Home› India› Securities and Exchange Board of India› Axis Gold and Silver Passive FOF...
Date: 2025-11-24 Category: Not Applicable State: Union Government Country: India

Axis Gold and Silver Passive FOF

Issued by Securities and Exchange Board of India · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Executive Summary** This Scheme Information Document details the Axis Gold and Silver Passive Fund of Funds (FoF), an open-ended fund investing in gold and silver exchange-traded funds. The fund aims for long-term capital appreciation and will continuously offer units at NAV-based prices. The New Fund Offer (NFO) period and subsequent reopening dates are not provided. Investors should consult financial advisors before investing. **Key Points / Main Content** * **Fund Objective:** The scheme aims to generate returns by investing in units of Gold ETFs and Silver ETFs, but performance may differ due to tracking error. * **Asset Allocation:** * 95-100% in Units of Gold and Silver ETFs. * 0-5% in Money Market Instruments for liquidity. * **Investment Restrictions:** * The scheme will *not* invest in: Overseas securities, securitized debt, unrated debt instruments, derivatives, stock lending, structured obligations/credit enhancements. * **Plans and Options:** * Two plans available: Regular and Direct, both with a Growth option. * The Regular Plan is accessible through distributors, while the Direct Plan is only for direct investments with the Fund. * **Application and Load Structure:** * Minimum application amount: Rs. 100 and multiples of Re. 1/- thereafter. * Exit Load: 0.25% if redeemed/switched within 15 days of allotment; Nil thereafter. * **Systematic Transactions:** * Systematic Investment Plan (SIP) : Daily, Weekly, Monthly, and Yearly options with varying amounts. * Systematic Transfer Plan (STP) : Investors can opt for a lumpsum and transfer amounts at following intervals into another scheme. * **NAV Disclosure:** NAV will be disclosed by 10:00 a.m. on the next business day on the AMC and AMFI websites. * **Risk Factors:** Include risks associated with gold and silver price fluctuations, ETF liquidity, and tracking error. * **Special Facilities:** Smart Switch Option and Switching Option during NFO; systematic investments, systematic transfers, and systematic withdrawal plans are available on an ongoing basis. * **Minimum Investors:** Scheme shall have a minimum of 20 Investors with no single investor accounting for more than 25% of the corpus of the scheme. * **Expense Ratio:** Total expense ratio is capped at 1.00% of daily net assets, which includes weighted average of the total expense ratio levied by the underlying schemes(s). Additional expenses for gross new inflows from specified cities are expenses not exceeding of 0.30 per cent of daily net assets. * **Taxation:** Income tax rates vary based on resident status and income levels; subject to changes. * **Redemption and Dividends:** * Redemption proceeds are to be dispatched within 3 business days. * It is mandatory for Unitholders to mention their bank account numbers in their applications/requests for redemption. **Impact Analysis** **Investors** * **Impact:** Investors seeking long-term capital appreciation through gold and silver exposure via the units of Gold ETFs and Silver ETFs in a FoF structure should be familiar with the scheme and related risks. * **Action Required:** Consult financial advisors before investing, review the document thoroughly, and monitor fund performance regularly. **AMC (Axis Asset Management Company)** * **Impact:** Manages the fund, ensures regulatory compliance, and adheres to the stated investment objective and strategies. * **Action Required:** Ensure accurate and timely NAV disclosures, manage fund operations efficiently, and comply with all SEBI regulations. **Distributors** * **Impact:** Facilitate the distribution of the fund to investors. * **Action Required:** Provide complete and accurate information about the fund to potential investors, including the scheme's objectives, risks, and fee structure.

Key Entities Referenced

Securities and Exchange Board of India (Mutual Funds) Regulations 1996: The primary regulation governing the structure and operation of the mutual fund scheme. References to SEBI (MF) Regulations indicate compliance requirements. Axis Gold and Silver Passive FoF: The name of the specific fund of funds scheme, central to the entire document. It defines the scope of the offering as investing in gold and silver exchange-traded funds. Axis Mutual Fund: The asset management company offering the scheme. It's responsible for the fund's operations and compliance, making it a key entity. Axis Bank Ltd.: The sponsor of the mutual fund. It provides the initial capital and reputation for the fund. Statement of Additional Information (SAI): A supplementary document to the Scheme Information Document (SID) containing further details regarding Axis Mutual Fund, standard risk factors, tax and legal issues.
Official Source Record View Original Source →
See Full Document Text
SCHEME INFORMATION DOCUMENT SO - 1 Axis Gold and Silver Passive FoF (An open ended fund of funds scheme investing in units of gold and silver exchange traded funds) This product is suitable for investors who Scheme Risk-o-meter Benchmark Risk-o-meter are seeking*: • Long term capital appreciation • To invest in an open-ended fund of funds scheme predominantly investing in the units of gold and silver exchange traded funds. Domestic Price of Gold and Domestic Price of Silver SO - 3 (50:50) *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. (The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made) Offer of Units of Rs. 10 each during the New Fund Offer and Continuous offer for Units at NAV based prices New Fund Offer Opens on : New Fund Offer Closes on : Scheme re-opens on : Within five Business Days from the date of allotment Name of Mutual Fund : Axis Mutual Fund Name of Asset Management : Axis Asset Management Company Ltd. Company Name of Trustee Company : Axis Mutual Fund Trustee Ltd Addresses, Website of the entities : One Lodha Place, 22nd & 23rd Floor, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra, Pin Code – 400013 www.axismf.com Name of the Sponsor : Axis Bank Ltd. 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 circulars issued thereunder 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 / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.axismf.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 Investor Service Centre or log on to our website. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. 1 Axis Gold and Silver Passive FOFThis Scheme Information Document is dated _________. 2 Axis Gold and Silver Passive FOFTABLE OF CONTENTS SECTION I ..................................................................................................................................................................... 4 Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME ........................................................................................................ 4 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY .................................................................................... 11 Part II. INFORMATION ABOUT THE SCHEME ............................................................................................................ 12 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? .......................................................................................... 12 B. WHERE WILL THE SCHEME INVEST? ............................................................................................................... 14 C. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................................... 14 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ....................................................................... 15 E. WHO MANAGES THE SCHEME? .................................................................................................................... 15 F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? ............................... 16 H. ADDITIONAL SCHEME RELATED DISCLOSURES ............................................................................................ 16 Part III. OTHER DETAILS .............................................................................................................................................. 18 A. COMPUTATION OF NAV ............................................................................................................................... 18 B. NEW FUND OFFER (NFO) EXPENSES .............................................................................................................. 18 C. ANNUAL SCHEME RECURRING EXPENSES .................................................................................................... 18 D. LOAD STRUCTURE ........................................................................................................................................... 21 E. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ................................................................................ 22 Section II .................................................................................................................................................................... 23 I. Introduction ................................................................................................................................................... 23 A. Definitions/interpretation ............................................................................................................................. 23 B. Risk factors .................................................................................................................................................... 23 C. Risk mitigation strategies ............................................................................................................................. 25 II. Information about the scheme: .................................................................................................................. 27 A. Where will the scheme invest – ................................................................................................................... 27 B. What are the investment restrictions? ........................................................................................................ 28 C. Fundamental Attributes ................................................................................................................................ 31 D. Index methodology (for index funds, ETFs and FOFs having one underlying domestic ETF) .............. 32 E. Principles of incentive structure for market makers (for ETFs) ................................................................ 32 F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per clause 13.6.2 of SEBI master circular for mutual funds dated May 19, 2023 (only for close ended debt schemes) ................................................................................................................................................................... 32 G. Other Scheme Specific Disclosures: .......................................................................................................... 32 III. Other Details .................................................................................................................................................. 40 A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be provided .................................................................................................................................................................... 40 B. Periodic Disclosures ..................................................................................................................................... 41 C. Transparency/NAV Disclosure ................................................................................................................... 42 D. Transaction charges and stamp duty- ....................................................................................................... 42 E. Associate Transactions - Please refer to Statement of Additional Information (SAI) .......................... 43 3 Axis Gold and Silver Passive FOFSECTION I Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. Title Description No. I. Name of the Axis Gold and Silver Passive FoF (‘the Scheme’) scheme II. Category of the Commodity based FoF (Domestic) Scheme III. Scheme type An open ended fund of funds scheme investing in units of gold and silver exchange traded funds. IV. Scheme code SO - 7 V. Investment The investment objective of the scheme is to generate returns by investing in objective units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying gold and silver ETFs due to tracking error in the underlying exchange traded funds. SO – 5 There is no assurance that the investment objective of the Scheme will be achieved. VI. Liquidity/listing The Scheme offers Units for Subscription and Redemption at NAV based prices details on all Business Days on an ongoing basis, commencing not later than 5 business days from the date of allotment. Under normal circumstances the AMC shall dispatch the redemption proceeds within three (3) working days from the date of receipt of request from the Unit holder. The AMC shall adhere to guidelines published by AMFI /SEBI for exceptional circumstances under which the scheme is unable to transfer redemption or repurchase proceeds within prescribed timelines. VII. Benchmark Benchmark: Domestic Price of Gold and Domestic Price of Silver (50:50) (Total Return SO – 25 Index) Justifications of Benchmark: The Scheme performance would be benchmarked against the domestic price of gold and silver. As the Scheme invests in units of Gold ETFs & Silver ETFs, the investment objective is to generate returns that are in line with the performance of the Gold ETFs and Silver ETFs, the Scheme will be benchmarked against the domestic price of gold and silver. Tier 2 Benchmark: Not Applicable The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other prevalent guidelines. VIII. NAV disclosure By 10.00 a.m. on the next Business Day on AMC (www.axismf.com) and AMFI website. Further Details in Section II. IX. Applicable Timeline for timelines Dispatch of redemption proceeds: Under normal circumstances the AMC shall dispatch the redemption proceeds within three (3) working days from the date of receipt of request from the Unit holder. The AMC shall adhere to guidelines published by AMFI /SEBI for exceptional circumstances under which the scheme is unable to 4 Axis Gold and Silver Passive FOFtransfer redemption or repurchase proceeds within prescribed timelines. X. Plans and Plans Options 1. Axis Gold and Silver Passive FoF - Regular Plan Plans/Options 2. Axis Gold and Silver Passive FoF - Direct Plan and sub options under Option under each plans: Growth the Scheme Regular Plan Regular Plan is available for investors who purchase /subscribe Units in a Scheme through a Distributor. Direct Plan Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. All the plans will have a common portfolio. Growth Option IDCWs will not be declared under this option. The income attributable to Units under this option will continue to remain invested in the Scheme and will be reflected in the NAV of Units under this option. Eligible investors / modes for applying All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}. For detailed disclosure on default plans and options, kindly refer SAI. XI. Load Structure Entry Load: Not Applicable Para 10.4 of SEBI Master Circular on Mutual Funds as amended from time to time has decided that there shall be no entry load for all Mutual Fund SO - 48 schemes. Exit Load: a)If redeemed/ switched out within15 days from the date of allotment: 0.25%. b)If redeemed/ switched out after 15 days from the date of allotment: Nil For more details on Load Structure, please refer paragraph “Load Structure”. XII. Minimum 1. During NFO period Application Rs. 100 and in multiples of Re. 1/- thereafter Amount/switch 2. in 3. On continuous basis Rs. 100 and in multiples of Re. 1/- thereafter Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan. The aforesaid requirement of minimum application shall not be applicable on the mandatory investments made by the Designated Employees of the Axis AMC in accordance with clause 6.10 of SEBI Master Circular on Mutual Funds. 5 Axis Gold and Silver Passive FOFXIII. Minimum Rs.100 and in multiples of Re. 1/- thereafter Additional Purchase The aforesaid requirement of minimum additional purchase amount shall not Amount be applicable on the mandatory investments made by the Designated Employees of the Axis AMC in accordance with clause 6.10 of SEBI Master Circular on Mutual Funds. XIV. Minimum There will be no minimum redemption criterion. Redemption/ switch out amount XV. New Fund Offer NFO opens on: Period NFO closes on: The New Fund Offer shall be kept open for a minimum of 3 working days. The AMC/Trustee reserves the right to extend / change the closing date of the New Fund Offer Period, subject to the condition that the New Fund Offer shall not be kept open for more than 15 days. SO - 34 Any such changes shall be announced by way of an addendum uploaded on the website of the AMC. XVI. New Fund Offer Rs. 10/- per unit Price XVII. Segregated The Scheme has provision for segregated portfolio. For Details, kindly refer SAI portfolio/ side pocketing SO - 54 disclosure XVIII Swing pricing The Scheme does not have provision for swing pricing. SO - 55 disclosure XIX. Stock The Scheme does not have provision for Stock lending/short selling. lending/short selling XX. How to Apply Investors can undertake transactions in the Schemes of Axis Mutual Fund and other details either through physical, online / electronic mode or any other mode as may be prescribed from time to time. SO - 35 Physical Transactions For making application for subscription / redemption / switches, application form and Key Information Memorandum may be obtained fr om / submitted to the Official Points of Acceptance (OPAs) of AMC or downloaded from the website of AMC viz. www.axismf.com. Online / Electronic Transactions Investors can undertake transactions via electronic mode through various online facilities offered by Axis AMC / other platforms specified by AMC from time to time. For further details of online / electronic mode please refer SAI. XXI. Investor services Contact details for general service requests and complaints: Investors can lodge any service request or complaints or enquire about NAVs, Unit Holdings, IDCW, etc by calling the Investor line of the AMC at contact number 8108622211 (chargeable) from 9.00 am to 6.00 pm (Monday to Saturday) or (022) 6311 1001 (at local call rate for enquiring at AMC ISC’s) or email – customerservice@axismf.com. The service representatives may 6 Axis Gold and Silver Passive FOFrequire personal information of the Investor for verification of his / her identity in order to protect confidentiality of information. The AMC will at all times endeavour to handle transactions efficiently and to resolve any investor grievances promptly. Investor Relations Officer: Mr. C P Sivakumar Nair Address : Axis Asset Management Company Ltd. One Lodha Place, 22nd & 23rd Floor, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra, Pin Code – 400013 Phone no.: (022) 6311 1205 For any grievances with respect to transactions through BSE StAR and / or NSE MFSS, the investors / Unit Holders should approach either the stock broker or the investor grievance cell of the respective stock exchange. XXII Specific Not Applicable. attribute of the scheme XXIII Special The facilities offered under the Scheme are as follows: product/facility available during A. For NFO: the NFO and on ongoing basis 1. Smart Switch Option Smart switch is allowed only as Lumpsum Transactions in eligible liquid / overnight schemes. Currently Axis Overnight Fund will act as Source Scheme. Investments would be allowed only under Growth Option of these Schemes. 2. Switching Option Switching Option During the NFO period (Switch request will be accepted upto 3.00 p.m. till the last day of the NFO), the Unit holders will be able to invest in the NFO under the Scheme by switching part or all of their Unit holdings held in the respective option(s) /plan(s) of the existing scheme(s) established by the Mutual Fund. B. On Ongoing basis The facilities offered under the Scheme are as follows: A. Systematic Investments 1) Systematic Investment Plan (SIP) 2) Systematic Investment Plan (SIP) Switch Facility 3) Systematic Investment Plan (SIP) Top-Up Facility 4) Systematic Investment Plan (SIP) Pause/Unpause facility 5) FLEX - Systematic Investment Plan (“FLEX SIP”) 6) Atmanirbhar SIP 7) Choti SIP B. Systematic Transfers 1) Systematic Transfer Plan (STP) 2) Capital Appreciation Systematic Transfer Plan (“CAPSTP”) 3) FLEX - Systematic Transfer Plan (“FLEX STP”) C. Systematic Withdrawal Plan (SWP) D. Switching Options 7 Axis Gold and Silver Passive FOF1) Inter – Scheme Switching option 2) Intra –Scheme Switching option E. Online Schedule Transaction Facility The details pertaining to Frequency / Minimum installments / Minimum amount of SIP / SWP / STP are as follows: 1. Systematic Investment Plan Investors shall have an option of choosing any date of the Month from 1st to 28th or last date of the Month as his SIP date. Minimum amount and minimum installments for daily, weekly, monthly and yearly frequency under SIP Facility is as follows: Frequency under Minimum Minimum SIP amount SIP Facility Installments Daily 6 Installments Rs. 100/- and in multiple of Re. 1/- Weekly 6 Installments Rs. 100/- and in multiple of Re. 1/- Monthly 6 Installments Rs. 100/- and in multiple of Re. 1/- Yearly 3 Installments Rs. 6,000/- and in multiple of Re. 1/- 2. Systematic Transfer Plan Investors can opt for the Systematic Transfer Plan by investing a lumpsum amount in one scheme of the Fund and providing a standing instruction to transfer sums at following intervals into any other scheme (as may be permitted by the Scheme Information Document of the respective schemes) of the Fund. STP Minimum Minimum Cycle Date Frequency Amount (in Rs.) Installment Daily Monday To Friday 1,000/- 6 Weekly Monday To Friday 1,000/- 6 Fortnightly Alternate Wednesday 1,000/- 6 Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6 Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2 2.1 CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP) There are three options available under CapSTP viz. Weekly, Monthly and Quarterly option, the details of which are given below: CapSTP Minimum Minimum Cycle Date Frequency Amount* (Rs.) Installment Weekly Monday To Friday 500/- 6 Monthly 1st, 7th, 10th, 15th or 500/- 6 25th Quarterly 1st, 7th, 10th, 15th or 1,000/- 2 25th 2.2 FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN (“FLEX SIP”/ “FLEX STP”) The minimum number of installments for enrollment and Amount under Flex STP: Frequency under Minimum Minimum Flex-STP amount* 8 Axis Gold and Silver Passive FOFFlex-STP Facility Installments (Rs.) Monthly (1st, 7th, 6 Rs. 1,000/- and in multiple 10th,15th or 25th) of Rs. 1/- Quarterly (1st, 7th, 2 Rs. 3,000/- and in multiple 10th,15th or 25th) of Rs. 1/- The minimum number of installments for enrollment and Amount under Flex SIP: Frequency under Minimum Minimum Flex-SIP amount Flex-SIP Facility Installments (Rs.) 6 Installments for all Rs. 500/- and in multiple of Monthly schemes Rs. 1/- 3 Installments for all Rs. 12,000/- and in multiple Yearly schemes of Rs. 1/- There is no maximum duration for Flex SIP/ STP enrolment 3. Systematic Withdrawal Plan There are five options available under SWP viz. Weekly option, Monthly option, Quarterly option, Half Yearly and Yearly option. The details of which are given below: Weekly Monthly Quarterly Half Yearly Option Option Option Yearly Option Option Minimum value of Rs. 1,000/- SWP Additional amount in Re.1 multiples of Dates of SWP Any 1/5/10/15/25* Installment Business Day Minimum No of SWP Five Six Four Four Two * In the event that such a day is a holiday, the withdrawals would be affected on the next business day. For detailed terms and conditions of above facilities, kindly refer SAI. XXIV Weblink • TER for last 6 months / Daily TER: . For details, please refer our website: https://www.axismf.com/total-expense-ratio • Scheme factsheet: For details, please refer our website: https://www.axismf.com/downloads The above disclosures are not available as the scheme is a new scheme to be launched. INTERPRETATION For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: • all references to the masculine shall include the feminine and all references, to the singular shall include the plural and vice-versa. • all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand". • all references to timings relate to Indian Standard Time (IST). 9 Axis Gold and Silver Passive FOF• references to a day are to a calendar day including a non-Business Day. • all references to SEBI Master Circular would refer to SEBI Master Circular for Mutual Funds dated June 27, 2024 as amended from time to time. 10 Axis Gold and Silver Passive FOFDUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY SO - 56 It is confirmed that: (i) The Scheme Information Document submitted 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. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) The AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations. (vii) 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. (viii) The Trustees have ensured that the Scheme approved by them is a new product offered by Axis Mutual Fund and is not a minor modification of any existing scheme/fund/product. Date: _________ Name: Darshan Kapadia Place: Mumbai Designation: Compliance Officer 11 Axis Gold and Silver Passive FOFPart II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation pattern will be: Indicative allocations Instruments (% of total assets) Minimum Maximum Units of Gold and Silver ETFs 95 100 Of which: • Units of Gold ETFs* 35 65 • Units of Silver ETFs* 35 65 Money Market Instruments^ 0 5 * The net assets of the scheme will be invested in units of Gold ETFs and Silver ETFs. The Scheme can invest in units of Gold ETFs and Silver ETFs managed by Axis Mutual Fund or any other Mutual Fund(s) as per the above stated asset allocation. ^Residual portion of upto 5% of the net assets of the Scheme are provided for liquidity purposes. For liquidity purposes, the Scheme would invest in ‘liquid assets’ as per clause 4.5.1 of SEBI Master Circular of Mutual funds as amended from time to time. SO – 13, 21 The cumulative gross exposure through ETFs and debt and money market instruments should not exceed 100% of the net assets of the Scheme in accordance with Para 12.24 of SEBI Master Circular dated June 27, 2024 as amended from time to time. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure. SEBI vide letter dated November 3, 2021 has clarified that Cash Equivalent shall consist of Government Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91 days. SO – 14 & 17 A small portion of the net assets of the scheme will be invested in money market instruments permitted by SEBI / RBI including call money market or in alternative investment for the call money market as may be provided by the RBI, to meet the liquidity requirements of the Scheme. The Scheme shall not invest in Overseas securities/ADR/GDR, Securitized debt, REIT / InvITs, Repo/ Reverse repo transactions in corporate debt, Unrated debt instruments, Credit Default Swaps, debt instruments having Structured obligations / Credit enhancements and instruments with special features as specified in Para 12.2 of Master circular for Mutual Fund, derivatives and stock lending. The Scheme shall not engage in short-selling. Investment in short term deposits Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by Para 12.16 of Master Circular for Mutual Funds. Investment in Units of Mutual Fund Upto 100% of net assets of the Scheme in units of Gold ETFs and Silver ETFs managed by Axis Mutual Fund or any other Mutual Fund(s). 12 Axis Gold and Silver Passive FoFIndicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sr. No. Type of Instrument Percentage of exposure Circular references SO - 19 1. Tri party Repo Allocation may be made to TREPS from any - amounts that are pending deployment or on account of any adverse market situation. 2. Mutual Fund Units Upto 100% of net assets of the Scheme in units of Clause 4 of Gold ETFs and Silver ETFs managed by Axis Mutual Seventh Schedule Fund or any other Mutual Fund(s). of SEBI (MF) Regulations, 1996 The limits given above shall be subject to Schedule VII of the Regulations / circulars issued by SEBI and shall stand revised to the extent of changes in the Regulations/ circulars from time to time. SO – 11, 15, 16, 18, 20 The scheme shall not invest in following Instruments: Sr. No. Type of Instrument 1 Securities Lending & borrowing and Short selling 2 Derivatives 3 Securitized Debt 4 Overseas Securities 5 REITS and InVITS 6 Debt instruments with special features AT1 & AT2 Bonds 7 Credit Default Swaps 8 Debt instruments having Credit Enhancement /Structured Obligations 9 Repo and Reverse repo in corporate debt securities Timelines for deployment of funds collected in New Fund Offer (NFO) as per asset allocation of the scheme In terms of SEBI circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025, the AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. If the AMC is not able to deploy the funds in 30 business days, the AMC shall adhere to the requirements as laid down in the aforesaid SEBI circular. SO – 22, 23 and 24 Portfolio rebalancing due to short term defensive considerations: Subject to the SEBI MF 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 depending upon the perception of the fund manager. Further, the Scheme may actively deviate from the stated asset allocation pattern outlined in the SID and may take higher allocation in debt and money market during extenuating circumstances which may include NFO closure, substantial subscription/redemption, adverse market conditions etc. These instances may be beyond the control of the fund manager & the AMC and hence may require such deviations. Such changes in the investment pattern will be transitionary in nature and will be undertaken as defensive considerations only in accordance with Para 1.14.1.2 of SEBI Master circular for Mutual Fund and as amended from time to time. Defensive considerations may be determined by the fund manager and /or AMC from time to time. In case of deviations, under normal circumstances on account of exogenous factors, the fund manager will endeavor to rebalance the Scheme within 30 calendar days from the date of such deviation. The intention being at all times to seek to protect the interests of the Unit holders. 13 Axis Gold and Silver Passive FoFPortfolio rebalancing due to passive breaches: In case of passive deviation from the asset allocation pattern, the AMC shall follow process specified in Para 2.9 of SEBI Master circular for Mutual Fund as amended from time to time. In line with the circular, in the event of deviation from the mandated asset allocation mentioned in the SID due to passive breaches the portfolio would be rebalanced within 30 business days from the date of deviation. Where the portfolio is not rebalanced within mandated timelines, justification in writing including details of efforts taken to rebalance the portfolio shall be placed before the Investment Committee. The Investment Committee, if so desires, can extend the timelines up to sixty (60) business days from the date of completion of mandated rebalancing period. In case the portfolio of the Scheme is not rebalanced within aforementioned mandated plus extended timelines AMC shall adhere to the requirements as laid down in the aforesaid SEBI circular. However, at all times, the portfolio will adhere to the overall investment objective of the scheme. B. WHERE WILL THE SCHEME INVEST? SO - 29 Following are list of all instruments in which the scheme will invest: • Units of Gold and Silver Exchange Traded Funds • Debt Instruments & Money Market Instruments (for liquidity purpose) • Short Term Deposits The Scheme shall invest in any other instruments as may be permitted by SEBI/RBI from time to time. Kindly refer detailed definitions and applicable regulations/guidelines for each instruments given in the Section II. C. WHAT ARE THE INVESTMENT STRATEGIES? The scheme follows an active investment strategy. SO – 27 The investment objective of the scheme is to generate returns by investing in units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying gold and silver ETFs due to tracking error in the underlying exchange traded funds. There is no assurance that the investment objective of the Scheme will be achieved. Based on macro/technical/fundamental factors the Fund Manager shall decide allocation towards units of Gold ETFs and/or Silver ETFs. The Scheme shall invest in units of Gold and Silver ETFs directly or through secondary market. PORTFOLIO TURNOVER Portfolio turnover in the Scheme will be a function of market opportunities. It is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. The AMC will endeavor to optimize portfolio turnover to optimize risk adjusted return keeping in mind the cost associated with it. A high portfolio turnover rate is not necessarily a drag on portfolio performance and may be representative of investment opportunities that exist in the market. Portfolio Turnover is not applicable to Fund of Funds Scheme. For details pertaining to Risk Controls and Risk Mitigation refer Point no. C Part I of Section II of the Scheme Information Document. 14 Axis Gold and Silver Passive FoFD. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? For details refer Point no. VII – Part I -Section I of the Scheme Information Document. E. WHO MANAGES THE SCHEME? SO – 32 & 33 Name of Age and Experience of the Fund Manager Names of other schemes under his Fund Qualification management Manager Mr. Pratik Age: 37 years Total number of years of Axis Multi Asset Allocation Tibrewal experience: 13 years, his last 10 Fund (Commodities) (Managing years’ experience are as Axis Gold ETF since Qualifications: follows: Axis Gold Fund inception) B.com, LLB Axis Silver ETF (Gen), MBA Axis Asset Management Company Axis Silver Fund of Fund (Finance) Limited (Fund Manager – Commodities & Assistant Dealer – Fixed Income for Mutual Fund) (February 01, 2025 till date) Axis Asset Management Company Limited (Fund Manager – Debt PMS) (June 01, 2024 to January 31, 2025) Axis Asset Management Company Limited (Fund Manager – Commodities Mutual Fund) (June 01, 2022 to May 31, 2024) Inditrade Capital Limited (August 31, 2018 to May 31, 2022) Edelweiss Asset Management Limited (January 31, 2018 to August 30, 2018) Inditrade Capital Limited (November 16, 2016 to January 30, 2018) Edelweiss Commodities trading Ltd. (July 12, 2012 to November 15, 2016) Mr. Aditya Age: 40 years, Total number of years of Axis Liquid Fund Pagaria experience: 18 years, his last 10 Axis Banking & PSU Debt Fund Qualifications: years’ experience are as follows: Axis Short Duration Fund (Managing Bachelor in • Axis Asset Management Axis Treasury Advantage Fund since Management Company Ltd. (Fund Manager - Axis Money Market Fund inception) Studies, Post Fixed Income) - (August 1, 2016 till Graduate date) Axis Aggressive Hybrid Fund Diploma in Axis Multi Asset Allocation Business • ICICI Prudential Asset Fund Management Management Company Ltd. Axis CRISIL IBX SDL May 2027 (Fund Manager -Fixed Income) - Index Fund (Nov. 30, 2011 - July 26, 2016) Axis Nifty AAA Bond Plus SDL • (Operations)- (May 03, 2007 - Apr 2026 50:50 ETF Nov. 29, 2011) Axis Gold ETF 15 Axis Gold and Silver Passive FoFAxis Floater Fund Axis Gold Fund Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF Axis Silver ETF Axis Silver Fund of Fund Axis Nifty SDL September 2026 Debt Index Fund Axis CRISIL IBX50:50 Gilt Plus SDL Sep 2027 Index Fund Axis Fixed Term Plan - Series 113 (1228 Days) Axis CRISIL IBX AAA Bond NBFC Jun 2027 Index Fund Axis CRISIL-IBX AAA Bond Financial Services – Sep 2027 Index Fund Axis CRISIL-IBX AAA Bond NBFC-HFC – Jun 2027 Index Fund F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? Axis Gold and Silver Passive FoF, an open-ended fund of funds scheme investing in units of gold and silver exchange traded funds is a new scheme offered by Axis Mutual Fund and is not a minor modification of any other existing scheme/product of Axis Mutual Fund. a. Reference list of existing open ended fund of fund schemes of Axis Mutual Fund are as follows: Sr. No. Name of the scheme(s) 1 Axis Greater China Equity Fund of Fund 2 Axis Income Plus Arbitrage Active FOF 3 Axis Global Equity Alpha Fund of Fund 4 Axis Global Innovation Fund of Fund 5 Axis Gold Fund 6 Axis Silver Fund of Fund 7 Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF 8 Axis Multi Factor Passive FoF 9 Axis US Specific Equity Passive FOF 10 Axis US Specific Treasury Dynamic Debt Passive FOF b. For detailed comparative table on ‘How the Scheme is different from existing schemes of Axis Mutual Fund’, please refer our website : https://www.axismf.com/statutory-disclosures G. HOW HAS THE SCHEME PERFORMED? Not applicable as the Scheme is a new fund to be launched. H. ADDITIONAL SCHEME RELATED DISCLOSURES i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors - Please refer the AMC website https://www.axismf.com/statutory-disclosures for said details ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of debt and equity ETFs/index funds through a functional website link that contains detailed description – Not Applicable 16 Axis Gold and Silver Passive FoFiii. Functional website link for Portfolio Disclosure - Fortnightly / Monthly/ Half Yearly – Please refer the AMC website https://www.axismf.com/statutory-disclosures for said details iv. Portfolio turnover ratio for the one-year period ended: Not applicable as the Scheme is a new fund to be launched. v. Aggregate investment in the Scheme by Concerned scheme’s Fund Manager(s): Sr. Axis Gold and Silver Passive FoF – Net Value M arket Value (in Rs.) No. Fund Manager(s) Units as on ______ NAV (Rs. per unit) Not applicable as the Scheme is a new fund to be launched. For any other disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard kindly refer SAI. Above disclosures are not applicable as the Scheme is a new fund to be launched. vi. Investments of AMC in the Scheme – SO - 59 Subject to the applicable Regulations, the AMC may invest either directly or indirectly, in the Scheme during the New Fund Offer or Ongoing Offer Period. However, the AMC shall not charge any investment management fee on such investments in the Scheme. Further, in terms of requirement of the Regulations, the AMC shall invest such amounts in Scheme, based on the risks associated with the Scheme, as may be specified by the SEBI from time to time. Please refer the website (https://www.axismf.com/statutory-disclosures) for detailed AMC Investments in Scheme(s) of Axis Mutual Fund. The above disclosures are not applicable as the Scheme is a new Scheme to be launched. 17 Axis Gold and Silver Passive FoFPart III. OTHER DETAILS A. COMPUTATION OF NAV The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time. The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below: Market or Fair Value of + Current Assets including - Current Liabilities NAV (Rs.) = Scheme’s Investments Accrued Income and Provisions No. of Units outstanding under Scheme on the Valuation Day The NAV shall be calculated up to four decimal places. Separate NAV will be calculated and disclosed for each Plan / Option.. The AMC will calculate and disclose the first NAV of the Scheme within a period of 5 business days from the date of allotment under the new Fund Offer Period. Subsequently, the NAVs will be calculated and disclosed on all the Business Days. Illustration of Computation of NAV: SO - 43 The computation of NAV per unit using various components is explained as follows: Particulars Amount in Rs Market or Fair Value of Scheme’s Investments .... (A) 10,00,00,000.00 Add: Current Assets including Accrued Income ... (B) 75,34,345.00 Less: Current Liabilities and Provisions. .......... (C) (30,00,000.00) Net Assets (A+B-C) 10,45,34,345.00 No. of Units outstanding under Scheme on the Valuation Day: 100,00,000 The NAV per unit will be computed as follows: 10,45,34,345.34 / 100,00,000 = Rs. 10.4534 per unit (rounded off to four decimals) The Mutual Fund will ensure that the Redemption Price will not be lower than 95% of the Applicable NAV. For other details such as policies w.r.t computation of NAV, rounding off, procedure in case of delay in disclosure of NAV etc. refer to SAI B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, registrar expenses, printing and stationery, bank charges etc. C. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include but are not limited to 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 following expenses will be charged to the Scheme as expenses as permitted under Regulation 52 of SEBI (MF) Regulations. For the actual current expenses being charged, the investor should refer to the website of the AMC. 18 Axis Gold and Silver Passive FoFExpense Head % of daily Net Assets Investment Management and Advisory fees Upto 1.00% Trustee fees Audit fees Custodian fees RTA fees Marketing & Selling expense incl. agent commission Cost related to investor communications Cost of fund transfer from location to location Cost of providing account statements and IDCW redemption cheques and warrants Costs of statutory Advertisements Brokerage & transaction cost over and above 12 bps for cash market trades Goods & Service Tax (GST) on expenses other than investment and advisory fees GST on brokerage and transaction cost (over & above 12bps mentioned above) Other Expenses* Maximum total expense ratio (TER) permissible under Regulation 52 (6)(a) Upto 1.00% Additional expenses under regulation 52(6A)(c)^ Upto 0.05% Additional expenses for gross new inflows from specified cities under regulation 52(6A)(b)# Upto 0.30% SO - 47 *Any other expenses which are directly attributable to the Scheme, may be charged with the approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited. ^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is not levied/ not applicable. All fees and expenses charged in a Direct Plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in Regular Plan. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid/ charged under Direct Plan. The expenses towards Investment Management and Advisory Fees under Regulation 52 (2) and the various sub-heads of recurring expenses mentioned under Regulation 52 (4) of SEBI (MF) Regulations can be apportioned under various expense heads/ sub heads without any sub limit, as permitted under the applicable regulations. Thus, there shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 52 (2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred either towards investment & advisory fees and/or towards other expense heads as stated above. These estimates have been made in good faith as per the information available to the Investment Manager and are subject to change inter-se or in total subject to prevailing Regulations. The AMC will charge the Scheme such actual expenses incurred, subject to the statutory limit prescribed in the Regulations. The recurring expenses of the Scheme (including the Investment Management and Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows: The total expense ratio of the Scheme including weighted average of the total expense ratio levied by the underlying scheme(s) shall not exceed 1.00 per cent of the daily net assets of the Scheme. Provided that the total expense ratio to be charged over and above the weighted average of the total expense ratio of the underlying scheme shall not exceed two times the weighted average of the total 19 Axis Gold and Silver Passive FoF SO - 46expense ratio levied by the underlying scheme(s), subject to the overall ceilings as stated above. The total expenses of the Scheme including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and amended thereto. Expenses charged to the Scheme: A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations 1996 or the Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or expenses may be charged to the Scheme namely- (a) Additional expenses for gross new inflows from specified cities expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such cities as specified by SEBI/AMFI from time to time are at least - i. 30 per cent of gross new inflows in the Scheme, or; ii. 15 per cent of the average assets under management (year to date) of the Scheme, whichever is higher. Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause (ii), such expenses on daily net assets of the Scheme shall be charged on proportionate basis. Provided further that, expenses charged under this clause shall be utilised for distribution expenses incurred for bringing inflows from such cities. Provided further that amount incurred as expense on account of inflows from beyond top cities as specified by SEBI/AMFI, so charged shall be credited back to the Scheme, in case the said inflow is redeemed within a period of one year from the date of investment. Provided further that, additional TER can be charged based on inflows only from retail investors from B30 cities in terms of Para 10.1.3 of SEBI Master Circular for Mutual Funds as amended from time to time. For this purpose inflows of amount upto Rs. 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investor”. #Note: Pursuant to SEBI letter dated February 24, 2023 read with AMFI communication dated March 02, 2023, w.e.f March 01, 2023 no additional expense shall be charged on the new inflows received on or after March 01, 2023 from specified cities as per Regulation 52 (6A) (b) till any further guidance is received from SEBI in this regard. (b) Additional expenses under regulation 52 (6A) (c) additional expenses, incurred towards different heads mentioned under Regulations 52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme; (c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis Asset Management Company Ltd.; (d) Brokerage and transaction cost incurred for the purpose of execution shall be charged to the schemes as provided under Regulation 52 (6A) (a) upto 12 bps for cash market transactions. Any payment towards brokerage & transaction costs, over and above the said 12 bps for cash market transactions will be charged within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the Regulations. B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the Scheme: a) GST on other than investment and advisory fees, if any, shall be borne by the Scheme b) AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as prescribed by SEBI Regulations, as amended from time to time. 20 Axis Gold and Silver Passive FoFExpenses over and above the prescribed limit shall be charged / borne in accordance with the Regulations prevailing from time to time. The mutual fund would update the notice of change in base TER on its website (www.axismf.com) atleast three working days prior to the effective date of the change. Investors can refer ‘Total Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-ratio for Total Expense Ratio (TER) details. SO - 45 Illustration: Impact of Expense Ratio on Scheme's return: Expense ratio, normally expressed as a percentage of Average Assets under Management, is calculated by dividing the permissible expenses under the Regulations by the average net assets. To further illustrate in rupee terms the above, for the Scheme under reference, suppose an Investor invested Rs. 10,000/- (after deduction of stamp duty and transaction charges, if any) under the Growth Option, the impact of expenses charged will be as under: Sr. Particulars Regular Direct No.1 Plan Plan A. Amount invested at the beginning of the year (Rs.) 10,000 10,000 B. Returns before expenses (Rs.) 1,500 1,500 C. Expenses other than the expenses mentioned in ‘D’ below 50 50 (Rs.) D. Marketing & Selling expense incl. agent commission (Rs.) 150 0 E. Returns after expenses at the end of the year (Rs.) [B – (C + D)] 1300 1450 Returns after expenses at the end of the year (in %) [(E/A) – 1] 13% 14.5% Note(s): ● The purpose of the above illustration is purely to explain the impact of expense ratio charged to the Plan(s) under the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments. ● It is assumed that the expenses charged are evenly distributed throughout the year. ● The expenses of the Direct Plan of the Scheme will be lower to the extent of the distribution expenses/ commission ● Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to seek appropriate advice. D. LOAD STRUCTURE 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 commission to the distributors 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, investors may refer to the website of the AMC (www.axismf.com) or may call at contact number 8108622211 (Chargeable) from 9.00 am to 6.00 pm (Monday to Saturday) or can contact his distributor. Para 10.4 of SEBI Master Circular for Mutual Funds as amended from time to time has decided that there shall be no Entry Load for all Mutual Fund schemes. SO - 48 Type of Load Load chargeable (as %age of NAV) Exit Load For details refer Point no. XI of Part – I of Section I of the Scheme Information Document. For switches within the Scheme from Regular to Direct Plan or vice versa, no exit load shall be charged. The above mentioned load structure shall be equally applicable to the special products such as switches, STP, SWP, etc. offered by the AMC. Exit load, if any, charged to the investors will be credited back to the Scheme net of GST. The Investor is 21 Axis Gold and Silver Passive FoFrequested to check the prevailing Load structure of the Scheme before investing. Para 10.4 of Master Circular for Mutual Funds has decided that there shall be no Entry Load for all Mutual Fund schemes. For any change in Load structure, AMC will issue an addendum and display it on the website/ Investor Service Centres. Under the Scheme, the AMC/ Trustee reserves the right to change / modify the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund. The AMC/ Trustee reserves the right to introduce / modify the Load depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under the Regulations. The Redemption Price however, will not be lower than 95% of the NAV. Any imposition or enhancement of Load in future shall be applicable on prospective investments only. SO - 48 At the time of changing the Load Structure: 1. The AMC shall be required to issue an addendum and display the same on its website immediately; 2. The addendum shall be circulated to all the distributors / brokers so that the same can be attached to all Scheme Information Document and Key Information Memorandum already in stock. 3. Latest applicable addendum shall be a part of KIM and SID of the respective Scheme(s). 4. Further, the account statements shall continue to include applicable load structure. The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis). E. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME 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. However, if such limit is breached during the NFO of the Scheme, the Fund will endeavour to 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 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 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 at the Applicable NAV 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. SPECIAL CONSIDERATIONS • The investors will bear the recurring expenses of the Underlying Funds in addition to the recurring expenses charged by Axis Gold and Silver Passive FoF. 22 Axis Gold and Silver Passive FoFSection II I. Introduction A. Definitions/interpretation For details refer website of Axis Mutual Fund: https://www.axismf.com/statutory-disclosures. B. Risk factors Scheme Specific Risk Factors SO - 8 The Scheme will be investing primarily in units of the Gold ETFs and Silver ETFs, which in turn invests in Gold and Gold related instruments and Silver and Silver related instruments respectively. Hence the Scheme’s performance may depend upon the performance of the underlying funds. Any change in the investment policy or the fundamental attributes of the underlying funds will affect the performance of the Scheme. Investments in the underlying funds, which will be investing in Gold and Gold related instruments / Silver and Silver related instruments, will have all the risks associated with investments in Gold and gold related instruments / / Silver and Silver related instruments. The portfolio disclosure of the Scheme will be largely limited to the investments made by the Scheme. Risk factors related to Underlying Fund 1. The NAV of Gold ETFs / Silver ETFs is closely related to the value of Gold / Silver held by the Gold ETF / Silver ETF respectively. The value (price) of Gold / Silver may fluctuate for several reasons and all such fluctuations will result in changes in the NAV of Gold ETFs / Silver ETFs. The factors that may affect the price of Gold / silver, among other things, include demand and supply for Gold / Silver in India and in the global market, Indian and foreign exchange rates, interest rates, inflation trends, trading in Gold / Silver as commodity, legal restrictions on the movement/trade of Gold / Silver that may be imposed by RBI, Government of India or countries that supply or purchase Gold / Silver to/from India, trends and restrictions on import/export of Gold / Silver jewellery in and out of India, etc. 2. Listing of the units of the Gold ETFs / Silver ETFs does not necessarily guarantee their liquidity and there can be no assurance that an active secondary market for the units will develop or be maintained. Consequently, the ETF may quote below its face value / NAV. The market price of the Units of the ETF, like any other listed security, is largely dependent on two factors, viz., (1) the intrinsic value of the Unit (or NAV), and (2) demand and supply of Units in the market. Sizeable demand or supply of the Units in the Exchange may lead to market price of the Units to quote at premium or discount to NAV. To that extent the return from Axis Gold and Silver Passive FoF shall differ from the return on its benchmark. 3. Gold ETFs / Silver ETFs would repurchase/redeem Units in Creation Unit size only. Thus unit holdings less than the Creation Unit size can only be sold through the secondary market on the Stock Exchange where these units are listed, subject to the rules and regulations of the Exchange. 4. The scheme will subscribe according to the value equivalent to Unit Creation size as applicable for each of the underlying fund. When subscriptions received are not adequate enough to invest in Creation Unit size, the subscriptions may be deployed in debt and money market instruments which will have a different return profile compared to the benchmark’s returns profile. The scheme may also invest in such instruments to meet liquidity requirements. As a result, the returns of the scheme may differ from the underlying ETF(s). 5. The underlying funds may invest in Exchange Traded Commodity Derivatives and Fixed Income Securities; hence the associated risks of these instruments will also be applicable to the Scheme. 6. Tracking error and Tracking Difference: SO - 10 Tracking Error Tracking error is a measure of the difference in returns from the Scheme and the returns from the index. It is computed as the standard deviation of the difference between the daily returns of the underlying benchmark and the NAV of the Scheme on an annualized basis. 23 Axis Gold and Silver Passive FoFNAV of the Scheme is dependent on valuation of Gold. Gold has to be valued based on the formula prescribed by SEBI. NAV so computed may vary from the price of Gold in the domestic market. Tracking error could be the result of a variety of factors including but not limited to: • Delay in the purchase or sale of Gold due to Illiquidity of Gold, Delay in realisation of sale proceeds, Creating a lot size to buy the required amount of Gold • The Scheme may buy or sell the Gold at different points of time during the trading session at the then prevailing prices which may not correspond to its closing prices. o The potential for trades to fail, which may result in the Scheme not having acquired Gold at a price necessary to track the benchmark price. o The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses. • Disinvestments to meet redemptions, recurring expenses, etc. • Execution of large buy / sell orders • Realisation of Unit holders’ funds The Scheme will endeavor to minimise the tracking error by: • Rebalancing of the portfolio. • Setting off of incremental subscriptions against redemptions. The tracking error i.e. the annualised standard deviation of the difference in daily returns between physical Gold and the NAV of Gold ETF based on past one year rolling over data (For ETFs in existence for a period of less than one year, annualized standard deviation shall be calculated based on available data) shall not exceed 2% or as may be prescribed by regulations from time to time. In case of unavoidable circumstances in the nature of force majeure which are beyond the control of the AMCs, the tracking error may exceed 2%, for which approval of Board of AMC and Trustees shall be taken and the same shall prominently be disclosed on the website of the AMC. Tracking difference - the ETF Scheme shall also disclose the tracking difference i.e. the difference of returns between physical Gold and the ETF Scheme, on the website of the AMC on monthly basis for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units. Risks associated with investments in Money Market Instruments Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. 24 Axis Gold and Silver Passive FoFLiquidity Risk on account of unlisted securities: The liquidity and valuation of the Schemes’ investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a Money Market Instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government Securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV. Risks associated with segregated portfolio 1. Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer. 2. Security comprises of segregated portfolio may not realise any value. 3. Listing of units of segregated portfolio on recognised stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. Risk Factor pertaining to FoFs investing in ETFs As per SEBI guideline / regulation FoFs are valued using exchange closing price of the underlying ETFs. There can be a situation where ETF's traded price / closing price and iNAV / NAV of ETF may deviate from each other, which may have impact on the NAV / valuation of the FoF. Risks associated with investments in Units of Mutual Fund schemes The Scheme will invest in a basket of equity oriented schemes of Axis Mutual Fund or any other Mutual Funds. Hence the performance of the Scheme would depend upon the performance of the underlying schemes. Any change in the investment policies or fundamental attributes of the underlying schemes will affect the performance of the Scheme. Risks associated with transaction in Units through stock exchange(s) In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing / settlement by BSE and / or NSE and their respective clearing corporations on which the Fund has no control. Risk associated with handling, storing and safekeeping of physical gold and silver: There is a risk that part or all of the gold / silver belonging to the underlying Scheme could be lost, damaged or stolen. Access to it could also be restricted by natural events or human actions. Any of these actions may have adverse impact on the operations of the Scheme. Indirect taxation: For the valuation of gold / silver by the scheme, indirect taxes as applicable (customs duty, VAT, GST etc) would be considered for NAV calculations and transactions with the AMC. Any change in the rates of indirect taxation would accordingly affect the valuation of the Scheme and the indicative NAVs published by the AMC. C. Risk mitigation strategies SO - 9 Risk Control 25 Axis Gold and Silver Passive FoFRisk management is going to be an integral part of the investment process. Effective risk management is critical to fund management for achieving financial soundness. Investments by the Scheme shall be made as per the investment objectives of the Scheme and provisions of the Regulations. The risk control process involves identifying & measuring the risk through various risk measurement tools. Investments made from the corpus of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations. The Scheme's portfolio shall predominantly consist of Gold and Silver ETFs. Thus, the mitigation policies applicable to those Schemes will be applicable to this Scheme. Risk control measures with respect to investment in Gold / Silver Tracking error risk: The performance of the Scheme may not commensurate with the performance of the benchmark index on any given day or over any given period. Such variation, referred to as tracking error may impact the performance of the Scheme. Mitigation: The Investment Manager would monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible. Custody Risk - There is a risk that part or all of the physical Gold / Silver belonging to the underlying Scheme could be lost, damaged or stolen. Mitigation - In order to ensure safety, the said Gold / Silver will be stored with custodian in its vaults. The custodian will insure/cover all such risks. Liquidity Risk - Inability to buy / sell appropriate quantity of Gold / Silver Mitigation - The underlying scheme may retain certain investments in cash or cash equivalents for its day- to-day liquidity requirements. The Trustee (subject to applicable regulations) in general interest of the Unit holders of the underlying scheme offered under its Scheme Information Document and keeping in view of the unforeseen circumstances / unusual market conditions, may limit the total number of Units, which can be redeemed on any Business Day. Risk control measures with respect to Debt Investments – i.e investment in Money Market Instruments & units of debt schemes: Market Risk / Interest Rate Risk: Changes in interest rates may affect the Scheme’s Net Asset Value as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. The price movement up and down in fixed income securities will lead to possible movements in the NAV. Mitigation - In a rising interest rates scenario the Scheme / underlying scheme may increase its investment in money market securities whereas if the interest rates are expected to fall the allocation to debt securities with longer maturity may be increased thereby mitigating risk to that extent. Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). Mitigation- The Scheme / underlying scheme may invest in government securities, corporate bonds and money market instruments. While the liquidity risk for government securities, money market instruments and short maturity corporate bonds may be low, it may be high in case of medium to long maturity corporate bonds. Credit risk or default risk: It refers to the risk that an issuer of a fixed income security may default (i.e., will be unable to make timely principal and interest payments on the security). Normally, the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk. 26 Axis Gold and Silver Passive FoFMitigation– Apart from the basic examination, management’s past track record will also be studied. In order to assess financial risk a detailed assessment of the issuer’s financial statements will be undertaken to review its ability to undergo stress on cash flows and asset quality. A detailed evaluation of accounting policies, off-balance sheet exposures, notes, auditors’ comments and disclosure standards will also be made to assess the overall financial risk of the potential borrower. In case of securitized debt instruments, the Scheme will ensure that these instruments are sufficiently backed by assets. II.Information about the scheme: SO - 29 A. Where will the scheme invest – The corpus of the Scheme, subject to the enabling provisions of asset allocation pattern, will be invested in securities/ instruments which will include but not limited to: Units of Gold ETFs / Silver ETFs: The net assets of the scheme will be invested in units of Gold ETFs and Silver ETFs. The Scheme can invest in units of Gold ETFs and Silver ETFs managed by Axis Mutual Fund or any other Mutual Fund(s). Debt Instruments & Money Market Instruments Certificate of Deposit (CD) Certificate of Deposit is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue. Commercial Paper (CP) Commercial Paper is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. Treasury Bill (T-Bills) Treasury Bills are issued by the Government of India to meet their short term borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days. The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of India to meet their short term borrowing requirements. CMB are generally issued for maturities of less than 91 days. Commercial Usance Bills Bill (bills of exchange/promissory notes of public sector and private sector corporate entities) Rediscounting, usance bills and commercial bills. Repos Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, corporate debt securities, Government Securities, State Government Securities and T-Bills are eligible for Repo/Reverse Repo. Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. The Scheme may undertake repo or reverse repo transactions in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities 27 Axis Gold and Silver Passive FoFguaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. Government Securities having an unexpired maturity up to one year are included in money market instruments. Non-Convertible Debentures and bonds Non convertible debentures and bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee, Public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. These instruments may have fixed or floating rate coupon. The Scheme may also invest in the non convertible part of convertible debt securities. The Scheme will invest in instruments of original or initial maturity up to one year. Further the Scheme may invest in such other debt instrument of original or initial maturity up to one year as the RBI / SEBI may specify from time to time. Short Term Deposits Pending deployment of funds as per the investment objective of the Scheme, the Funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. The securities / instruments mentioned above and such other securities the Scheme is permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through initial public offering (IPOs), secondary market, private placement, rights offers, negotiated deals etc. Further investments in debentures, bonds and other fixed income securities will be in instruments which have been assigned investment grade rating by the Credit Rating Agency. Investment in unrated debt instruments shall be subject to complying with provisions of the Regulations and within the limit as specified in Schedule VII to the Regulations. All such investments shall be made with the prior approval of the Board of AMC and Trustees For applicable regulatory investment limits please refer paragraph "Investment Restrictions”. The Fund Manager may invest in any other security as maybe permitted from time to time and which are in line with the investment objectives of the Scheme. B. What are the investment restrictions? Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the following investment restrictions are currently applicable to the Scheme: 1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market 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 the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV of the Scheme with the prior approval of the Trustee and the Board of Directors of AMC. Provided further that such limit shall not be applicable for investment in Government Securities, treasury bills and triparty repo on Government securities and treasury bills. Provided further that investments within such limit can be made in the mortgaged backed securitised debt, which are rated not below investment grade by a credit rating agency, registered with SEBI. 28 Axis Gold and Silver Passive FoFNote: According to the Asset Allocation of the Scheme, the indicative allocation of the Scheme to Money market instruments shall be in the range of 0% to 5% of the net assets of the Scheme, subject to conditions specified. 2. The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities, money market instruments and derivative products such as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging. Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by the Board from time to time: Provided further that the Scheme shall comply with the norms under this clause within the time and in the manner as may be as specified by the Board: Further the investments by the Scheme shall be in compliance with Para 12.3 of SEBI Master Circular for Mutual Funds . as amended from time to time and as amended by SEBI from time to time. 3. A mutual fund scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in clause 1 of Seventh Schedule of MF Regulation. Note: According to the Asset Allocation of the Scheme, the indicative allocation of the Scheme to Money market instruments shall be in the range of 0% to 5% of the net assets of the Scheme, subject to conditions specified. Provided further that the norms for investments by the Scheme in unrated debt instruments shall be specified by the Board from time to time. The investment by the Scheme in the following instruments shall not exceed 10% of the debt portfolio of the scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the scheme: a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is below investment grade and b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above investment grade. 4. As the scheme is a fund of fund scheme, it shall be subject to the following investment restrictions: (a) The Scheme shall not invest its assets other than in schemes of mutual funds, except to the extent of funds required for meeting the liquidity requirements for the purpose of repurchases or redemptions, as disclosed in the given Scheme Information Document. 5. The Scheme shall not invest in any other fund of funds scheme; 6. The Scheme shall not make any investment in: 1. any unlisted security of an associate or group company of the sponsor; or 2. any security issued by way of private placement by an associate or group company of the sponsor; or 3. the listed securities of group companies of the sponsor which is in excess of 25% of the net assets. 7. The Mutual Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned Scheme, wherever investments are intended to be of a long-term nature. 29 Axis Gold and Silver Passive FoF8. Transfer of investments from one scheme to another scheme in the same Mutual Fund is permitted provided: a) such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall have the same meaning as specified by a Stock Exchange for spot transactions); and b) the securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made. Further, inter scheme transfers shall be in accordance with Para 12.30 of SEBI Master Circular for Mutual Funds . as amended from time to time as amended from time to time. SO - 30 9. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. The Scheme will not invest in derivatives. The Scheme shall also not enter into transaction for stock lending. 10. Pending deployment of the funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI: The Scheme will comply with the following guidelines/restrictions for parking of funds in short term deposits: i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee. iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. v. The Scheme shall not park funds in short term deposit of a bank which has invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in which the Scheme has STD do not invest in the said scheme until the Scheme has STD with such bank. vi. The AMC will not charge any investment management and advisory fees for funds parked in short term deposits of scheduled commercial banks. However, the above provisions will not apply to term deposits placed as margins for trading in cash and derivatives market. 11. The Scheme shall not advance any loans. 12. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme for the purpose of repurchase/redemption of Units or payment of interest and/or IDCW to the Unit holders. Provided that the Scheme shall not borrow more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a period of 6 months. The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time. The Scheme shall not participate in repos in corporate debt securities. 13. The Mutual Fund/AMC shall make investment out of the NFO proceeds only on or after the closure of the NFO period. The Mutual Fund/ AMC can however deploy the NFO proceeds in TREPS before the closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on funds deployed in TREPS during the NFO period. The appreciation received from investment in TREPS shall be passed on to investors. 30 Axis Gold and Silver Passive FoFFurther, in case the minimum subscription amount is not garnered by the scheme during the NFO period, the interest earned upon investment of NFO proceeds in TREPS shall be returned to investors, in proportion of their investments, along-with the refund of the subscription amount. The exposure limit/ investment restrictions prescribed under the Seventh Schedule of the Regulations and circulars issued there under (wherever applicable) shall be applicable to repo transactions in corporate bonds. The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time. All the investment restrictions will be applicable at the time of making investments. Apart from the investment restrictions prescribed under SEBI (MF) Regulations, the fund may follow any internal norms vis-à-vis limiting exposure to a particular scrip or sector, etc SO - 19 The AMC/Trustee may alter these above stated restrictions from time to time to the extent the 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. C. Fundamental Attributes SO - 60 Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master Circular for Mutual Funds: (i) Type of a scheme An open ended fund of funds scheme investing in units of gold and silver exchange traded funds (ii) Investment Objective Main Objective: The investment objective of the scheme is to generate returns by investing in units of Gold ETFs and Silver ETFs. However, the performance of the scheme may differ from that of the underlying gold and silver ETFs due to tracking error in the underlying exchange traded funds. SO - 5 There is no assurance that the investment objective of the scheme will be achieved. Investment Pattern: Please refer to Section – I Part – II A. ‘How will the Scheme Allocate its Assets?’. (iii) Terms of Issue o Liquidity provisions such as listing, Repurchase, Redemption. ‘(Please refer to relevant provisions on listing, repurchase, redemption in Section II - Part II - Point G ‘Other Details’). o Aggregate fees and expenses charged to the Scheme (Please refer to Section I – Part III C “Annual Scheme Recurring Expenses”). o Any safety or guarantee net provided. – Not applicable for the Scheme In accordance with Regulation 18(15A) and Regulation 25(26) of the SEBI (MF) Regulations, read with clause 1.14.1.4 and 17.10 of SEBI Master Circular for Mutual Funds, the Trustees and AMC 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) thereunder and affect the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal • 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 Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit load. 31 Axis Gold and Silver Passive FoFD. Index methodology : Not Applicable E. Principles of incentive structure for market makers (for ETFs) – Not Applicable F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per clause 13.6.2 of SEBI master circular for mutual funds (only for close ended debt schemes) – Not Applicable G. Other Scheme Specific Disclosures: Listing and transfer of Listing units The Scheme is an open ended scheme under which Sale and Repurchase will be made on a continuous basis and therefore listing on stock exchanges is not envisaged. However, the Trustee reserves the right to list the Units as and when considered necessary in the interest of Unit holders of the Fund. Transferability of units: Units unless otherwise restricted or prohibited shall be freely transferable by act of parties or by operation of law. Transfer of units will be subject to submission of valid documents and fulfillment of the eligibility requirements by the unitholder/investor as stated under AMFI best Practice guideline No.135/BP/ 116 /2024-25 dated August 14, 2024 and AMC internal processes, if any. For more details refer to the SAI. Dematerialization of Investors shall have an option to receive allotment of Mutual Fund units in their units demat account while subscribing to the Scheme in terms of the guidelines/ procedural requirements as laid by the Depositories (NSDL/CDSL) from time to SO - 58 time. Investors desirous of having the Units of the Scheme in dematerialized form should contact the ISCs of the AMC/Registrar. Where units are held by investor in dematerialized form, the demat statement issued by the Depository Participant would be deemed adequate compliance with the requirements in respect of dispatch of statements of account. In case investors desire to convert their existing physical units (represented by statement of account) into dematerialized form or vice versa, the request for conversion of units held in physical form into Demat (electronic) form or vice versa should be submitted along with a Demat/Remat Request Form to their Depository Participants. In case the units are desired to be held by investor in dematerialized form, the KYC performed by Depository Participant shall be considered compliance of the applicable SEBI norms. Further, demat option shall also be available for SIP transactions. Units will be allotted based on the applicable NAV as per Scheme Information Document and will be credited to investors Demat Account as per the settlement calendar. Units held in Demat form are freely transferable in accordance with the provisions of SEBI (Depositories and Participants) Regulations, as may be amended from time to time. Transfer can be made only in favour of transferees who are capable of holding units and having a Demat Account. The delivery instructions for transfer of units will have to be lodged with the Depository Participant in requisite form as may be required from time to time and transfer 32 Axis Gold and Silver Passive FoFwill be affected in accordance with such rules / regulations as may be in force governing transfer of securities in dematerialized mode. For details, Investors may contact any of the Investor Service Centres of the AMC. Minimum Target Rs. 10 crores amount This 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 business days from date of closure of NFO, 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 NFO. Maximum Amount to Not Applicable be raised (if any) Dividend Policy Not Applicable (IDCW) Allotment (Detailed Allotment will be made to all valid applications received during the New Fund procedure) Offer Period. Allotment of Units, shall be completed not later than 5 business days after the close of the New Fund Offer Period. (During NFO) On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of e-mail and/or SMS within 5 business days from the date of receipt of transaction request/allotment will be sent to the Unit Holders registered e-mail address and/or mobile number. In cases where the email does not reach the Unit holder, the Fund / its Registrar & Transfer Agents will not be responsible, but the Unit holder can request for fresh statement. The Unit holder shall from time to time intimate the Fund / its Registrar & Transfer Agent about any changes in his e-mail address. • Refund During NFO: Fund will refund the application money to applicants whose applications are found to be incomplete, invalid or have been rejected for any other reason whatsoever. Refund instruments will be dispatched within 5 business days of the closure of NFO period. In the event of delay beyond 5 business days, the AMC shall be liable to pay interest at 15% per annum or such other rate of interest as maybe prescribed from time to time. Ongoing Offer period: The AMC will refund the subscription money to applicants whose applications are found to be incomplete, invalid or have been rejected for any other reason whatsoever in accordance with the AMFI best practice guidelines in the matter. The AMC will endeavor to refund such amounts within 5 business days from the date of purchase transactions as per the timestamp / applicable NAV, where the application form / online transaction is received along with the payment and the funds have been realized. Where the subscription amount and the application/ online transaction are received separately, the period of 5 business days shall be reckoned from the later of the date of identifying the remitter details, based on the credit provided by the Bank or receipt and time stamping of application/ online transaction. In the event of delay beyond 5 business days, the AMC in line with AMFI best practice guidelines on the matter, will pay interest at 15% per annum or such other rate of interest as may be prescribed from time to time. 33 Axis Gold and Silver Passive FoFWho can invest The following persons (subject to, wherever relevant, purchase of units of mutual funds, being permitted under respective constitutions, and relevant statutory This is an indicative list regulations) are eligible and may apply for Subscription to the units of the and investors shall Scheme: consult their financial 1. Resident adult individuals either singly or jointly (not exceeding three) or on advisor to ascertain an Anyone or Survivor basis; whether the 2. Hindu Undivided Family (HUF) through Karta; scheme is 3. Minor (as the first and the sole holder only) through a natural guardian (i.e. suitable to their risk father or mother, as the case may be) or a court appointed legal guardian. profile. There shall not be any joint holding with minor investments; 4. Partnership Firms; 5. Limited liability partnership firms; 6. Proprietorship in the name of the sole proprietor; 7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.), Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860(so long as the purchase of Units is permitted under the respective constitutions); 8. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions; 9. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as "Public Securities" as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds; 10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) )/ Overseas Citizens of India (OCI)residing abroad on repatriation basis or on non- repatriation basis; 11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation basis. These investments shall be subject to the conditions prescribed by SEBI, RBI, Income Tax authorities and the AMC, from time to time; 12. Army, Air Force, Navy and other para-military units and bodies created by such institutions; 13. Scientific and Industrial Research Organisations; 14. Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI; 15. Provident/ Pension/ Gratuity Fund to the extent they are permitted; 16. Other schemes of Axis Mutual Fund or any other mutual fund subject to the conditions and limits prescribed by SEBI Regulations; 17. Schemes of Alternative Investment Funds; 18. The Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme; 19. Such other category of person(s) permitted to make investments and as may be specified by the AMC / Trustee from time to time. Subject to SEBI (Mutual Funds) Regulations, 1996, any application for subscription of units may be accepted or rejected in the sole and absolute discretion of the AMC/ Trustee company. The AMC/ Trustee company may also reject any application for subscription of units if the application is invalid, incomplete, or if the AMC/ Trustee company for any other reason does not believe that it would be in the interest of the scheme or its unitholders to accept such an application. Who cannot invest 1. Any individual who is a foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or otherwise explicitly permitted under FEMA Act/ by RBI/ by any other applicable authority. 2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds. 3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to time. 34 Axis Gold and Silver Passive FoF4. U.S. Persons and Residents of Canada as defined under the applicable laws of U.S. and Canada except the following: a. subscriptions received by way of lump sum / switches / systematic transactions received from Non-resident Indians (NRIs) /Persons of Indian origin (PIO) / Overseas Citizen of India (OCI) who at the time of such investment, are present in India and b. FPIs 5. Such other persons as may be specified by AMC from time to time. These investors need to submit a physical transaction request along with such documents as may be prescribed by the AMC/ the Trustee/ the Fund from time to time. The AMC reserves the right to put the transaction requests on hold/reject the transaction request/reverse allotted units, as the case may be, as and when identified by the AMC, which are not in compliance with the terms and conditions notified in this regard. The Trustee / the AMC /the Fund reserve the right to change/ modify the above provisions at a later date. How to Apply and Investors can undertake transactions in the Schemes of Axis Mutual Fund either other details (where through physical, online / electronic mode or any other mode as may be can you submit the prescribed from time to time. filled up applications including Physical Transactions purchase/redemption For making application for subscription / redemption / switches, switches be application form and Key Information Memorandum may be obtained from submitted.) / submitted to the Official Points of Acceptance (OPAs) of AMC or downloaded from the website of AMC viz. www.axismf.com. SO - 35 Online / Electronic Transactions Investors can undertake transactions via electronic mode through various online facilities offered by Axis AMC / other platforms specified by AMC from time to time. For name, address and contact no. of Registrar and Transfer Agent (R&T), email id of R&T, website address of R&T, official points of acceptance, collecting banker details etc. refer back cover page. Please note it is mandatory for unitholders to mention their bank account numbers in their applications/requests for redemption. SO - 62 Please refer to the SAI and Application form for the instructions. The policy regarding Units once redeemed will be extinguished and will not be reissued. reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, Pledge/Lien of Units on the right to The Unit under the Scheme may be offered as security by way of a pledge / freely retain or lien/charge in favour of scheduled banks, financial institutions, non-banking 35 Axis Gold and Silver Passive FoFdispose of units being finance companies (NBFCs), or any other person. The AMC and / or the ISC will offered. note and record such Pledged/liened Units. The AMC shall mark a pledge/lien only upon receiving the duly completed form and documents as it may require. Disbursement of such loans will be at the entire discretion of the bank / financial institution / NBFC or any other person concerned and the Mutual Fund assumes no responsibility thereof. The Pledger/ lienor will not be able to redeem/Switch-out Units that are pledged/liened until the entity to which the Units are pledged/liened provides written authorisation to the Mutual Fund that the pledge / lien charge may be removed. As long as Units are pledged/liened, the Pledgee/lienee will have complete authority to redeem / Switch-out such Units. IDCW declared on Units under lien/pledge will be paid / re-invested to the credit of the Unit Holder and not the lien holder unless specified otherwise in the lien letter. If there are subsisting credit facilities secured by a duly created pledge/lien, the nominee(s) or legal heirs / legal representative(s) shall be required to obtain a due discharge certificate from the creditors at the time of transmission of units. For NRIs, the Scheme may mark a lien on Units in case documents which need to be submitted are not given in addition to the application form and before the submission of the redemption / Switch-out request. The Units held in demat mode can be pledged/ liened as per the provisions of Depositories Act and Depositories Rules and Regulations. However, the AMC reserves the right to change operational guidelines for pledge/ lien on Units from time to time. Suspension/Restriction on Redemption of Units of the Scheme Subject to the approval of the Boards of the AMC and of the Trustee and subject also to necessary communication of the same to SEBI, the redemption of / switch-out of Units of Scheme, may be temporarily suspended/ restricted. In accordance with Para 1.12 of SEBI Master Circular on Mutual Funds as amended from time to time and subject to prevailing regulations, restriction on/suspension of redemptions / switch-out of Units of the Scheme, may be imposed when there are circumstances leading to systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: a) Liquidity issues: when market at large becomes illiquid affecting almost all securities rather than any issuer specific security; b) Market failures, exchange closures: when markets are affected by unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies; c) Operational issues: when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Restriction on / suspension of redemption of Units of the Scheme may be imposed for a specified period of time not exceeding 10 working days in any 90 days period. When restriction on / suspension of redemption of Units of the Scheme is imposed, the following procedure shall be applied: i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject to such restriction. 36 Axis Gold and Silver Passive FoFii. Where redemption / switch-out requests are above Rs. 2 lakhs, the AMC shall redeem the first Rs. 2 lakhs without such restriction and remaining part over and above Rs. 2 lakhs shall be subject to such restriction. In addition to the above, the AMC / Trustee may restrict / suspend redemptions / switch-out of Units of the Scheme pursuant to direction/ approval of SEBI. In case of any of the above eventualities, the general time limits for processing requests for redemption of Units will not be applicable. Also refer to the paragraph ‘Suspension of Purchase and Redemption of Units’ in the Statement of Additional Information. Cut off timing for Subscriptions/Purchases including Switch - ins: subscriptions/ The following cut-off timings shall be observed by the Mutual Fund in respect of redemptions/ purchase of units of the Scheme and the following NAVs shall be applied for such switches purchase: This is the time before 1. where the application is received upto 3.00 pm on a Business day and funds which your are available for utilization before the cut-off time – the closing NAV of the application Business day shall be applicable; 2. where the application is received after 3.00 pm on a Business day and funds (complete in all are available for utilization on the same day or before the cut-off time of the respects) should next Business Day - the closing NAV of the next Business Day shall be reach the official applicable; points of 3. irrespective of the time of receipt of application, where the funds are not acceptance. available for utilization before the cut-off time - the closing NAV of Business day on which the funds are available for utilization shall be applicable. For determining the applicable NAV for allotment of units in respect of purchase / switch in the Scheme, it shall be ensured that: 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 Scheme before the cut-off time. iii. The funds are available for utilization before the cut-off time. i. The aforesaid provisions shall also be applicable to systematic transactions like Systematic Investment Plan, Systematic Transfer Plan, etc offered by scheme(s). Redemptions including Switch - outs: The following cut-off timings shall be observed by the Mutual Fund in respect of Repurchase of units: a. where the application received upto 3.00 pm – closing NAV of the day of receipt of application; and b. an application received after 3.00 pm – closing NAV of the next Business Day. The above mentioned cut off timing shall also be applicable to transactions through the online trading platform. In case of Transaction through Stock Exchange Infrastructure, the Date of Acceptance will be reckoned as per the date & time; the transaction is entered in stock exchange’s infrastructure for which a system generated confirmation slip will be issued to the investor. 37 Axis Gold and Silver Passive FoFOngoing price for At the Applicable NAV. subscription (purchase)/switch-in Para 10.4 of SEBI Master Circular on Mutual Funds as amended from time to time (from other has decided that there shall be no entry Load for all Mutual Fund Schemes. schemes/plans of the Hence, no entry load is levied for subscription transactions by the Scheme. mutual fund) by investors. Methodology of calculating subscription price: Subscription Price = Applicable NAV*(1+Entry Load, if any) This is the price you Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the subscription need to pay for price will be: purchase/switch-in. = Rs. 10* (1+NIL) = Rs. 10 Ongoing price for At the Applicable NAV subject to prevailing Exit Load. redemption (sale) Ongoing price for redemption /Switch out (to other Schemes/Plans of the Mutual /switch outs (to other Fund) is price which a Unit holder will receive for redemption/Switch-outs. During schemes/plans of the the continuous offer of the Scheme, the Unit holder can redeem the Units at Mutual Fund) by Applicable NAV, subject to payment of Exit Load, if any. investors. Methodology of calculating repurchase price: This is the price you will Redemption Price = Applicable NAV*(1-Exit Load, if any) receive for Example: If the Applicable NAV is Rs. 10, Exit Load is 1% then redemption price redemptions/switch will be: outs. = Rs. 10* (1-0.01) = Rs. 9.99 Investors/Unit holders should note that the AMC/Trustee has right to modify existing Load structure and to introduce Loads subject to a maximum limits prescribed under the SEBI Regulations. Any change in Load structure will be effective on prospective basis and will not affect the existing Unit holder in any manner. However, the Mutual Fund will ensure that the Redemption Price will not be lower than 95% of the Applicable NAV. The Purchase Price shall be at applicable NAV. Minimum amount for Refer Section I – Part I for Minimum amount for purchase/redemption/switches. purchase / Minimum Redemption Amount/Switch Out redemption / switches There will be no minimum redemption criterion. The Redemption / Switch-out would be permitted to the extent of credit balance in the Unit holder’s account of the Plan(s) / Option(s) of the Scheme (subject to completion of Lock-in period or release of pledge / lien or other encumbrances). The Redemption / Switch- out request can be made by specifying the rupee amount or by specifying the number of Units of the respective Plan(s) / Option(s) to be redeemed. In case a Redemption / Switch-out request received is for both, a specified rupee amount and a specified number of Units of the respective Plan(s)/ Option(s), the specified number of Units will be considered the definitive request. In case the value / number of available units held in the Unit holder’s folio / account under the Plan / Option of the Scheme is less than the amount / number of units specified in the redemption / switch-out request, then the transaction shall be treated as an all units redemption and the entire balance of available Units in the folio / account of the Unit holder shall be redeemed. In case of Units held in dematerialized mode, the Unit Holder can give a request for Redemption only in number of Units which can be fractional units also. Depository participants of registered Depositories can process only redemption request of units held in demat mode. 38 Axis Gold and Silver Passive FoFThe AMC/ Trustee reserves the right to change/ modify the terms of minimum redemption amount/switch-out provision offered under the Scheme of the Fund. Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working days of receipt of valid SO - 61 application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form). The AMC shall dispatch a Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by mail or email on or before 15th of the succeeding month. For investor having demat account, the depositories shall dispatch a monthly consolidated statement with details across all schemes of mutual funds and securities held in dematerialized form across demat accounts and dispatch the same to investors who have opted for delivery via electronic mode (e-CAS) by the 12th day from the month end and to investors who have opted for delivery via physical mode by the 15th day from the month end. For folios where there are no transactions during the half – year, the AMC shall dispatch a half – yearly CAS at the end of every six months (i.e. September/March) on or before the 21st day of the succeeding month for holdings across all mutual funds at the end of the half-year. For folios where there are no transactions during the half – year , the depositories shall dispatch a consolidated statement (for investors having a demat account) i.e. half-yearly CAS at the end of every six months (i.e. September/ March) to investors that have opted for e-CAS on or before the 18th day of April and October and to investors who have opted for delivery via physical mode by the 21st day of April and October to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable For further details, refer SAI. Dividend/ IDCW Not Applicable Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. For list of exceptional circumstances refer para 14.1.3 of SEBI Master Circular for Mutual Funds. For detailed procedure on how to redeem, kindly refer SAI. Bank Mandate It is mandatory for investors to mention investor’s bank account details on the form. Applications without this information are liable to be rejected. The Mutual Fund / AMC reserves the right to hold redemption proceeds in case requisite SO - 62 bank details are not submitted. Delay in payment of The Asset Management Company shall be liable to pay interest to the redemption / unitholders at rate as specified vide clause 14.2 of SEBI Master Circular for repurchase proceeds Mutual Funds by SEBI for the period of such delay. / dividend The AMC shall pay interest to the Unit holders at 15% or such other rate as may be prescribed by SEBI from time to time, in case the Redemption / Repurchase proceeds are not made within three (3) working Days of the date of Redemption 39 Axis Gold and Silver Passive FoF/ Repurchase. However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the AMC / Trustee is required to obtain from the Investor / Unit holders verification of identity or such other details relating to Subscription for Units under any applicable law or as may be requested by a Regulatory Agency or any government authority, which may result in delay in processing the application. Unclaimed As per Para 14.3 of SEBI Master Circular on Mutual Funds as amended from time Redemption and to time, the unclaimed Redemption and IDCW amounts shall be deployed by Income Distribution the Fund in money market instruments and such other instruments/securities as cum Capital maybe permitted from time to time. The investment management fee charged Withdrawal Amount by the AMC for managing such unclaimed amounts shall not exceed 50 basis points. The circular also specifies that investors who claim these amounts during SO - 53 a period of three years from the due date shall be paid at the prevailing NAV. Thus, after a period of three years, this amount can be transferred to a pool account and the investors can claim the said amounts at the NAV prevailing at the end of the third year. In terms of the circular, the onus is on the AMC to make a continuous effort to remind investors through letters to take their unclaimed amounts. The details of such unclaimed amounts shall be disclosed in the annual report sent to the Unit Holders. Further, according to Para 14.3 of SEBI Master Circular on Mutual Funds as amended from time to time the unclaimed Redemption and IDCW amounts may be deployed in separate plan of Overnight scheme/Liquid scheme/Money market mutual fund scheme floated by Mutual Funds specifically for deployment of the unclaimed Redemption and IDCW amounts. Disclosure w.r.t Following is the process for investments made in the name of a Minor through a investment by minors Guardian: - • Payment for investment by any mode shall be accepted from the bank SO - 37 account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parent or legal guardian. • Mutual Fund will send an intimation to Unit holders advising the minor (on attaining majority) to submit an application form along with prescribed documents to change the status of the account from ‘minor’ to ‘major’. • All transactions / standing instructions / systematic transactions etc. will be suspended i.e. the Folio will be frozen for operation by the guardian from the date of beneficiary child completing 18 years of age, till the status of the minor is changed to major. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new bank account. • No investments (lumpsum/SIP/ switch in/ STP in etc.) in the scheme would be allowed once the minor attains majority i.e. 18 years of age. Any other disclosure in Nil terms of Consolidated Checklist on Standard Observations III. Other Details A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be SO - 26 40 Axis Gold and Silver Passive FoFprovided Fund Name Investment Objective Investment Strategy Inception Date AUM (INR Cr) ______ The Scheme is a new fund to be launched and currently does not Benchmark have any investments hence this disclosure is not applicable. Performance TER Other Details (TER, Performance, Top 10 Holdings, Asset Allocation etc) B. Periodic Disclosures Monthly and Half The AMC will disclose the portfolio of the Scheme (along with ISIN) on a monthly and yearly Disclosures: half yearly basis on the website of the Mutual Fund and AMFI within 10 days from Portfolio / Financial the close of each month and half year (i.e. 31st March and 30th September) Results respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement in an all India edition of one national English daily This is a list of newspaper and one Hindi newspaper, every half year, disclosing the hosting of the securities where half-yearly statement of its schemes’ portfolio on the website of the Mutual Fund the corpus of the and AMFI and the modes through which unitholder(s) can submit a request for a scheme is currently physical or electronic copy of the statement of scheme portfolio. invested. The market value of The AMC will also provide a dashboard, in a comparable, downloadable these investments (spreadsheet) and machine readable format, providing performance and key is also stated in disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio portfolio details, scheme’s past performance etc. on website. disclosures. For details, please refer our website: https://www.axismf.com/statutory-disclosures Half Yearly Results The Mutual Fund shall within one month from the close of each half year, that is on 31st March and on 30th September, host a soft copy of its unaudited financial results on the website of the AMC and AMFI. The mutual fund shall publish an advertisement disclosing the hosting of such financial results on their website, in at least one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the Mutual Fund is situated. The unaudited financial results will also be displayed on the website of the AMC and AMFI. For details, please refer our website: https://www.axismf.com/statutory-disclosures Annual Report The Scheme annual report or an abridged summary thereof shall be mailed (emailed, where e mail id is provided unless otherwise required)) to all Unit holders not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year) and full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. Scheme wise annual report shall also be displayed on the website of the Mutual Fund (www.axismf.com) and on the 41 Axis Gold and Silver Passive FoFwebsite of Association of Mutual Funds in India (www.amfiindia.com). Unitholders whose email addresses are not registered with the Mutual Fund may ‘opt- in’ to receive a physical copy of the annual report or an abridged summary thereof. Further, AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on a specific request received from a unitholder. AMC shall also publish an advertisement every year, in an all India edition of one national English daily newspaper and in one Hindi newspaper, disclosing the hosting of the scheme wise annual report on the website of the Mutual Fund and AMFI and the modes through which a unitholder can submit a request for a physical or electronic copy of the annual report or abridged summary thereof. For details, please refer our website: https://www.axismf.com/statutory-disclosures Risk-o-meter and The AMC shall review Risk-o-meters on a monthly basis based on evaluation of risk Benchmark Risk-o- level of Scheme’s month end portfolio. Any change in risk-o-meter of the scheme or meter its benchmark shall be communicated by way of Notice cum Addendum and by SO - 38 way of an e-mail or SMS to unitholders of that particular scheme. Investors may also refer to the website/portfolio disclosure for the latest Risk-o-meter of the Scheme. Scheme Summary The AMC has provided on its website Scheme Summary Document which is a Document standalone scheme document for all the Schemes which contains all the details of the Scheme viz. Scheme features, Fund Manager details, investment details, investment objective, expense ratios, portfolio details, etc. SO - 38 For details, please refer our website: https://www.axismf.com/statutory-disclosures Any disclosure in Nil terms of consolidated checklist of standard observations C. Transparency/NAV Disclosure SO – 41 and 42 The AMC will calculate and disclose the first NAV of the Scheme within a period of 5 Business days from the date of allotment under the New Fund Offer Period. Subsequently, the AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 10.00 a.m. on the next Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. Information regarding NAV can be obtained by the Unit holders / Investors by calling or visiting the nearest ISC. D. Transaction charges and stamp duty- Transaction Charges – Not applicable Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019, stamp duty @0.005% of the transaction value would be levied on applicable mutual fund transactions. 42 Axis Gold and Silver Passive FoFAccordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including IDCW reinvestment) to the unitholders would be reduced to that extent. For further details on Stamp Duty, please refer SAI. E. Associate Transactions - Please refer to Statement of Additional Information (SAI) F. Taxation- For details on taxation please refer to the clause on Taxation in the SAI apart from the following: Taxation of Taxability in the hands of Individuals / Non-corporates / other than Corporates Particulars specified Resident Non-Resident mutual funds & other than Tax on distributed income Taxed in the hands of Taxed in the hands of Equity- (dividend income) unitholders at applicable unitholders at the rate of Oriented rate under the provisions 20% u/s 115A/ 115AD of Mutual of the Income-tax Act, the Act (plus applicable Funds (Rates 1961 (Act) surcharge and health and applicable education cess) (Refer Note 2) for the Financial Capital Gains Year 2025- 26) Long Term Capital Gains This document covers -Listed funds 12.5% (plus applicable 12.5% (plus applicable taxation of (held for a period of more surcharge and health and surcharge and health and mutual funds than 12 months) education cess) without education cess) without which are indexation indexation not covered under the definition of 12.5% (plus applicable 12.5% (plus applicable -Unlisted funds Equity surcharge and health and surcharge and health and Oriented (held for a period of more education cess) without education cess) without mutual funds than 24 months) indexation indexation & specified Short Term Capital Gains mutual 30% (Refer Note 6) funds. Meaning (plus applicable surcharge -Listed funds 30% (Refer Note 6) thereby, it and health and education intends to (held for a period of less cess) (35% in case of Foreign explain than or equal to 12 companies) taxation of months) (plus applicable surcharge funds and health and education investing cess) more than 35% & less than 65% of 30% (Refer Note 6) its total proceeds in (plus applicable surcharge 30% (Refer Note 6) -Unlisted funds the equity and health and education (35% in case of Foreign shares of (held for a period of less cess) companies) domestic than or equal to 24 companies. months) (plus applicable surcharge The and health and education 43 Axis Gold and Silver Passive FoFinformation cess) is provided for general information only. However, in view of the individual nature of the implications, Notes – each investor is 1. Axis Mutual Fund is a Mutual Fund registered with the Securities & Exchange Board of advised to India and hence the entire income of the Mutual Fund will be exempt from income consult his or tax in accordance with the provisions of section 10(23D) of the Act. her own tax advisors / 2. Applicable rates for individual, corporates and non-corporates are as under: authorised Particulars Income slab Rate of tax dealers with respect to Individual/ Hindu Where total income for a Nil the specific Undivided Family (HUF)/ tax year (April to March) is amount of AOP/ BOI# less than or equal to tax and Rs 2,50,000* (the basic other exemption limit) implications Where such total income is 5% of the amount by arising out of more than Rs 2,50,000* but is which the total income his or her participation less than or equal to exceeds Rs 2,50,000* in the Rs 5,00,000 scheme Where such total income is Rs 12,500 plus 20% of the more than Rs 5,00,000* but is amount by which the total less than or equal to income exceeds Rs 10,00,000 Rs 5,00,000* Where such total income is Rs 1,12,500 plus 30% of the more than Rs 10,00,000 amount by which the total income exceeds Rs 10,00,000 C o-operative society Where total income for a 10% of the total income tax year (April to March) is less than or equal to Rs 10,000 Where such total income is Rs 1,000 plus 20% of the more than Rs 10,000 but is amount by which the total less than or equal to income exceeds Rs 10,000 Rs 20,000 Where the total income Rs 3,000 plus 30% of the exceeds Rs 20,000 amount by which the total income exceeds Rs 20,000 Co-operative society 22% availing concessional tax rate benefit (subject to prescribed conditions) under section 115BAD of the Act 44 Axis Gold and Silver Passive FoFCo-operative society 15% availing concessional tax rate benefit (subject to prescribed conditions) under section 115BAE of the Act Domestic Corporate 30% (where the total turnover or gross receipts of such company for financial year 2023-24 exceeds Rs 400 crores)/ Partnership firm/ LLP/ Local authority/ FPIs Domestic company, 25% where the total turnover or gross receipts of such company for financial year 2023-24 does not exceed Rs 400 crores Domestic company 22% availing concessional tax rate benefit (subject to prescribed conditions) under section 115BAA of the Act Domestic company 15% engaged solely in the business of manufacture/ production and availing concessional tax rate benefit (subject to prescribed conditions) under section 115BAB of the Act AOP/ BOI 30% or such higher rate of tax applicable to the individual members of the AOP/ BOI Foreign Corporates 35% FPIs 30% *In case of resident individuals of age 60 years or more, but less than 80 years, the basic exemption limit is Rs 3,00,000. Income between Rs 3,00,000 and Rs 500,000 will be taxable at the rate of 5%. In case of resident individuals of age 80 years or more, the basic exemption limit is Rs 5.00,000. Income exceeding Rs 5,00,000 but less than or equal to Rs 10,00,000 will be taxable at the rate of 20%. 45 Axis Gold and Silver Passive FoF#Section 115BAC of the Act provides individuals and HUFs to pay tax in respect of their total income at the following rates (default regime): Income slab Tax rate Where total income for a tax year (April to Nil March) is less than or equal to Rs 4,00,000 (the basic exemption limit) Where such total income is more than Rs 4,00,000 5% of the amount by which the but is less than or equal to Rs 8,00,000 total income exceeds Rs 4,00,000 Where such total income is more than Rs 8,00,000 Rs 20,000 plus 10% of the amount by but is less than or equal to Rs 12,00,000 which the total income exceeds Rs 8,00,000 Where such total income is more than Rs 60,000 plus 15% of the amount by Rs 12,00,000 but is less than or equal to which the total income exceeds Rs Rs 16,00,000 12,00,000 Where such total income is more than Rs 1,20,000 plus 20% of the amount Rs 16,00,000 but is less than or equal to by which the total income exceeds Rs 20,00,000 Rs 16,00,000 Where such total income is more than Rs 2,00,000 plus 25% of the amount Rs 20,00,000 but is less than or equal to by which the total income exceeds Rs 24,00,000 Rs 20,00,000 Where such total income is more than Rs Rs 3,00,000 plus 30% of the amount 24,00,000 by which the total income exceeds Rs 24,00,000 Further, Finance Bill 2025 has proposed to enhance the threshold of total income for claiming the rebate under concessional tax regime (i.e. default regime) in case of resident individual from Rs 7,00,000 to Rs 12,00,000 and increased the limit of rebate from Rs 25,000 to Rs 60,000. However, the said rebate is not available on incomes chargeable to tax at special rates (for eg. capital gains under section 111A, 112 etc.). 3. Surcharge at the following rate to be levied in case of individual / HUF/ non- corporate non-firm unit holders: Individual/ HUF / non- Income corporate non- firm unit holders (a) Above Rs 50 lakh upto Rs 1 crore (including dividend income and 10% capital gains income under section 111A, 112 and 112A of the Act) (b) Above Rs 1 crore upto Rs 2 crores (including dividend income and 15% capital gains income under section 111A, 112 and 112A of the Act) (c) Above Rs 2 crores upto Rs 5 crores [ excluding dividend income 25% (dividend received from domestic companies only) and capital gains income under section 111A, 112 and 112A of the Act] (d) Above Rs 5 crores [excluding dividend income (dividend 37%* received from domestic companies only) and capital gains income under section 111A, 112 and 112A of the Act) 46 Axis Gold and Silver Passive FoF(e) Above Rs 2 crores [including dividend income (dividend received 15% from domestic companies only) and capital gains income under section 111A, 112 and 112A of the Act)] but not covered in point (c) and (d) above *Surcharge rate shall not exceed 25% in case of individual and HUF paying tax under section 115BAC of the Act. 4. Surcharge rates for Companies Total Income Rate of Surcharge for Rate of Surcharge for Domestic companies* Foreign Companies Above Rs 1 crore upto Rs 10 7% 2% crores Above Rs 10 crores 12% 5% *Surcharge rate shall be 10% in case resident companies opting taxation under section 115BAA and section 115BAB on any income earned. In case of firm with total income exceeding Rs.1 crore, surcharge rate shall be 12%. 5. Health and Education cess @ 4% on aggregate of base tax and surcharge. 6. Assuming investor falls into highest tax bracket. 7. Withholding of Taxation by Mutual Fund will as per applicable withholding tax rate. 8. All the above non-resident investors may also claim the tax treaty benefits available, if any. For further details on taxation please refer to the clause on Taxation in the SAI. G. Rights of Unitholders - Please refer to SAI for details. H. List of official points of acceptance: For Details of official points of acceptance, please refer our website: https://www.axismf.com/statutory-disclosures I. 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 SO - 49 For details, please refer our website: https://www.axismf.com/statutory-disclosures The Scheme under this Scheme Information Document was approved by the Trustee Company on ________. The Trustee has ensured that the Scheme is a new product offered by Axis Mutual Fund and is not a minor modification of its existing schemes. 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. SO - 64 For and on behalf of Axis Asset Management Company 47 Axis Gold and Silver Passive FoFSd/- Gop Kumar Bhaskaran Managing Director & Chief Executive Officer Date: ____________ One Lodha Place, 22nd & 23rd Floor, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra, Pin Code – 400013 TEL 022 6311 1001 and contact number 8108622211(Chargeable) EMAIL customerservice@axismf.com WEB www.axismf.com Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. 48 Axis Gold and Silver Passive FoF

Continue your research

Related Documents from Securities and Exchange Board of India