445, Gujarat, Tel: (02637)-233087, Rajkot: Race Course Plaza, Shop No.5,6,7, Ground Floor, Near Income Tax, Rajkot-360 001, Tel:(0281)2433525/244 0701, Sikar: 9-10, 1st Floor, Bhasker Height, Ward No.28, Silver Jubilee Road, Shramdaan Marg, Nr. S K Hospital, Sikar, Rajasthan – 332 001, Tel: (01572) 271044, 271043, Sriganganagar: Shop No.4 Ground Floor, Plot No.49, National Highway No.15, Opp. Bhihani Petrol Pump, Sriganganagar – 335 001, Rajasthan, Tel: (0154) 2481602, Surat: B-107/108, Tirupati Plaza, Near Collector Office, Athwa Gate, Surat-395 001, Tel: (0261) 2474550, Udaipur: Ground Floor, RTDC Bldg., Hotel Kajri, Shastri Circle, Udaipur-313001, Tel: (0294)– 2423065/66/67, Vadodara: G-6 & G-7, “Landmark” Bldg., Transpeck Centre, Race Course Road, Vadodara-390 007, Tel:(0265) 2336962, Vapi: GF 1 & GF 2, Shoppers Stop, Near Jay Tower-1, Imran Nagar, Silvassa Road, Vapi – 396 195, Gujarat, Tel: (0260) 2421315..

BENGALURU REGION


CHANDIGARH REGION

Ambala: 5686-5687, Nicholson Road, Ambala Cantt, Haryana, Pin-133 001, Tel.: (0171) 2631780, Amritsar: 69, Court Road, Amritsar-143001, Tel: (0183) 2564388, Bhatinda: 2047, II Floor, Crown Plaza Complex, Mall Road, Bhatinda – 151 001, Punjab, Tel: (0164) 223 6500, Chandigarh: Jeevan Prakash (LIC Bldg.), Sector 17-B, Chandigarh-160 017, Tel: (0172) 2703683, Jalandhar: “Ajit Complex”, First Floor, 130 Ranjit Nagar, G. T. Road, Jalandhar-144 001, Tel: (0181) 22324756, Jammu: 104, B2, South Block, 1st Floor, Bahu Plaza, Jammu – 180 014, Tel.: (0191) 247 0627, Ludhiana: Ground Floor, S CO 28, Feroze Gandhi Market, Ludhiana-141 001, Tel: (0161) 2441264, Panipat: Office no.7, 2nd Floor, N K Tower, Opposite ABM AMRO Bank, G T Road, Panipat – 132 103, Haryana, Tel.: (0180) 263 1942, Patiala: SCO No. 43, Ground Floor, New Leela Bhawan, Patiala, Punjab-147 001, Tel: (0175) 2300341, Shimla: Bell Villa, 5th Floor, Below Scandal Point, The Mall, Shimla, Himachal Pradesh - 171 001, Tel. No.: (0177) 2657 803..

CHENNAI REGION

Chennai: (1) “Ruby Regency”, First Floor, New No.69/4, (Old Door No.65/4), Anna Salai, Chennai-600 002, Tel: (044) 2851 1727/2851 4466, (2) W 123, III Avenue, Annanagar, Chennai – 600 040, Tel: (044) 65720030, (3) 1st Floor, 29, North Usman Road, T Nagar, Chennai-600 017, Tel: (044) 65720011/12, Cochin: Ground Floor, Palackal Bldg., Chittoor


45

Road, Nr. Kavitha International Hotel, Iyyattu Junction, Ernakulam, Cochin-682 011, Kerala, Tel: (0484) 238 0259/2163, 286 8743, Fax: (0484) 237 0393, Coimbatore: U R House, 1st Floor, 1056-C, Avinashi Road, Opp. Nilgiris Dept. Stores, Coimbatore-641 018, Tel: (0422) 2244973, Kottayam: Muringampadam Chambers, Ground Floor, Door No.17/480-F, CMS College Road, CMS College Junction, Kottayam–686 001, Tel.: (0481) 2560734, Kozhikode: Aydeed Complex, YMCA Cross Road, Kozhikode - 673 001, Kerala, Tel.: (0495) 2367284 / 324, Madurai: “Jeevan Jyothi Building”, First Floor, 134 Palace Road, Opp. to Christian Mission Hospital, Madurai - 625 001, Tel.: (0452) 2333317, Salem: No.2/91, Sri Vari Complex, First Floor, Preethee Bajaj Upstairs, New Bus Stand Road, Meyyanur, Salem - 636 004, Tel.: (0427) 2336163, Thiruvananthapuram: T C 15/49(2), 1st Floor, Saran Chambers, Vellayambalam, Thriuvananthapuram-695 010, Tel: (0471) 2723674, Trichur: 26/621-622, Kollannur Devassy Building, 1st Floor, Town Hall Road, Thrissur-680 020, Tel. No.:(0487) 2331 259/495, Tirunelveli: 1st Floor, 10/4 Thaha Plaza, South Bypass Road, Vannarpet, Tirunelveli–627 003. Tel.: (0462) 2500186, Tirupur: 47, Court Street, Sabhapathipuram, Tirupur – 641 601, Tamil Nadu, Tel.: (0421) 223 6337/6339, Trichy: Kingston Park No.19/1, Puthur High Road, (Opp. Aruna Theatre), Puthur, Tiruchirapalli-620 017, Tel.: (0431) 2770713, Vellore: S R Arcade, 1st floor, 15/2 No.30, Officers Line, Vellore – 632 001, Tamil Nadu, Tel.: (0416) 223 5357/5339.

DELHI REGION


GUWAHATI REGION


KOLKATA REGION


LUCKNOW REGION

Agra: FCI Building, Ground Floor, 60/4, Sanjay Place, Agra–282 002, Tel: (0562) 2857789, 2858047, Allahabad: 4, Sardar Patel Marg, 1st Floor, Civil Lines, Allahabad-211 001, Tel: (0532) 2561028, Aligarh: 3/339-A Ram Ghat Road, Opp. Atrauli Bus Stand, Aligarh, Uttar Pradesh–202 001, Tel : (0571) 2741511, Bareilly: 116-117 Deen Dayal Puram, Bareilly, Uttar Pradesh-243 005, Tel.: (0581) 2303014, Bhagalpur: 1st floor, Kavita Apartment, Opposite Head Post Office, Mahatma Gandhi Road, Bhagalpur-812 001, Bihar, Tel.: (0641) 2300040/41, Darbhanga: VIP Road, Allalpatti, Opposite Mahamaya Nursing Home, P.O. Darbhanga Medical College, Laheraisarai, Dist – Darbhanga, Bihar – 846 003, Tel.: (06272) 250 033, Gaya: 1st Floor, Zion Complex, Opp. Fire Brigade, Swarajpuri Road, Gaya-823 001, Bihar, Tel: (0631) 2221623, Gorakhpur: Cross Road The Mall, Shop No. 16 - 20, 1st Floor, Bank Road, A. D. Chowk, Gorakhpur - 273 001, Uttar Pradesh, Tel.: (0551) 220 4995 / 4996, Kanpur: 16/77, Civil Lines, Kanpur-208 001, Tel: (0512) 2304278, Lucknow: Aryan Business Park, 2nd floor, 19/32 Park Road (old 90 M G Road), Lucknow-226 001, Tel: (0522) 2238491/2238598, Muzaffarpur: Ground Floor, LIC ‘Jeevan Prakash’ Bldg., Uma Shankar Pandit Marg, Opposite Devisthan (Devi Mandir) Club Road, Muzaffarpur (Bihar), Pin – 842 002, Tel.: (0621) 2265091, Patna: 3rd Floor, Harshwardhan Arcade, Beside Lok Nayak Jai Prakash Bhawan, (Near Dak Bunglow Crossing), Fraser Road, Patna – 800 001, Bihar, Tel: (0612) 2200047, Varanasi: 1st Floor, D-58/2A-1, Bhawani Market, Rathyatra, Varanasi-221 010, Tel: (0542) 2226881.


46

MUMBAI REGION


NAGPUR REGION


UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Ashoka Estate, Shop No. 14/A, Upper Ground Floor, Sakri Road Opp. Santoshi Mata Mandir Dhule – 424 002 Tel.: (02562) 282824 / 23 Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520,


47

Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Ratnagiri: Karvy Computershare Pvt. Ltd., C/o V L Ayare, Chief Agent for UTI Mutual Fund, Gala No.3, Shankeshwar Plaza, Nachane Road, Ratnagiri – 415 639, Tel.: (02352) 270502, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.


UTI International Limited, Office No.4, Level 4, Al Attar Business Towers, Near DIFC, Post Box No. 29288, Sheikh Zayed Road, Dubai (UAE), Tel: +971-4- 3857707 • Fax:+971-4-3857702.


48

THIS P

AGE HAS B

EEN INTENTIO

NALLY LEFT BLANK

UTI-Liquid Cash Plan(A Open-ended Income Scheme)

The product is suitable for investors who are seeking*:v Steady and reasonable income over short-term with capital preservation.v Investment in money market securities & high quality debtsv Low risk (Blue)

& UTI-Money Market Fund (UTI-MMF)(An Open-ended Money Market Mutual Fund)

The product is suitable for investors who are seeking*:v Current income consistent with preservation of capital over short-termv Investment in short-term money market securitiesv Low risk (Blue)

* Investors should consult their financial advisers if in doubt about whether the product is suitable for themNote: Risk may be represented as:




UTI Mutual Fund UTI Asset Management Company Limited

UTI Trustee Company Private LimitedAddress of the Mutual Fund, AMC and Trustee Company: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document (SID).The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centers (UFCs) / Website / Distributors or Brokers.The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com



This Scheme Information Document is dated August 08, 2013.

UTI – LIQUID CASH PLAN & UTI-MMF SID

2

TABLE OF CONTENTS

Item No. Contents Page No.HIGHLIGHTS 3

I. INTRODUCTIONA. Risk Factors 4


C. Definitions 6


II. INFORMATION ABOUT THE SCHEMEA. Type of the Schemes 10

B. What is the investment objective of the Scheme? 10

C. How will the Schemes allocate its assets? 10




G. How will the Schemes Benchmark its performance? 14

H. Who manages the schemes? 14







B. Load Structure for all classes of investors 31



33


3

HIGHLIGHTS :

Key Features UTI-Liquid Cash Plan UTI-Money Market Fund (UTI-MMF)

Investment Objective The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

The investment objective of the scheme is to provide highest possible current income consistent with preservation of capital and providing liquidity from investing in a diversified portfolio of short-term money market securities.

Liquidity The scheme will offer subscription of units on every business day on an ongoing basis. Under UTI-Money Market Fund UTI AMC reserves the right to limit the amount that it would accept from a single investor on any business day. Presently, this amount is `100 crore. Redemptions will be open throughout the year without any lock-in-period subject to quantitative restrictions, if any. However, no redemption will be allowed during the book closure period/s, if any, that may be announced by UTI AMC.

Benchmark CRISIL Liquid Fund Index

Net Asset Value (NAV)

NAV will be calculated for every calendar day.

Loads Entry Load : NilExit Load : Nil (Minimum amount for redemption is ` 10,000/-)

Entry Load : NilExit Load : Nil (Minimum amount for redemption is `10,000/-)


Minimum amount of initial investment ` 1,00,000/- and in multiples of ` 1 under both the Plans.Subsequent minimum additional investment amount `10,000/- and in multiples of ` 1/- thereafter.

Minimum amount of initial investment ̀ 10,000/- and in multiples of ` 1 under both the Plans.Subsequent minimum additional investment amount in the same folio ` 10,000/- and in multiples of ` 1/- thereafter.


4

I. INTRODUCTIONA. RISK FACTORS Standard Risk Factors:1. Investment in Mutual Fund Units involves investment


2. As the price / value / interest rates of the securities in which the schemes invest fluctuates, the value of your investment in the schemes may go up or down.

3. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the schemes.

4. UTI-Liquid Cash Plan and UTI-Money Market Fund are only the names of the schemes and does not in any manner indicate either the quality of the schemes or its future prospects or returns. There may be instances where no dividend distribution could be made.




8. Growth, appreciation, dividend and income, if any, referred to in this scheme information document are subject to the tax laws and other fiscal enactments as they exist from time to time.

9. Investments in units issued under the schemes are subject to market risks. There is no assurance that the schemes/plans will maintain stable net asset values.

l Risks associated with Investing in Bonds:1. Credit Risk: Bonds / debentures as well as other

money market instruments issued by corporates run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central government have lesser to zero probability of credit / default risk in view of the sovereign status of the issuer.

2. Interest - Rate Risk: Bonds / Central Government securities which are fixed income securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI and the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate,

number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds / Central Government securities are also influenced by the liquidity in the financial system and /or the open market operations (OMO) by RBI. Pressure on exchange rate of the Rupee may also affect security prices. Such rise and fall in price of bonds/central government securities in the portfolio of the schemes/plans may influence the NAVs of the schemes/plans as and when such changes occur.

3. Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the Schemes/plans might have to incur a significant “impact cost” while transacting large volumes in a particular security.

Securities Lending: It is one of the means of earning additional income for the schemes with a lesser degree of risk. The risk could be in the form of non-availability of ready securities for sale during the period the securities remain lent. The schemes could also be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities. However, the risk would be adequately covered by taking of suitable collateral from the borrower by the intermediary involved in the process. The schemes will have a lien on such collateral. It will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

l Risks associated with Investing in Foreign Securities:

Investment in overseas market: The success of investment in overseas market depends upon the ability of the fund manager to understand conditions of those markets and analyse the information, which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides the market risks of those markets.

l Risks associated with Investing in Derivatives: Trading in debt derivatives involves certain

specific risks like: a. Settlement Risk: This is the risk on default by

the counter party. This is usually to the extent of difference between actual position and contracted position. This risk is substantially mitigated where derivative transactions happen through clearing corporation.




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d. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the fund manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the schemes could be lower.

e. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit and settlement risks. However, these risks are substantially less as they are limited to the interest stream and not for the notional principal amount.

f. Participating in derivatives is a highly specialised activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to the action of other participants in the market.

Some of the risks associated with Interest Rate Swaps (IRS) and Forward Rate Agreements (FRAs) are as below:

(i) Counterparty Risk: This refers to the risk of credit and settlement. Specifically it refers to the event that the counterparty in the IRS/FRA deal is unable to meet its commitment and defaults on its obligations.

(ii) Basis Risk: Basis risk is the risk of mismatch i.e. the risk that arises when the underlying asset / liability is not perfectly correlated with the derivative position.

(iii) Liquidity Risk: This refers to the risk associated with the ease with which a derivative position can be unwound.


h. The risk associated with the use of derivatives are different from or possibly greater than, the risk associated with investing directly in securities and other traditional investments.

l Different types of securities in which the schemes would invest as given in the scheme information document carry different levels and types of risk. Accordingly a scheme’s risk may increase or decrease depending upon its investment pattern. For

eg. Corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated.

l Risk Analysis on underlying asset classes in Securitisation :

Securitisation – Features & Investment Strategy Asset securitisation is a process whereby commercial

or consumer credits are packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments (e.g., promissory notes, pass through certificates or other debt instruments) to investors, such instruments evidencing the beneficial ownership of the investors in the Receivables. The financial instruments are rated by an independent credit rating agency. An Investor’s Agent is normally appointed for providing trusteeship services for the transaction.

The Fund will predominantly invest only in those securitisation issuances, which have AAA rating indicating the highest level of safety from credit risk point of view at the time of making an investment.

Generally available Asset Classes for securitisation in India are:

l Commercial Vehiclesl Auto and Two wheeler poolsl Mortgage pools (residential housing loans)l Personal Loan, credit card and other retail loansl Corporate loans/receivables The fund may invest in various type of securitisation

issuances as contained in the above table, including but not limited to Asset Backed Securitisation, Mortgage Backed Securitisation, Personal Loan Backed Securitisation, Collateralized Loan Obligation/ Collateralized Bond Obligation and so on.

Risk Factors specific to investments in Securitised Papers:

Types of Securitised Debt vary and carry different levels and types of risks. Credit Risk on Securitised Bonds depends upon the Originator and varies depending on whether they are issued with Recourse to Originator or otherwise. A structure with Recourse will have a lower Credit Risk than a structure without Recourse. Underlying assets in Securitised Debt may assume different forms and the general types of receivables include Auto Finance, Credit Cards, Home Loans or any such receipts. Credit risks relating to these types of receivables depend upon various factors including macro economic factors of these industries and economies. Specific factors like nature and adequacy of property mortgaged


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against these borrowings, nature of loan agreement/ mortgage deed in case of Home Loan, adequacy of documentation in case of Auto Finance and Home Loans, capacity of borrower to meet its obligation on borrowings in case of Credit Cards and intentions of the borrower influence the risks relating to the asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail base on underlying assets especially when securitised assets are created by high credit rated tranches, risk profiles of Planned Amortisation Class tranches (PAC), Principal Only Class Tranches (PO) and Interest Only class tranches (IO) will differ depending upon the interest rate movement and speed of prepayment. Various types of major risks pertaining to Securitised Papers are as below:

Liquidity & Price risk Presently, secondary market for securitised papers

is not very liquid. This could limit the ability of the investor to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure.



Prepayment Risk Full prepayment of underlying loan contract may

occur during the tenure of the paper. In the event of prepayments, investors may be exposed to changes in tenor and reinvestment risk.

Risk Factors Specific for UTI-Money Market Fund:a. The funds invested in the scheme will not have

insurance cover from the Deposit Insurance and Credit Guarantee Corporation of India.

b. Repurchase by a unitholder on any business day may be restricted to an amount as may be specified by UTI AMC from time to time.


The Schemes/plans shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Schemes/Plans. The two conditions shall be complied within each calendar quarter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

C. DEFINITIONS In these schemes unless the context otherwise

requires: 1. “Accounting Year” of UTI Mutual Fund is from

April to March. 2. “Act” means the Securities and Exchange Board

of India Act, 1992, (15 of 1992) as amended from time to time.



5. “Alternate applicant” in case of a minor means the parent other than the parent/step-parent/court guardian who has made the application on behalf of a minor.

6. “Asset Management Company/UTI AMC/AMC/Investment Manager” means the UTI Asset Management Company Limited incorporated under the Companies Act, 1956, (1 of 1956) and approved as such by Securities Exchange Board of India (SEBI) under sub-regulation (2) of Regulation 21 to act as the investment manager to the schemes of UTI Mutual Fund.

7. “Body Corporate” or “Corporation” includes a company incorporated outside India but does not


7

include (a) a corporation sole, (b) a co-operative society registered under any law relating to co-operative societies and (c) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf.

8. “Bonus Units” means and includes, where the context so requires, a unit issued as fully paid-up bonus unit by capitalising a part of the amount standing to the credit of the account of the reserves formed or otherwise in respect of these schemes.

9. “Book Closure” is a period when the register of unit holders is closed for all transactions viz., purchase/redemption/changeover/switchover, change in particulars etc. Such Book Closure period will not exceed 7 days in a year.

10. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under a plan/ scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/ changeover / switchover of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time.

Further, it is clarified that the day(s) on which the money markets are closed / not accessible, shall not be treated as business day(s) under both the schemes.

The AMC reserves the right to declare any day as a Business Day or otherwise at any or all official Points of Acceptance.


12. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an

irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes ` depository’ within the meaning of Clause(e) of Sub-section (1) of Section 2 of The Depositories Act, 1996.


14. “Fund Manager” means the manager appointed for the day-to-day management and administration of a scheme.



17. “Load” is a charge that may be levied as a percentage of NAV at the time of entry into a Scheme or at the time of exiting from a Scheme.


19. “NAV” means Net Asset Value per unit of a Scheme and the Plans/Options therein, calculated in the manner provided in this Scheme Information Document and in conformity with the SEBI Regulations as prescribed from time to time.

20. “Non-Resident Indian (NRI)” shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution


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of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.


22. “Official points of acceptance” UTI Financial Centers (UFCs), Offices of the Registrars of the Scheme and any other authorized center as may be notified by UTI AMC from time to time are the official points of acceptance of purchase/changeover/switchover and redemption applications of the scheme. The cut off time that is mentioned in the scheme information document will be applicable at these official points of acceptance. The list of official point of acceptance is attached with this document.

For purchase / redemption / changeover /switchover of units, applications received at any authorised collection center, which is not an official point of acceptance, the cut off time at the official point of acceptance, will be applicable for determination of NAV.


24. “Record date” the date announced by the fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC/Registrars, on the record date shall be eligible for such benefits.

25. “Registrar” means a person whose services may be retained by UTI AMC to act as the Registrar under the schemes, from time to time.

26. “Regulations” or “SEBI Regulations” mean the SEBI (Mutual Funds) Regulations, 1996, as amended from time to time.

27. “Schemes” mean the UTI-Liquid Cash Plan and UTI-Money Market Fund.



30. “Sponsors” are Bank of Baroda, Punjab National Bank, Life Insurance Corporation of India and State Bank of India.






36. “Unit Capital” of a scheme/plan means the aggregate of the face value of units issued under that scheme/plan and outstanding for the time being.

37. “Unitholder” means a person holding units in a scheme of the Mutual Fund.

38. In this scheme information document, unless the context otherwise requires, (i) the singular includes the plural and vice versa, (ii) reference to any gender includes a reference to all other genders, (iii) heading and bold typeface are only for convenience and shall be ignored for the purposes of interpretation.

40. The words ‘scheme’ and ‘plan’ shall carry a meaning inter-alia depending on the context.


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DUE DILIGENCE CERTIFICATE

Due Diligence Certificate submitted to SEBI for

UTI-Liquid Cash Plan and UTI-Money Market Fund


I. the Draft Scheme Information Document forwarded to Securities And Exchange Board of India is in accordance

with the SEBI (Mutual Funds) Regulations, 1996, and the guidelines and directives issued by SEBI from time to

time;

ii. all legal requirements connected with the launching of the schemes as also the guidelines, instructions, etc. issued

by the Government and any other competent authority in this behalf, have been duly complied with;

iii. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to

make a well informed decision regarding investment in the schemes;

iv. all the intermediaries named in the Scheme Information Document and Statement of Additional Information are

registered with SEBI and their registration is valid, as on date.

Sd/- Date: 8th August, 2013 Vivek MaheshwariPlace : Mumbai Compliance Officer


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II. INFORMATION ABOUT THE SCHEMEA. TYPE OF THE SCHEMES UTI-Liquid Cash Plan is an open-ended Income

Scheme and UTI-Money Market Fund is an open-ended Money Market Mutual Fund.

B. WHAT IS THE INVESTMENT OBJECTIVES OF THE SCHEMES?

Investment objective: a) UTI-Liquid Cash Plan - The investment

objective of the Scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

b) UTI-Money Market Fund - The investment objective of the Scheme is to provide highest possible current income consistent with preservation of capital and providing liquidity from investing in a diversified portfolio of short term money market securities.

C. HOW WILL THE SCHEMES ALLOCATE ITS ASSETS?

1. Asset allocation: UTI-LIQUID CASH PLAN No investment will be made in equity instruments. i) The scheme will invest in the following securities:

Securities/Instruments

Indicative Allocations(% of total assets)

Minimum MaximumMoney market instruments

65 100

Debt Securities (including Central Govt. securities)

0 35

To minimize the credit risk investment would be made only in companies which have a rating of AA- or equivalent and above at the time of investment.

ii) The asset allocation of the portfolio is indicative and can be altered for short term periods on defensive consideration.

UTI-MONEY MARKET FUND The scheme will invest in the following money

market securities having residual maturity/weighted average maturity of upto 91 days:

Securities/ Instruments

Maximum Exposure

Risk Profile

Governments Dated Securities

75% Sovereign

Private Corporate Debt

75% Medium to High

PSU Bonds 75% Medium

Mortgaged backed Securities

75% Medium

FI & Banking Sector Bonds

75% Low to Medium

Call Money 100% LowTreasury Bills 100% SovereignCommercial Paper 75% Medium to

HighCertificates of Deposit 75% Low to

MediumRepo Transactions 100% LowBills Rediscounting 50% Low to

Medium2. Debt and Money Market in India (i) Debt Instrument Characteristics: A Debt Instrument is basically an obligation


Face Value : Stated value of the paper / Principal Amount Coupon : Zero, fixed or floating Frequency : Semi-annual, annual, sometimes quarterly Maturity : Bullet, staggered Redemption : FV, premium or discount Options : Call/Put Issue Price : Par (FV) or premium or discount A debt instrument comprises of a unique series of

cash flows for each paper, terms of which are decided at the time of issue. Discounting these cash flows to the present value at various applicable discount rates (market rates) provides the market price.


Market and the Long Term Debt Market. Money market instruments have a tenor of

less than one year while debt market instruments typically have a tenor of more than one year.



Government securities includes central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers). The


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Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt. are through on-tap sales.



Securitised Debt Instruments – Asset securitisation is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables.

The instrument, which is issued, includes loans or receivables maturing only after all receivables are realised. However depending on timing of underlying receivables, the average tenure of the securitized paper gives a better indication of the maturity of the instrument.

(iii) Regulators: The RBI operates both as the monetary authority and the debt manager to the government. In its role as a

monetary authority, the RBI participates in the market through open-market operations as well as through Liquidity Adjustment Facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

(iv) Market Participants: Given the large size of the trades, the debt market has remained predominantly a wholesale market. Primary Dealers Primary dealers (PDs) act as underwriters in the primary market, and as market makers in the secondary market. Brokers Brokers bring together counterparties and negotiate terms of the trade. Investors Banks, Insurance Companies, Mutual Funds are important players in the debt market. Other player are Trusts,

Provident and pension funds. (v) Types of security issuance and eligible investors:


Maturity Investors

Central Government Dated Securities

9.65% - 8.65% 1-30 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Central Government T-Bills 9.65% - 11.00% 364/91 days Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

State Government Dated Securities

9.05% - 9.45% 10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals

PSUs Corporates Bonds 9.75% - 9.40% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII


Bonds 10.70% -10.00% 1-10 years Banks, MFs, Corporates, Individuals, FII


10.70% - 10.50 % 15 days to 1 yr

Banks, MFs, Fin Inst, Corporates, Individuals, FIIs


10.50% - 9.80% 15 days to 1 yr

Banks, Insurance Co, PFs, MFs, PDs, Individuals

Banks Bonds 10.00 % 10-15 years Banks, Companies, MFs, PDs, Individuals


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(vi) Trading Mechanism: Government Securities and Money Market

Instruments Currently, Government Securities (G-Sec) trades

are predominantly routed though NDS-OM which is a screen based anonymous order matching systems for secondary market trading in G Sec owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

D. WHERE WILL THE SCHEMES INVEST? 1. The mutual funds can invest in i. Foreign debt securities in the countries

with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies

ii. Money market instruments rated not below investment grade

iii. Repos in the form of investment, where the counterparty is rated not below investment grade; repos should not however, involve any borrowing of funds by mutual funds

iv. Government securities where the countries are rated not below investment grade

v. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities

vi. Short term deposits with banks overseas where the issuer is rated not below investment grade

vii. Units/securities issued by overseas mutual funds or unit trusts registered with overseas regulators and investing in (a) aforesaid securities, (b) Real Estate Investment Trusts (REITs) listed in recognized stock exchanges overseas or (c) unlisted overseas securities (not exceeding 10% of their net assets).

The aggregate ceiling for overseas investments as per para 1 above is US $ 7 bn. Within the overall limit of US $ 7 bn, mutual funds can make overseas investments subject to a maximum of US $ 300 mn. per mutual fund.


The fund manager will consider the risk/reward ratio of the investments in these

instruments. Risks may include fluctuating currency prices, relevant regulations of exchanges/countries, financial reporting standards, liquidity and political instability, among others. At the same time, these securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products.

2. Participating in Derivative Products: Derivatives: A derivative instrument, broadly,

is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.

Derivatives are further classified into Futures Options Swaps Futures: A futures contract is a standardized


Options: An option is a derivative instrument which gives

its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.





The buyer/holder of an option can make loss of not more than the option premium paid to the seller/writer but the possible gain is unlimited. On the other hand, the option seller/writer’s maximum gain is limited to the option premium


13

charged by him from the buyer/holder but can make unlimited loss.




(a) A scheme may use hedging techniques including dealing in derivative products - like interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations from time to time.

(b) The schemes intend to use derivatives mainly for the purpose of hedging and/or re-balancing of the portfolio against any anticipated move in the debt markets. A hedge is primarily designed to offset a loss on a portfolio with a gain in the hedge position.

(c) The Fund Manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market.

(d) As per the current norms of UTI AMC, the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of a scheme. The Board may, in future, revise the limits within the SEBI (MFs) Regulations in keeping with the investment objectives of the scheme

Exposure limits: a. The cumulative gross exposure through equity,













Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:



Number of ContractsOption bought Option Premium Paid * Lot

Size * Number of Contracts. The AMC retains the right to enter into such

derivative transactions as may be permitted by the Regulations from time to time. For risks associated with investments in derivatives investors are requested to refer to Risk Factors of this Scheme Information Document.

E. WHAT ARE THE INVESTMENT STRATEGIES? UTI-Liquid Cash Plan and UTI Money Market Fund:

They are positioned as low-risk, low-volatility funds which aim at offering reasonable returns to investors looking to park short term surpluses. The funds attach importance to low credit risk, portfolio diversification and stability of returns. As per SEBI guidelines, w.e.f.


14

1st May 2009, the schemes can invest in/purchase debt and money market securities with maturity of up to 91 days. Portfolio Turnover Policy The portfolio management style of the schemes is conducive to a low portfolio turnover rate.F: FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the schemes in terms of Regulation 18(15A) of the SEBI (MF) Regulations: (i) Type of Schemes: UTI-Liquid Cash Plan is an open-ended income scheme and UTI-Money Market Fund is an open-ended Money

Market Mutual Fund. (ii) Investment objective: l Main Objective – As given in clause II B (a) & (b) l Investment pattern – As given in Clause II (C) (1) while retaining the option to alter the asset allocation for a

short term period on defensive consideration. (iii) Terms of issue: l Liquidity provision of redemption: Only provisions relating to redemption as given in Section III (A)- Ongoing

Offer Details – Page Nos. 29 & 30. l Aggregate Expense and Fees [as given in clause IV (A) (2) and IV (A) (3)] charged to the scheme. l In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure that no

change in the fundamental attributes of the scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fees and expenses payable or any other change which would modify the Scheme(s) and Plan(s) / Option(s) there under and affect the interest of the unitholders, is carried out unless -

(i) A written communication about the proposed change is sent to each unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

(ii) The unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEMES BENCHMARK ITS PERFORMANCE ? Benchmark of UTI-Liquid Cash Plan & UTI-MMF: CRISIL Liquid Fund Index is the benchmark for UTI-Liquid Cash

Plan and UTI-Money Market Fund. Composition of the benchmark is Call Index 40% and CP Index 60%. The benchmarks for the schemes have been chosen on the basis of the investment pattern/objective of the schemes

and the composition of the indices. UTI AMC reserves the right to change the benchmarks in future if benchmarks better suited to the investment objectives of the schemes are available.

H. WHO MANAGES THE SCHEMES? Shri Manish Joshi is the Fund Manager of UTI-Liquid Cash Plan and UTI-Money Market Fund. Shri Arpit Kapoor is the dedicated Fund Manager for investment in ADRs/GDRs/Foreign Securities.

Name and Age Qualifications Experience Other Schemes ManagedManish Joshi44 yrs

M.Sc (Physics),MFM,

He joined UTI AMC in February, 1997 and was in Department of International Finance. He has over 16 years of experience. Since, November, 2003, he has been in Funds Management / Dealing – Fixed Income / Money Market as Dealer / Assistant Fund Manager.

UTI-Fixed Maturity Plans,UTI-Fixed Term Income Funds,


15

Arpit Kapoor30 yrs

B.Tech, PGDM, CFA He joined UTI AMC in 2009 in the Equity Research Team. He is currently working as Fund Manager-cum-Research Analyst since June, 2009. Prior to joining UTI AMC and taking up his MBA, he has worked with Torry Harris Business Solutions, Bangalore as Associate Software Engineer from June, 2005 to June, 2007 and Mobintech A/S, Denmark as Business Analyst from September, 2008 to December, 2008.


I. WHAT ARE THE INVESTMENT RESTRICTIONS? All investment restrictions are applicable at the time of making an investment. Subject to SEBI (MFs) Regulations,

guidelines on investment from time to time: a. UTI-Liquid Cash Plan shall not invest more than 15% of its NAV in debt instruments issued by a single issuer,

which are rated not below AA- by a credit rating agency authorised to carry out such activity under SEBI. Such investment limit may be extended to 20% of the NAV of a plan with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in central government securities. Provided further that investments within such limits by a plan can be in mortgaged backed securitised debt which are rated not below ‘AA-‘ by a credit rating agency registered with SEBI.

UTI-Money Market Fund shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorised to carry out such activity by SEBI. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Trustees and Board of the AMC. Provided that such limit shall not be applicable for investments in government securities. Provided further that investments within such limits can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

b. The schemes shall not invest more than 10% of their NAVs in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the respective schemes. All such investments will be made with the prior approval of the Trustees and Board of the AMC.

No mutual fund scheme shall invest more than 30% of its net assets in money market instruments of an issuer. Provided that such limit shall not be applicable for investment in Government securities, treasury bills and collateralized borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Board and the Trustee. The details of such investments shall be communicated by UTI AMC to the Trustees in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Board of AMC and Trustee shall be required.

For UTI-Liquid Cash Plan: UTI AMC has appropriate in-built systems control and continuous review mechanism to ensure that counterparty

risk exposure arising out of all financial transactions including OTC derivative and repo transactions are within the limits as specified above. Internal control mechanisms ensure adherence to these limits and type of exposures i.e., the scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below AA- and the scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the scheme.

c. Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause II (I) (a) and (b) above. It is further clarified that the investment limits at II (I) (a) and (b) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either state or central government. Government securities issued by Central/State government or on its behalf by RBI are exempt from the above investment limits.


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d. Pending deployment of funds of the schemes in securities in terms of the investment objective of the schemes, the funds of the schemes may be invested in short term deposits of scheduled commercial banks in accordance with SEBI guidelines.

e. No term loans will be advanced by these schemes for any purpose as per SEBI regulation 44(3) of SEBI (Mutual Fund) Regulations 1996.

f. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction. Provided that the schemes may enter into derivatives transactions for the purpose of hedging and re-balancing the portfolio in accordance with the guidelines issued by SEBI.

g. The Mutual Fund under all its schemes taken together will not own more than 10% of any Company’s paid up capital carrying voting rights.

h. The Mutual Fund shall get the securities purchased by a scheme/plan transferred in the name of the scheme/plan, wherever investments are intended to be of long term nature.

i. (i) The schemes may participate in the securities lending program, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediary.

(ii) The maximum exposure of a scheme to a single intermediary in the securities lending program at any point of time would be 10% of the market value of the security class of the scheme or such limit as may be specified by SEBI.

(iii) If mutual funds are permitted to borrow securities the schemes may in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

j. The schemes shall not make any investment in any unlisted security of an associate or group company of the sponsors; or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

k. Investment in non-publicly offered debt: Depending upon the available yields the schemes would be investing in non-publicly offered debt securities.

l. Based upon the liquidity needs, the schemes may invest in Government of India Securities

without any restriction on the extent to which such investments can be made.

m. Investment by the schemes in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under:

A scheme may invest in another scheme under the same Asset Management Company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other Asset Management Company shall not exceed 5% of the net asset value of the mutual fund.

Such investment will be consistent with the investment objective of the schemes. No investment management fees will be charged by the AMC on such investments.

n. The portfolio characteristics of UTI Liquid Cash Plan and UTI Money Market Fund are as under:

1. “Liquid Fund Schemes and Plans” shall mean the schemes and plans of a mutual fund as specified in the guidelines issued by SEBI in this regard.

2. The aforesaid schemes shall make investment in / purchase debt and money market securities with maturity of upto 91 days only.

3. The requirements stated at paragraph 2 above shall apply to inter-se scheme transfers also.

o. The Schemes shall not make any investment in any fund of fund scheme.


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J. HOW HAVE THE SCHEMES PERFORMED?

Performance of UTI-Liquid Cash Plan as on 31st July 2013

Compounded Annualised

Returns

Scheme Returns

(%)


Returns for the last 1 year

8.51 7.66

Returns for the last 3 years

8.67 7.92


7.57 7.02

Returns since inception

7.30 6.40

UTI-Liquid Cash Plan (Growth)

Absolute Returns for each financial year for the last 5 years

9.259.33

6.50

4.54

8.578.17

8.44

6.21

3.69

8.81

1

3

5

7

9

11

13

15

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

retu

rns

(%)

UTI-Liquid Cash Plan (%)CRISIL Liquid Fund Index (%)

Performance of UTI-Money Market Fund as on 31st July 2013


Returns

Scheme Returns

(%)


Returns for the last 1 year

8.58 7.66


8.73 7.92

Returns since inception

7.62 6.74

UTI-Money Market Fund (Growth)

Absolute Returns for each financial year for the last 5 years

4.44

9.318.85

6.01

8.758.178.44

6.21

3.69

8.81

0

2

4

6

8

10

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

retu

rns

(%)

UTI-Money Market Fund (%)CRISIL Liquid Fund Index (%)

Past Performance may or may not be sustained in future


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III. UNITS AND OFFERThis section provides details you need to know for investing in the scheme.A. ONGOING OFFER DETAILS

Plans / Options and Sub-Options offered

UTI-LIQUID CASH PLANIn addition to the existing Plan (UTI-Liquid Cash Plan-Institutional), the scheme offers Direct Plan**. Both the Plans offer the following options:a) Growth Optionb) Daily Dividend Reinvestment Optionc) Weekly Dividend Reinvestment Optiond) Monthly Dividend Option – Payout and ReinvestmentDefault Option – Daily Dividend Reinvestment Option

UTI-MONEY MARKET FUNDIn addition to the existing Plan (UTI-Money Market Fund-Institutional Plan), the scheme offers Direct Plan**. Both the Plans offer the following options:a) Growth Optionb) Daily Dividend Reinvestment Optionc) Weekly Dividend Option - Payout and ReinvestmentIt is proposed to declare daily and weekly dividend subject to the availability of distributable surplus and as computed in accordance with SEBI Regulations. However, there is no assurance or guarantee to the unit holders as to the rate and frequency of dividend.Default Option – Growth OptionThe NAVs of the two plans (Existing and Direct Plan) will be different and separately declared, the portfolio of investment remaining the same.**Direct Plan:Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.All categories of Investors (whether existing or new Unitholders) as pemitted under this SID are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid/charged from Direct Plan.Portfolio of the Scheme under the existing plan and Direct Plan will be commonHow to apply: Investors subscribing under Direct Plan of UTI-Liquid Cash Plan will have to indicate “Direct Plan” against the Scheme name in the application form, as for example., “UTI-Liquid Cash Plan - Direct Plan”.Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for existing plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.Scheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the existing plan and the Direct Plan except that:(a) Switch of investments from existing plan through a distributor with ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan shall be subject to applicable exit load, if any. The holding period for applicability of load will be considered from the date of such switch to Direct Plan.


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(b) However, no exit load shall be levied for switch of investments from existing plan made directly without an ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan of the scheme (subject to statutory taxes and levies, if any). The holding period for applicability of load will be considered from the date of initial investment in the existing plan.(c) No exit load shall be levied in case of switches from Direct Plan to existing plan.

Details of Schemes / Plans / Options where Fresh Subscriptions has been discontinued with effect from 1st October 2012

Scheme Name Discontinued Plans/Options

Revised Plan/Option Name (for existing unit holders before

1st October 2012)UTI-Liquid Cash Plan Regular Plan-

a) Daily Dividend Reinvestment Option

Regular Plan-a) Periodic Dividend Option

b) Monthly Dividend Payout & Reinvestment Option

b) No Change

c) Growth Option c) No ChangeUTI-Money Market Fund Regular Plan-

a) Daily Dividend Reinvestment Option

Regular Plan-a) Periodic Dividend Option

b) Weekly Dividend Reinvestment Option

b) Flexi Dividend Option

c) Growth Option c) No ChangeThe existing Investors under the aforesaid Schemes/Plans where Plans/Options are discontinued shall be allowed to continue in the discontinued Plan/Option till they exit.Further, the Dividend Reinvestment facility/option in respect of the above discontinued schemes & plans/options/sub-options/renamed/revised plans & options is withdrawn and the dividend as and when declared under these Plans etc will be compulsorily paid out in such cases even if it is under reinvestment facility/option.Further, under the above Plans & Options, the dividend is proposed to be declared once in a month, subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations 1996. However, there is no assurance or guarantee to the unit holders, as to the rate and frequency of dividend. UTI AMC reserves the right to declare dividend at any other frequency, as it may deem fit, under the above revised Plans & Options.

Dividend Policy Subject to availability of distributable surplus the scheme may make dividend distribution under Dividend Option, at such intervals as is indicated under the scheme or as may be decided by the Trustees from time to time.Reinvestment facility: Under this the dividend distribution in respect of unitholders under the reinvestment facility will be reinvested in further units at NAV as on the record date less dividend per unit declared.Payout facility: Available under UTI-Liquid Cash Plan (Institutional)-Monthly Dividend & UTI-Money Market Fund – Institutional Plan - Weekly Dividend, both under which, dividend can be paid out to the unitholder.Unitholder joining Dividend Option and maintaining a minimum balance as prescribed by UTI AMC from time to time in his folio on record date/s can choose to participate in Payout facility.Under UTI-MMF–Institutional Plan – Daily Dividend, dividend distribution in respect of unitholders will be re-invested in further units at the ex-dividend NAV.Growth Option: ordinarily under this option no dividend distribution will be made and all accrued and earned income will be reflected through growth in the NAV.Bonus units may be issued under the schemes, as may be decided by the Trustee from time to time.Rollover facility: The unitholders may be allowed to redeem full or part of his outstanding unit holding and simultaneously invest the entire proceeds or upto face value of units redeemed on the rollover date at the same NAV in the same option. This facility enables the unitholder to recognise the capital appreciation as income/gain in their books periodically in a tax efficient manner.


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An Application for issue of units may be made by any resident or non-resident Indian as well as non-individuals as indicated below:(a) a resident individual or a NRI or person of Indian origin residing abroad, either singly or

jointly with another individual on joint/either or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court,

(b) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on ‘Joint’ or ‘Either or Survivor’ basis,

(c) an association of persons or body of individuals whether incorporated or not,(d) a Hindu Undivided Family both resident and non-resident,(e) a body corporate including a company formed under the Companies Act, 1956 or established

under State or Central Law for the time being in force,(f) a bank including a scheduled bank, a regional rural bank, a co-operative bank etc,(g) an eligible trust as defined under the schemes,(h) a society as defined under the schemes,(i) any other institution,(j) an Army/Navy/Air Force/Paramilitary Fund,(k) a partnership firm, (An application by a partnership firm shall be made by not more than two partners of the

firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorised by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)

(l) a Foreign Institutional Investor (FIIs) registered with SEBI,(m) a mutual fund including a mutual fund of UTI AMC,(n) Provident/Pension/Gratuity Fund as and when permitted (for UTI-Liquid Cash Plan).(o) Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their

associates and the AMC may acquire units of the schemes. The AMC shall not be entitled to charge any fees on its investments in the schemes.

Note: Neither this Scheme Information Document nor the Units have been registered in any jurisdiction including the United States of America. The distribution of this Scheme Information Document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of this Scheme Information Document are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme Information Document or any accompanying application form in such jurisdiction may treat this Scheme Information Document or such application form as constituting an invitation to them to subscribe for Units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly this Scheme Information Document does not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. It is the responsibility of any persons in possession of this Scheme Information Document and any persons wishing to apply for Units pursuant to this Scheme Information Document to inform themselves of and to observe, all applicable laws and Regulations of such relevant jurisdiction.Investment by Individuals – Foreign NationalsFor the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,


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UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/ operational exigencies.Holding Basis: In the event an account has more than one registered holder the first-named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines.Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.


A] Updation / Change of address:Investors are requested to update their change of address within 30 days from the date of change.In case of Know Your Client (KYC) complied folios, Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com}, as may be specified by them, from time to time.In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI.Further, in the case of non-KYC complied folios, Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.Proof of old as well as new address:Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.


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B] Updation / Change of bank details:Investors are requested to update/change their bank details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:B.1) Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council et., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.B.2) Proof of new bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.B.3) Proof of existing/old bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable.B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.C] Cooling period:In case the change of address and/or Updation / change of bank details are submitted together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 business days from the date of such redemption request.The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non-submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.Updating/change of bank details in case of non-KYC complied foliosIn case of non-KYC complied folios, the request to update/change of bank details shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI


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Ongoing price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors.This is the price you need to pay for purchase/switch-in.

Face value is ` 1000/- for both the schemes and plans under them.Purchase on all business days at the applicable NAV. No entry load will be charged for purchase/additional purchase / switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer plans accepted by the Fund.The bank draft charges, if any, will have to be borne by the applicant.

Mode of Payment- Cash

Cash payment to the extent of ̀ 20,000/- per investor, per Mutual Fund, per financial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Permanent Account Number (PAN)/bank accounts), subject to the following procedure.i. Investors who desire to invest upto ` 20,000/- per financial year shall contact any of our

UFCs and obtain a Form for Deposit of Cash and fill-up the same.ii. Investors shall then approach the designated branch of Axis Bank along with the duly filled-in

Form for Deposit of Cash and deposit the cash.iii. Axis Bank will provide an Acknowledgement slip containing the details of Date & Time of

deposit, Unique serial number, Scheme Name, Name of the Investor and Cash amount deposited. The Investors shall attach the Acknowledgement slip with the duly filled-in application form and submit them at the UFCs for time stamping.

For further details, please refer to SAI.Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors.This is the price you will receive for redempt ions/swi tch outs.

Redemptions: Redemptions will be open on all business days at the applicable NAV subject to prevailing exit load without any lock-in-period subject to quantitative restrictions, if any. However, no redemption will be allowed during the book closure period/s, if any, that may be announced by UTI AMC.l UTI AMC reserves the right to limit the amount that a unitholder under UTI-Money Market Fund can redeem on any business day. Presently, this amount is `25 crore.l Units under a folio shall be deemed to have been redeemed on a ‘First in First Out’ basis. i.e. the units that were issued first would be deemed to have been redeemed first.l Cheque writing facility under UTI-MMF: UTI AMC may introduce facility to redeem units by unitholders issuing a cheque against balance in his UTI-MMF account as and when such arrangements are finalised in accordance with the guidelines/instructions which may be issued by RBI.In addition to restrictions on purchase and redemption of units mentioned in the SAI, UTI AMC shall not be under any obligation to sell or redeem units under the schemes on such days on which due to unforeseen circumstances any collecting agent/registrars are unable to accept purchase/redemption applications.


Applicable NAV For UTI-Liquid Cash Plan and UTI-MMFPurchase $$:

Operation Cut-off Timing Applicable NAVValid applications received and funds are also available for utilization before cut off time on the same day.

Upto 2 p.m. Closing NAV of the day immediately preceding the day of receipt of the application.

Valid applications received and clear funds are available for utilisation on the same day.

After 2 p.m. Closing NAV of the day immediately preceding the next business day.

Irrespective of the time of receipt of application, where the funds are not available before cut off time for utilisation on the day of the application.


Closing NAV of the day immediately preceding the day on which the funds are available for utilisation.


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$$ Funds shall be available for the entire amount of subscription/purchase without availing any credit facility, whether intra day or otherwise.Redemption :

Operation Cut-off Timing Applicable NAVValid applications received Upto 3 p.m. NAV of the day immediately preceding the

next business day.Valid applications received After 3 p.m. NAV of the next business day.Applicable for both the schemesa. For allotment of units in respect of purchase: i. Application is received before the applicable cut-off time. ii. Funds for the entire amount of subscription/purchase as per the application are credited

to the bank account of the respective liquid schemes before the cut-off time. The time of credit to the scheme account will only be considered irrespective of time of debit to the investors account.

iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective liquid schemes.

b. For allotment of units in respect of switch-in: i. Application for switch-in is received before the applicable cut-off time. ii. Funds for the entire amount of subscription/purchase as per the switch-in request are

credited to the bank account of the respective switch-in liquid schemes before the cut-off time.

iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective switch-in schemes.



Acceptance/Rejection of applications

The Trustees/AMC shall have the absolute discretion to accept/reject any application for purchase of units, if in the opinion of the Trustees/AMC, increasing the size of the Scheme’s Unit Capital is not in the general interest of the Unit holders, or the Trustee/AMC for any reason believes it would be in the best interest of the schemes or the unitholders to accept/reject such an application.

How to Apply Please refer to the SAI and Application form for the instructions.Minimum amount for purchase/redemption/switches

UTI-Liquid Cash Plan :–1. Minimum amount of initial investment ` 1 Lac and in multiples of `1/- under both the Plans.2. Subsequent minimum investment amount ` 10,000/- and in multiples of `1/- under both the Plans.

UTI-Money Market Fund :-1. Minimum amount of initial investment ` 10,000/- and in multiples of ` 1/- under both the Plans.2. Subsequent minimum investment amount `10,000/- and in multiples of ` 1/- under both the Plans. UTI AMC reserves the right to limit the amount that it would accept from a single investor on

any business day. Presently, this amount is ` 100 crore.

Minimum amount of redemption under both the schemesMinimum amount for redemption is `10,000/-

SwitchoverUnit holders may be permitted to switchover their investment partially or fully between the two schemes and also to any other scheme/s of UTI MF or vice versa as may be allowed from time to time on such terms as may be announced by UTI AMC from time to time. In case of partial switchover between the schemes or from one plan/scheme to the other plan/s/scheme/s, the condition of holding minimum investment prescribed under all the plans/schemes has to be satisfied. Similarly changeover between the options of the schemes may also be allowed.


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Know Your Customer Know Your Customer (KYC) NormsCommon Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI.However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual FundKYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:1. Instances where no action is requireda) In the case of those individual investors and non-individual investors, other than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.b) Existing investors of UTI MF, who are already KYC compliant as per UTI MF’s records on or before 31.12.2011, may continue to invest for their future transactions (including additional purchases, Systematic Investment Plans [SIPs], etc.) under the existing folios which are KYC Compliant.2. Instances where partial action is requireda) All those Individual Investors who wish to open a new folio with UTI Mutual Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.b) Entities which are Corporates, Partnership Firms and Trusts and which have complied with Uniform KYC requirements on or after January 1, 2012, are required to submit their Balance Sheet for every financial year on an ongoing basis, within a reasonable period.3. Instances where complete KYC compliance is requireda) For existing investors as well as new investors who are not yet KYC Compliant, are required to submit the KYC Application from duly filled in with requisite documentary proofs to KRAs along with completion of IPV process, to comply with uniform KYC requirements as stipulated by SEBI in case they intend to make purchase/additional purchase/switches/SIP etc. with UTI Mutual Fund.b) In case of Non Individual investors even if they are KYC compliant prior to December 31, 2011, uniform KYC requirements need to be complied with afresh due to significant and major changes in uniform KYC requirements by submitting KYC form for Non-Individuals with requisite documentary proofs, if they intend to open a new folio with UTI Mutual Fund.PAN-Exemption for micro financial productsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable.Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.


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Third party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions.“Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made.For further details, please refer to SAI.


Partial redemption will be allowed, provided that such redemption does not result in the unitholder having investment less than the minimum investment amount in his folio to be reckoned at prevailing NAV. If the application for partial redemption is for an amount which leaves a balance of less than the required minimum investment amount, UTI AMC may redeem the entire outstanding holding of the unitholder without requiring the unitholder to make any fresh application for redemption of the balance holding.The Minimum Account Balance to be maintained under UTI-Liquid Cash Plan-Institutional Plan is Nil. Minimum balance to be maintained in a folio under UTI-Money Market Fund under any of the plans is `10,000/-.

Special Products /Facilities

Demat facility is available under UTI-Liquid Cash Plan & UTI-Money Market Fund.Systematic Transfer Investment Plan (STRIP): UTI-Liquid Cash Plan & UTI-Money Market Fund are source schemes under STRIP.UTI-STRIP Advantage: UTI-Liquid Cash Plan & UTI-Money Market Fund are source schemes under UTI-STRIP Advantage.Dividend Transfer Plan (DTP): UTI-Liquid Cash Plan & UTI-Money Market Fund are Source / Target schemes under DTP.Please refer to Statement of Additional Information (SAI) and the respective Form for further details relating to STRIP, UTI-STRIP Advantage & DTP.

Statement of Account (SoA)

(a) SoA will be a valid evidence of admission of the applicant into the scheme. However, where the units are issued subject to realisation of cheque/ draft any issue of units to such unitholders will be cancelled and treated having not been issued if the cheque/draft is returned unpaid.









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(e) For those unit holders who have provided an e-mail address/mobile number:- The AMC shall continue to allot the units to the unit holders whose application has been

accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later then five business days from the date of receipt of the request from the unit holders.




The unitholder may request for a physical account statement by writing/calling the AMC/R&T.Friend in Need “Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-

resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors.For further details, please refer to SAI.

Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.In the event of failure of despatch of dividend within the stipulated 30 day period, the AMC shall be liable to pay interest at such rate as may be specified by SEBI to the unit holders (presently @ 15 per cent per annum).

Redemption

Exit load on death of an unitholder

The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date of redemption.UTI AMC shall endeavour to send the redemption cheque not later than 2 business days from the date of acceptance of an application on the prescribed form at the centre where the redemption requests are processed for requests which are complete in all respects.In case of funds received through Cash payment mode, the redemption or repurchase proceeds shall only be to the designated bank account.In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI.



Transfer/Pledge/ Assignment of Units

Units issued under the scheme are not transferable/pledgeable/assignable.However, if a person becomes a holder of units under a scheme by operation of law or due to death, insolvency or winding up of the affairs of a unitholder or survivor of a unitholder then subject to production of such evidence which in the opinion of UTI AMC is sufficient, UTI AMC may effect the transfer if the intended transferee is otherwise eligible to hold units. Transfer of units in such cases will be subject to compliance of operational requirements as may be specified by UTI AMC from time to time.


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Units issued in the official capacity, shall be deemed to be transferred without any instrument of transfer from each holder of the office to succeeding holder of the office on and from the date on which the latter takes charge of the office.Units held in demat formUnits of the schemes held in dematerialised form shall be freely transferable from one demat account to another demat account. For details of terms and conditions governing such transferability of units, kindly refer to the Statement of Additional Information.The facility of conversion of units held in Dematerialisation (Demat) mode into physical by way of Rematerialisation (Remat) for investments held under various options of the Scheme(s) / Plan(s) of the UTI Mutual Fund is allowed wherever Demat facility is available. For further details please refer to SAI.In addition to the existing facilities, the facility to transact in units of Schemes is extended for investors having demat account through clearing members of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for accepting Purchase and Redemption transactions and through Depository Participants of National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) for accepting Redemption Transactions. For details of terms and conditions, kindly refer to the Statement of Additional Information.For further details on Transfer/Pledge/Assignment of Units, please refer to SAI.



The Mutual Fund shall declare the Net asset value of UTI-Liquid Cash Plan and UTI-Money Market Fund every calender day on AMFI’s website www.amfiindia.com and also on the website of UTI Mutual Fund www.utimf.com

Monthly Portfolio Disclosure

The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of the month for all its schemes on its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format.The format for monthly portfolio disclosure shall be the same as that of half yearly portfolio disclosures.The Mutual Fund shall also disclose additional information (such as ratios etc) subject to compliance with the SEBI Advertisement Code.


The Mutual Fund shall within one month from the close of each half year, (i.e. 31st March and 30th September), host a soft copy of its unaudited financial results on its website.The Mutual Fund shall publish an advertisement disclosing the hosting of such financial results on the website, in atleast two newspaper one national English daily newspaper having nationwide circulation and one in a newspaper having wide circulation published in the language of the region where the Head Office of UTI MF is situated. The Mutual Fund shall also, within one month from the close of each half year, (i.e. 31st March and 30th September), publish by way of an advertisement a complete statement of its scheme portfolio in one English daily circulating in the whole of India and in a newspaper published in the language of the region where the head office of UTI MF is situated.



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Associate Transactions

Please refer to Statement of Additional Information (SAI).

TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. For further details on taxation please refer to the clause on Taxation in the SAI.Income SchemesTax on Dividend

Capital Gains:Long Term

Short Term

Resident Investors – NilMutual Fund - Nil

Resident Investors20% with indexation or 10% without indexation whichever is lower, plus surcharge, if applicable, plus education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge.Mutual Fund - Nil

Resident InvestorsNormal Tax rate applicable to assesses.Mutual Fund - Nil

Under the terms of the SID, UTI-Liquid Cash Plan and UTI-Money Market Fund are classified as liquid fund/money market fund. As per section 115R of the Act, for UTI-Liquid Cash Plan and UTI-Money Market Fund, dividend distribution tax rate for distribution of income is 25% (for individuals or HUFs) and 30% (for any other person) respectively, plus applicable surcharge, education cess @ 2% and secondary and higher secondary cess @ 1%.Investor services All investors could refer their grievances giving full particulars of investment at the

following address:Shri G S AroraAssistant Vice President – Department of OperationsUTI Asset Management Company Ltd.,UTI Tower, Gn Block, Bandra-Kurla Complex,Bandra (East), Mumbai – 400 051.Tel: 022-6678 6666, Fax: 022-26523031Investors may post their grievances at our website: www.utimf.com or e-mail us at [email protected]

C. COMPUTATION OF NAV(a) The Net Asset Value (NAV) of the units issued under the schemes shall be calculated by determining the value of the

scheme’s assets and subtracting therefrom the liabilities of the scheme taking into considera tion the accruals and provisions. NAV shall be declared separately for different plans/options of the schemes.

(b) The NAV per unit of a scheme shall be calculated by dividing the NAV of the scheme by the total number of units issued and outstanding on the valuation day. The NAV will be rounded off upto four decimal places.

(c) NAVs will be calculated for every calender day under UTI-Liquid Cash Plan and UTI-Money Market Fund.(d) The NAVs shall be published atleast in two daily newspapers on every business day and will also be available on

website of UTI Mutual Fund www.utimf.com and website of AMFI www.amfiindia.com.


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IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the schemes.A. ANNUAL SCHEME RECURRING EXPENSES: 1. These are the fees and expenses for operating the schemes. These expenses include Investment Management


The AMC has estimated that upto 2.25% of the daily net assets of a scheme will be charged to a scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of UTI Mutual Fund.

Particulars % of Net Assets % of Net AssetsUTI-Liquid

Cash Plan – Institutional Plan

UTI-MMF –Institutional Plan


Up to 2.25% Up to 2.25%

Trustee FeeAudit FeesCustodian FeesRTA FeesMarketing and Selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory AdvertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther ExpensesMaximum total expense ratio (TER) permissible under Regulations 52 (6) (c)Additional expenses under regulation 52(6A) (c) Up to 0.20% Up to 0.20%Additional expenses for gross new inflows from specified cities under Regulation 52(6A)(b)

Up to 0.30% Up to 0.30%



2. UTI AMC seeks to maintain high overall expense efficiency in managing the schemes. The total annual recurring expenses of the scheme excluding redemption expenses but including the investment management and advisory fees shall be subject to the following limits:

(i) On the first `100 crore of the daily net assets of the scheme - 2.25% (ii) On the next `300 crore of the daily net assets of the scheme - 2.00% (iii) On the next `300 crore of the daily net assets of the scheme - 1.75% (iv) On the balance of the assets of the scheme - 1.50% 3. Total Expense ratio (TER) and Additional Total Expenses: (i) Charging of additional expenses based on new inflows from beyond 15 cities


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1. Additional TER shall be charged upto 30 bps on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of t h e scheme, whichever is higher.



365* X Higher of (a) or (b) above * 366, wherever applicable. 3. Additional expenses, not exceeding 0.20

per cent of daily net assets of the scheme, shall be charged towards Investment Management and Advisory fees charged by the AMC (‘AMC fees’) and for recurring expenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under different heads as mentioned under SEBI Regulations.






6. For further details on TER, please refer to SAI.

(ii) Service Tax 1. UTI AMC shall charge service tax on investment




4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations




(1) Load is an amount which is paid by the investor to redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or may call at 1800 22 1230 (toll free number) or at 022-26546200 (non toll free number) or your distributor.

Load Structure for all plans under the respective schemes:

Entry Load (As % of NAV): NIL In accordance with the requirements specified

by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/Micro SIP/Systematic Transfer Investment Plans accepted by the Fund.

Type of Load

UTI-Liquid Cash Plan

UTI-Money Market Fund

(As % of NAV)*Entry NIL NIL

*Exit NIL NIL

* Switch in/out, Systematic Investment Plan (SIP)/Micro SIP, Systematic Transfer Plan (STRIP), UTI-STRIP Advantage and Systematic Withdrawal Plan (SWP) will also attract Load like regular Purchases and Redemption.


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dated August 22, 2011, a transaction charge of `100/- for existing investors and `150/- in the case of first time investor in Mutual Funds, per subscription of `10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.



If the investor has not ticked in the Application form whether he/she is an existing/new investor, then by default, the investor will be treated as an existing investor and transaction charges of ̀ 100/- will be deducted for investments of ̀ 10,000/- and above and paid to distributor/financial advisor etc., whose information is provided by the investor in the Application form. However, where the investor has mentioned ‘Direct Plan’ against the scheme name, the Distributor code will be ignored and the Application will be processed under ‘Direct Plan’ in which case no transaction charges will be paid to the distributor.



Distributors shall also have the option to either opt in or opt out of levying transaction charge based on category of the product. The various category of product are as given below:Sr. No. Category of product

1 Liquid/ Money Market Schemes2 Gilt Schemes3 Debt Schemes4 Infrastructure Debt Fund Schemes5 Equity Linked Saving Schemes (ELSS)6 Other Equity Schemes7 Balanced Schemes8 Gold Exchange Traded Funds9 Other Exchange Traded Funds


Where a distributor does not exercise the option, the default Option will be Opt–out for all above

categories of product. The option exercised for a particular product category will be valid across all Mutual Funds.




For any change in load structure AMC will issue an addendum and display it on the website/UTI Financial Centres.









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V. RIGHTS OF UNITHOLDERS Please refer to SAI for details.VI. PENALTIES, PENDING LITIGATION OR




Financial Year

Status Remark


Dividend Tax

Demand not raised


2008-2009 Nil Reported (b) Penalties and Proceedings against Bank of

Baroda:- (i) Pune Region: Sponsor and Branch: Bank of Baroda, Laxmi

Road, Pune City Name of Complainant: Pune Municipal

Corporation (PMC) Court/Tribunal / Case No. & Year: Supreme court

SLP (C) No. 23299/2010 Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/Type of offence & section:

Bank filed a writ petition before Bombay HC challenging the arbitrary demand of the PMC & the provisions under Pune Municipal Corporation (Octroi) Rules 2008 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.



Total No. of Cases: 1 Total amount involved / claimed amt: ̀ 94.22 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs) : Nil (ii) Nagpur Region: Sponsor and Branch: Bank of Baroda, RO,




Section 154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited ` 2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.

Bank’s reply/defence: Octroi duty for the gold coins is paid at Mumbai. Corporation has not complied with the statutory rules of NMC Act


34

while taking action against Bank. Assistant commissioner has no legal authority or power to adjudicate as to whether evasion has taken place. Findings of the octroi commissioner is arrived without any show cause notice and without any opportunity of being heard infringing the principal of natural justice.

Present Status & Remarks: High court has granted stay on the execution of the bill for penal octroi duty dated 02/09/2010. Last date of hearing was fixed on 07/03/2012 for arguments. Next date of hearing fixed after eight weeks.

Amount of provisioning made / required: ` 2.92 lacs

Total No. of Cases: 1 Total amount involved / claimed amt: ` 8.85 lacs No. of cases where the provisioning is made: 1 Amount of Provisioning : ` 2.92 lacs (iii) Aurangabad Region: Sponsor and Branch: Bank of Baroda, Nasik Name of Complainant: Nasik Municipal





Present Status & Remarks: Matter was listed before Registrar on 07.01.2011. Since the pleading in the matter is not completed Registrar has adjourned the matter to 18.02.2011. Next date is 16.04.2011 for Admission. Matter is pending before Supreme Court.

Total No. of Cases: 1 Total amount involved / claimed amt: ` 5.95 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil

(iv) Ahmedabad Region: Sponsor and Branch: Bank of Baroda, Nandini

Complex Name of the party/complainant: Income Tax Name of the Court/Forum & Case no.: High

Court of Gujarat / Tax Appeal No 2028 & 2029 of 2010

Amount involved (`): 65,75,664 Nature of the case/type of offences and Section:




Present Status and remarks: Nil (v) Region-DMR-1 (NZ): i. Sponsor and Branch: Bank of Baroda, IBB

branch Name of the party/complainant: Special









35






Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of one Mr. Sarbir Singh, from 25.01.92 to 31.01.92. The Directorate Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of ` 5 lacs was imposed. Appeal filed with Appellate Authority, which has been dismissed on 07.12.2007. Criminal Appeal before the Delhi High Court has been filed, which is pending.



Total No. of Cases: 2 Total amount involved: ` 15 lacs iii. Sponsor and Branch: Bank of Baroda, Camac

Street Name of the party: Special Director of




loan of `2.55 crores to M/s Corpus Credit & Leasing Ltd., against FCNR FDR of $1 million (US) belonging to Mrs. And Mr. Bhagwandas & Devbala Pawani held with Camac Street Branch. The then Chief Manager procured the said FDR of Pawanis from their International Branch and handed over the same to borrower. Investigations conducted under provisions of FERA revealed that the signatures of Mrs And Mr Pawani on the account opening form did not match with those

on the consent letter, discharged FCNR FDR. Chief Manager had not verified the genuineness of the documents collected from Noticee No. 4 either from the Pawanis or from International Branch, Bank of Baroda, Dubai.

Bank’s Reply/defence: Bank followed all the directions of RBI and remittance of $ 1 million (US) was received by Bank through authorized banking channel and was genuine. Further, the proceeds of the FCNR FDR, along with interest thereon, was paid by the Bank to the Pawanis on maturity, in accordance with established remittance. Hence, there was no violation of FERA. The loan granted to the borrower company M/s Corpus Credit & Leasing Ltd. was a rupee loan and involved no outgo of foreign exchange.

Present Status and remarks: Special Director has imposed a penalty of `10,00,000 (Rupees Ten Lakhs) on the Bank for violation of FERA. Bank filed an appeal against the same before the Appellate Authority for Foreign Exchange, Ministry of Law, Justice & Company Affairs. Next date on hearing on waiver of penalty imposed on Bank would be advised soon.



(ii) Bank of Mauritius imposed a penalty of MUR 100,000/- i.e. equivalent of ` 175,000/- for a violation reported in December 2012. This was due to non-adherence of guidelines on advertisement by Bank of Mauritius.



36



(c) The BoB had acted as lead managers to the public issue of Kraft Industries Limited (“Kraft”) in May 1995. It is alleged that the Managing Director and Promoter of Kraft did not possess the qualifications as mentioned in the prospectus. SEBI has asked for qualification certificates/copies from the Bank. The Managing Director

of Kraft has reported having lost the certificates in transit. The Bank has replied accordingly to SEBI.

(d) SEBI served show cause notice under rule 4 of the adjudication Rules for the deficiencies observed in Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has filed Consent Application with SEBI on 7th March 2013.








37





The Commissioner has passed order u/s 263 for the Assessment Year 2006-07 directing the assessing officer to do a fresh assessment in respect of scheme expenses. The company has filed an appeal before Hon’ble Tribunal against the order of the commissioner. Subsequently the assessing officer has passed the reassessment order raising demand of Rs 23.9 million, against which based on the stay order obtained, Company has paid Rs 11.9 million. The company has again filed an appeal before CIT (A) against such order. The company does not expect the demand to crystallize into liability.

UTI-Gold Exchange Traded Fund (UTI-Gold ETF): The Maharashtra Sales Tax authorities have

disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of ` 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.




38



AHMEDABAD REGION


BENGALURU REGION


CHANDIGARH REGION


CHENNAI REGION



39

DELHI REGION


GUWAHATI REGION


KOLKATA REGION


LUCKNOW REGION


MUMBAI REGION



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NAGPUR REGION


UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Ashoka Estate, Shop No. 14/A, Upper Ground Floor, Sakri Road Opp. Santoshi Mata Mandir Dhule – 424 002 Tel.: (02562) 282824 / 23 Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.



STOCK BROKERS REGISTERED ON THE MUTUAL FUND PLATFORM OF NSE/BSE AND ALSO EMPANNELLED WITH UTI MF ARE OFFICIAL POINTS OF ACCEPTANCE

UTI-Fixed Maturity Plan(A close-ended umbrella income scheme)


v Regular income for short term

v Investment in Debt/Money Market Instrument/Govt. Securities

v Low risk (Blue)


Note: Risk may be represented as:(BLUE) investors understand that their principal will be at low risk



UTI Mutual Fund

UTI Asset Management Company Limited

UTI Trustee Company Private LimitedAddress of the Mutual Fund, AMC and Trustee Company: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.

The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / UTI Financial Centres (UFCs) / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com.



This Scheme Information Document is dated January 23, 2014

UTI-FIXED MATURITY PLAN

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TABLE OF CONTENTS


I INTRODUCTIONA. Risk Factors 5B. Requirement of minimum investors in the Scheme 6C. Definitions 7D. Due Diligence by the Asset Management Company 10

II. INFORMATION ABOUT THE SCHEMEA. Type of the Scheme 11B. What is the investment objective of the Scheme? 11C. How will the Scheme allocate its assets? 11D. Where will the Scheme invest? 15E. What are the Investment Strategies? 16F. Fundamental Attributes 17G. How will the Scheme Benchmark its performance? 17H. Who manages the scheme? 17I. What are the Investment Restrictions? 18J. How has the Scheme performed? 18

III. UNITS AND OFFERA. A New Fund Offer 19B. Ongoing Offer Details 24C. Periodic Disclosures 32D. Computation of NAV 34

IV. FEES AND EXPENSESA. New Fund Offer (NFO) Expenses 35B. Annual Scheme Recurring Expenses 35C. Load Structure 36



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HIGHLIGHTSNature of scheme UTI-Fixed Maturity Plan (formerly IL&FS Fixed Maturity Plan) is a close-ended Umbrella Income

Scheme comprising of several Investments Plans.“UTI-Fixed Maturity Plan” (the Scheme) will comprise of three series viz., Quarterly, Half-Yearly and Yearly Series and within the Series, various Fixed Maturity Plans (FMPs). The Scheme proposes to launch the 4 FMPs under these Series every month and as detailed in the schedule given on Pages 4. Each FMP identified by a distinct number, will have a portfolio of Debt / Money Market Instruments and Government securities normally maturing in line with the time profile of each FMP.Each plan apart from having a separate portfolio will follow all disclosure requirements and other norms as specified under the Regulations.

Investment objective

The investment objective of the Scheme and Plans launched there under is to seek regular returns by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective Plans, thereby enabling the investors to nearly eliminate interest rate risk by remaining invested in the Plan till the Maturity / Final Redemption.However there can be no assurance that the investment objective of the Scheme will be achieved. The Plans do not guarantee / indicate any returns.

Plans and Options Each Plan shall offer Regular Plan and *Direct Plan having Growth and Dividend Option with Dividend Payout and Dividend Reinvestment facility.*Direct Plan:There will be a separate plan for direct investments i.e. investments not routed through a distributor. This plan shall have a lower expense ratio excluding distribution expenses, commission etc. and have a separate NAV. No commission shall be paid/charged from Direct Plan. Portfolio of the Scheme under the Regular Plan and Direct Plan will be common.

Liquidity During the new fund offer, the units of the plans will be sold at the face value of `10/- per unit.Redemption will be done on the maturity date at the Net Asset Value of the date of maturity of the respective plan of the scheme.As per SEBI guidelines, the AMC/Mutual Fund shall not redeem the units of the scheme/plan before the date of maturity.The units of each plan of the scheme will be listed on the National Stock Exchange (NSE) and / or any other stock exchange(s), as may be decided by UTI AMC, after the closure of the New Fund Offer period. Investors will be able to enter and exit the fund through transactions in the secondary market.

Redemption / Maturity

Each Plan will have a Maturity Date / Final Redemption Date. Each Plan will compulsorily and without any further act by the Unitholder (s) be redeemed on the Maturity / Final Redemption Date. On Maturity / Final Redemption Date of the Plan, the Units under the Plan will be redeemed at the Applicable NAV. For Redemptions made on the Maturity Date / Final Redemption Date, at present, the AMC does not intend to charge any Exit Load.

Benchmark No comparable benchmark available.

Transparency/ NAV Disclosure

The AMC will calculate and disclose the first Net Asset Value of the respective Plan not later than 5 business days from the date of allotment. Subsequently, the NAV will be calculated and disclosed at the close of every Business Day.

Loads Load structureEntry Load : NilExit Load : NilRedemption not permitted before maturity.

Minimum Application Amount

The minimum amount under any Plan viz., Regular Plan or Direct Plan is `10,000/- and in multiples of `10/-. thereafter


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SCHEDULE OF UTI FIXED MATURITY PLANSchedule of UTI-Fixed Maturity Plan and details of the FMPs proposed to be launched under each series viz., Plans and Options available there under and Fixed Maturity / Redemption Dates are as under:

Quarterly Series Half-Yearly Series Yearly Seriesi) Regular Plana) Dividend Optionb) Growth Optionii) Direct Plana) Dividend Optionb) Growth Option

i) Regular Plana) Dividend Optionb) Growth Optionii) Direct Plana) Dividend Optionb) Growth Option

i) Regular Plana) Dividend Optionb) Growth Optionii) Direct Plana) Dividend Optionb) Growth Option

Fixed Maturity Series

Options under each FMP

Duration of the FMP

New Fund Offer Period Fixed Maturity / Redemption Date

Identification number

QuarterlySeries(QFMP)

Growth andDividend havingDividendReinvestment facility.

94 days For a period not exceeding 7 business days (or such number of days not exceeding 15 days) at the end of which allotment shall be made. The face value of unit is `10/-.

95th day from thedate of closure of the Offer Period of the Plan.

QFMP / Month Year / Plannumber

Half-YearlySeries(HFMP)



187th day from the date of closure of the Offer Period of the Plan.

HFMP / Month Year

YearlySeries(YFMP)



397th day from the date of closure of the Offer Period of the Plan.

YFMP / Month Year

The Scheme proposes to launch 4 FMPs under these series every month, with 2 FMPs to be launched every fortnight as per the Schedule given below.Tentative Launch Schedule:Quarterly Series (QFMPs): It is proposed to launch 2 FMPs under the Quarterly Series every month, one each on 1st and the 16th of the month. The QFMPs under this Series shall be identified by a distinct number indicated by the Month and Year of launch and the FMP number. For e.g. the first QFMP to be launched on April 1, 2014 is identified as “QFMP / 0414 / I”.Half-Yearly Series (HFMP): It is proposed to launch 1 FMP under the Half-Yearly Series, on 1st of every month. The HFMPs shall be identified by a distinct number indicated by the Month and Year. For e.g. the Plan of this Series to be launched in April 2014 is identified as “HFMP / 0414”.Yearly Series (YFMP): It is proposed to launch 1 FMP under the Yearly Series on the 16th of every month. The YFMPs shall be identified by a distinct number indicated by the Month and Year. For e.g. the YFMP to be launched during the NFO in the month of April, 2014 is identified as “YFMP / 0414”.To summarise, the Scheme envisages launch of the following Fixed Maturity Plans.

Name of Series Date of launch Date of closure **1 Quarterly Series having a duration of 94 days 1st of every month

16th of every month15th of that monthLast business day of that month.

2 Half-Yearly Series having a duration of 186 days 1st of every month 25th of that month

3 Yearly Series having a duration of 396 days 16th of every month Last business day of that month.

** New Fund Offer period of the schemes will be as per SEBI guidelines which is currently restricted to a maximum 15 days The Trustees reserve the right to terminate a particular FMP from a notified date, should the number of unitholders in the FMP and / or the size of net assets of the FMP go below an economic size as determined by the Trustees.


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Each Plan will be redeemed on the Maturity / Redemption Date. On the Maturity / Final Redemption Date of the Plan, the Units under the Plan will be redeemed at the Applicable NAV. It should be further noted that if the Maturity / Final Redemption date is not a Business Day then the Redemption date would be the next Business Day.Each Plan will invest predominantly in instruments maturing before the Maturity / Final Redemption Date of that Plan. The Plans will be managed as separate portfolios. Should there be no securities available to meet the above investment pattern for a particular Plan, the amount mobilized under the Plan will be invested in securities with suitable maturity till such time as appropriate securities become available. However such securities shall also have maturity on (or) before date of maturity of the scheme as per SEBI guidelines.Each Plan, when offered for Purchase would be open, for a period not exceeding 7 Business Days or for such number of days (not exceeding 15 Business days) as may be decided by the AMC.

I. INTRODUCTIONA. RISK FACTORS:Standard Risk Factors:a. Investment in Mutual Fund Units involves investment


b. As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down.

c. Past performance of the Sponsors/AMC/Mutual Fund does not guarantee future performance of the scheme.

d. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns.

e. The sponsors are not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of `10000/- made by it towards setting up the Fund.

f. The present scheme is not a guaranteed or assured return scheme.

g. Statements/Observations made are subject to the laws of the land as they exist at any relevant point of time.

h. Growth, appreciation, dividend and income, if any, referred to in this Scheme Information Document are subject to the tax laws and other fiscal enactments as they exist from time to time.

i. Mutual funds, like securities investments, are subject to market and other risks and there can be no guarantee against loss resulting from an investment in the Scheme nor can there be any assurance that the Scheme’s objectives will be achieved.

j. As with any investment in securities, the NAV of the

Units issued under the Scheme can go up or down depending on various factors that may affect the values of the Scheme’s investments. In addition to the factors that affect the value of individual securities, the NAV of the Scheme can be expected to fluctuate with movements in the broader bond markets and may be influenced by factors affecting bond markets in general, such as, but not limited to, changes in interest rates, changes in governmental policies and increased volatility in the bond and money markets.

SCHEME SPECIFIC RISK FACTORS & SPECIAL CONSIDERATIONS:a. The NAV of the Scheme’s Units, to the extent that the

Scheme is invested in fixed income securities, will be affected by changes in the general level of interest rates. When interest rates decline, the value of a portfolio of fixed income securities can be expected to rise. Conversely, when interest rates rise, the value of a portfolio of fixed income securities can be expected to decline.

b. Debt securities are subject to the risk of an issuer’s inability to meet interest and principal payments on its debt obligations (credit risk). Debt securities may also be subject to price volatility due to factors such as changes in interest rates, general level of market liquidity and market perception of the creditworthiness of the issuer, among others (market risk). The Investment Manager will place considerable emphasis on the credit rating of the issuer and therefore will only invest in securities that are rated investment grade by a regulated credit rating agency such as CRISIL, ICRA, CARE etc, or in unrated debt securities, which the Investment Manager believes to be of equivalent quality. Market risk will be addressed by analyzing various economic trends in order to seek to determine the likely future course of interest rates.

c. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme or from maturities in the Scheme are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be reinvested will fall.

Each Plan will invest predominantly in instruments maturing before the Maturity / Final Redemption Date of that Plan as per SEBI guidelines.

d. Lower rated or unrated securities are more likely to react to developments affecting the market and the credit risk than the highly rated securities which react primarily to movements in the general level of interest rates. Lower rated securities also tend to be more sensitive to economic conditions than higher rated securities. The Investment Manager will consider both credit risk and market risk in making investment decisions.


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e. Zero coupon or deep discount bonds are debt obligations that do not entitle the holder to any periodic payment of interest prior to maturity of a specified date when the securities begin paying current interest and therefore are generally issued and traded at a discount to their face values. The discount depends on the time remaining until maturity or the date when securities begin paying current interest. It also varies depending on the prevailing interest rates, liquidity of the security and the perceived credit risk of the issuer. The market prices of zero coupon securities are generally more volatile than the market prices of securities that pay interest rates periodically and are likely to respond to changes in interest rates to a greater degree than other coupon bearing securities having similar maturities and credit quality.

f. As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rate hence the risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio.

g. The credit risk factors pertaining to lower rated securities also apply to lower rated zero coupon or deferred interest bonds. Such bonds carry an additional risk in that, unlike bonds that pay interest throughout the period to maturity, the Scheme would not realize any cash until interest payment on the bonds commence and if the issuer defaults the Scheme may not obtain any return on its investment.

h. The value of the Scheme’s investments may be affected generally by factors affecting capital markets such as price and volume volatility in the stock markets, interest rates, currency exchange rates, foreign investments, changes in Government policies, taxation, political, economic or other developments and closure of the stock exchanges. There is also risk of loss due to lack of adequate external systems for transferring, pricing, accounting and safekeeping or record keeping of securities. Consequently the NAV of the Scheme may fluctuate and the value of the Units may go down as well as up.

i. Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger amount of liquidity risks, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. The AMC may choose to invest in unlisted securities that offer attractive yields. This may increase the risk of the portfolio.

j. From time to time and subject to the Regulations, the Sponsor, Investment companies of the Sponsor, Funds managed by the Sponsor, their affiliates, associate companies, subsidiaries, the AMC, Trustee Company or any other unitholder may invest either

directly or indirectly in the Scheme. These entities may acquire a substantial portion of the Scheme Units and collectively constitute a major investor in the Scheme. Accordingly, redemption of Units by these entities may have an adverse impact on the Units of the Scheme because the timing of such redemption may impact the ability of other Unit holders to redeem their Units.

Risk Factors of investment in Overseas financial AssetsTo the extent that the assets of the schemes will be invested in securities denominated in foreign currencies, the Indian rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee (If Indian rupee appreciates against these foreign currency). The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. The scheme may have to pay applicable taxes on gains from such investment.The Scheme may use various derivative products, from time to time, in an attempt to protect the value of the portfolio and enhance Unit holders’ interest. Derivative products are specialised instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. See paragraph on Derivatives and Hedging products in Section II.Risk Factors viz., Interest Rate Swaps (IRS) and Forward Rate Agreements (FRA)Some of the risks associated with IRS and FRAs are as below:(a) Counterparty Risk: This refers to the risk of credit and

settlement. Specifically it refers to the event that the counterparty in the IRS/FRA deal is unable to meet its commitment and defaults on its obligations

(b) Basis Risk: Basis risk is the risk of mismatch i.e. the risk that arise when the underlying asset/ liability is not perfectly correlated with the derivative position

(c) Liquidity Risk: This refers to the risk associated with the ease with which a derivative position can be unwound


The Scheme(s) and individual Plan(s) under the Scheme(s) shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme(s)/Plan(s). These conditions will be complied with immediately after the close of the NFO itself i.e. at the time of allotment. In case of non-fulfillment with the condition of minimum


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20 investors, the Scheme(s)/Plan(s) shall be wound up in accordance with Regulation 39 (2) (c) of SEBI (MF) Regulations automatically without any reference from SEBI. In case of non-fulfillment with the condition of 25% holding by a single investor on the date of allotment, the application to the extent of exposure in excess of the stipulated 25% limit would be liable to be rejected and the allotment would be effective only to the extent of 25% of the corpus collected. Consequently, such exposure over 25% limits will lead to refund within 5 Business days of the date of closure of the New Fund Offer. The aforesaid would be applicable at the portfolio level.

C. DEFINITIONSIn this Scheme Information Document the following interpretation have been used, unless the context requires otherwise. Some abbreviations / entities have also been defined under the heading ‘Summary’.1. “Acceptance date” or “date of acceptance” with

reference to an application made by an applicant to the UTI Asset Management Company (UTI AMC) for purchase or redemption of units means the day on which the UTI Financial Centres (UFCs)/Registrar or the other official points of acceptance (as per the list attached with this Scheme Information Document) or notified hereafter, after being satisfied that such application is complete in all respects, accepts the same.



4. “AMFI” means Association of Mutual Funds in India.5. “Applicable NAV” the NAV applicable for redemption

requests or Switches, as the context may require, as defined in this Scheme Information Document based on the time of the Business Day on which the application is accepted.



8. “Asset Management Company/UTI AMC/AMC/Investment Manager” means the UTI Asset Management Company Limited incorporated under the Companies Act, 1956, (1 of 1956) and approved as such by Securities Exchange Board of India (SEBI) under subregulation (2) of Regulation 21 to act as the investment manager to the schemes of UTI Mutual Fund.

9. “Auditor” Auditor of the Scheme, currently M/s Chhajed & Doshi.

10. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under the scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/ changeover / switchover of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time.

The AMC reserves the right to declare any day as a Business Day or otherwise at any or all official Points of Acceptance.

11. “CDSL” means Central Depository Services (India) Ltd.


13. “Depository” means a body corporate as defined in Depositories Act, 1996 (22 of 1996) and includes National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL).

14. “Dividend” Income distributed by the Scheme on the Units.

15. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes `depository’ within the meaning of Clause(e) of Subsection (1) of Section 2 of The Depositories Act, 1996.

16. “Exit Load” Load on Redemption / Switch Out of Units.17. “FII” Foreign Institutional Investor, registered with

SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, as amended from time to time.


8

18. “Firm”, “partner” and “partnership” have the meanings assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression partner shall also include any person who being a minor is admitted to the benefits of the partnership.


20. “Government securities or Gilts” Security created and issued by the Central Government and / or a State Government or any other security prescribed as a Government Security under the Public Debt Act, 1944.




24. “Market” means any recognized Stock Exchange(s) including the National Stock Exchange (NSE) where UTI-Fixed Maturity Plan units are listed and traded.

25. “Maturity Date / Final Redemption Date” The Maturity Date / Final Redemption Date(s) is the date (or the immediately following Business Day, if that date is not a Business Day) on which the Outstanding Units (including the Units allotted on Dividend Reinvestment) under the respective Plan will be compulsorily and without any further act by the Unitholder(s) redeemed at the Applicable NAV.


27. “NAV” Net Asset Value per Unit of the Scheme and the Plans / Options therein, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI Regulations in force from time to time.

28. “New Fund Offer or NFO or New Fund Offer Period” means offer of the units of the UTI-Fixed Maturity Plan during the New Fund Offer Period.

29. “New Fund Offer Period of the Plans” Offer of units of the Plans under each Series of the Scheme during the New Fund Offer Period of the Scheme and as determined by the AMC at the launch of the Plans subsequent to the New Fund Offer of the Scheme. Each Plan, when offered for Purchase would be open, for a period not exceeding 7 Business Days or for such number of days (not exceeding 15 Business days) as may be decided by the Asset Management Company Limited.

30. “NSDL” means the National Securities Depository Ltd.31. “Non-Resident Indian (NRI)” shall have the meaning

as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.


33. “Official points of acceptance” UTI Financial Centers (UFCs), Offices of the Registrars of the Scheme and any other authorised center as may be notified by UTI AMC from time to time are the official points of acceptance of purchase/changeover/switchover and redemption applications of the scheme. The cut off time that as mentioned in the scheme information document will be applicable at these official points of acceptance. The list of official point of acceptance is attached with this document.

For purchase/redemption/changeover/switchover of units applications received at any authorised collection center, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV for purchase/redemption/changeover or switchover of units.

34. “Purchase / Subscription” Purchase or allotment of Units to the Unitholder upon subscription by the investor/ applicant under the Scheme.

35. “RBI” Reserve Bank of India, established under the Reserve Bank of India Act, 1934.

36. “Registrar” means a person whose services may be retained by UTI AMC to act as the Registrar under the scheme, from time to time.

37. “Regulations” or “SEBI Regulations” mean the SEBI (Mutual Funds) Regulations, 1996, as amended from time to time.

38. “Repo” Sale of Government Securities with simultaneous agreement to repurchase / resell them at a later date.

39. “Scheme Information Document” This document issued by UTI Mutual Fund offering Units of “UTI Fixed Maturity Plan” for subscription.

40. “SEBI” means the Securities and Exchange Board of India set up under the Securities and Exchange Board


9

of India Act, 1992 (15 of 1992).41. “Sponsors” are Bank of Baroda, Punjab National Bank,

Life Insurance Corporation of India and State Bank of India.

42. “Switch” Redemption of Units in one Scheme (including Plans / Options therein) against purchase of Units in any scheme (including Plan / Option therein), on maturity.






48. “Unit holder” means a person holding units in the scheme of the Mutual Fund.

49. “UTI-Fixed Maturity Plan” UTI-Fixed Maturity Plan (an umbrella scheme) and each of the Plans launched thereunder including the Options offered under such Plans referred to individually as the Plan and collectively as the Plans or the Scheme in this Scheme Information Document. Each such Plan being a distinct entity is of the nature of a scheme under the Regulations.

InterpretationFor the purpose of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires.• The terms defined in this Scheme Information

Document include the plural as well as the singular.• Pronouns having a masculine or feminine gender shall

be deemed to include the other.• In this Scheme Information Document, all references

to “dollars” or “$” refers to United States dollars, and “`” Refers to Indian Rupees. A “crore” means “ten million” and a “lakh” means a “hundred thousand”.


10


Due Diligence Certificate submitted to SEBI for UTI-Fixed Maturity PlanIt is confirmed that:

I. the draft Scheme Information Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

II. all legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with.

III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the scheme.

IV. the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid as on date.

Date: January 23, 2014Place: Mumbai

Vivek MaheshwariCompliance Officer


11

II. INFORMATION ABOUT THE SCHEMEA. TYPE OF THE SCHEME The Scheme is a Close-ended Umbrella Income Scheme seeking to generate regular returns through investments

in Debt / Money Market instruments and Government securities normally maturing in line with the time profile of the respective Plans.

The Scheme will comprise of three series viz., Quarterly, Half-Yearly and Yearly Series and within the Series, various Fixed Maturity Plans (FMPs) thereunder. The Scheme proposes to launch 4 FMPs under these Series every month and as detailed in the Schedule given on Page no. 4 Each FMP shall be identified by a distinct number.

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? The investment objective of the Scheme and Plans launched thereunder is to seek regular returns by investing in

a portfolio of fixed income securities normally maturing in line with the time profile of the respective Plans, thereby enabling the investors to nearly eliminate interest rate risk by remaining invested in the Plan till the Maturity / Final Redemption.

However there can be no assurance that the investment objective of the Scheme will be achieved. The Plans do not guarantee / indicate any returns.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation and deviation under the Scheme would be as follows:

Instrument Proportion % of corpus Risk ProfileMinimum Likely Max Upto

Debt Securities and Money Market Securities (including Call money, reverse Repos) with residual average maturity of equal to or less than 410 days (or have put options within a period not exceeding 410 days) and including Securitised Debt

20% 80% 100% Low – Medium

Debt instruments with residual maturity of more than 410 days

- 20% 80% Low

The above stated percentages are only indicative and not absolute. In respect of Quarterly Plans, the investments would be predominantly in Money Market Securities (including Call

money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 100 days (or have put options within a period not exceeding 100 days). In respect of Half-Yearly Plans, the investments would be predominantly in Money Market Securities (including Call money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 200 days (or have put options within a period not exceeding 200 days). In respect of Yearly Plans, the investments would be predominantly in Money Market Securities (including Call money, reverse Repos) and Debt Securities including Government Securities with residual average maturity of equal to or less than 410 days (or have put options within a period not exceeding 410 days).

Asset Allocation under the scheme would be in line with SEBI guidelines on investment in securities.1. OTHER DISCLOSURES 1) Credit Evaluation Policy: Fund house follows a Credit Evaluation Process based on the objective assessment of the business risk,

industry risk, financial risk, liquidity & funding risk and a subjective assessment of management quality, corporate governance, auditor comments, banker’s feedback, risk management systems & processes. The Fund House also takes into account the external rating of the company by accredited rating agencies. It is an ongoing process that includes continuous monitoring and surveillance of companies to adjust for the latest developments within the sector & corporate actions within the group / company.

2) Sectors in which the Scheme shall not invest The Fund will not invest in the securities issued by the companies in the Real Estate Sector. 3) Type of instruments which the schemes propose to invest in Please refer to “Section D – Where will the scheme invest” for details. 4) Floors and Ceilings within a range of 5% of the intended allocation (in %) each sub asset class / credit

rating


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Intended Portfolio allocation :

Credit rating

Instruments

A1 AAA AA A BBB

CDs

CPs

NCDs

Securitized debt

Any others^

The details with regards to the intended allocation for each asset class or credit rating within the range of 5% will be provided at the time of launch of the scheme

^ Category of ‘Any other’ refers to investment in FD, Repo / CBLO and other debt instruments

Note :a) Securities with rating A and AA shall include A+ and A

& AA+ and AA respectively. Similarly Securities with ratings A1 shall include A1+.

b) All investments shall be made based on rating prevalent at the time of investment. Where any paper is having dual rating (rated differently by more than one rating agency) then for the purpose of meeting intended range, the most conservative publicly available rating would be considered.

c) There will not be any deviation between the intended allocation and actual allocation except the following.

i. There can be positive variation in the range w.r.t. rating i.e., scheme may invest in papers of higher rating in the same instrument than indicated

ii. In case of non availability of and taking into account the risk reward analysis of CPs, NCDs; the scheme may invest in Bank CDs having highest ratings (i.e. A1+ or equivalent) or Government Securities, T-Bills, CBLOs. Such deviation may continue till maturity of the scheme, if suitable NCDs CPs of desired credit quality are not available.

iii. At the time of building the portfolio post NFO and towards the maturity of the respective schemes, there may be a higher allocation to cash and cash equivalents.

iv. Further, the above allocation may vary during the duration of the Scheme. Some of these instances are (i) coupon inflow; (ii) the instrument is called or brought back by the issuer; (iii) in anticipation of any adverse credit event etc. In case of such deviations, the Scheme may invest Bank CDs having highest ratings (i.e. A1+ or

equivalent, CBLOs, Government Securities, T-Bills. Deviation, if any, due to such instances may continue till maturity, if suitable NCDs, CPs of desired credit quality are not available.

d) Change in Asset Allocation: Further in the event of any deviations below the minimum limits or beyond the maximum limits as specified in the above table and subject to the notes mentioned herein, the Fund Manager shall review and rebalance the portfolio within 30 days from the date of said deviation (provided such deviation is not too close to maturity of the scheme)

e) The scheme shall not invest in unrated debt instruments. For this purpose, unrated debt securities shall exclude instruments such as CBLO, Reverse Repo, Short Term Deposit and such similar instruments to which rating is not applicable.

2. Change in Investment Pattern: Subject to the SEBI Regulations, the asset allocation

pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only.

Any such change in the asset allocation affecting the investment profile of the Scheme shall be affected only in accordance with the provisions of Regulation 18(15A) of and SEBI (Mutual Funds) Regulations, 1996.

3. Debt and Money Market in India Debt Instrument Characteristics A Debt Instrument is basically an obligation which the

borrower has to service periodically and generally has the following features:

Face Value : Stated value of the paper /Principal Amount

Coupon Zero : fixed or floating

Frequency : Semi-annual; annual, sometimes quarterly

Maturity : Bullet, staggered

Redemption : FV; premium or discount

Options : Call/Put

Issue Price : Par (FV) or premium or discount


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Debt Market Structure The Indian Debt market comprises of the Money

Market and the Long Term Debt Market.

Money market instruments are Commercial Papers(CPs), Certificates of Deposit(CDs), Treasury bills (T-bills), Repos, Interbank Call money deposit, CBLOs etc. They are mostly discounted instruments that are issued at a discount to face value.



Government securities includes central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers) The Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt are through on-tap sales.



Securitised Debt Instruments Asset securitisation is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and

sold in the form of financial instruments. A typical process of asset securitization involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables.


Regulators The RBI operates both as the monetary authority

and the debt manager to the government. In its role as a monetary authority, the RBI participates in the market through open market operations as well as through Liquidity Adjustment facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

Market Participants Given the large size of the trades, the debt market has

remained predominantly a wholesale market.

Primary Dealers Primary dealers (PDs) act as underwriters in the

primary market, and as market makers in the secondary market.

Brokers Brokers bring together counterparties and negotiate

terms of the trade.

Investors Banks, Insurance Companies, Mutual Funds are

important players in the debt market. Other player are Trusts, Provident and pension funds.


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Types of Security Issuances and Eligible Investors


Maturity Investors

Central Government

Dated Securities


Central Government


State Government

Dated Securities


PSUs Corporates Bonds 9.55%-9.65% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII




8.50% - 9.80% 15 days to 1 yr Banks, MFs, Fin Inst, Corporates, Individuals, FIIs




Trading Mechanism


Currently, G-Sec trades are predominantly routed though NDS-OM which is a screen based anonymous order matching systems for secondary market trading in Government Securities owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

4. Investment Strategy and Risk Control

In attempting to deliver optimal returns at controlled risk levels, the Fund strategy is to maintain an ideal balance among various portfolio considerations viz., Portfolio Yield, Liquidity, Credit risk profile and Interest risk profile; keeping in view the current and expected market conditions.

Investment Process

The investment management process uses a structured approach encompassing an a-priori evaluation of factors effecting interest rates. Broadly, these factors are :

• Real economic factors such as Economic Growth, Credit, Investment Demand, Revenue Deficit, Trade Deficit, etc.,

• Monetary Variables such as Money Supply growth, Inflation, Balance of Payments, Exchange Value of Rupee, etc.,

• Policy Variables such as Monetary policy & stance, Fiscal policy & Fiscal Deficit, Structural Issues such as administered rates, reform process etc

• Short Term Factors such as Shape and Structure of yield curve, Corporate spreads, System Liquidity, Market sentiment, etc.,

• External events

• The Fund Managers continuously evaluate market conditions keeping in view all these variables and their expected impact on interest rates. The investment process emphasizes delivery of labelled objective.

5. Underwriting by the Scheme:

The Scheme may undertake underwriting activities in order to augment its income after complying with the approval and compliance processes specified in the Regulations and any other applicable guidelines. The total underwriting


15

obligations of the Scheme at any point of time shall not exceed the total value of net assets under the Scheme together with undistributed profits of the Scheme. The Fund intends to obtain Certificate of Registration under SEBI (Underwriters) Regulations, 1993 for carrying out this activity. Any underwriting commitment for a particular amount by the Mutual Fund will be made as if the Mutual Fund is actually investing that particular amount under the Scheme. Accordingly, all investment restrictions and prudential guidelines related to investments in accordance with the Regulations, shall be applicable. To the extent that the scheme undertakes underwriting obligations, it runs a risk of devolvement of the issue.

D. WHERE WILL THE SCHEME INVEST?

a. Investment Focus

The Scheme will have an appropriate mix of Debt / Money market securities and Government securities (subject to the investment pattern given below) depending on the prevailing market outlook to generate reasonable return with low risk.

Debt securities include, but are not limited to, debt obligations of Central, State or local governments, statutory bodies, banks, public sector undertakings, development financial institutions and private sector corporate entities.

Money market securities include, but are not limited to, treasury bills, government securities with unexpired maturity of one year or less, commercial paper, certificate of deposit, commercial bills arising out of genuine trade transactions (accepted / co-accepted by banks), fixed deposits with scheduled commercial banks, call/notice money and securitised debt.

b. Investment Pattern and Risk Profile

The corpus of the Scheme would be invested only in Debt / Money market instruments and Government securities. Subject to the Regulations, the corpus of the Schemes could be invested in any (but not exclusively) of the following securities:

i Securities created and issued by the Central and State Governments and/or Repos/Reverse Repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

ii Securities guaranteed by the Central and State Governments (including but not

limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iii Money market instruments permitted by SEBI/RBI, having maturities of up to one year and more than one year, in call money market or in alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements.

iv Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee.

v Corporate debt (of both public and private sector undertakings).

vi Obligations of banks (both public and private sector) and development financial institutions.

vii Certificate of Deposits (CDs).

viii Commercial Paper (CPs).

ix Securitised Debt.

x The non-convertible part of convertible securities.

xi Any other domestic fixed income securities.

xii Derivative instruments like Interest Rate Swaps, Forward Rate Agreements and such other derivative instruments permitted by SEBI/RBI.

The above securities is an indicative list and the portfolio of the Scheme can be invested in similar other securities which meets the investment pattern / focus of the Scheme. The securities mentioned above could be listed or unlisted, secured or unsecured, rated or un-rated and of varying maturity. The securities may be acquired through New Fund Offer Period (NFO), secondary market operations, private placement, rights offers or negotiated deals.

The Scheme may also enter into redemption and reverse redemption obligations in all securities held by it as per the guidelines and regulations applicable to such transactions.

c. Investment in Overseas Financial Assets:

The Scheme may also invest in overseas financial assets for the purpose of diversification and commensurate with the scheme’s objective, as permitted by the concerned regulatory authorities in India from time to time.

d. Participating in Derivative Products:


16

Derivatives: A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.


Futures.

Options.

Swaps.

Futures: A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future.

Options: An option is a derivative instrument which gives its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.


Call option: A call option gives the buyer of the option the right but not the obligation to buy a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.

Put option: A put option gives the buyer of the option the right but not the obligation to sell a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.


The buyer/holder of an option can make loss of not more that the option premium paid to the seller/writer but the possible gain is unlimited. On the other hand, the option seller/writer’s maximum gain is limited to the option premium charged by him from the buyer/holder but can make unlimited loss.

Swaps:

The exchange of a sequence of cash flows that



(i) A scheme may use hedging techniques including dealing in derivative products - like interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations from time to time.

(ii) The schemes intend to use derivatives mainly for the purpose of hedging and/or re-balancing of the portfolio against any anticipated move in the debt markets. A hedge is primarily designed to offset a loss on a portfolio with a gain in the hedge position.

(iii) The Fund Manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market.

(iv) As per the current norms of UTI AMC, the value of derivative contracts outstanding at any point of time will be limited to 25% of the net assets of a scheme.

The Board may, in future, revise the limits within the SEBI (MFs) Regulations in keeping with the investment objectives of the scheme.


Portfolio Turn Over Policy:

Portfolio Turnover is a term used to measure the amount of trading that occurs in a scheme’s portfolio during a given time period. It is expected that there would be a number of redemptions on a daily basis. Further the AMC will take advantage of the trading opportunities that may arise due to factors like liquidity conditions, policy changes, yield curve shifts, inefficiencies in the securities market. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. However, a higher turnover would not affect the brokerage and transaction costs significantly.


17


Following are the Fundamental Attributes of the scheme, in terms of Regulation 18 (15A) of the SEBI

(MF) Regulations:

(i) Type of a scheme

The Scheme is a Close-ended Umbrella Income Scheme seeking to generate regular returns through investments in Debt / Money Market instruments and Government securities normally maturing in line with the time profile of the respective Plans.

(ii) Investment Objective

Main Objective – Income – as given in clause II B.

Investment pattern - The tentative Equity/Debt/Money Market portfolio break-up with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations – as given in clause II C.

(iii) Terms of Issue

Liquidity provision of redemption: Only provisions relating to redemption as given in Section III (B) – Ongoing Offer Details – Page No. 25

Aggregate expenses and fees [as given in clause IV (B) (b) to (c)] charged to the scheme.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) there under and affect the interests of Unitholders is carried out unless:

A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

The Unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

No comparable benchmark available.

H. WHO MANAGES THE SCHEME?

Shri Manish Joshi is the fund manager of UTI-Fixed Maturity Plan.

Shri Arpit Kapoor is the dedicated Fund Manager for investment in ADRs / GDRs / Foreign Securities.

Name Age (in yrs)


Manish Joshi

44 M.Sc(Physics),MFM,

He joined UTI AMC in February, 1997 and was in Department of International Finance. He has over 16 years of experience. Since, November, 2003, he has been in Funds Management / Dealing – Fixed Income / Money Market as Dealer / Assistant Fund Manager.

UTI-Money Market Fund,UTI-Liquid Cash PlanUTI Fixed Term Income Funds,

Arpit Kapoor

30 B.Tech, PGDM, CFA


Dedicated fund manager for investment in ADRs / GDRs / Foreign securities of all domestic schemes launched or to be launched by the UTI Mutual Fund.


18

I. WHAT ARE THE INVESTMENT RESTRICTIONS? Pursuant to SEBI Regulations, the following

investment restrictions are applicable to the Scheme. These investment limitation / parameters (as expressed /linked to the net asset / net asset value / capital) shall in the ordinary course apply as at the date of the most recent transaction or commitment to invest and changes do not have to be effected merely because, owing to appreciation or depreciation in value of the securities or by appreciation / depreciation in the Net Asset Value due to purchase / repurchases in the Scheme or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the fund, any such limits would thereby be breached. All investment restrictions shall be applicable at the time of making an investment.

a. A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer that are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of Asset Management Company. Provided that such limit shall not be applicable for investments in government securities and money market instruments.

Provided further that investment within such limit can be made in mortgage backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

b. A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of asset management company or their duly constituted committees.

c. Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under Clause 1 and 1A of Seventh Schedule to the Regulations.

d. The Mutual Fund will buy and sell securities on the basis of deliveries and will in all cases of purchase, take delivery of relative securities and in all cases of sale, deliver the securities and will in no case put itself in a position whereby it has to make short sales or carry forward transactions

or engage in badla finance (carry forward).

e. No term loans will be advanced by this scheme for any purpose as per SEBI regulation 44(3) of SEBI (Mutual Fund) Regulations 1996.

f. The schemes shall not make any investment in any fund of fund scheme.

g. A scheme may invest in another scheme under the same AMC or any other mutual fund without charging fees, provided that aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

h. Transfers of investments from one scheme to another scheme in the same mutual fund shall be allowed only if :such transfers are done at the prevailing market price for quoted instruments on spot basis; (Explanation - “spot basis” shall have same meaning as specified by stock exchange) for spot transactions and the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.

i. Every mutual fund shall get the securities purchased transferred in the name of the mutual fund on account of the concerned scheme, wherever the investments are intended to be of long term nature.

j. Pending deployment of funds of a scheme in securities in accordance with the investment objectives of the scheme, a mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks and other liquid instruments, subject to the Regulations and applicable Money Market Guidelines.

k. The schemes shall not make any investment in any unlisted security of an associate or group company of the sponsors or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

The AMC may alter these above stated restrictions from time to time to the extent the SEBI Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective.

J. HOW HAS THE SCHEME PERFORMED?

No comparable benchmark available.


19

III. UNITS AND OFFERThis section provides details you need to know for investing in the scheme.A. NEW FUND OFFER (NFO)

New Fund Offer Period

This is the period during which a new scheme sells its units to the investors.

The Scheme proposes to launch 4 FMPs under these Series every month and as detailed in the schedule given on Page no. 4. Each FMP identified by a distinct number, will have a portfolio of Debt / Money Market Instruments and Government securities normally maturing in line with the time profile of each FMP. Each Plan shall offer Regular and Direct Plans with Growth and Dividend Option. The Dividend Option shall offer Dividend payout and Dividend Reinvestment facility. The New Fund Offer Period of the Plans, when offered for Purchase, would be kept open for a period of not exceeding 7 Business Days or for such number of days (not exceeding 15 days) as may be decided by the AMC. The Trustee reserves the right to extend the closing date, subject to, however, the condition that the subscription list shall not be kept open for more than 15 days. Similarly, the Trustee may close the subscription list earlier by giving one day’s notice in one daily newspaper. New Fund Offer period of the schemes will be as per SEBI guidelines which is currently restricted to a maximum 15 days

New Fund Offer Price:This is the price per unit that the investors have to pay to invest during the NFO.

The new fund offer price of units of the respective Plan would be `10/- per unit.

Minimum Amount for Application in the NFO

The minimum amount of investment under any Plan is ̀ 10,000/- and in multiples of `10/-.thereafter

Dematerialisation (a) Units of each plan of the scheme will normally also be available in the dematerialised form.

(b) In case the unit holder wishes to transfer the units prior to maturity, then he / she may need to approach the stock market where the scheme is listed. Applicants under the scheme may then be required to have a beneficiary account with a DP of NSDL/CDSL. Applicants may indicate in the application form the DP’s name, DP ID number and its beneficiary account number with the DP at the time of investment or can convert his units into demat mode at a later date.

(c) The unit holders will have an option to hold units in demat form in addition to the account statement as per the current practice.

(d) Unit holders who wish to trade in units would be required to have a demat account.

(e) The option to have the units in demat or physical form may be exercised in the appropriate place in the application form.

Minimum Target amountThis is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return. However, if AMC fails to refund the amount within 6 weeks, interest as specified by SEBI (currently 15% p.a.) will be paid to the investors from the expiry of 5 business days from the date of closure of the subscription period.

An amount of ` 1 crore is targeted to be raised during the New Fund Offer period of the scheme. Over subscription above ̀ 1 crore will be retained subject to subscription restrictions as stated below regarding maximum amount to be raised. If the targeted amount of `1 crore is not subscribed to, UTI AMC shall refund the entire amount collected under the scheme by an account payee cheque/refund order or by any other mode of payment as may be decided by UTI AMC within 5 business days from the close of the New Fund Offer period of the scheme. In the event of any failure to refund such amount within 5 business days from the close of the New Fund Offer period of the scheme, UTI AMC shall be liable to pay to the concerned applicant interest @ 15% p.a. or such rate as may be prescribed by SEBI from time to time from the 6th business days of the date of closure of the New Fund Offer period of the scheme till the date of despatch of refund order.


20

Maximum Amount to be raised (if any)This is the maximum amount which can be collected during the NFO period, as decided by the AMC.

No maximum limit. Over subscriptions above `1 Crore will be retained in full.

Pre Closure & Extension of the Offer The AMC /Trustee reserves the right to launch or defer the launch depending upon appetite for such products. The AMC/Trustees reserve the right to extend the closing date of the New Fund Offer period, subject to the condition that the subscription to the New Fund Offer shall not be kept open for more than 15 days. Similarly the AMC/Trustee may close the New Fund Offer earlier by giving one day’s notice in one daily newspaper.

Plans / Options offered Each Series of the Fixed Maturity Plan shall offer Regular Plan and Direct Plan with both Growth and Dividend Options. (as given in schedule of Fixed Maturity Plan on page no. 4). In case of valid applications received, without indicating any choice of the Option, it would be considered as Growth option and processed accordingly. The NAVs of the two options will be different and separately declared, the portfolio of investment remaining the same.Direct Plan: Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.All categories of Investors (whether existing or new Unitholders) as permitted under this SID of the Fund/Scheme are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid/charged from Direct Plan.How to apply: Investors subscribing under Direct Plan of UTI-Fixed Maturity Plan will have to indicate “Direct Plan” against the Scheme and Plan name in the application form as for example “UTI-Fixed maturity Plan – YFMP (mm/yy) / HFMP (mm/yy) / QFMP (mm/yy-Plan No.) – Direct Plan”.Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for Regular Plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct PlanScheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the Regular Plan and the Direct Plan. Portfolio of the Scheme under the Regular Plan and Direct Plan will be common.Eligible investors/modes for applying: All categories of investors (whether existing or new unitholders) as permitted under the SID are eligible to subscribe under Direct Plan.For further details on Direct Plan, please refer to SAI


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Dividend Policy (a) Dividend distribution:Under the dividend option, it is proposed to declare dividend, subject to availability of distributable surplus, on or before the Maturity Date / Final Redemption Date of the respective Plans or such other day / frequency as may be decided by the Trustees, as computed in accordance with SEBI Regulations.It is envisaged to have different Net Asset Value separately for the Growth Option and Dividend Option both under the Regular Plan and Direct Plan. The Direct Plan will have the same Portfolio and Books of Account as the Regular Plan.(b) Capitalisation and issue of Bonus unitsBonus units may be issued under any of the scheme/s/plan/s as may be decided by the Trustee from time to time.(c) Reinvestment of dividend distributedUnitholders, if they so desire, will have facility to reinvest dividend, if any, payable to them, into further units of that scheme/plan.

Allotment (a) At the time of joining the scheme the UTI AMC shall arrange to issue to the applicant, a statement of account indicating his admission to the scheme/plan and other relevant details within a period not later than 5 Business days from the date of allotment. In all future correspondence with the UTI AMC the unitholder shall have to quote the membership/folio number.

(b) The NRI applicant may choose to receive the SOA at his/her Indian/ foreign address or at the address of his/her relative resident in India.

(c) UTI AMC shall send the SoA at the address mentioned in the application form and recorded with UTI AMC and shall not incur any liability for loss, damage, mis-delivery or non-delivery of the SoA.

(d) If a unitholder desires to have a unit certificate (UC) in lieu of SoA the same would be issued to him within 30 days from the date of receipt of such request.

(e) In case the unit certificate or SoA is mutilated/defaced/lost, UTI AMC may issue a duplicate SoA on receipt of a request to that effect from the unitholder on a plain paper or in the manner as may be prescribed from time to time.

Refund If application is rejected, full amount will be refunded within 5 business days of closure of NFO. If refunded later than 5 business days, interest @ 15% p.a. for delay period will be paid and charged to the AMC.


Restriction on Third Party PaymentsThird party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions. “Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is madeBank Mandate registration as part of the new folio creationIn order to reduce the risk of frauds and operational risks and thereby protect the interests of the Unit holders/Investors from fraudulent encashment of redemption/dividend proceeds, Investors are required to submit any of the prescribed documents (along with original document for verification) in support of the bank mandate mentioned in the application form for subscription under a new folio, in case these details are not the same as the bank account from which the investment is made.In case, the application for subscription does not comply with the above requirements, UTI AMC, at its sole and absolute discretion, may reject/not process such application and may refund the subscription amount to the bank account from where the investment was made and shall not be liable for any such rejection/refund.For further details on documents to be submitted under the process to identify third party payments etc, please refer to SAI/relevant Addenda.


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The following qualified persons (subject to, wherever relevant, purchase of units of mutual funds being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for subscription to the Units of the Scheme. a. Resident Adult Individuals either singly or jointly (not exceeding three), b. Minors through parent/lawful guardian. Units can be held on ‘Joint’ or

‘Anyone or Survivor’ basis, c. Companies, Bodies Corporate, Public Sector Undertakings, Private

Trusts, Association of Persons or Bodies of Individuals and Societies registered under the Societies Registration Act, 1860 (so long as the purchase of Units is permitted under the respective constitutions),

d. Partnership Firms, e. Karta of Hindu Undivided Family (HUF), f. Banks and Financial Institutions, g. Religious and Charitable Trusts, Wakfs or Endowments and Registered

Societies (including Registered Co-operative Societies) (subject to receipt of necessary approvals as required)

h. Non-Resident Indians / Persons of Indian Origin residing abroad (NRIs) on repatriation and non repatriation basis

i. Foreign Institutional Investors (FIIs) Registered with SEBI on repatriation basis.

j. Army, Air Force, Navy and other para-military units and bodies created by such institutions.

k. Scientific and Industrial Research Organisations. l. International Multilateral Agencies / Bodies Corporate incorporated

outside India with the permission of the Government of India / Reserve Bank of India.

m. Mutual Funds registered with SEBI including other schemes of UTI Mutual Fund.

n. Other Associations, Institutions, Bodies, etc. who are permitted to invest in this Scheme as per their respective constitution

o. Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme

Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee’s/AMC’s Sole discretion.Notes : (a) In terms of the notification No. FERA/195/99-RB dated March 30, 1999 and

FERA/212/99-RB dated October 18, 1999, the RBI has granted a general permission to mutual funds, as referred to in Clause 23(D) of Section 10 of the Income Tax Act, 1961 to issue and repurchase Units of their schemes which are approved by SEBI to NRIs/PIOs and FIIs respectively, subject to conditions set out in the aforesaid notifications. Further, general permission is also granted to send such Units to NRIs/ PIOs and FIIs to their place of residence or location as the case may be.

(b) Returned cheques are liable not to be presented again for collection, and the accompanying Application Forms are liable to be rejected. In case the returned cheques are presented again, the necessary charges are liable to be debited to the investor.

Non-acceptance of subscriptions from US Persons including Qualified Foreign Investors (QFIs) registered in USA and Canada and Residents of Canada in the Schemes of UTI MF.


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As per the requirements of the Securities and Exchanges Commission (‘SEC’) of USA, person falling within the definition of the term ‘US Person’ under the Securities Act of 1933 of U.S.A (‘Act’) and corporations or other entities organized under the law of the U.S. are not permitted to make investments in securities not registered under the Act [The term ‘US Person’ means any person who is a U.S. person within the meaning of Regulation S under the Act or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislation, rules etc as may be in force from time to time].Further, as per the Canadian Securities Administrator (CSA), prior registration of a fund with CSA is mandatory before its marketing or selling to residents of Canada.The Schemes of UTI MF are presently not registered under the relevant laws, as applicable in the territorial jurisdiction of U.S. or in any provincial or territorial jurisdiction of Canada.US Persons, corporations and other entities organized under the applicable laws of the U.S including Qualified Foreign Investors (QFIs) registered in USA and Canada and Residents of Canada as defined under the applicable laws of Canada are not allowed to invest in units of any of the Schemes of UTI MF and should also note the following:a. No fresh purchases (including Systematic Investment Plans and Systematic

Transfer Plans) /additional purchases/switches in any Schemes of UTI MF would be allowed. However, existing Unit Holder(s) will be allowed to redeem their units from the Schemes of the Fund. If existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada, then such Unit Holder(s) will not be able to purchase any additional Units in any of the Scheme of the Fund.



d. In case UTI Asset Management Company Ltd. (UTI AMC) / UTI Mutual Fund subsequently indentifies that the subscription amount is received from U.S. Person(s) including Qualified Foreign Investors (QFIs) registered in USA and Canada or Resident(s) of Canada, in that case the UTI AMC/UTI MF at its discretion shall summarily redeem all the units held by such person/s in the respective Scheme/s of UTI MF at applicable Net Asset Value as on the date of redemption.

For further details refer to SAI/relevant AddendumInvestment by individuals – Foreign Nationals1. Foreign Nationals shall be resident in India as per the provisions of the

Foreign Exchange Management Act, 1999. 2. Foreign Nationals are required to comply (including taking necessary

approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, know your customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions. UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.


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Where can you submit the filled up applications.

Name and Address of Registrar:M/s. Karvy Computershare Pvt. Ltd.Narayani Mansion, H. No. 1-90-2/10/E,Vittalrao Nagar, Madhapur, Hyderabad - 500 081.Tel.: 040 – 23421944 to 47,Fax: 040 - 23115503,Email:[email protected] details of official points of acceptance are given on the back cover page. It is mandatory for investors to mention their bank account particulars in their applications/request for redemption.In addition to the circumstances mentioned in the Statement of Additional Information, UTI AMC shall have the right to accept and / or reject at its sole discretion an application for issue of units if the applicant does not clearly indicate which Fund / Scheme he chooses to invest.


Listing Units of each plan under the scheme will be listed on the National Stock Exchange and any other stock exchange(s) as may be decided by the UTI AMC after the closure of the New Fund Offer period.The listing fees shall be charged under Regulations 52(4).

Special Products / facilities available during the NFO

Systematic Investment Plan: Not availableSystematic Transfer Investment Plan: Not availableSystematic Withdrawal Plan: Not available

Restrictions, if any, on the right to freely retain or dispose of units being offered.

(a) In the event of the death of the unitholder, the joint holder(s)/nominee/legal representative of the unitholder may, if he is otherwise eligible for joining the scheme as unitholder, be permitted to hold the units and become a unitholder. In that event a fresh SOA will be issued in his name in respect of units so desired to be held by him subject to his complying with the condition of minimum holding and the required procedure as may be prescribed by UTI AMC from time to time.

(b) If the joint holder/nominee/ legal representative of the unitholder is not eligible to join the scheme or he though eligible, opts for redemption and also in cases where no nomination has been made, the claimant (i.e. joint holder/nominee/legal representative of the unitholder, as the case may be) on surrender of Unit Certificate / the latest SOA or any such other document, as may be prescribed from time to time, issued to the deceased unitholder and on due compliance with the procedural requirements, as may be prescribed by UTI AMC for recognition of such claims, he shall be paid redemption proceeds of the units outstanding to the credit of the deceased unitholder as on the date of such acceptance.

(c) Exit Load in respect of redemption of Units on death of Unit holder: Not Applicable

Refer to Statement of Additional Information (SAI) on Settlement of claims under Item no. III

B. ONGOING OFFER DETAILS

Ongoing Offer PeriodThis is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period.

The scheme is a close-ended umbrella income scheme.The Scheme proposes to launch 4 FMPs under these Series every month and as detailed in the schedule given on Page no. 4

Ongoing price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors.This is the price you need to pay for purchase/switch-in.

Units can be purchased only during the New Fund Offer period without any entry load. During the New Fund Offer period the units will be sold at face value i.e. `10/-.Switchover to any other scheme/plan allowed only on maturity.


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Ongoing price for redemption (sale) / switch outs (to other schemes/plans of the Mutual Fund) by investors.This is the price you will receive for redemptions/switch outs.Example: If the applicable NAV is ` 10, exit load is 2% then redemption price will be: ` 10* (1-0.02) = ` 9.80

Maturity Date / Final Redemption DateEach Plan will have a Maturity Date / Final Redemption Date on which the Plan will be compulsorily and without any further act by the Unitholder(s) redeemed. On the Maturity / Final Redemption Date of the Plan, the units under the Plan will be redeemed at the Applicable NAV. For Redemptions made on the Maturity Date / Final Redemption Date, presently there is no exit load charged. The details of the maturity date for each FMP launched under each series is given on page no. 4.Please note that if the maturity date for redemption falls on a non-business day, then the scheme will mature on the following business day for the scheme.As per the SEBI guidelines, the AMC shall not redeem units of the scheme before the end of the maturity period.Payment of maturity proceeds: Upon maturity, the redemption proceeds will be paid by cheque and payments will be made in favour of the unitholders registered name and bank account number. Redemption cheques will be sent to the unitholders address (or, if there is more than one holder of record, the address of the first named holder on the original application for units) or the redemption proceeds may be credited to the bank account of the investor if the investor so instructs, subject to the AMC having necessary arrangements with the bank. Further redemption proceeds may also be paid through Electronic Clearing System (ECS), which is subject to applicable policies of the Reserve Bank of India and working of the banking system. All redemption payments will be made in favour of the registered holder of the units or, if there is more than one registered holder, of the first registered holder on the original application for units.The redemption cheque will be dispatched to the unitholders within the statutory time limit of 10 business days of the maturity of the scheme as prescribed by SEBI. The Fund reserves the right to change the exit load with prospective effect subject to the maximum limits as prescribed by the SEBI (MFs) Regulations.

Cut off timing for subscriptions /Redemptions / switchesThis is the time before which yourapplication (complete in all respects) should reach the official points of acceptance.

Subscription of units only during the New Fund Offer Period.

Redemption is not allowed before maturity.


The details of official points of acceptance are given on the back cover page. It is mandatory for investors to mention their bank account particulars in their applications / requests for redemption.In addition to the circumstances mentioned in the Statement of Additional Information the Trustee/AMC shall have the absolute discretion to accept/reject any application for purchase of units, if in the opinion of the Trustee/AMC, increasing the size of the Scheme’s Unit Capital is not in the general interest of the Unit holders, or the Trustee/AMC for any other reason believes it would be in the best interest of the scheme or the unitholders to accept reject such an application.

Minimum amount for purchase / redemption / switches

(a) Minimum amount of purchaseThe minimum amount under any Plan viz., Regular Plan or Direct Plan is `10,000/- and in multiples of `10/-. thereafter(b) Minimum amount of redemption / switchesNot applicable as redemption is not allowed prior to maturity.


Not Applicable


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Cash payment to the extent of `20,000/- per investor, per Mutual Fund, per fi-nancial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Per-manent Account Number (PAN)/bank accounts, subject to the following pro-cedure.i. Investors who desire to invest upto `20,000/- per financial year shall con-

tact any of our UFCs and obtain a Form for Deposit of Cash and fill-up the same.



Transfer of funds through National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) for Investment amount of `2 lacs and above : Investor shall ensure that the payment is made from one of his/her registered bank accounts in the folio. If the name of the remitter/account number from where the amount is remitted is not matching with the registered / to be regis-tered bank accounts details, such remittances shall be treated as third party payments and such applications are liable to be rejected. In such cases, UTI MF will refund the amount to the remitter within 30 calendar days from the date of receipt of the funds, as per the details made available to UTI MF by the remitting Bank.For further details, please refer to SAI.

Know Your Customer (KYC) Common Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. Part I of the KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI. However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual Fund.KYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:1. Instances where no action is required a) In the case of those individual investors and non-individual investors,

other than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.


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2. Instances where partial action is required a) All those Individual Investors who wish to open a new folio with

UTI Mutual Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.


3. Instances where complete KYC compliance is required a) For existing investors as well as new investors who are not yet KYC



PAN-Exemption for micro financial productsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable. Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.Details of Beneficial OwnershipClient Due Diligence under Prevention of Money Laundering Act, 2002(PMLA 2002)In terms of PMLA 2002 and as part of Client Due Diligence (CDD) process, Investors have to provide sufficient information to the UTI MF in order to identify and verify the identity of the persons who beneficially own or control the account


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Details of Beneficial Ownership In terms of SEBI Master Circular on AML/CFT dated December 31, 2010, ‘Beneficial Owner’ has been defined as a natural person/s who ultimately own, control or influence a client and / or persons on whose behalf a transaction is being conducted, which includes persons who exercise ultimate effective control over a legal person or arrangement. ApplicabilityProviding information about Beneficial ownership is applicable to all the Investments made from January 1, 2014 from all categories of Investors except individuals and a company listed on the stock exchange or is majority owned subsidiary of such companyFurnishing of detailsDetails of the identity of all natural person(s) such as their Name(s), PAN number/Passport details, Address etc together with a self attested PAN Card copy is to be provided by the Investor to the Official Points of Acceptance (OPAs) of the UTI MF Schemes while submitting the Application Form. Such natural persons include those who are acting alone or together, or through one or more juridical person and exercising control through ownership or who ultimately has a controlling ownership interest. For further details regarding manner of determination of beneficial ownership in doubtful cases (relating to investors other than Trust and Foreign investors), investments by Trust and Foreign Investors and for other details regarding disclosure of information regarding beneficial ownership etc., please refer to SAI/relevant Addendum

Special Products available

Systematic Investment Plan: Not applicableSystematic Transfer Investment Plan: Not applicableSystematic Withdrawal Plan: Not applicableDemat and Remat facility: Available. For details refer to SAI


A] Updation / Change of address:Investors are requested to update their change of address within 30 days from the date of change.In case of Know Your Client (KYC) complied folios, Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) {viz. CDSL Ventures Limited website: www.cvlkra.com}, as may be specified by them, from time to time.In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAIFurther, in the case of non‐KYC complied folios, Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.


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Proof of old as well as new address:Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.B] Updation / Change of bank details:Investors are requested to update/change their bank details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:B.1) Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.B.2) Proof of new bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.B.3) Proof of existing/old bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable. B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.


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C] Cooling period:In case the change of address and/or Updation / change of bank details are submitted together with the redemption request or standalone request within the period of 12 months prior to submission of redemption request, the redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 business days from the date of such redemption request. The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non‐submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.Updating/change of bank details in case of non-KYC complied foliosIn case of non-KYC complied folios, the request to update/change of bank details shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI










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The AMC shall continue to allot the units to the unit holders whose application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later then five business days from the date of receipt of the request from the unit holders.





Friend in Need Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors.

For further details, please refer to SAI.Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of

the date of declaration of the dividend.

In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.

In case of delay in payment of dividend amount, the Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @ 15% per annum).


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Redemption The redemption proceeds upon maturity shall be dispatched to the unitholders within 10 business days from the date of maturity of the each plan of the scheme.In case of funds received through Cash Payment, the redemption proceeds shall be remitted only to the designated bank account.Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI.

Delay in payment of redemptionproceeds


Transfer/Pledge/Assignment of units Transfer / Pledge/ Assignment of units (a) Transfer Units of each plans of the scheme are transferable. Transfers should be only in favour of transferees who are capable of

holding units. The AMC shall not be bound to recognize any other transfer. The AMC will effect the transfer only in electronic form provided that the

intended transferee is otherwise eligible to hold units under the scheme. The delivery instructions for transfer of units will have to be lodged with

the DP in the requisite form as may be required from time to time and the transfer will be effected in accordance with such rules / regulations as maybe in force governing transfer of securities in dematerialised mode.

Under special circumstances, holding of units by a company or other body corporate with another company or body corporate or an individual/individuals, none of whom is a minor, may be considered by the AMC.

(b) Pledge/Assignment of units permitted only in favour of banks/ other financial institutions:

The uniholders may pledge/assign units in favour of banks/other financial institutions as a security for raising loans. Units can be pledged by completing the requisite forms/formalities as may be required by the Depository.

The pledger may not be allowed to redeem units so pledged until the bank/financial institution to which the units are pledged provides a written authorization to the Depository that the pledge/charge/lien may be removed.

C. PERIODIC DISCLOSURES


The Mutual Fund shall declare the Net asset value of the scheme on every business day on www.utimf.com and AMFI’s website www.amfiindia.com and also on www.utimf.com.The NAV shall be calculated for all business days.The NAV shall be published in atleast two daily newspapers having nationwide circulation on a daily basis.

Monthly Portfolio Disclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of the month for all its schemes on its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format. The format for monthly portfolio disclosure shall be the same as that of half yearly portfolio disclosures. The Mutual Fund shall also disclose additional information (such as ratios etc) subject to compliance with the SEBI Advertisement Code.


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Additional Disclosure The Mutual Fund shall, in addition to the total commission and expenses paid to distributors, make additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio of AUM to gross inflows on its website on an yearly basis. In case, the data mentioned above suggests that a distributor has an excessive portfolio turnover ratio, i.e., more than two times the industry average, the AMC shall conduct additional due-diligence of such distributors. The Mutual Fund shall also submit the data to AMFI and the consolidated data in this regard shall be disclosed on AMFI website.



TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/ authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. For further details on taxation please refer to the clause on Taxation in the SAI

Tax on Dividend Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.As per section 115R of the Act, income distribution tax shall be levied at 25% plus surcharge for distribution made to Individuals. Further education cess @2% and secondary and higher education cess @ 1% would be charged on amount of tax plus surcharge.Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax.The Mutual Fund will receive income without any deduction of tax at source under the provisions of Section 196(iv) of the Act.


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Capital Gains:

Long Term

Short Term

Any long term capital gain arising on redemption of units by residents is subject to treatment indicated under Section 48 and 112 of the Income Tax Act, 1961. Long term capital gains in respect of units held for more than 12 months is chargeable to tax @ 20% after factoring the benefit of cost inflation index or tax at the rate of 10% without indexation, whichever is lower. The said tax rate would be increased by applicable surcharge i.e. @ 10% for Individuals having total income above `1 Crore. The tax and surcharge will be increased by education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge.

Units held for not more than twelve months proceeding the date of their transfer are short term capital assets. Capital gains arising from the transfer of short term capital assets will be subject to tax at the normal rates of tax applicable to such assessee.

Investor services All investors could refer their grievances giving full particulars of investment at the following address:

Shri G S AroraAssistant Vice President – Department of OperationsUTI AMC Ltd.UTI Tower, Gn Block, Bandra - Kurla Complex,Bandra (East), Mumbai - 400 051.Tel : 6678 6666 Fax : 2652 3031

Investors may post their grievances at our website: www. utimf.com or e-mail us at [email protected]

D. COMPUTATION OF NAV

(a) The Net Asset Value (NAV) of the Plan/s shall be calculated by determining the value of the respective Plan/s assets and subtracting there from the liabilities of the respective Plan/s taking into consideration the accruals and provisions. NAV shall be declared separately for different Plan/s.

(b) The NAV per unit shall be calculated by dividing the NAV of the scheme by the total number of units issued and outstanding on the valuation day. The NAV will be rounded off upto four decimal places.


(d) The NAVs shall be published atleast in two daily newspapers having nationwide circulation on every business day and will also be available on website of UTI Mutual Fund, www.utimf.com and website of AMFI namely www.amfiindia.com.


35

IV. FEES AND EXPENSESThis section outlines the expenses that will be charged to the schemes.A. NEW FUND OFFER (NFO) EXPENSES The scheme has to meet the sales, marketing and other such expenses connected with sales and distribution of the

scheme from the entry load. As No Entry Load is being charged, all New Fund Offer Expenses would be borne by AMC. However listing fees shall be charged under SEBI Regulations 52 (4).

B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include Investment Management and

Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below:

(a) The AMC has estimated that upto 2.25% of the daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of UTI Mutual Fund.

Particulars % of Net Assets

UTI-FMP – Regular Plan


Up to 2.25%

Trustee Fee

Audit Fees

Custodian Fees

RTA Fees

Marketing and Selling expense including agent commission

Cost related to investor communications

Cost of fund transfer from location to location

Cost of providing account statements and dividend redemption cheques and war-rants

Costs of statutory Advertisements

Cost towards investor education and awareness (at least 2 bps)

Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.

Service tax on expenses other than investment and advisory fees

Service tax on brokerage and transaction cost

Other Expenses

Maximum total expense ratio (TER) permissible under Regulation 52 (6) (c)

Additional expenses under regulation 52(6A) (c) Up to 0.20%

Additional expenses for gross new inflows from specified cities under Regulation 52(6A) (b)

Up to 0.30%

Note: For Direct plan (investments not routed through a distributor) shall have a lower expense ratio excluding distribution expenses, commission etc. and no commission shall be paid from such Plan. Portfolio of the Scheme under the Regular Plan and Direct Plan will be common.


(b) The total annual recurring expenses of the Scheme excluding issue or redemption expenses, whether initially borne by the Mutual Fund or by the AMC, but including the Investment Management and Advisory fee shall be subject to the following limits.


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(i) On the first `100 crores of the daily net assets – 2.25%.

(ii) On the next `300 crores of the daily net assets – 2.00%.

(iii) On the next `300 crores of the daily net assets – 1.75%.

(iv) On the balance of the assets – 1.50%. (c) Total Expense ratio (TER) and Additional

Total Expenses: (i) Charging of additional expenses based

on new inflows from beyond 15 cities 1. Additional TER shall be charged upto 30 bps

on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.


Daily net assets X 30 basis points X New inflows from beyond top 15 cities___________________________________

365* X Higher of (a) or (b) above * 366, wherever applicable. 3. Additional expenses, not exceeding 0.20

per cent of daily net assets of the scheme, shall be charged towards Investment Management and Advisory fees charged by the AMC (‘AMC fees’) and for recurring expenses (like custodian fees, audit fees, expenses for Registrars services etc) charged under different heads as mentioned under SEBI Regulations.





shall also be charged to the schemes/plans. Aforesaid brokerage and transaction costs are included in the cost of investment which are incurred for the purpose of execution of trade. Any payment towards brokerage

and transaction cost, over and above the aforesaid brokerage and transaction costs shall be charged to the schemes/plans within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. Any expenditure in excess of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the AMC or by the Trustee or Sponsors.

6. For further details on TER, please refer to SAI

(ii) Service Tax 1. UTI AMC shall charge service tax on

investment and advisory fees to the scheme in addition to the maximum limit of TER.



4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations.

(iii) Investor Education and Awareness UTI Mutual Fund (UTI MF) shall annually set

apart atleast 2 bps on daily net assets within the maximum limit of TER for investor education and awareness initiatives.

C. LOAD STRUCTURE FOR ALL CLASSES OF INVESTORS

1. Exit Load is an amount which is paid by the investor to redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time.

For the current applicable structure, please refer to the website of the AMC www.utimf.com or may call at 1800 22 1230 (toll free no.) or (022) 2654 6200 (non toll free number) or your distributor.

Load Structure for all plans under the scheme Entry Load: Nil Entry load: In accordance with the requirements

specified by the SEBI circular no. SEBI/IMD/CIR No./168230/09 dated June 30, 2009 no entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund.

Exit Load: Nil at maturity The investor is requested to check the prevailing

load structure of the scheme before investing. For any change in load structure, AMC will issue

an addendum and display it on the website/UTI Financial Centres.


37

2. Transaction charges Pursuant to SEBI circular no. CIR/IMD/DF/13/2011

dated August 22, 2011, a transaction charge of `100/- for existing investors and ̀ 150/- in the case of first time investor in Mutual Funds, per subscription of `10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.







Sr. No.

Category of product


2 Gilt Schemes

3 Debt Schemes




7 Balanced Schemes















V. RIGHTS OF UNITHOLDERSPlease refer to SAI for details.


38



(a) Penalties imposed against Life Insurance Corporation of India (Amount in `):-Financial Year

Status Remark


Dividend Tax Demand not raised


2008-2009 Nil Reported (b) Penalties and Proceedings against Bank of

Baroda:- (i) Pune Region: Sponsor and Branch: Bank of Baroda, Laxmi

Road, Pune City Name of Complainant: Pune Municipal

Corporation (PMC) Court/Tribunal / Case No. & Year: Supreme court

SLP (C) No. 23299/2010 Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/Type of offence & section: Bank


Bank’s reply/defence: Bank paid the amount of octroi of `9,42,200/- but refused to pay penalty

amounting to `94,22,000/- (10 times of octroi amount).


Total No. of Cases: 1 Total amount involved / claimed amt: ` 94.22 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs) : Nil (ii) Nagpur Region: Sponsor and Branch: Bank of Baroda, RO,




Section 154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited `2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.


Present Status & Remarks: High court has granted stay on the execution of the bill for penal octroi duty dated 02/09/2010. Last date of hearing


39

was fixed on 27/01/2012 for arguments. Case is adjourned till final decision of Supreme Court on the case wherein appeal is filed by NMC Octroi Dept. challenging the decision of division bench in the similar action taken against Hindustan Petroleum. Hence next date not available.

Amount of provisioning made / required: `2.92 lacs

Total No. of Cases: 1 Total amount involved / claimed amt: ` 8.85 lacs No. of cases where the provisioning is made: 1 Amount of Provisioning: ` 2.92 lacs (iii) Aurangabad Region: Sponsor and Branch: Bank of Baroda, Nasik Name of Complainant: Nasik Municipal






Total No. of Cases: 1 Total amount involved / claimed amt: ` 5.95 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil (iv) Ahmedabad Region: Sponsor and Branch: Bank of Baroda, Nandini

Complex Name of the party/complainant: Income Tax Name of the Court/Forum & Case no.: High Court

of Gujarat / Tax Appeal No 2028 & 2029 of 2010 Amount involved (`): 65,75,664 Nature of the case/type of offences and Section:



Bank’s Reply/defence: Branch has received

the copy of appeal memo and matter is posted to 12/12/2011. We have entrusted the matter to advocate.

Present Status and remarks: Nil (v) Region-DMR-1 (NZ): i. Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special













Details/brief nature of the case: Allegations of violation of FERA regarding Deposit of Foreign Currency Notes in NRE A/c of one Mr. Sarbir Singh, from 25.01.92 to 31.01.92. The Directorate Enforcement in order dated 11.08.04 held that Bank has failed to ensure the genuineness of the transactions and has contravened the provisions of FERA. Penalty of ̀ 5 lacs was imposed. Appeal filed with Appellate Authority, which has been dismissed on 07.12.2007. Criminal Appeal before the Delhi High Court has been filed, which is pending.



40


Total No. of Cases: 2 Total amount involved: ` 15 lacs iii. Sponsor and Branch: Bank of Baroda, Eastern









(i) A notice under section 47 A (1) (b) read with section 46(4)(i) of the Banking Regulation Act 1949, Reserve Bank of India imposed a penalty of `10.00 lacs along with 19 other Banks for contravention of various instructions issued in respect of derivatives, such as, failure to carry out

due diligence in regard to suitability of products, selling derivative products to users not having risk management polices and not verifying the underlying/adequacy of underlying and eligible limits under past performance route.




(b) The merchant banking division of the BoB was the pre-issue lead manager for the public issue of shares of Trident Steels Limited (“Trident”) in November, 1993. SEBI issued a show cause notice dated April 29, 2004 calling upon the merchant banking division of the Bank to show cause why action should not be taken against it for failing in its duty to exercise due diligence in the above mentioned public issue. SEBI alleged that the merchant banking division of the Bank did not disclose the material fact that 750,000 shares out of the pre issue capital of Trident had been pledged by the directors and holders of those shares to the Industrial Finance Branch of the Bank towards enhancement of various credit facilities extended by the Bank to Trident. In October 1989, the directors and holders of those shares have given an undertaking that as long


41

as the dues of Trident to the Bank are not paid in full, they will not transfer, deal with or dispose off equity or preference shares held by them in the company or any shares that might be acquired in future, without prior written consent of the Bank. BOB Caps, in its reply to the show cause notice, has submitted that it was the obligation of Trident to give true disclosures and that any punitive action will lie solely against Trident, its promoters and directors.



of the adjudication Rules for the deficiencies observed in Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has filed Consent Application with SEBI on 7th March 2013.





d. A Special Leave Petition has been filed by Bajaj Auto Ltd. before the Honourable Supreme Court of India against the final judgement and order dated 09.10.2006 of the Honourable High Court

of Bombay in the matter of the winding up of UTI Growth & Value Fund- Bonus Plan with effect from 01.02.2005 in pursuance to circular dated 12.12.2003 of SEBI. The matter is admitted on 10.07.2008 and will be heard in due course.


(i) Public Interest Litigation filed by Kalindi Doshi before High Court of Bombay- affidavit in reply has been filed and the case is at admission stage.

(ii) Writ Petition filed by R K Sanghi before High Court of Madhya Pradesh Principal Seat at Jabalpur – affidavit in reply has been filed. Petition will be heard in due course.





The Maharashtra Sales Tax authorities have disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of ` 62,18,252/- plus interest and penalty. The matter is being contested, Appeal and Stay Application have been filed/are being filed with the appellate authorities against the denial of the refund claim and raising of demand. In respect of the stay application filed, the Appellate authorities have granted stay against the demand raised.




42

AHMEDABAD REGION


BENGALURU REGION


CHANDIGARH REGION


CHENNAI REGION



OFFICIAL POINTS OF ACCEPTANCE UTI FINANCIAL CENTRES


43

DELHI REGION


GUWAHATI REGION


KOLKATA REGION


LUCKNOW REGION

Agra: FCI Building, Ground Floor, 60/4, Sanjay Place, Agra–282 002, Tel: (0562) 2857789, 2858047, Allahabad: 4, Sardar Patel Marg, 1st Floor, Civil Lines, Allahabad-211 001, Tel: (0532) 2561028, Aligarh: 3/339-A Ram Ghat Road, Opp. Atrauli Bus Stand, Aligarh, Uttar Pradesh–202 001, Tel : (0571) 2741511, Bareilly: 116-117 Deen Dayal Puram, Bareilly, Uttar Pradesh-243 005, Tel.: (0581) 2303014, Bhagalpur: 1st floor, Kavita Apartment, Opposite Head Post Office, Mahatma Gandhi Road, Bhagalpur-812 001, Bihar, Tel.: (0641) 2300040/41, Darbhanga: VIP Road, Allalpatti, Opposite Mahamaya Nursing Home, P.O. Darbhanga Medical College, Laheraisarai, Dist – Darbhanga, Bihar – 846 003, Tel.: (06272) 250 033, Gaya: 1st Floor, Zion Complex, Opp. Fire Brigade, Swarajpuri Road, Gaya-823 001, Bihar, Tel: (0631) 2221623, Gorakhpur: Cross Road The Mall, Shop No. 16 - 20, 1st Floor, Bank Road, A. D. Chowk, Gorakhpur - 273 001, Uttar Pradesh, Tel.: (0551) 220 4995 / 4996, Kanpur: 16/77, Civil Lines, Kanpur-208 001, Tel: (0512) 2304278, Lucknow: Aryan Business Park, 2nd floor, 19/32 Park Road (old 90 M G Road), Lucknow-226 001, Tel: (0522) 2238491/2238598, Muzaffarpur: Ground Floor, LIC ‘Jeevan Prakash’ Bldg., Uma Shankar Pandit Marg, Opposite Devisthan (Devi Mandir) Club Road, Muzaffarpur (Bihar), Pin – 842 002, Tel.: (0621) 2265091, Patna: 3rd Floor, Harshwardhan Arcade, Beside Lok Nayak Jai Prakash Bhawan, (Near Dak Bunglow Crossing), Fraser Road, Patna – 800 001, Bihar, Tel: (0612) 2200047, Varanasi: 1st Floor, D-58/2A-1, Bhawani Market, Rathyatra, Varanasi-221 010, Tel: (0542) 2226881.

MUMBAI REGION


NAGPUR REGION

Amravati: C-1, VIMACO Tower, S.T. Stand Road, Amravati – 444 602, Maharashtra, Tel.: (0721) 2553126/7/8, Bhilai: 38 Commercial Complex, Nehru Nagar (East), Bhilai – 490 020, Distt. Durg, Chhattisgarh, Tel.: (0788) 2293222, 2292777, Bhopal: 2nd Floor, V. V. Plaza, 6 Zone II, M. P. Nagar, Bhopal-462 011, Tel:


44

(0755) 2558308, Gwalior: 45/A, Alaknanda Towers, City Centre, Gwalior-474011, Tel: (0751) 2234072, Indore: UG 3 & 4, Starlit Tower, YN Road, Indore-452 001, Tel:(0731) 2533869/4958, Jabalpur: Ground Floor, Ayush Complex, Home Science College Road, Napier Town, Jabalpur, Madhya Pradesh–482 001, Tel: (0761) 2480004, 2480005, Nagpur: 1st Floor, Shraddha House, S. V. Patel Marg, Kings Way, Nagpur-440 001, Tel: (0712) 2536893, Raipur: Vanijya Bhavan, Sai Nagar, Jail Road, Raipur-492 009, Tel: (0771) 2881410/12, Ratlam: Shop No. 3 Ground Floor, Ratlam Plaza, 16/45 New Road, Ratlam – 457 001, Madhya Pradesh, Tel.: (07412) 243041/222771/2.

UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Karvy Computershare Pvt. Ltd., Ground Floor, Ideal Laundry, Lane No.4, Khol Galli, Near Muthoot Finance, Opp. Bhavasar General Store, Dhule – 424 001, Tel: (02562) 282823, Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur ‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh, Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: C/o. UTI Financial Centre, Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Ratnagiri: Karvy Computershare Pvt. Ltd., C/o V L Ayare, Chief Agent for UTI Mutual Fund, Gala No.3, Shankeshwar Plaza, Nachane Road, Ratnagiri – 415 639, Tel.: (02352) 270502, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office) Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee- 247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.



UTI – SPrEAD Fund(UTI – Spread between Prices of Equity And Derivative Fund)

(UTI-SPrEAD is an open-ended equity fund investing in a mix of equity, equity derivatives, debt and money market instruments)

The product is suitable for investors who are seeking*:v Capital appreciation and dividend distribution over medium to long termv takes advantage of arbitrage opportunities in cash and derivative market without taking any directional/ unhedged

position in either equity or derivative instrumentsv Low risk (Blue)* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.Note: Risk may be represented as:




UTI Mutual Fund

UTI Asset Management Company Limited

UTI Trustee Company Private Limited

Address of the Mutual Fund, AMC and Trustee Company: UTI Tower, Gn Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Website: www.utimf.com



The investors are advised to refer to the Statement of Additional Information (SAI) for details of UTI Mutual Fund, Tax and Legal issues and general information on www.utimf.com.



This Scheme Information Document is dated 25th March, 2014

UTI – SPREAD FUND

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TABLE OF CONTENTS



B. Requirement of minimum investors in the Scheme 8

C. Definitions 8


II. INFORMATION ABOUT THE SCHEMEA. Type of the Scheme 12

B. What is the investment objective of the Scheme? 12

C. How will the Scheme allocate its assets? 12

D. Where will the Scheme invest? 14



G. How will the Scheme Benchmark its performance? 18

H. Who manages the scheme? 18


J. How has the Scheme performed? 19








37

UTI – SPREAD FUND

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Highlights:Investment Objective

The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in Equity & Equity related securities, derivatives and the balance portion in debt securities. However, there can be no assurance that the investment objective of the scheme will be realised.

Eligible Investors Open to resident individuals, institutions as well as to NRIs and FIIs.

Plans & Options Available

In addition to the Existing Plan, the scheme offers *Direct Plan also. Both Plans have Growth and Dividend Options with Dividend Payout and Dividend Reinvestment facilities.*Direct PlanThere will be a separate plan for direct investments i.e. investments not routed through a distributor. This plan shall have a lower expense ratio excluding distribution expenses, commission etc. and have a separate NAV. No commission shall be paid from Direct Plan. Portfolio of the Scheme under the Existing Plan and Direct Plan will be common.

Liquidity The scheme will offer subscription of units on every business day on an ongoing basis.The Scheme will offer redemption of units during the Interval Period.

Benchmark CRISIL Liquid Fund Index

Net Asset Value (NAV)

Declaration of NAV on every business day.

Loads Entry Load(As % of NAV)


NIL 0.50% if exited on or before 180 days from the date of acceptance.

Minimum Amount of Investment

Minimum initial investment under both the Plans viz., Existing Plan and Direct Plan is `5,000/-. Subsequent minimum investment under a folio is `1,000/- and in multiples of `1/- thereafter with no upper limit.

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2. As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your investment in the scheme may go up or down.

3. Past performance of the Sponsors/AMC/Mutual Fund does not guarantee future performance of the scheme.

4. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns.


6. The present scheme is not a guaranteed or assured return scheme.



9. The NAVs of the Scheme may be affected by changes in the general market conditions, factors and forces affecting capital market, in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures.

10. The liquidity of the Scheme’s investments is inherently restricted by trading volumes in the securities in which it invests.

11. Mutual Funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee against loss resulting from investing in schemes. The various factors which impact the value of scheme investments include but are not limited to fluctuations in the equity and bond markets, fluctuations in interest rates, prevailing political and economic environment, changes in government policy, factors specific to the issuer of securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes etc. and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved.

12. As the liquidity of the Scheme’s investments could at times, be restricted by trading volumes and settlement periods, the time taken by the Fund for redemption of units may be significant in the event of

an inordinately large number of redemption requests or of a restructuring of the Scheme’s portfolio. In view of this the Trustee has the right, in sole discretion to limit redemptions (including suspending redemption) under certain circumstances, as described under the section titled “Right to limit Redemptions” in SAI.

13. From time to time and subject to the regulations, the sponsors, the mutual funds and investment Companies managed by them, their affiliates, their associate companies, subsidiaries of the sponsors and the AMC may invest in either directly or indirectly in the Scheme. The funds managed by these affiliates, associates and / or the AMC may acquire a substantial portion of the Scheme. Accordingly, redemption of units held by such funds, affiliates/associates and sponsors may have an adverse impact on the units of the Scheme because the timing of such redemption may impact the ability of other unitholders to redeem their units.

The Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds, provided it is in conformity to the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments.

14. Securities Lending: It is one of the means of earning additional income for the scheme with a lesser degree of risk. The risk could be in the form of non-availability of ready securities for sale during the period the securities remain lent. The scheme would be exposed to risk through the possibility of default by the borrower/intermediary in returning the securities. However, the risk would be adequately covered by taking of suitable collateral from the borrower by the intermediary involved in the process. The scheme will have a lien on such collateral. It will also have other suitable checks and controls to minimise any risk involved in the securities lending process.

15. Investment in overseas market: The success of investment in overseas market depends upon the ability of the fund manager to understand conditions of those markets and analyse the information, which could be different from Indian markets. Operations in foreign markets would be subject to exchange rate fluctuation risk besides the market risks of those markets.

16. Trading in derivatives involves certain specificrisks like:


UTI – SPREAD FUND

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d. An exposure to derivatives can lead to losses. Success of dealing in derivatives depends on the ability of the fund manager to correctly assess the future market movement and in the event of incorrect assessment, if any, performance of the scheme could be lower.

e. Interest Rate Swaps (IRSs) and Forward Rate Agreements (FRAs) do also have inherent credit settlement risks. However, these risks are substantially less as they are limited to the interest stream and not the notional principal amount.

f. Participating in derivatives is a highly specialized activity and entails greater than ordinary investment risks. Notwithstanding such derivatives being used for limited purpose of hedging and portfolio balancing, the overall market in these segments could be highly speculative due to the action of other participants in the market.



17. The aggregate value of “illiquid securities” of scheme, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of the scheme. In normal course of business, the scheme would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets.

In case of the need for exiting from such illiquid

instruments in a short period of time, the NAV of scheme could be impacted adversely.

18. Different types of securities in which the scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly the scheme’s risk may increase or decrease depending upon its investment pattern. For e.g. corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated.

19. SchemespecificRisks a. Investors may note that AMC/Fund Manger’s

investment decisions may not always be profitable, as actual market movements may be at variance with anticipated trends. The Scheme proposes to invest substantially in equity/equity related securities.

b. The value of the Scheme’s investments, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the NAV of the units of the Scheme may fluctuate and can go up or down.

c. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the equity and equity related investments made by the Scheme which could cause the scheme to miss certain investment opportunities. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The inability of the Scheme to make intended securities purchases due to settlement problems could also cause the Scheme to miss certain investment opportunities. By the same rationale, the inability to sell securities held in the Scheme’s portfolio due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in potential losses to the Scheme, in case of a subsequent decline in the value of securities held in the Scheme’s portfolio.

d. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or

UTI – SPREAD FUND

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offer other exit options to the investor, including a put option. Within the regulatory limits, the AMC may choose to invest in unlisted securities that offer attractive yields. This may however increase the risk of the portfolio.

e. The Scheme may use various derivative products as permitted by the Regulations. Use of derivatives requires an understanding of not only the underlying instrument but also of the derivative itself. Other risks include, the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.

f. The Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank of India and Securities and Exchange Board of India. To the extent that some part of the assets of the scheme may be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

g. The scheme intends to deploy funds in money market instruments to maintain liquidity. To the extent that some assets/funds are deployed in money market instruments, the scheme will be subject to credit risk as well as settlement risk, which might affect the liquidity of the scheme.

h. Since the fund is an interval fund, redemption of units shall take place only during the interval period. Therefore, the liquidity for the investor is restricted and this may restrict exit at opportune moments.

20. Additional risk factors: The scheme will aim to generate absolute returns over

and above money market returns/liquid funds. The performance of the scheme will depend on the ability of the fund manager to identify opportunities due to price spread in the cash and derivative market. No assurance can be given that Fund Manager will be able to locate investment opportunities or to correctly exploit price spread in the equity markets. There may be instances where the price spread between cash and derivative market is insufficient to meet the cost of carry. In such situations, the Fund Manager due to lack of opportunities in the derivative market may not be able to outperform liquid/money market funds. In addition to this, there can be increase in number of transactions

as the fund manager has to take simultaneous calls in cash and derivative market, which may lead to high portfolio turnover and consequently will lead to high transaction costs.

21. Liquidity risk Under certain conditions, the fund manager may not

be able to hold simultaneous positions in the cash and derivative market, due to poor liquidity in the future/spot market. However, the fund will endeavour to take exposure in those stocks where there is sufficient liquidity in the cash and derivative market, thereby minimising the risk to square off the transaction. This could limit the universe of stocks the fund can invest.

22. Fixed Income Securities: • Credit Risk: Bonds /debentures as well as other

money market instruments issued by corporate run the risk of down grading by the rating agencies and even default as the worst case. Securities issued by Central government have lesser to zero probability of credit/ default risk in view of the sovereign status of the issuer.

• Interest Rate Risk: Bonds/ Central Government securities which are fixed income securities, run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The level of interest rates is determined by the rates at which government raises new money through RBI and the price levels at which the market is already dealing in existing securities, rate of inflation etc. The extent of fall or rise in the prices is a function of the prevailing coupon rate, number of days to maturity of a security and the increase or decrease in the level of interest rates. The prices of Bonds/Central Government securities are also influenced by the liquidity in the financial system and/or the open market operations (OMO) by RBI. Pressure on exchange rate of the Rupee may also affect security prices. Such rise and fall in price of bonds/central government securities in the portfolio of the Scheme may influence the NAV of the Scheme as and when such changes occur.

• Liquidity Risk: The Indian debt market is such that a large percentage of the total traded volumes on particular days might be concentrated in a few securities. Traded volumes for particular securities differ significantly on a daily basis. Consequently, the Scheme might have to incur a significant “impact cost” while transacting large volumes in a particular security.

• Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received

UTI – SPREAD FUND

7

from the securities in the Scheme are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.

• Money Market Securities are subject to the risk of an issuer’s inability to meet interest and principal payments on its obligations and market perception of the creditworthiness of the issuer.

23. Risk Analysis on underlying asset classes in Securitisation:

Securitisation – Features & Investment Strategy Asset securitisation is a process whereby commercial

or consumer credits are packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments (e.g., promissory notes, pass through certificates or other debt instruments) to investors, such instruments evidencing the beneficial ownership of the investors in the Receivables. The financial instruments are rated by an independent credit rating agency. An Investor’s Agent is normally appointed for providing trusteeship services for the transaction.

The Fund will predominantly invest only in those securitisation issuances, which have AAA rating indicating the highest level of safety from credit risk point of view at the time of making an investment.

Generally available Asset Classes for securitisation in India are:

• Commercial Vehicles • Auto and Two wheeler pools • Mortgage pools (residential housing loans) • Personal Loan, credit card and other retail loans • Corporate loans/receivables The fund may invest in various type of securitization

issuances as contained in the above table, including but not limited to Asset Backed Securitisation, Mortgage Backed Securitisation, Personal Loan Backed Securitisation, Collateralized Loan Obligation/ Collateralized Bond Obligation and so on.

RiskFactorsspecifictoinvestmentsinSecuritisedPapers:

Types of Securitised Debt vary and carry different levels and types of risks. Credit Risk on Securitised Bonds depends upon the Originator and varies depending on whether they are issued with Recourse to Originator or otherwise. A structure with Recourse will have a lower Credit Risk than a structure without Recourse. Underlying assets in Securitised Debt may assume different forms and the general types

of receivables include Auto Finance, Credit Cards, Home Loans or any such receipts. Credit risks relating to these types of receivables depend upon various factors including macro economic factors of these industries and economies. Specific factors like nature and adequacy of property mortgaged against these borrowings, nature of loan agreement/ mortgage deed in case of Home Loan, adequacy of documentation in case of Auto Finance and Home Loans, capacity of borrower to meet its obligation on borrowings in case of Credit Cards and intentions of the borrower influence the risks relating to the asset borrowings underlying the securitised debt.

Holders of the securitised assets may have low credit risk with diversified retail base on underlying assets especially when securitised assets are created by high credit rated tranches. Risk profiles of Planned Amortisation Class tranches (PAC), Principal Only Class Tranches (PO) and Interest Only class tranches (IO) will differ depending upon the interest rate movement and speed of prepayment. Various types of major risks pertaining to Securitised Papers are as below:

Liquidity & Price risk Presently, secondary market for securitised papers is

not very liquid. This could limit the ability of the investor to resell them. Even if a secondary market develops and sales were to take place, these secondary transactions may be at a discount to the initial issue price due to changes in the interest rate structure.



UTI – SPREAD FUND

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Prepayment Risk Full prepayment of underlying loan contract may

occur during the tenure of the paper. In the event of prepayments, investors may be exposed to changes in tenor and reinvestment risk.


The Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme. The two conditions shall be complied within each calendar quarter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25 % limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.


reference to an application made by an applicant to the UTI Asset Management Company (UTI AMC) for purchase or redemption of units means the day on which the UTI Financial Centres (UFCs)/Registrar or the other official points of acceptance (as per the list attached with this Scheme Information Document) or notified hereafter, after being satisfied that such application is complete in all respects, accepts the same.






7. “Asset Management Company/UTI AMC/AMC/Investment Manager” means the UTI Asset Management Company Limited incorporated

under the Companies Act, 1956 (1 of 1956) and approved as such by Securities and Exchange Board of India (SEBI) under sub-regulation (2) of Regulation 21 to act as the investment manager to the schemes of UTI Mutual Fund.

8. “Board Corporate” or “Corporation” includes a company incorporated outside India but does not include (a) a corporation sole, (b) a co-operative society registered under any law relating to co-operative societies and (c) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification in the Official Gazette, specify in this behalf.


10. “Book Closure” is a period when the register of unit holders is closed for all transactions viz. Purchases, redemptions etc. Such Book Closure period will not exceed 15 days in a year.

11. “Business Day” means a day other than (i) Saturday and Sunday or (ii) a day on which the principal stock exchange with reference to which the valuation of securities under the scheme is done is closed, or the Reserve Bank of India or banks in Mumbai are closed for business, or (iii) a day on which the UTI AMC offices in Mumbai remain closed or (iv) a day on which purchase and redemption/changeover/switchover of unit is suspended by the Trustee or (v) a day on which normal business could not be transacted due to storm, floods, bandhs, strikes or such other events as the AMC may specify from time to time.


12. “Derivative” includes (i) a security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (ii) a contract which derives its value from the prices, or index of prices, of underlying securities.

13. “Eligible Trust” means - (i) a trust created by or in pursuance of the provisions of any law which is for the time being in force in any State, or (ii) a trust, the properties of which are vested in a treasurer under the Charitable Endowments Act 1890 (Act 6 of 1890), or (iii) a religious or charitable trust which is administered or controlled or supervised by or under the provisions of any law, which is for the time being in force relating to religious or

UTI – SPREAD FUND

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charitable trusts or, (iv) any other trust, being an irrevocable trust, which has been created for the purpose of or in connection with the endowment of any property or properties for the benefit or use of the public or any section thereof, or (v) a trust created by a will which is valid and has become effective, or (vi) any other trust, being an irrevocable trust, which has been created by an instrument in writing and includes `depository’ within the meaning of Clause(e) of Subsection (1) of Section 2 of The Depository Act, 1996.

14. “Firm”, “partner” and “partnership” have the meanings assigned to them in the Indian Partnership Act, 1932 (9 of 1932), but the expression partner shall also include any person who being a minor is admitted to the benefits of the partnership.



17. “Investor Service Centre” such offices as are designated as ISC by the AMC from time to time.

18. “Interval Period” for the purpose of redemptions/switch-outs, the Interval period will be the settlement Thursday (the settlement day for derivatives segment in the NSE which is currently last Thursday of the month) or any day which is declared as the settlement day for Derivatives segment by the NSE. All Redemption requests received till Friday (in case such Friday is a holiday then the last business day) of the week preceding the interval period, would be processed at the NAV of the Interval Period.


20. “Mutual Fund” or “Fund” or “UTI MF” means UTI Mutual Fund, a Trust under the Indian Trust Act, 1882 registered with SEBI under registration number MF/048/03/01 dated January 14, 2003.

21. “NAV” means Net Asset Value of the Units of the Scheme calculated in the manner provided in this Scheme Information and in conformity with the SEBI Regulations as prescribed from time to time.

22. “Non-Resident Indian (NRI)” shall have the meaning as defined under Foreign Exchange Management (Deposit) Regulations, 2000 (FEMA Regulation 2000) framed by Reserve Bank of

India under Foreign Exchange Management Act, 1999 (42 of 1999). As per FEMA Regulation 2000, “Non-Resident Indian (NRI)” means a person resident outside India who is a citizen of India or is a person of Indian origin. A person shall be deemed to be a “person of Indian origin” if he is a citizen of any country other than Bangladesh or Pakistan and if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) herein.


24. “Official points of acceptance” - UTI Financial Centres (UFCs), Offices of the Registrars of the Scheme, AXIS Bank ATMs (only for redemptions for selected schemes only) and any other authorised centre as may be notified by UTI AMC from time to time shall be the official points of acceptance of purchase/changeover/ switchover and redemption applications of the scheme. The cut off time as mentioned in the scheme information document will be applicable at these official points of acceptance. At present in addition to UFCs and Registrars, the list of places as official point of acceptance is attached with this document.

For purchase, redemption, switchover or changeover of units applications received at any authorised collection centers, which is not an official point of acceptance, the cut off time at the official point of acceptance alone, will be applicable for determination of NAV for purchase, redemption, switchover or changeover of units.


26. “Record Date” means the date announced by the Fund for any benefits like dividends, bonus etc. The person holding the units as per the records of UTI AMC/Registrars, on the record date shall be eligible for such benefits.



29. “Scheme” means the UTI-SPrEAD Fund. 30. “SEBI” means the Securities and Exchange

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Board of India set up under the Securities and Exchange Board of India Act, 1992 (15 of 1992).


32. “Sponsors” are Bank of Baroda, Punjab National Bank, Life Insurance Corporation of India and State Bank of India.

33. “Spread” is an arbitrage transaction operated by buying and selling simultaneously in two separate markets, when there is a difference in price between the two markets.




37. “Unit” means the interest of the unitholders in a Scheme, which consists of each unit representing one undivided share in the assets of a Scheme.



40. In this scheme information document, unless the context otherwise requires, (i) the singular includes the plural and vice versa, (ii) reference to any gender includes a reference to all other genders, (iii) heading and bold typeface are only for convenience and shall be ignored for the purposes of interpretation.

UTI – SPREAD FUND

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DueDiligenceCertificatesubmittedtoSEBIforUTI-SPrEADFund



II. all legal requirements connected with the launching of the scheme as also the guidelines, instructions, etc. issued by the Government and any other competent authority in this behalf, have been duly complied with.

III. the disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the scheme.

IV. the intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Sd/-Date : 25 March, 2014 Vivek MaheshwariPlace : Mumbai Compliance Officer

UTI – SPREAD FUND

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II. INFORMATION ABOUT THE SCHEMEA. TYPE OF THE SCHEME UTI-SPrEAD Fund is an open-ended equity fund

investing in a mix of equity, equity derivatives, debt and money market instruments.

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?

The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in Equity & Equity related securities, derivatives and the balance portion in debt securities.

However, there can be no assurance that the investment objective of the scheme will be realised.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?(1) Under normal market circumstances, the investment

range would be as follows:

Instruments Indicative allocation(% of total

assets)

Riskprofile


65-90 % Medium to High

Derivatives including Index Futures, Stock Futures, Index Options and Stock Options. *

65-90% Medium to High

Money Market, Debt instruments, Securitised debt and call money.

10-35% Low to Medium

However, where the scheme has no opportunities in the cash and derivative market, we expect the asset allocation to be as follows:

Instruments Indicative allocation(% of total

assets)

Riskprofile



Derivatives including Index Futures, Stock Futures, Index Options and Stock Options. *


Money Market, Debt instruments, Securitised debt and call money.

35-100% Low to Medium

The above percentages are indicative and not absolute.

* The exposure to derivative shown in the above asset allocation tables is the exposure taken against the underlying equity investments and should not be considered for calculating the total asset allocation.The idea is not to take additional asset allocation with the use of derivatives. The notional value exposure in derivatives securities would be reckoned for the

purposes of the specified limits. The margin money deployed on these positions would be included in the Money Market/Debt category.

The entire derivatives position for the scheme will be taken with a view to hedge the corresponding equity exposures entirely. The scheme, under no circumstances will take a directional/unhedged position in either equity or derivative instruments.

(2) Debt and Money Market in India(a) Debt Instrument Characteristics : A Debt Instrument is basically an obligation which the

borrower has to service periodically and generally has the following features:

Face Value : Stated value of the paper/ Principal Amount

Coupon : Zero; fixed or floatingFrequency : Semi-annual; annual, sometimes

quarterlyMaturity : Bullet, staggeredRedemption : FV; premium or discountOptions : Call/PutIssue Price : Par (FV) or premium or discount


(b) Debt Market Structure :

The Indian Debt market comprises of the Money Market and the Long Term Debt Market.




Government securities includes central, state and local issues. The main instruments in this market are Dated securities (Fixed or Floating) and Treasury bills (Discounted Papers). The Central Government securities are generally issued through auctions on the basis of ‘Uniform price’ method or ‘Multiple price’ method while State Govt. are through on-tap sales.

Corporate debt segment on the other hand includes bonds/debentures issued by private corporates, public sector units (PSUs) and development financial institutions (DFIs). The debentures are rated by a rating agency and based on the feedback from the market, the issue is priced accordingly. The bonds issued may be fixed or floating. The floating rate debt

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market has emerged as an active market in the rising interest rate scenario. Benchmarks range from Overnight rates or Treasury benchmarks.


Securitised Debt Instruments – Asset securitisation is a process of transfer of risk whereby commercial or consumer receivables are pooled packaged and sold in the form of financial instruments. A typical process of asset securitisation involves sale of specific Receivables to a Special Purpose Vehicle (SPV) set up in the form of a trust or a company. The SPV in turn issues financial instruments to investors, which are rated by an independent credit rating agency. Bank, Corporates, Housing and Finance companies generally issue securitised instruments. The underlying receivables generally comprise of loans of Commercial Vehicles, Auto and Two wheeler pools, Mortgage pools (residential housing loans), Personal Loan, credit card and Corporate receivables. The instrument, which is issued, includes loans or receivables maturing only after all receivables are realised. However depending on timing of underlying receivables, the average tenure of the securitized paper gives a better indication of the maturity of the instrument.

(c) Regulators:

The RBI operates both as the monetary authority and the debt manager to the government. In its role as a monetary authority, the RBI participates in the market through open-market operations as well as through Liquidity Adjustment Facility (LAF) to regulate the money supply. It also regulates the bank rate and repo rate, and uses these rates as indirect tools for its monetary policy. The RBI as the debt manager issues the securities at the cheapest possible rate. The SEBI regulates the debt instruments listed on the stock exchanges.

(d) Market Participants:

Given the large size of the trades, the debt market has remained predominantly a wholesale market.

Primary Dealers

Primary Dealers (PDs) act as underwriters in the primary market, and as market makers in the secondary market.

Brokers

Brokers bring together counterparties and negotiate terms of the trade.

Investors

Banks, Insurance Companies, Mutual Funds are important players in the debt market. Other players are Trusts, Provident and pension funds.

(e) Types of security issuance and eligible investors:


Maturity Investors

Central Government

Dated Securities 8.70%-9.20% 1-30 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII

Central Government


State Government

Dated Securities 9.35%-9.45% 10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals

PSUs Corporates Bonds 9.55%-9.65% 5-10 years Banks, Insurance Co, PFs, MFs, PDs, Individuals, FII




8.50% - 9.80 % 15 days to 1 yr Banks, MFs, Fin Inst, Corporates, Individuals, FIIs




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(f) Trading Mechanism:


Currently, Government Securities (G-Sec) trades are predominantly routed though NDS-OM which is a screen based anonymous order matching systems for secondary market trading in G Sec owned by RBI. Corporate Debt is basically a phone driven market where deals are concluded verbally over recorded lines. The reporting of trade is done on the NSE Wholesale Debt Market segment.

(3) Underwriting by the Fund

Subject to the Regulations, the Scheme may enter into underwriting agreements after the Fund obtains a certificate of registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and the Securities and Exchange Board of India (Underwriters) Regulations, 1993, authorizing it to carry on activities as underwriters.

The capital adequacy norms for the purpose of underwriting shall be the net assets of the Scheme and the underwriting obligation of the Scheme shall not at any time exceed the total net asset value of the Scheme.

D. Where will the scheme invest?

1. Subject to the Regulations, the scheme can invest in any (but not exclusively) of the following securities.

i. Equity and equity related securities including convertible bonds and debentures and warrants carrying the right to obtain equity shares.

ii. Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iii. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).

iv. Debt securities issued by domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee.

v. Corporate debt securities (of both public and private sector undertakings).

vi. Securities issued by banks (both public and private sector) as permitted by SEBI from time to time and development financial institutions.

vii. Money market instruments permitted by

SEBI, having maturities of up to one year, in call money the cash and derivative market, we expect the asset market or in alternative investment for the call money market.

viii. Certificate of Deposits (CDs).

ix. Commercial Paper (CPs).

x. Indian Securitised Debt. The Scheme will not invest in foreign securitised debt.

xi. The non-convertible part of convertible securities.

xii. Any other domestic fixed income securities.

xiii. Derivative instruments like Interest Rate Swaps, Forward Rate Agreements, Index Futures, Index Options, Stock Futures, Stock Options and such other derivative instruments permitted by SEBI.

The above mentioned percentages given in item (C) would be adhered to at the point of investment in a stock. The portfolio would be reviewed quarterly to address any deviations from the aforementioned allocations due to market changes.

It may be noted that no prior intimation/indication would be given to investors when the composition/asset allocation pattern under the scheme undergo changes within the permitted band as indicated above. The investors/unitholders can ascertain details of asset allocation of the scheme as on the last date of each month on AMC’s website at www.utimf.com that will display the asset allocation of the scheme as on the given day.

2. The mutual funds can invest in

i. ADRs/ GDRs issued by Indian or foreign companies

ii. Equity of overseas companies listed on recognized stock exchanges overseas

iii. Initial and follow on public offerings for listing at recognized stock exchanges overseas

iv. Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies

v. Money market instruments rated not below investment grade

vi. Repos in the form of investment, where the counterparty is rated not below investment grade; repos should not however, involve any borrowing of funds by mutual funds

vii. Government securities where the countries are rated not below investment grade

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viii. Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities

ix. Short term deposits with banks overseas where the issuer is rated not below investment grade


The scheme may invest in ADRs/GDRs upto 10% of the funds of the scheme.



3. Participating in Derivative Products:

The Scheme under normal circumstances have exposure of its net assets in the derivative instruments as indicated in the Asset Allocation table.

Derivatives:

A derivative instrument, broadly, is a financial contract whose payoff structure is determined by the value of an underlying security, index, interest rate etc. Thus a derivative instrument derives its value from some underlying variable.


Futures

Options

Swaps

Futures:

A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future.

Options:

An option is a derivative instrument which gives its holder (buyer) the right but not the obligation to buy or sell the underlying security at the contracted price on or before the specified date. The purchase of an option requires an up-front payment (premium) to the seller of the option.


Call option:

A call option gives the buyer of the option the right but not the obligation to buy a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.

Put option:

A put option gives the buyer of the option the right but not the obligation to sell a given quantity of the underlying asset, at a given price (strike price), on or before a given future date.



Swaps:

The exchange of a sequence of cash flows that derive from two different financial instruments. For example, the party receiving fixed in an ordinary Interest Rate Swap receives the excess of the fixed coupon payment over the floating rate payment. Of course, each payment depends on the rate, the relevant day count convention, the length of the accrual period and the notional amount.

Debt derivatives are as of now customized over the counter products and there is no guarantee that these products will be available on tap. The provision for trading in derivatives is an enabling provision and it is not binding on the Schemes to undertake trading on a day to day basis.

The Fund may use derivatives instruments like Stock/Index Futures, Interest Rate Swaps, Forward Rate

Agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing as permitted under the Regulations and guidelines from time to time.


(i) The scheme may use hedging techniques including dealing in derivative products - like futures and options, warrants, interest rate swaps (IRS), forward rate agreement (FRA) as may be permissible under SEBI (MFs) Regulations.

(ii) The Scheme intends to use derivatives mainly for the purpose of hedging and/or re-balancing of the portfolio against any anticipated move in the equity and debt markets. A hedge is primarily

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designed to offset a loss on a portfolio with a gain in the hedge position.

(iii) The Fund manager may use various strategies for trading in derivatives with a view to enhancing returns and taking cover against possible fluctuations in the market.

Exposure limits:

a. The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the net assets of the scheme.











Definition of Exposure in case of DerivativePositions

Each position taken in derivatives shall have an associated exposure as defined under. Exposure

is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:

Position ExposureLong Future

Futures Price * Lot Size * Number of Contracts

Short Future

Futures Price * Lot Size * Number of Contracts

Option bought

Option Premium Paid * Lot Size * Number of Contracts.


4. Securitisation and Portfolio Sale

The Scheme will seek to invest in securitised debt upto 30% of the net assets of the Scheme only when the returns from such portfolio are expected to be higher than the other available securities at the time of making an investment. In making the decision to invest upto 30% in securitised debt, it will be ensured that the ratings, risk profiles and the returns of securitised debt instruments are compared with other equivalent eligible debt securities before making an investment decision.

In case the scheme intends to make investment upto 30% in securitised debt instruments, the Trustees will be informed of the same with due justification prior to making an investment decision. The Scheme will adhere to the per issuer exposure limits with reference to securitised debt as specified under the SEBI Regulations and for this purpose the issuer of the securitised debt would be considered to be the originator of underlying receivables of assets and not the Trust/SPV.


The debt component of the scheme would be invested in debt securities and money market instruments.

The duration of the debt portfolio would primarily be managed with a view to generate income with minimum interest rate risk.

The scheme will also endeavour to enhance returns through arbitrage between spot and futures equity markets. The fund manager will evaluate the difference between the price of a stock in the futures market and in the spot market on a market neutral basis. If the price of a stock in the futures market is higher than in the spot market, after adjusting for cost of carry and taxes the scheme shall buy the stock in the spot market and sell the same stock in equal quantity in the futures market, simultaneously.

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Rolling over of the futures transaction

Rolling over of the futures transaction means unwinding the short position in the futures and simultaneously selling futures of the subsequent month maturity, and holding onto the spot position. There could also be instances of unwinding both the spot and the future position before the expiry of the current month future to increase the base return or to meet redemption. Return enhancement through the use of arbitrage opportunity would depend primarily on the availability of such opportunities.

Arbitrage between Spot and Futures Market: The Scheme will look for a spread between the spot and futures market. The Scheme will buy stocks in the spot market and simultaneously sell futures or vice versa (buy futures and sell spot, subject to SEBI Regulations) to lock the arbitrage profit. Therefore the Scheme is not affected by any further price movements in the spot market. This strategy would be restricted to the entire equity component of the scheme.

Dividend Arbitrage: Usually during the period prior to dividend declaration, the stock futures/options market can provide a profitable opportunity. Generally, the stock price declines by the dividend amount when the stock goes ex-dividend.

Buy-backarbitrage:When the company announces the buy-back of its own shares, there could be opportunities due to the price differential in buy-back price and traded price.

NiftySpot-NiftyFutures

The pricing of Nifty Futures is derived from the Nifty. When the two go out of sync, there arises opportunities.

The cost of carry binds the futures price to the price of the underlying asset. For instance, the price of the Nifty futures at any given point in time should typically be more than the level of Nifty at that point of time. Cash and carry trades at times provide higher return than the prevailing interest rates. There is an opportunity to exploit by buying the index futures and selling the portfolio comprising of 50 index stocks. The cash received upon the sale is reinvested at the risk free rate of return till the expiration of the futures contract.

The arbitrage profits come in at the expiration of the futures contract when the position is unwound by buying back the 50 index stocks, or until expiry if the rates converge.

The same strategy can be replicated with Stock Futures also.

Buy Call Option: The options component would be actively managed in an attempt to take advantage of the volatility in the markets to enhance returns. The risk of investing in options is that the views of the portfolio manager may not materialise and the entire option premium paid could be lost.

The scheme would also look at investment in the equities market including subscribing to IPOs.

There are various possible combinations of strategies which may be adopted in a specific situation. The provision for trading in derivatives is an enabling provision and it is not binding on the Scheme to undertake trading on a day to day basis.

Portfolio Turnover Policy

There could be instances of churning of portfolio to take advantage of trading opportunity existing in the market. But it would be difficult to set the target for the portfolio turnover as it would be a function of purchases/redemptions, general market conditions, trading opportunities, creation of liquidity to meet dividend distribution etc. The portfolio turnover shall be targeted so as to have return maximisation for the unitholders. At the same time, expenses such as brokerage and transaction cost shall be kept at low level so that it does not affect the earnings of the scheme.


Following are the Fundamental Attributes of the scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:

(i) Type of a scheme UTI-SPrEAD Fund is an open-ended equity fund

investing in a mix of equity, equity derivatives, debt and money market instruments.

(ii) Investment Objective Main Objective -– as given in Clause II B. Investment pattern - The tentative Equity/Debt/

Money Market portfolio break-up with minimum and maximum asset allocation as given in Clause II C, while retaining the option to alter the asset allocation for a short term period on defensive considerations.

(iii) Terms of Issue Liquidity provision of redemption. Only provisions

relating to redemption as given in Section III A – Ongoing Offer Details - Page. Nos. 24 & 25.

Aggregate Expenses and fees [as given in clause IV (A) (2) and clause IV (A) (3)] charged to the scheme.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme and the Options there under or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Options there under and affect the interests of Unitholders is carried out unless:

(i) A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and

(ii) The Unitholders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

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G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

CRISIL Liquid Fund Index is the benchmark index for UTI-SPrEAD Fund. CRISIL Liquid Fund Index has been chosen as the benchmark for the scheme since the returns generated by the scheme is comparable with the returns of the CRISIL Liquid Fund Index. The benchmark may be changed in future if a benchmark better suited to the investment objective of the scheme is available.

H. WHO MANAGES THE SCHEME?

Kaushik Basu is the Fund Manager of UTI-SPrEAD Fund

Age (in yrs)


52 B.Com. (Hons), LLB, CAIIB (I), CS (Int.), ICMA

He has an overall experience of 29 years including 12 years in the domestic Equity Capital markets. He has also worked in the areas of Accounts and Money Market of erstwhile Unit Trust of India. He was associated with the Kolkata Regional Office from August, 1984 to February, 1999 and with Department of Dealing from March, 1999 to August, 2005. He is working with Department of Funds Management since August, 2005.

UTI-CCP Advantage Fund;UTI-Contra Fund;UTI-Nifty Index Fund.


Subject to SEBI (MFs) Regulations, guidelines on investment from time to time:

(a) Investment in the equity shares or equity related instruments of any company shall not exceed 10% of the NAV of the scheme at the time of investment.

(b) The Scheme shall not invest more than 5% of its NAV in the unlisted equity shares or equity related instruments.

(c) The aggregate value of “illiquid securities” of the scheme, which are defined by SEBI as non traded, thinly traded and unlisted equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of the total assets shall be assigned zero value.

The proposed aggregate holding of assets considered “illiquid”, could be more than 10% of the value of the net assets of the Scheme. In normal course of business, the Scheme would be able to make payment of redemption proceeds within 10 business days, as it would have sufficient exposure to liquid assets. In case of the need for exiting from such illiquid instruments in a short period of time, the NAV of the scheme could be impacted adversely.

(d) The scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorised to carry out such activity by SEBI. This investment limit may be extended to 20% of the NAV of the scheme with the approval of the Trustees and Board of the AMC. Provided that this limit shall not be applicable to investments in Government Securities. Provided further that investment within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with SEBI.

(e) The scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total of such instruments shall not exceed 25% of the NAV of the scheme. All such investments will be made with the prior approval of the Trustees and Board of the AMC. No mutual fund scheme shall invest more than thirty percent of its net assets in money market instruments of an issuer:

Provided that such limit shall not be applicable for investments in Government securities, treasury bills and collateralized borrowing and lending obligations.

UTI Mutual Fund may constitute committees who can approve proposals for investments in unrated instruments. However, the detailed parameters for such investments shall be approved by the AMC Boards and the Trustees. The details of such investments shall be communicated by UTI AMC to the Trustees in their periodical reports. However, in case any security does not fall under the parameters, the prior approval of the Boards of AMC and Trustees shall be required.

(f) Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under clause I 6 (d) and (e) above. It is further clarified that the investment limits at I 6 (d) and (e) above are applicable to all debt securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc.

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guaranteed by either state or central government. Government securities issued by Central/State government or on its behalf by RBI are exempt from the above investment limits.

(g) No loans will be advanced by the Scheme for any purpose as per SEBI regulations 44(3) of SEBI (Mutual Funds) Regulations 1996.

(h) UTI Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction.

However, the scheme may also enter into derivatives transactions as may be permissible under the guidelines issued by SEBI.

(i) The Mutual Fund under all its schemes taken together will not own more than 10% of any Company’s paid up capital carrying voting rights.

(j) Investment by this scheme in other Mutual Fund schemes will be in accordance with Regulation 44(1), Seventh Schedule of the SEBI (MFs) Regulations as under:

A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

Such investment will be consistent with the investment objective of the scheme. No investment management fees will be charged by the AMC on such investments.

(k) (i) This scheme may participate in the securities lending programme, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediary.

(ii) The maximum exposure of the scheme to a single intermediary in the securities lending programme at any point of time would be 10% of the market value of the security class of the scheme or such limit as may be specified by SEBI.

(iii) If mutual funds are permitted to borrow securities, the scheme may, in appropriate circumstances borrow securities in accordance with SEBI guidelines in that regard.

(l) UTI MF shall, get the securities purchased by the scheme transferred in the name of the scheme, whenever investments are intended to be of long-term nature.

(m) Pending deployment of funds of the scheme in securities in terms of investment objective of the scheme as stated above, the scheme can invest the funds in short term deposits of scheduled commercial banks in accordance with SEBI guidelines.

(n) The scheme shall not make any investment in any unlisted security of an associate or group company of the sponsors; or any security issued by way of private placement by an associate or group company of the sponsors; or the listed securities of group companies of the sponsors which is in excess of 25% of the net assets.

(o) Investment in non-publicly offered debt: Depending upon the available yield, the scheme, may invest in non-publicly offered debt securities to the extent to which such investment can be made by the scheme.

(p) Based upon the liquidity needs, the scheme may invest in Government of India Securities to the extent to which such investment can be made by the scheme.

(q) The scheme shall not make any investments in any fund of funds scheme.

J. HOW HAS THE SCHEME PERFORMED?

Performance of the scheme as on February 28, 2014


Returns

Scheme Returns

(%)


Last 1 year 7.94 9.16Last 3 years 8.34 8.61Last 5 years 7.20 7.10Since Inception

7.86 7.29

Past Performance may or may not be sustained in future.

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III. UNITS & OFFERThis section provides details you need to know for investing in the scheme.A. ONGOING OFFER DETAILS

Plans / Options offered The scheme offers Existing Plan and *Direct Plan having Growth and Dividend Options. i) Growth Option – Ordinarily under this option no dividend distribution will

be made and all accrued and earned income will be ploughed back and reflected through growth in the NAV.

ii) Dividend Option with Payout and Reinvestment facilitiesIn case of valid applications received, without indicating any choice of the Option, it would be considered as Growth option and processed accordingly. The NAVs of the two options will be different and separately declared, the portfolio of investment remaining the same.*Direct Plan: Direct Plan is only for investors who purchase/subscribe units directly with the Fund and is not available for investors who route their investments through a Distributor.All categories of Investors (whether existing or new Unitholders) as permitted under this SID are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various modes (except all Platform(s) where investor’s applications for subscription of units are routed through Distributors).The Direct Plan will be a separate plan under the Fund/Scheme and shall have a lower expense ratio excluding distribution expenses, commission etc and will have a separate NAV. No commission shall be paid/charged from Direct Plan.Portfolio of the Scheme under the Existing Plan and Direct Plan will be common.How to apply: Investors subscribing under Direct Plan of UTI-Spread Fund will have to indicate “Direct Plan” against the Scheme name in the application form, as for example. “UTI-Spread Fund - Direct Plan”.Investors should also indicate “Direct” in the ARN column of the application form. However, in case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored and the application will be processed under Direct Plan. Further, where an application is received for Existing Plan without Distributor code or “Direct” mentioned in the ARN Column, the application will be processed under Direct Plan.Scheme characteristics of Direct Plan: Scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same for the Existing Plan and the Direct Plan except that:(a) Switch of investments from Existing Plan through a distributor with ARN

Code (whether the investments were made before or after January 1, 2013) to Direct Plan shall be subject to applicable exit load, if any. The holding period for applicability of load will be considered from the date of such switch to Direct Plan.

(b) However, no exit load shall be levied for switch of investments from Existing Plan made directly without an ARN Code (whether the investments were made before or after January 1, 2013) to Direct Plan of the scheme (subject to statutory taxes and levies, if any). The holding period for applicability of load will be considered from the date of initial investment in the Existing Plan.

(c) No exit load shall be levied in case of switches from Direct Plan to Existing Plan.

(d) Investments through systematic routes: In case of Systematic Investment Plan (SIP)/ Systematic Transfer Investment Plan (STRIP), registered prior to January 1, 2013 without any distributor code under the existing Plan of the Scheme, installments falling on or after the January 1, 2013 will automatically be processed under the Direct Plan.

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Existing Investments prior to 1st January 2013Dividend will continue to be reinvested in the Existing Plan only in respect of Investments made without Distributor code where the Investor has opted for the Dividend Reinvestment facility. Minimum Investment amount under the Direct Plan:In case of already existing investments under the Existing Plan, if the investor wants to further invest in the Direct Plan he/she will be required to invest the minimum investment amount of the scheme, as applicable for that Scheme/Plan/Option/facility etc.However, this minimum investment amount requirement is not applicable in case of switchover from Existing Plan to Direct Plan or vice versa under the same Scheme and same Option.

Dividend Policy (a) Dividend distribution: Dividend distribution, if any, under the scheme will be made subject to

availability of distributable surplus and other factors and a decision is taken by the Trustee to make dividend distribution.

It will be the endeavour of the scheme to declare dividends monthly, subject to be the availability of distributable surplus as computed in accordance with SEBI Regulations.

There is no assurance or guarantee to the unitholders as to the rate of dividend distribution. Though it is the intention of the scheme to make periodical dividend distribution, there may be instances when no dividend distribution could be made.

(b) Capitalisation and issue of Bonus units Bonus units may be issued under the scheme as may be decided by the

Trustee from time to time.(c) Reinvestment of dividend distributed Unitholders, if they so desire, have the facility to reinvest dividend, if any,

payable to them, into further units of the scheme.(d) Threshold Limit for ‘Dividend Payout’ Option If the dividend amount payable to the unitholders under the ‘Dividend

Payout’ option under a folio is less than `250/- and where complete bank account details are not available or facility of electronic credit is not available with Investor’s Bank/Bank Branch, then such amount will be compulsorily reinvested wherever reinvestment option is available under the scheme and an account statement will be sent to the investors at their Registered Address.

(e) Rollover facility Rollover facility offers a facility to unitholders to redeem entire or a part

of their outstanding unit holding and simultaneously investing the entire proceeds or upto face value of units redeemed on the rollover date at the same NAV in the same scheme. No load will be required to be paid on redemption proceeds to the extent of amount invested under the rollover facility.


Restriction on Third Party PaymentsThird party payments are not accepted in any of the schemes of UTI Mutual Fund subject to certain exceptions. “Third Party Payments” means the payment made through instruments issued from an account other than that of the beneficiary investor mentioned in the application form. However, in case of payments from a joint bank account, the first named applicant/investor has to be one of the joint holders of the bank account from which payment is made.The exceptions, inter-alia, includes:- Payment by Parents/Grand-Parents/related persons on behalf of a minor in consideration of natural love and affection or as gift for a value not exceeding `50,000/- (each regular purchase).

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Further, this restriction is not applicable for payment made by a guardian whose name is registered in the records of UTI Mutual Fund in that folio.For further details refer to SAIBank Mandate registration as part of the new folio creationIn order to reduce the risk of frauds and operational risks and thereby protect the interests of the Unit holders/Investors from fraudulent encashment of redemption/dividend proceeds, Investors are required to submit any of the prescribed documents (along with original document for verification) in support of the bank mandate mentioned in the application form for subscription under a new folio, in case these details are not the same as the bank account from which the investment is made.In case, the application for subscription does not comply with the above requirements, UTI AMC, at its sole and absolute discretion, may reject/not process such application and may refund the subscription amount to the bank account from where the investment was made and shall not be liable for any such rejection/refund.For further details on documents to be submitted under the process to identify third party payments etc, please refer to SAI/relevant Addenda.


An application for issue of units may be made by any resident or non-resident Indian as well as non-individuals as indicated under: (not being US persons or Canadian Residents etc as explained below) (a) a resident individual or a NRI or person of Indian origin residing abroad

either singly or jointly with another or upto two other individuals on joint/anyone or survivor basis. An individual may make an application in his personal capacity or in his capacity as an officer of a Government or of a Court,

(b) a parent, step-parent or other lawful guardian on behalf of a resident or a NRI minor. Units can be held on ‘Joint’ or ‘Anyone or Survivor’ basis,

(c) an association of persons or body of individuals whether incorporated or not,

(d) a Hindu Undivided Family both resident and non-resident,(e) a body corporate including a company formed under the Companies Act,

1956 or established under State or Central Law for the time being in force,(f) a bank including a scheduled bank, a regional rural bank, a co-operative

bank etc,(g) an eligible trust including Private Trust being irrevocable trust and created

by an instrument in writing,(h) a society as defined under the scheme,(i) a Financial Institution,(j) an Army/Navy/Air Force/Paramilitary Fund,(k) a partnership firm, (An application by a partnership firm shall be made by not more than

three partners of the firm and the first named person shall be recognised by UTI AMC for all practical purposes as the unitholder. The first named person in the application form should either be authorized by all remaining partners to sign on behalf of them or the partnership deed submitted by the partnership firm should so provide.)

(l) FIIs registered with SEBI,(m) Mutual Funds,(n) Scientific and Industrial Research Organisations,(o) Mutual fund schemes, as may be permitted by SEBI from time to time,(p) Any other category of investors.

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(q) Subject to the Regulations, the Sponsors, the Mutual Funds managed by them, their associates and the AMC may acquire units of the scheme. The AMC shall not be entitled to charge any fees on its investments in the scheme.

Non-acceptanceofsubscriptions fromUSPersons includingQualifiedForeign Investors (QFIs) registered in USA and Canada and Residents of Canada in the Schemes of UTI MF.As per the requirements of the Securities and Exchanges Commission (‘SEC’) of USA, person falling within the definition of the term ‘US Person’ under the Securities Act of 1933 of U.S.A (‘Act’) and corporations or other entities organized under the law of the U.S. are not permitted to make investments in securities not registered under the Act [The term ‘US Person’ means any person who is a U.S. person within the meaning of Regulation S under the Act or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislation, rules etc as may be in force from time to time].Further, as per the Canadian Securities Administrator (CSA), prior registration of a fund with CSA is mandatory before its marketing or selling to residents of Canada.The Schemes of UTI MF are presently not registered under the relevant laws, as applicable in the territorial jurisdiction of U.S. or in any provincial or territorial jurisdiction of Canada.US Persons, corporations and other entities organized under the applicable laws of the U.S including Qualified Foreign Investors (QFIs) registered in USA and Canada and Residents of Canada as defined under the applicable laws of Canada are not allowed to invest in units of any of the Schemes of UTI MF and should also note the following:a. No fresh purchases (including Systematic Investment Plans and Systematic

Transfer Plans) /additional purchases/switches in any Schemes of UTI MF would be allowed. However, existing Unit Holder(s) will be allowed to redeem their units from the Schemes of the Fund. If existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada, then such Unit Holder(s) will not be able to purchase any additional Units in any of the Scheme of the Fund.



d. In case UTI Asset Management Company Ltd. (UTI AMC) / UTI Mutual Fund subsequently indentifies that the subscription amount is received from U.S. Person(s) including Qualified Foreign Investors (QFIs) registered in USA and Canada or Resident(s) of Canada, in that case the UTI AMC/UTI MF at its discretion shall summarily redeem all the units held by such person/s in the respective Scheme/s of UTI MF at applicable Net Asset Value as on the date of redemption. For further details refer to SAI/relevant Addendum.

Investments by Overseas Corporate Bodies (OCBs)Pursuant to the Foreign Exchange Management [Withdrawal of General Permission to Overseas Corporate Bodies (OCBs)] Regulations, 2003, and the consequential amendments made in the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000, OCBs, cannot invest, inter alia, in Mutual Fund Schemes.

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‘Overseas Corporate Body’ (OCB)As per Regulation 2(xi) of the Foreign Exchange Management (Deposit) Regulations, 2000, ‘Overseas Corporate Body’ means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by Non-Resident Indians (hereinafter referred to as ‘NRIs’) and includes overseas trust in which not less than sixty percent beneficial interest is held by Non-resident Indians (hereinafter referred to as ‘Overseas Trust’) directly or indirectly but irrevocably. Holding Basis: In the event an account has more than one registered holder the first-named Unit holder shall receive the account statements, all notices and correspondence with respect to the account, as well as the proceeds of any Redemption requests or dividends or other distributions. In addition, such holder shall have the voting rights, as permitted, associated with such Units as per the applicable guidelines. Applicants can specify the ‘mode of holding’ in the prescribed application form as ‘Jointly’ or ‘Anyone or Survivor’. In the case of holding specified as ‘Jointly’, Redemption requests would have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit holders will have the power / authority to make Redemption requests, without it being necessary for all the Unit holders to sign. However, in all cases, the proceeds of the Redemption will be paid to the first-named Unit holder.In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint holders of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.Investment by Individuals – Foreign NationalsFor the purposes of carrying out the transactions by Foreign Nationals in the units of the Schemes of UTI Mutual Fund,1. Foreign Nationals shall be resident in India as per the provisions of the

Foreign Exchange Management Act, 1999.2. Foreign Nationals are required to comply (including taking necessary

approvals) with all the laws, rules, regulations, guidelines and circulars, as may be issued/applicable from time to time, including but not limited to and pertaining to anti money laundering, know your customer (KYC), income tax, foreign exchange management (the Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder) including in all the applicable jurisdictions.

UTI AMC reserves the right to amend/terminate this facility at any time, keeping in view business/operational exigencies.

Ongoing price for subscription (purchase) / switch-in (from other schemes / plans of the mutual fund) by investors.This is the price you need to pay for purchase/switch-in.

The face value of a unit is `10/-.Purchase on all business days at the applicable NAV. No entry load will be charged for purchase/additional purchase /switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/systematic transfer investment plans accepted by the Fund.

Ongoing price for redemption (sale) / switch outs (to other schemes / plans of the Mutual Fund) by investors.This is the price you will receive for redemptions / switch outs.Example: If the applicable NAV is Rs. 10, exit load is 2% then redemption price will be:Rs.10*(1-0.02)=Rs.9.80

Redemptions during the Interval Period: At the applicable NAV subject to prevailing exit load.The Redemption shall be in terms of Interval Period defined herein below. However the Trustees reserve the right to alter the interval period depending on the market conditions, which in their opinion is prejudicial to the interest of the unitholders in the scheme.

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Cut off timing for subscription/redemptions/ switchesThis is the time before which your application (complete in all respects) should reach the official points of acceptance.

Purchase : For Purchases less than `2 lacs:

Operation Cut-offTiming Applicable NAVValid applications received with local cheques / demand drafts payable at par at the place where the application is received.




Valid applications received with outstation cheques / demand drafts (for the schemes/investors as permitted in the Scheme Information Documents) not payable at par at the place where the application is received.

Within Business

Hours

Closing NAV of the day on which cheque/demand draft is credited to the Scheme.

Purchase : For Purchases of `2 lacs and above:

Operation Cut-offTiming Applicable NAVThe funds are available for utilization before cut off and valid applications received with cheques /demand drafts

Upto 3 p.m. Closing NAV of the day on which the funds are available for utilization before cut off time shall be applicable irrespective of the time of receipt of the application.

The above mentioned rule will be applicable irrespective of the date of debit to investor’s account. `2 lacs shall be considered after considering multiple applications received from the investor under all the schemes/plans on the day and also under all modes of investment i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN registered with UTI MF.

Redemption:All applications for redemptions shall be accepted at all Official Point of acceptance by 3.00 p.m. or such other time as may be prescribed by UTI AMC from time to time on a particular day. All redemption /switch-out requests received till Friday (In case such Friday is a holiday then the last Business Day) of the week preceding the Interval Period, would be processed at the NAV of the Interval Period.The Interval period will be the settlement Thursday (the settlement day for derivatives segment in the NSE which is currently last Thursday of the month) or any day which is declared as the settlement day for Derivatives segment by the NSE.


Where can the applications for purchase / redemption switches be submitted?



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Cash payment to the extent of `20,000/- per investor, per Mutual Fund, per financial year through designated branches of Axis Bank will be accepted (even from such small investors who may not be tax payers and may not have Permanent Account Number (PAN)/bank accounts, subject to the following procedure.i. Investors who desire to invest upto `20,000/- per financial year shall

contact any of our UFCs and obtain a Form for Deposit of Cash and fill-up the same.



Transfer of funds through National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) for Investment amount of `2 lacs and above : Investor shall ensure that the payment is made from one of his/her registered bank accounts in the folio. If the name of the remitter/account number from where the amount is remitted is not matching with the registered / to be registered bank accounts details, such remittances shall be treated as third party payments and such applications are liable to be rejected. In such cases, UTI MF will refund the amount to the remitter within 30 calendar days from the date of receipt of the funds, as per the details made available to UTI MF by the remitting Bank.For further details, please refer to SAI.

Know Your Customer (KYC) Common Standard KYC through CDSL Ventures Ltd (CVL) or any other registered KRA is applicable for all categories of investors and for any amount of investment. Part I of the KYC done once with a SEBI registered intermediary will be valid with another intermediary. Intermediaries shall carry out In-Person Verification (IPV) of their clients.Existing investors in mutual funds who have already complied with the KYC requirement are exempt from following the new KYC procedure effective January 01, 2012 but only for the purpose of making additional investment in the Scheme(s) / Plan(s) of any Mutual Fund registered with SEBI. However, existing investors who are KYC compliant before 1st January 2012 will have to complete the new KYC requirements and get the IPV done if they wish to deal with any other SEBI registered intermediary other than a Mutual Fund.KYC guidelines are not applicable to investors coming under Micro Pension products.In this connection, all the existing/prospective investors are requested to take the following action/s for complying with uniform KYC requirements:1. Instances where no action is requireda) In the case of those individual investors and non-individual investors, other

than Corporates, Partnership Firms and Trusts, who have complied with Uniform KYC requirements on or after January 1, 2012 and who have already updated their status with UTI Mutual Fund, no action will be required for undertaking the KYC process.


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2. Instances where partial action is required a) All those Individual Investors who wish to open a new folio with UTI Mutual

Fund after November 30, 2012 and are KYC compliant as per CVL, MF records on or before 31.12.2011, are required to submit “KYC details Change Form” with purchase application, along with required documentary proofs, to update their ‘Missing/Not Available’ information such as Father’s / Spouse’s name, Marital Status, Nationality, Gross Annual Income or Net Worth as on date (as per Part B of the “KYC Details Change” form) and complete ‘In Person Verification’ (IPV) process. Such investors may also use the same form for change of address or e-mail ID along with required documentary proofs.


3. Instances where complete KYC compliance is requireda) For existing investors as well as new investors who are not yet KYC



PAN-ExemptionformicrofinancialproductsOnly individual Investors (including NRIs, Minors & Sole proprietary firms) who do not have a PAN, and who wish to invest upto `50000/- in a financial year under any Scheme including investments, if any, under SIPs shall be exempted from the requirement of PAN on submission of duly filled in purchase application forms with payment along with KYC application form with other prescribed documents towards proof of identity as specified by SEBI. For all other categories of investors, this exemption is not applicable.Please refer to the SAI for further details on KYC and on non applicability of the aforesaid guidelines to certain other category of investors and transactions.DetailsofBeneficialOwnershipIn terms of SEBI Master Circular on AML/CFT dated December 31, 2010, ‘Beneficial Owner’ has been defined as a natural person/s who ultimately own, control or influence a client and / or persons on whose behalf a transaction is being conducted, which includes persons who exercise ultimate effective control over a legal person or arrangement.Further, the Prevention of Money Laundering Rules, 2005 (PMLR 2005) read with Prevention of Money Laundering Act, 2002 also require that all the beneficial owner(s) shall identify themselves with the intermediary through whom his/her/their investments are made in the scheme. In order to comply with the above Act/Rules/Regulations, the following Client Due Diligence (CDD) process is being implemented.Applicability: It is applicable to all categories of investors except a) Individuals and b) a company listed on a stock exchange or is a majority owned subsidiary of such a company.

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Providing information about beneficial ownership will be applicable to all the investments received from January 1, 2014, from the above category of investors.Above information shall be provided by the investors to UTI Asset Management Company Ltd (UTI AMC) / its Registrar, till the same is taken over by KYC Registering Authority (KRA).Details of the identity of the beneficial owner/ all natural person(s) such as their Name(s), PAN number/Passport details, Address etc together with a self attested PAN Card copy is to be provided by the Investor to the Official Points of Acceptance (OPAs) of the UTI MF Schemes/aforesaid Registrar while submitting the Application Form. Such beneficial owners/natural persons include those who are acting alone or together, or through one or more juridical person and exercising control through ownership or who ultimately has a controlling ownership interest.Incaseofanychange inthebeneficialownership, the investorwillberesponsible to intimate UTI AMC / its Registrar / KRA as may be applicable immediately about such change. For further details regarding manner of determination of beneficial ownership in doubtful cases (relating to investors other than Trust and Foreign investors), investments by Trust and Foreign Investors and for other details regarding disclosure of information regarding beneficial ownership etc., please refer to SAI/relevant Addendum.

Minimum amount for purchase/Investment

Existing Plan / Direct Plan:Minimum initial investment is ` 5,000/- under both the plans. Subsequent minimum investment under a folio is `1,000/- and in multiples of `1/- thereafter with no upper limit.



Special Products Systematic Investment Plan (SIP) / Micro SIP - AvailableSystematic Transfer Investment Plan (STRIP) – Available as a Destination SchemeSystematic Withdrawal Plan (SWP) – Not availableDividend Transfer Plan (DTP) - AvailablePlease refer to the Statement of Additional Information (SAI) for SIP / Micro SIP, DTP and STRIP details.

Investment through Systematic routes

In case of Systematic Investment Plan (SIP) / Systematic Transfer Investment Plan (STRIP) / Dividend Transfer Plans (DTP), registered prior to 1st January 2013 without any distributor code under the Existing Plan of the Scheme, installments falling on or after 1st January 2013 will automatically be processed under the Direct Plan.


A] Updation / Change of address:Investors are requested to update their change of address within 30 days from the date of change.In case of Know Your Client (KYC) complied folios, Investors are required to submit the documents to the intermediaries of KYC Registration Agency (KRA) (viz. CDSL Ventures Limited website: www.cvlkra.com), as may be specified by them, from time to time.In case of non-KYC complied folios, the request to update/change of address shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.

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For further details, refer to SAIFurther, in the case of non-KYC complied folios, Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new address:Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.Proof of old as well as new address:Landline Telephone bill, Electricity Bill, Gas Bill, Demat account statement, Bank passbook/statement (all not more than 3 months old) Ration card, Voter ID card, Passport, Property Tax Receipt, Registered Lease or Sale Agreement of Residence, Driving Licence, Flat Maintenance Bill, Insurance Policy copy, Quarter allotment letter issued by Public Sector Undertakings or Scheduled commercial banks.B] Updation / Change of bank details:Investors are requested to update/change their bank details using the Form for registration of multiple bank accounts separately and in future, it shall not be accompanied with redemption request. Such request shall be submitted prior to submission of the redemption request. Investors are required to submit self attested copy of any one of the following documents, having validity at the time of submission, each towards Proof of Identity and proof of old and new bank accounts for updating /changing the bank details:B.1) Proof of identity:PAN card with photograph, Photo ration card, Unique Identification Number (UID) (Aadhaar), Voter Identity card, Driving Licence, Photo Identity Cards issued by State / Central Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council et., to their Members, Passport, Photo Debit Card and Senior Citizen / Freedom fighter ID card issued by Government.B.2) Proof of new bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque OR bank account statement/passbook with current entries not older than 3 months OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager.B.3) Proof of existing/old bank account details:“Cancelled” original cheque leaf bearing account number and first unit holder name printed on the face of the cheque (mandatory in case of new generation/MNC banks) OR bank account statement/passbook OR Original letter issued by the bank on the letterhead confirming the bank account holder with the account details, duly signed and stamped by the Branch Manager. In case the bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.B.4) In case of the old investments where bank details are not updated, in addition to documents stated at B.1 and B.2 above, any one document of the following will be required to be submitted towards proof of investment:

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Copy of acknowledgement of investment, debit entry of passbook, counterfoil of the dividend warrant or original Account Statement, on the preprinted stationery (issued by erstwhile Registrar prior to November 2007 / Membership Advice/ certificate / from where the investment has been converted/merged to the present scheme, if applicable. B.5) In case of updation of bank details for the investments made in the name of minor child on attaining majority, in addition to B.1 and B.2, the signature of the minor child now become major will have to be attested by the bank manager where the account is held.C] Cooling period:In case the change of address and/or Updation /change of bank details are submitted together with the redemption request or standalone request within the period of 3 (Three) months prior to submission of redemption request, the first redemption payment will be made after a cooling period of upto 8 working days and in any case within SEBI stipulated 10 business days from the date of such redemption request.The copies of all the documents valid at the time of submission will be required to be self attested (original may please be produced for verification across the counter). In case of non‐submission of required documents, UTI Mutual Fund at its sole and absolute discretion may reject the transaction or may decide alternate method of processing such requests.Updating/changeofbankdetailsincaseofnon-KYCcompliedfoliosIn case of non-KYC complied folios, the request to update/change of bank details shall be submitted atleast 10 working days prior to the submission of redemption request/dividend record date together with necessary supporting documents as specified.For further details, refer to SAI.







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e) For those unit holders who have provided an e-mail address/mobile number:-

The AMC shall continue to allot the units to the unit holders whose application has been accepted and also send confirmation specifying the number of units allotted to the unit holders by way of e-mail and/or SMS to the unit holder’s registered e-mail address and/or mobile number as soon as possible but not later than five business days from the date of receipt of the request from the unit holders.





Friend in Need “Friend in Need” facility is introduced for the Individual investors (Resident as well as Non-resident) of UTI MF under all the schemes, whereby there is an option to furnish the contact details including name, address, relationship, telephone number and email ID of any person other than the applicant/s and nominee. This will facilitate obtaining the latest contact details of the investors, if UTI MF is unable to establish contact with the investors. For further details, please refer to SAI.

Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend.In case of funds received through Cash Payment, the dividend proceeds shall be remitted only to the designated bank account.In the event of failure of despatch of dividend within the stipulated 30 day period, the AMC shall be liable to pay interest at such rate as may be specified by SEBI to the unit holders (presently @ 15 per cent per annum).

Redemption The redemption proceeds shall be dispatched to the unitholders within 10 business days from the date of relevant interval period on which the redemption transaction is effected.In case of funds received through Cash Payment, the redemption proceeds shall be remitted only to the designated bank account.

Exit load on death of an unitholder:In the case of the death of an unitholder, no exit load (if applicable) will be charged for redemption of units by the claimant under certain circumstances and subject to fulfilling of prescribed procedural requirements. For further details refer to SAI

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Delay in payment of redemption / repurchase proceeds




The Mutual Fund shall declare the Net asset value of the scheme on every business day on UTI Mutual Fund’s website www.utimf.com. and AMFI’s website www.amfiindia.com.

The NAV shall be calculated for all business days and released to the Press.

Monthly Portfolio Disclosure The Mutual Fund shall disclose portfolio (along with ISIN) as on the last day of the month for all its schemes on its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format. The format for monthly portfolio disclosure shall be the same as that of half yearly portfolio disclosures. The Mutual Fund shall also disclose additional information (such as ratios etc) subject to compliance with the SEBI Advertisement Code.

Half Yearly Disclosure : Portfolio / Financial Results


Additional Disclosure: The Mutual Fund shall, in addition to the total commission and expenses paid to distributors, make additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio of AUM to gross inflows on its website on an yearly basis. In case, the data mentioned above suggests that a distributor has an excessive portfolio turnover ratio, ie., more than two times the industry average, the AMC shall conduct additional due-diligence of such distributors. The Mutual Fund shall also submit the data to AMFI and the consolidated data in this regard shall be disclosed on AMFI website.



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TaxationThe information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.For further details on taxation please refer to the clause on Taxation in the SAI.

Equity Fund

Tax on Dividend

Resident InvestorsAs per the section 10(35) of the Act, dividend received by investors under the schemes of UTI MF is exempt from income tax in the hands of the recipient unit holders.By virtue of proviso to section 115 (R) (2) of the Act, equity oriented funds are exempt from income distribution tax.Mutual FundUTI Mutual Fund is a Mutual Fund registered with SEBI and as such is eligible for benefits under section 10 (23D) of the Income Tax Act, 1961 to have its entire income exempt from income tax. The Mutual Fund will receive income without any deduction of tax at source under the provisions of section 196(iv) of the Act.

Capital Gains Long Term Capital GainAs per section 10(38) of the Act, any income arising from the transfer of a long term capital asset being a unit of an Equity Oriented Fund chargeable to securities transaction tax shall not form part of total income therefore, exempt from Income Tax.Short Term Capital GainCapital gains arising from the transfer of short term capital assets being unit of an equity oriented fund shall be liable to income tax @ 15% under section 111 A and section 115 AD of the Act. The said tax rate would be increased by applicable surcharge. The tax and surcharge will be increased by education cess @ 2% and secondary and higher education cess @ 1% on amount of tax plus surcharge.

Securities Transaction Tax (STT) Equity scheme will also attract Securities Transaction Tax (STT) at applicable rates.

Investor services All investors could refer their grievances giving full particulars of investment at the following address:Shri G S AroraAssistant Vice President – Department of OperationsUTI AMC Ltd.UTI Tower, Gn Block,Bandra - Kurla Complex,Bandra (East),Mumbai - 400 051.Tel : 6678 6666Fax : 2652 3031Investors may post their grievances at our website: www.utimf.com or e-mail us at [email protected]

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C. COMPUTATION OF NAV(a) The Net Asset Value (NAV) of the scheme shall be calculated by determining the value of the scheme’s assets and

subtracting there from the liabilities of the scheme taking into consideration the accruals and provisions. NAV shall be declared separately for different options of the scheme.

(b) The NAV per unit shall be calculated by dividing the NAV of the scheme by the total number of units issued and outstanding on the valuation day. The NAV will be rounded off upto four decimal places.


(d) The NAVs shall be published atleast in two daily newspapers having nationwide circulation on every business day and will also be available on web-site of UTI Mutual Fund, www.utimf.com and/or web-site of AMFI namely www.amfiindia.com

IV. FEES AND EXPENSES

This section outlines the expenses that will be charged to the scheme.

A. ANNUAL SCHEME RECURRING EXPENSES

(1) These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below:

The AMC has estimated that upto 2.50% of the daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual fund.

Particulars% of Net Assets UTI-SPrEADFund

– Regular PlanInvestment Management and Advisory Fees

Up to 2.50%

Trustee FeeAudit FeesCustodian FeesRTA FeesMarketing and Selling expense including agent commissionCost related to investor communicationsCost of fund transfer from location to locationCost of providing account statements and dividend redemption cheques and warrantsCosts of statutory AdvertisementsCost towards investor education and awareness (at least 2 bps)Brokerage and transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp.Service tax on expenses other than investment and advisory feesService tax on brokerage and transaction costOther ExpensesMaximum total expense ratio (TER) permissible under Regulations 52 (6) (c) Additional expenses under regulation 52(6A) (c) Up to 0.20%Additional expenses for gross new inflows from specified cities under Regulation 52(6A)(b)

Up to 0.30%

Note:

Direct plan (investments not routed through a distributor) shall have a lower expense ratio excluding distribution expenses, commission etc. and no commission shall be paid from such Plan. Portfolio of the Scheme under the Existing Plan and Direct Plan will be common.The purpose of the table is to assist the investor in understanding the various costs and expenses that an investor in the scheme will bear directly or indirectly. These estimates have been made in good faith as per the information available

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to the Investment Manager based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations.(2) The total annual recurring expenses of the scheme

excluding redemption expenses but including the investment management and advisory fees shall be subject to the following limits:(i) On the first `100 crore of the daily net assets of

the scheme- 2.50%(ii) On the next `300 crore of the daily net assets of

the scheme- 2.25%(iii) On the next `300 crore of the daily net assets of

the scheme- 2.00%(iv) On the balance of the assets of the scheme -

1.75%(3) Total Expense ratio (TER) and Additional Total

Expenses:(i) Charging of additional expenses based on

newinflowsfrombeyond15cities1. Additional TER shall be charged upto 30 bps

on daily net assets of the scheme if the new inflows from beyond top 15 cities (as per SEBI Regulations/Circulars/AMFI data) are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the Average Assets under Management (AAUM) of the scheme, whichever is higher. The additional TER on account of inflows from beyond top 15 cities so charged shall be clawed back in case the same is redeemed within a period of 1 year from the date of investment. The same can be used only for distribution expenses.



365* X Higher of (a) or (b) above * 366, wherever applicable.





2. 0.05 per cent in case of derivatives transactions shall also be charged to the schemes/plans. Aforesaid

brokerage and transaction costs are included in the cost of investment which are incurred for the purpose

of execution of trade. Any payment towards brokerage and transaction cost, over and above the aforesaid brokerage and transaction costs shall be charged to the schemes/plans within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. Any expenditure in excess of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the AMC or by the Trustee or Sponsors.

6. For further details on TER, please refer to SAI.(ii) Service Tax 1. UTI AMC shall charge service tax on investment




4. Service Tax on brokerage and transaction cost paid for asset purchases, if any, shall be within the limit prescribed under SEBI Regulations




(1) Exit Load is an amount which is paid by the investor to redeem the units from the scheme. This amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC www.utimf.com or call at 1800 22 1230 (toll free number), (022) 2654 6200 (non toll free number) or your distributor.

Load Structure for all plans under the scheme Entry Load: For all the plans, the Entry Load will

be NIL In accordance with the requirements specified by

the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase/additional purchase/switch-in accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under Systematic Investment Plans/Systematic Transfer Investment Plans accepted by the Fund.

Exit Load: 0.50% if exited on or before 180 days from the date of acceptance.

Switch in/out, Systematic Investment Plan (SIP) and Systematic Transfer Investment Plan (STRIP) will also attract Load like regular Purchases and Redemption.

The AMC reserves the right to change/modify exit/switchover load, depending upon the circumstances prevailing at any given time. A load structure when

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introduced by the AMC may comprise of exit load and/or switchover load as may be permissible under the SEBI Regulations. The load may also be changed from time to time and in the case of an exit/redemption load this may be linked to the period of holding. The switchover load may be different for different plans. However, any such change in the load structure shall be applicable on prospective investment only.




dated August 22, 2011, a transaction charge of `100/- for existing investors and ̀ 150/- in the case of first time investor in Mutual Funds, per subscription of `10,000/- and above, respectively, is to be paid to the distributors of UTI Mutual Fund products. However, there shall be no transaction charges on direct investment/s not made through the distributor/financial advisor etc.


In case of SIPs, the transaction charge shall be applicable only if the total commitment through SIPs amounts to `10,000/- and above. In such cases, the transaction charge shall be recovered in 3-4 instalments.





Distributors shall also have the option to either opt in or opt out of levying transaction charge based on category of the product. The various category of product are as given below

Sr. No. Category of product1 Liquid/ Money Market Schemes2 Gilt Schemes3 Debt Schemes4 Infrastructure Debt Fund Schemes5 Equity Linked Saving Schemes (ELSS)6 Other Equity Schemes7 Balanced Schemes8 Gold Exchange Traded Funds9 Other Exchange Traded Funds






At the time of changing the exit load structure, the Mutual Fund shall consider the following measures to avoid complaints from investors about investment in the scheme without knowing the exit load:(i) The addendum detailing the changes shall

be attached to the Scheme Information Documents and Key Information Memorandum. The addendum shall be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and Key Information Memoranda already in stock.



(iv) A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper

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published in the language of the region where the Head Office of the Mutual Fund is situated.


V. RIGHTS OF UNITHOLDERS Please refer to SAI for details. VI. PENALTIES, PENDING LITIGATION OR





yet completedDividend Tax Demand not raised


2008-2009 Nil Reported

(b) Penalties and Proceedings against Bank of Baroda:-

(i) Pune Region: Sponsor and Branch: Bank of Baroda, Laxmi Road,

Pune City Name of Complainant: Pune Municipal Corporation

(PMC) Court/Tribunal / Case No. & Year: Supreme court SLP

(C) No. 23299/2010 Amount involved: Octroi penalty of ` 94.22 lacs Nature of Case/Type of offence & section: Bank filed

a writ petition before Bombay HC challenging the arbitrary demand of the PMC & the provisions under Pune Municipal Corporation (Octroi) Rules 2008 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.



Total No. of Cases: 1 Total amount involved / claimed amt: ` 94.22 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil(ii) Nagpur Region: Sponsor and Branch: Bank of Baroda, RO, Nagpur Name of Complainant: Office of the Nagpur Municipal

Corporation, Nagpur Court/Tribunal / Case No. & Year: High Court Bombay,

Nagpur Bench 5011/2010 Amount involved: ` 8.85 lacs Nature of Case/Type of offence & section: Section

154(1) and (2) read with section 374 of the City of Nagpur Corporation Act 1948. Stock of gold coins were sold within the limits of Nagpur Municipal Corporation without paying octroi duty because the Octroi duty was paid at Mumbai. Nagpur Municipal Corporation, Octroi department issued bill for penal octroi duty on 16/12/2009 for an amount of ` 11,65,920. We have filed writ petition before Hon’ble High Court Bombay, Nagpur Bench. High Court has passed interim order directing Bank to deposit 25% of the demand in court. Accordingly we have deposited `2,91,840 in court. High Court has passed order on 08/06/2010 remanding the matter back to the corporation for disposal of the case on merits after providing reasonable opportunity of hearing to the petitioner pursuant to the show cause notice dated 02/12/2009. Accordingly we have filed representation before Nagpur Municipal Corporation, Octroi department. However NMC, Octroi department issued bill for penal octroi duty dated 02/09/2010 for `8,85,060. We have again challenged the said order passed by NMC, octroi department before High Court Bombay, Nagpur bench. Stay is granted.



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Amount of provisioning made / required: `2.92 lacs Total No. of Cases: 1 Total amount involved / claimed amt: ` 8.85 lacs No. of cases where the provisioning is made: 1 Amount of Provisioning: ` 2.92 lacs(iii) Aurangabad Region: Sponsor and Branch: Bank of Baroda, Nasik Name of Complainant: Nasik Municipal Corporation

(NMC) Court/Tribunal / Case No. & Year: Supreme court SLP

(C) No. 9706/2010 Amount involved: Octroi penalty of ` 5.95 lacs Nature of Case/type of offense & section: Bank filed

a writ petition before Bombay HC challenging the arbitrary demand of the NMC & the provisions under Nasik Municipal Corporation (Octroi) Rules 2005 imposing penalty being contrary to the provisions of Section 398 of the Bombay Provincial Municipal Corporation Act, 1949. The Bombay HC allowed the appeal holding corporation does not have power to impose penalty equivalent to 10 times the Octroi without following the due process of law as envisaged under section 398 of Act of 1949.



Total No. of Cases: 1 Total amount involved / claimed amt: ` 5.95 lacs No. of cases where the provisioning is made: Nil Amount of Provisioning (` in lacs): Nil(iv) Ahmedabad Region: Sponsor and Branch: Bank of Baroda, Nandini

Complex Name of the party/complainant: Income Tax Name of the Court/Forum & Case no.: High Court of

Gujarat / Tax Appeal No 2028 & 2029 of 2010 Amount involved (`): 65,75,664 Nature of the case/type of offences and Section:


Details/brief nature of the case: IT Dept assessed that SGLAB are following regularly hybrid system of accounting and it had maintained a separate account for interest on sticky loans, as such it is not covered by decision of High court of Gujarat.


Present Status and remarks: Nil(v) Region-DMR-1 (NZ):

i. Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special








ii. Sponsor and Branch: Bank of Baroda, IBB branch Name of the party/complainant: Special



Amount involved: `5 lacs Nature of the case/type of offences and Section:




UTI – SPREAD FUND

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Total No. of Cases: 2 Total amount involved: ` 15 lacsiii. Sponsor and Branch: Bank of Baroda, Eastern









(i) A notice under section 47 A (1) (b) read with section 46(4)(i) of the Banking Regulation Act 1949, Reserve Bank of India imposed a penalty of `10.00 lacs along

with 19 other Banks for contravention of various instructions issued in respect of derivatives, such as, failure to carry out due diligence in regard to suitability of products, selling derivative products to users not having risk management polices and not verifying the underlying/adequacy of underlying and eligible limits under past performance route.

(ii) Bank of Mauritius imposed a penalty of MUR 100,000/- i.e. equivalent of `175,000/- for a violation reported in December 2012. This was due to non-adherence of guidelines on advertisement by Bank of Mauritius.

2. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. – (a) The BoB was one of the bankers to the public

issue of shares of Jaltarang Motels Limited (“Jaltarang”) in December, 1995. SEBI, by its order dated January 19, 2000 directed the Bank to refund the sum of `4,031,018 being the application money for the shares released by the Bank to the Jaltarang with interest at 15% from March 25, 1996 i.e. the day the Bank allowed withdrawal of the funds by Jaltarang in respect of funds collected from the public issue. The Bank preferred an appeal before the Securities Appellate Tribunal and the Tribunal, by order dated July 27, 2000, rejected the appeal. The bank has filed an appeal (Appeal No.2 of 2000) before the High Court, Mumbai against the said order of the Tribunal. The High Court, Mumbai, on November 13, 2000, granted interim relief of stay of the operation of the order dated July 27, 2000 of the Securities Appellate Tribunal and January 19, 2000 of SEBI and has further directed that the matter be placed on the board for final hearing. The matter is still pending.

(b) The merchant banking division of the BoB was the pre-issue lead manager for the public issue of shares of Trident Steels Limited (“Trident”) in November, 1993. SEBI issued a show cause notice dated April 29, 2004 calling upon the merchant banking division of the Bank to show cause why action should not be taken against it for failing in its duty to exercise due diligence in the above mentioned public issue. SEBI alleged that the merchant banking division of the Bank did not disclose the material fact that 750,000 shares out of the pre issue capital of Trident had been pledged by the directors and holders of those shares to the Industrial Finance Branch of the Bank towards enhancement of various credit facilities extended by the Bank to Trident. In

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October 1989, the directors and holders of those shares have given an undertaking that as long as the dues of Trident to the Bank are not paid in full, they will not transfer, deal with or dispose off equity or preference shares held by them in the company or any shares that might be acquired in future, without prior written consent of the Bank. BOB Caps, in its reply to the show cause notice, has submitted that it was the obligation of Trident to give true disclosures and that any punitive action will lie solely against Trident, its promoters and directors.


State Bank of India(d) SEBI served show cause notice under rule 4

of the adjudication Rules for the deficiencies observed in Debenture Trustee operations during their inspection conducted from 26.07.2010 to 30.07.2010 at Mumbai Main branch. Bank has filed Consent Application with SEBI on 7th March 2013.

3. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. a) A writ petition has been filed by UTI Asset

Management Company Ltd., UTI Mutual Fund and UTI Trustee Company Private Ltd. challenging the order dated 06.08.2008 passed by the Central Information Commission on the applicability of the Right to Information Act, 2005, which has been stayed by the Honourable High Court, Bombay. The writ has been admitted and stay will continue pending the hearing and final disposal of the petition. The matter will come up for hearing in due course.

b) There are 13 criminal cases pending related to normal operations of the schemes of UTI MF such as non-transfer of units, non-receipt of unit certificates, non-receipt of redemption proceeds or income distribution, closure of scheme/plan. These cases are not maintainable and judging from our experience such cases are generally dismissed by Courts or withdrawn by the complainant.

c) There are 28 cases pending at different courts related to suits/petitions filed by a) contract workmen, b) employees association, c) employees/ex-employees etc. These cases are

pending at different levels for adjudication.d) A Special Leave Petition has been filed by Bajaj

Auto Ltd. before the Honourable Supreme Court of India against the final judgement and order dated 09.10.2006 of the Honourable High Court of Bombay in the matter of the winding up of UTI Growth & Value Fund- Bonus Plan with effect from 01.02.2005 in pursuance to circular dated 12.12.2003 of SEBI. The matter is admitted on 10.07.2008 and will be heard in due course.

e) Two cases are pending in different courts challenging the termination of Senior Citizens Unit Plan (SCUP), the details of which are given below: i. Public Interest Litigation filed by Kalindi

Doshi before High Court of Bombay- affidavit in reply has been filed and the case is at admission stage.





UTI GETF: The Maharashtra Sales Tax authorities have

disallowed refund claim and raised tax demand under the Maharashtra Value Added Tax Act 2002 for a sum of Rs. 62,18,252/- plus interest and penalty for the years 2007-08 and 2008-09. The matter is being contested, Appeals have been filed with the appellate authorities against the denial of the refund claim and raising of demand and the hearing is in progress.


Notwithstanding anything contained in this Scheme Information Document, the provisions of theSEBI(MutualFunds)Regulations,1996andtheGuidelines there under shall be applicable.

UTI – SPREAD FUND

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AHMEDABAD REGION


BENGALURU REGION


CHANDIGARH REGION


CORPORATE OFFICE

UTI Tower, ‘Gn’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. Tel.: 66786666

OFFICIAL POINTS OF ACCEPTANCE UTI FINANCIAL CENTRES

UTI – SPREAD FUND

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CHENNAI REGION


DELHI REGION


GUWAHATI REGION


KOLKATA REGION


LUCKNOW REGION

Agra: FCI Building, Ground Floor, 60/4, Sanjay Place, Agra–282 002, Tel: (0562) 2857789, 2858047, Allahabad: 4, Sardar Patel Marg, 1st Floor, Civil Lines, Allahabad-211 001, Tel: (0532) 2561028, Aligarh: 3/339-A Ram Ghat Road, Opp. Atrauli Bus Stand, Aligarh, Uttar Pradesh–202 001, Tel : (0571) 2741511, Bareilly: 116-117 Deen Dayal Puram, Bareilly, Uttar Pradesh-243 005, Tel.: (0581) 2303014, Bhagalpur: 1st floor, Kavita Apartment, Opposite Head Post Office, Mahatma Gandhi Road, Bhagalpur-812 001, Bihar, Tel.: (0641) 2300040/41, Darbhanga: VIP Road, Allalpatti, Opposite Mahamaya Nursing Home, P.O. Darbhanga Medical College, Laheraisarai, Dist – Darbhanga, Bihar – 846 003, Tel.: (06272) 250 033, Gaya: 1st Floor, Zion Complex, Opp. Fire Brigade, Swarajpuri Road, Gaya-823 001, Bihar, Tel: (0631) 2221623, Gorakhpur: Cross Road The Mall, Shop No. 16 - 20, 1st Floor, Bank Road, A. D. Chowk, Gorakhpur - 273 001, Uttar Pradesh, Tel.: (0551) 220 4995 / 4996, Kanpur: 16/77, Civil Lines, Kanpur-208 001, Tel: (0512) 2304278, Lucknow: Aryan Business Park, 2nd floor, 19/32 Park Road (old 90 M G Road), Lucknow-226 001, Tel: (0522) 2238491/2238598, Muzaffarpur: Ground Floor, LIC ‘Jeevan Prakash’ Bldg., Uma Shankar Pandit Marg, Opposite Devisthan (Devi Mandir)

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Club Road, Muzaffarpur (Bihar), Pin – 842 002, Tel.: (0621) 2265091, Patna: 3rd Floor, Harshwardhan Arcade, Beside Lok Nayak Jai Prakash Bhawan, (Near Dak Bunglow Crossing), Fraser Road, Patna – 800 001, Bihar, Tel: (0612) 2200047, Varanasi: 1st Floor, D-58/2A-1, Bhawani Market, Rathyatra, Varanasi-221 010, Tel: (0542) 2226881.

MUMBAI REGION


NAGPUR REGION


UTI NRI CELL




KARVY CENTRES

Abohar: C/o. Shri S K Goyal, Business Development Associate of UTI Mutual Fund, H. No. 1184, Street No.5, 7th Chowk, Abohar, Punjab – 152 116, Tel.: 01634 – 221238, Ahmednagar: C/o. Mr. Santosh H. Gandhi, 3312, Khist Lane, Ahmednagar – 414 001, Maharashtra, Mob.: 9850007454, Akola: Shop No.30, Ground Floor, Yamuna Tarang Complex, N H No.06, Murtizapur Road, Akola – 444 004 Tel.: 0724 – 2451 874, Alappuzha: Karvy Computershare Pvt. Ltd., 2nd Floor, JP Towers, Near West of Zilla Court Bridge, Mullakkal, Alappuzha (Alleppey) – 688 011, Tel.: 0477-3294001, Ananthapur: # 15-149, 2nd Floor, S.R.Towers, Opp: Lalithakala Parishat, Subash Road, Anantapur-515 001, Tel.: (08554) 244449, Andaman & Nicobar Islands: C/o Shri P N Raju, 5, Middle Point, 112, M G Road, Midyna Tower, Ground Floor, Port Blair, Andaman & Nicobar Islands – 744 101, Tel.: 03192-233083, Angul: C/o Shri Surya Narayan Mishra, 1st Floor, Sreeram Complex, NH-42,Similipada, Angul, Orissa, Pin-759122, Tel.: 06764-230192, Asansol: 18, G T Road, 1st Floor, Asansol-713 301, Tel.: (0341) 2214624, Bilaspur: Karvy Computershare Pvt. Ltd., Shop no. 201/202, V R Plaza, Link Road, Bilaspur – 495 001, Tel.: 07752-408436, Chinsura: J C Ghose Sarani, Near Bus Stand, Chinsura–712101, Tel: (033) 26810049/50, Dhule: Karvy Computershare Pvt. Ltd., Ground Floor, Ideal Laundry, Lane No.4, Khol Galli, Near Muthoot Finance, Opp. Bhavasar General Store, Dhule – 424 001, Tel: (02562) 282823, Dindigul: No.9, Old No.4/B, New Agraharam, Palani Road, Dindigul-624 001, Tel.: (0451) 2436077/177, East Midnapore: C/o Shri Manoj Kumar Dolai, Town Padumbasan, P O Tamluk, East Midnapore, West Bengal, Pin-721636, Mob.: 953228266242, Eluru: 23A-3-32, Gubbalavari Street, R R Pet, Eluru - 534 002, Tel.: (08812) 227851 to 54, Erode: No. 4, KMY Salai, Veerappan Traders Complex, Opp. Erode Bus Stand, Sathy Road, Erode-638 003, Tel.: (0424) 2225615, Gandhinagar: 27, Suman Tower, Near Hotel Haveli, Sector No.11, Gandhinagar, Ahmedbad-382 011, Tel.: (079) 28529222 / 23249943 / 4955, Hajipur: C/o Mr. V N Jha, Business Development Associate for UTI Mutual Fund, 2nd Floor, Canara Bank Campus Kachhari Road, Hajipur‐844101, Bihar Phone No. 06224 (260520), Haridwar: UTI Asset Management Company Ltd, First Floor, Ashirwad Complex, Near Ahuja Petrol Pump, Opp Khanna Nagar, Haridwar – 249407, Tel.: (01334) 312828, Hazaribagh: C/o Surendra Nath Singh, Business Development Associate for UTI Mutual Fund, Prabhu Niwas Market, Ananda Chowk, Guru Gobind Singh Road, Hazaribagh – 825301, Jharkhand Tel (06546) 261015, Hissar: Sco 71, 1st Floor, Red Square Market, Hissar–125 001, Tel.: (01662) 225845/68/36, Howrah: C/o Shri Asok Pramanik, Uluberia – R.S., Majherrati, Jaduberia, Dist. Howrah, West Bengal, Pin-711316, Tel.: 033-26610546, Jalpaiguri: D.B.C. Road, Near Rupasree Cinema Hall, Beside Kalamandir, Po & Dist Jalpaiguri, Jalpaiguri–735 101, Tel.: (03561) 224207/225351, Jhansi: 371/01, Narayan Plaza, Gwalior Road, Near Jeevan Shah Chauraha, Jhansi-284 001, Tel.: (0510) 2333685, Junagadh: 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh,

UTI – SPREAD FUND

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Gujarat–362 001, Tel.: (0285) 2624154, Kannur: 2nd Floor, Prabhat Complex, Fort Road, Kannur– 689 107, Tel.: (0497) 2764190, Karimnagar: H. No.4-2-130/131, Above Union Bank, Jafri Road, Rajeev Chowk, Karimnagar-505001, Tel.: (0878) 2244773/ 75/79, Karnal: Karvy Computer Pvt Ltd., 18/369, Char Chaman, Kunjpura Road, Karnal – 132 001, Haryana, Tel:(0184) 2251524 / 2251525 / 2251526, Khammam: 2-3-117, Gandhi Chowk, Opp. Siramvari Satram, Khammam-507 003, Tel.: (08742) 258567, Kollam: Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada, Kollam–691 008, Tel.: (0474) 3012778, Korba: 1st Floor, 35 Indira Complex, P. Nagar, Korba (C.G.) – 495 677, Tel.: (07759) 245089/ 245354/ 320039, Krishna: C/o Shri Mamidi Venkateswara Rao, D. No. 25-474, Kojjilipet, Machilipatnam, Dist Krishna, Andhra Pradesh, Pin-521001, Tel.: 08672-221520, Kurnool: Shop No.43, 1st Floor, S V Complex, Railway Station Road, Kurnool - 518 004, Tel.: (08518) 228850/950, Madhubani: C/o Shri Anand Kumar, Bimal Niwas, 7/77, Narial Bazar, P.O. & Dist. Madhubani, Bihar, Pin-847211, Tel.: 06276-223507, Malout: S/o. S. Kartar Singh, Back Side SBI Bank, Ward No.18 H. No.202, Heta Ram Colony, Malout, Distt. Muktsar – 152 107, Punjab, Mob.:9417669417, Mathura: Karvy Computershare Pvt. Ltd., Ambey Crown II Floor, In front of BSA Collage, Gaushala Road, Mathura – 281 001, Mob.: 9369918618, Mehsana: 14-15, Prabhu Complex, Near HDFC Bank, Mehsana Highway, Mehsana–384 002, Tel.: (02762) 322559, Nadia: C/o Shri Prokash Chandra Podder, Udayan, 20, M.M. Street, (Nr. Sadar Hospital, Traffic More), PO Krishnagar, Dist. Nadia, West Bengal, Pin-741101, Mob.: 953472255806, Nagaon: C/o Shri Sajal Nandi, A D P Road, Christianpatty, Nagaon, Assam, Pin-782001, Tel.: 03672-233016, Nagarcoil: 3 A, South Car Street, Parfan Complex, Nr The Laxmi Vilas Bank, Nagarcoil –629 001, Tel: (04652) 233551/52/53, Nalanda: C/o MD Mokhtar Alam, Hotel Anukul Complex, Post Office Road, P.O. Biharsharif, Dist. Nalanda, Bihar, Pin-803101, Tel.: 06112-227199, Nanded: Karvy Computershare Private Limited, Shop No.4, First Floor, Opp. Bank of India, Santkrupa Market, Gurudwara Road, Nanded, Maharashtra – 431 602 – Tel.: 02462 – 237885, Nizamabad: H. No. 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank, Ginza View, Hyderabad Road, Nizambad-503 003, Tel.: (08462) 224366, Ongole: Y R Complex, Near Bus Stand, Opp. Power House, Kurnool Road, Ongole-523 002, Tel.: (08592) 657801/282258, Palghat: 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat, Tel.: (0491) 2547143/373, Patnamthitta: Near Superintendent of Police Office, Kumbakattu Nagar, Makkamkunnu, Patnamthitta – 689 645, Kerala, Tel.: (0468) 2320769, Pondicherry: No. 7, First Floor, Thiayagaraja Street, Pondicherry – 605 001 Tel: (0413) 2220 640, Puri: C/o Shri Pradeep Kumar Nayak, Lavanyapuri, Sarvodaya Nagar, Puri, Orissa, Pin-752002, Tel.: 06752-251788, Ratnagiri: Karvy Computershare Pvt. Ltd., C/o V L Ayare, Chief Agent for UTI Mutual Fund, Gala No.3, Shankeshwar Plaza, Nachane Road, Ratnagiri – 415 639, Tel.: (02352) 270502, Rewari: C/o Shri Raghu Nandan, Business Development Associate for UTI Mutual Fund, SCO‐7, Brass Market (Opposite LIC office), Rewari – 123401, Haryana Tel (01274) 224864, Rohtak: 1st Floor, Ashoka Plaza, Delhi Road, Rohtak–124 001, Tel.: (01262) 253597/271984/230258, Roorkee: Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee-247 667, Tel.: (01332) 277664/667, Saharanpur: 18 Mission Market, Court Road, Saharanpur– 247 001, Uttar Pradesh, Tel.: (0132) 3297451, Sangli: C/o. Shri Shridhar D Kulkarni, “Gurukrupa Sahniwas” CS No.478/1, Gala No. B-4, Sambhare Road, Gaon Bhag, Near Maruti Temple, Sangli – 416 416, Maharashtra, Tel.: (0233) 2331228, Satara: C/o. Shri Deepak V. Khandake, ‘Pratik’, 31 Ramkrishna Colony Camp, Satara – 415 001, Tel.: (02162) 230657, Satna: 1st Floor, KB Complex, Reva Road, Satna-485 001, Tel.: (07672) 503791, Shimoga: LLR Road, Opp. Telecom Gm Office, Durgi Gudi, Shimoga–577 201, Tel.: (08182) 227485, Thanjavur: Nalliah Complex, No.70, Srinivasam Pillai Road, Thanjavur–613 001, Tel.: (04362) 279407/08, Tuticorin: 4 B, A34, A37, Mangalmal, Mani Nagar, Opp. Rajaji Park, Palayamkottai Road, Tuticorin–628 003, Tel.: (0461) 2334601/602, Udupi: C/o Shri Walter Cyril Pinto, C/o Feather Communications, 13-3-22A1, Vishnu Prakash Building, Ground Floor, Udupi, Karnataka, Pin-576101, Tel.: 0820-2529063, Ujjain: Karvy Computershare Pvt Ltd, C/o Shri Sumit Kataria, Business Development Associate of UTI Mutual Fund, 68, Mussadipura, Sati Marg, Ujjain, MP – 456006 Tel.: (0734) 2554795, Uttar Dinajpur: C/o Shri Prasanta Kumar Bhadra, Sudarshanpur, Near Telecom Exchange, P.O. Raiganj, Uttar Dinajpur, West Bengal, Pin-733134, Tel.: 03523-253638, Valsad: Shop No 2, Phiroza Corner, ICICI Bank Char Rasta, Tithal Road, Valsad–396 001, Tel.: (02632) 326902.

