HDFC Income Plus Arbitrage Omni

DRAFT SCHEME INFORMATION DOCUMENT HDFC Income Plus Arbitrage Omni FOF (Consolidated Std. Obs. 1) An Open-ended Fund of Fund Scheme investing in units of domestic Arbitrage Schemes and active/ passive Debt-oriented Schemes This product is Scheme Riskometer# suitable for investors Benchmark Riskometer# (Consolidated Std. Obs. 3) who are seeking*: - Capital appreciation / 40% NIFTY 50 Arbitrage Index (TRI) + generate income over 60% NIFTY Short Duration Debt long term. Index - Investment in Units of Arbitrage schemes and active/ passive Debt- oriented schemes. *Investors should consult their financial advisers, if in doubt about whether the product is suitable for them. #The product labeling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund viz. www.hdfcfund.com Offer of Units of Rs. 10 each for cash during the New Fund Offer (NFO) and Continuous Offer for Units at NAV based prices New Fund Offer (NFO) Opens on: ________ New Fund Offer (NFO) Closes on: ________ Scheme re-opens on: Scheme will re-open for continuous Sale and Repurchase within 5 Business Days from the date of allotment of units under NFO Name of Mutual Fund (Fund): HDFC Mutual Fund Name of Asset Management Company (AMC): HDFC Asset Management Company Limited Name of Trustee Company: HDFC Trustee Company Limited Address of the entities: Asset Management Company (AMC): Trustee Company: HDFC Asset Management Company Limited HDFC Trustee Company Limited Registered Office: Registered Office: HDFC House, 2nd Floor, H.T. Parekh Marg, HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, 1 HDFC Income Plus Arbitrage Omni FOF - SIDChurchgate, Mumbai - 400 020. 165-166, Backbay Reclamation, CIN No: L65991MH1999PLC123027 Churchgate, Mumbai - 400 020. CIN No. U65991MH1999PLC123026 Website of the entities: www.hdfcfund.com 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 (ISCs)/Website/Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of HDFC Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.hdfcfund.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 www.hdfcfund.com The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated __________. 2 HDFC Income Plus Arbitrage Omni FOF - SIDTABLE OF CONTENTS SECTION I........................................................................................................................................................................... 5 PART I. HIGHLIGHTS/SUMMARY OF THE SCHEME ............................................................................................................ 5 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................................................................. 13 PART II. INFORMATION ABOUT THE SCHEME ................................................................................................................. 14 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?................................................................................................ 14 B. WHERE WILL THE SCHEME INVEST? (Consolidated Std. Obs. 29) ....................................................................... 15 C. WHAT ARE THE INVESTMENT STRATEGIES? ....................................................................................................... 16 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................................................. 16 E. WHO MANAGES THE SCHEME? (CONSOLIDATED STD. OBS. 33) ........................................................................ 18 F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? .................................... 18 G. HOW HAS THE SCHEME PERFORMED? ............................................................................................................... 18 H. ADDITIONAL SCHEME RELATED DISCLOSURES ................................................................................................... 18 PART III. OTHER DETAILS ................................................................................................................................................. 19 A. COMPUTATION OF NAV (Consolidated Std. Obs. 43) ............................................................................................. 19 B. NEW FUND OFFER (NFO) EXPENSES ....................................................................................................................... 21 C. ANNUAL SCHEME RECURRING EXPENSES ............................................................................................................... 21 D. LOAD STRUCTURE ................................................................................................................................................... 25 SECTION II........................................................................................................................................................................ 26 I. INTRODUCTION ............................................................................................................................................................ 26 A. DEFINITIONS / INTERPRETATION ........................................................................................................................ 26 B. RISK FACTORS (Consolidated Std. Obs. 8) ........................................................................................................... 26 C. RISK MITIGATION STRATEGIES (Consolidated Std. Obs. 9) ................................................................................. 31 II. INFORMATION ABOUT THE SCHEME: ......................................................................................................................... 32 A. WHERE WILL THE SCHEME INVEST? (Consolidated Std. Obs. 29) ....................................................................... 32 B. WHAT ARE THE INVESTMENT RESTRICTIONS? ................................................................................................... 36 C. FUNDAMENTAL ATTRIBUTES (Consolidated Std. Obs. 60) ................................................................................. 39 D. OTHER SCHEME SPECIFIC DISCLOSURES: ............................................................................................................... 40 III. OTHER DETAILS .......................................................................................................................................................... 54 A. DETAILS ABOUT THE UNDERLYING SCHEMES (Consolidated Std. Obs. 26) ........................................................ 54 B. PERIODIC DISCLOSURES ...................................................................................................................................... 54 C. TRANSPARENCY/NAV DISCLOSURE ..................................................................................................................... 55 D. TRANSACTION CHARGES AND STAMP DUTY ...................................................................................................... 56 3 HDFC Income Plus Arbitrage Omni FOF - SIDE. ASSOCIATE TRANSACTIONS - Please refer to Statement of Additional Information (SAI) ................................. 56 F. TAXATION ............................................................................................................................................................ 56 G. RIGHTS OF UNITHOLDERS ................................................................................................................................... 58 H. LIST OF OFFICIAL POINTS OF ACCEPTANCE: ........................................................................................................ 58 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 (Consolidated Std. Obs. 49 and 50) ............................................................................................................................. 58 4 HDFC Income Plus Arbitrage Omni FOF - SIDSECTION I PART I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. Title Description No. I. Na me of the Scheme HDFC Income Plus Arbitrage Omni FOF II. Ca tegory of FOF Hybrid FOF (Domestic) III. Su b-Category of FOF Income Plus Arbitrage FOF IV. Sc heme Type An Open-ended Fund of Fund Scheme investing in units of domestic Arbitrage Schemes and active/ passive Debt-oriented Schemes. V. SE BI Scheme Code <<will be updated at the time of launch>> (Consolidated Std. Obs. 7) VI. Inv estment Objective To generate income / long-term capital appreciation by investing in units of domestic Arbitrage Schemes and active/passive Debt- oriented Schemes. There is no assurance that the investment objective of the Scheme will be achieved. (Consolidated Std. Obs. 5) VII. Liq uidity Units of the scheme can be redeemed/switched out on any Business day at NAV based prices. VIII. Be nchmark (Total Return 40% NIFTY 50 Arbitrage Index (TRI) + 60% NIFTY Short Index) (Consolidated Duration Debt Index Std. Obs. 25) The above Index has been chosen as the Scheme intends to have a portfolio mix as represented by the benchmark indices selected from amongst those notified for the scheme category under the Standardized Framework for FOF Schemes. Hence, the benchmark is an appropriate benchmark for the Scheme. IX. NA V Disclosure The AMC will calculate and disclose the first NAVs of the (Consolidated Std. Obs. Scheme not later than 5 Business Days from the date of allotment of units under the NFO. 41 and 42) Subsequently, the AMC shall calculate and disclose the NAVs under the Scheme by 10.00 a.m. on the next Business day on the website(s) of AMC and AMFI. For further details refer Section II. X. Ap plicable Timelines Redemption: Within 3 working days of the receipt of valid redemption request at the Official Points of Acceptance of HDFC Mutual Fund for this Scheme or within such timelines as may be 5 HDFC Income Plus Arbitrage Omni FOF - SIDprescribed by SEBI / AMFI from time to time in case of exceptional circumstances or otherwise. IDCW Proceeds: Will be transferred within 7 working days from the Record Date or as per timelines prescribed by SEBI/AMFI from time to time. XI. Pla ns and Options Plans: Regular & Direct Regular and Direct Plans offer the following options: a. Growth Option b. Income Distribution cum Capital Withdrawal (IDCW) Option Under this Option, it is proposed to declare income / capital Distribution (IDCW) subject to availability of distributable surplus, as computed in accordance with SEBI (MF) Regulations. Investors should note that distributions can be made out of Equalization Reserves (representing accumulated realized gains), which is part of sale price paid by them. ➢ This Option offers following facilities: • Payout of IDCW (“Payout”) and • Re-investment of IDCW (“Re-investment”) Default Option- Growth Default Facility- Re-investment For detailed disclosure on default plans and options, kindly refer SAI. XII. Lo ad Structure Exit Load: • In respect of each purchase / switch-in of Units, an Exit Load of 1.00% is payable if Units are redeemed/ switched-out within 18 months from the date of allotment. • No Exit Load is payable if Units are redeemed / switched-out after 18 months from the date of allotment. In respect of Systematic Transactions such as SIP, STPs etc., Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. XIII. Mitnimum Application During NFO Period and On continuous basis: Rs.100/- and Amoo unt/ Switch In any amount thereafter. XIV. Mi nimum Additional Rs.100/- and any amount thereafter Purchase Amount XV. Mi nimum Redemption Rs. 100 and multiples of Re. 1/- thereafter. Amount/ Switch Out For further details, refer Section II, Part II, Clause D - Other Amount Scheme Specific Disclosures - Minimum amount for purchase/ redemption/switches. XVI. Ne w Fund Offer Period NFO opens on: ____________ NFO closes on: ____________ 6 HDFC Income Plus Arbitrage Omni FOF - SIDThis is the period during The New Fund Offer shall remain open for subscription for a which a new scheme sells minimum period of 3 working days but shall not be kept open for more than 15 days or such other time permitted under the its units to the investors. applicable regulations / law. Any changes in dates will be published through Addendum on AMC website i.e. www.hdfcfund.com. (Consolidated Std. Obs. 34) XVII. Ne w Fund Offer Price Rs. 10/- per unit. This is the price per unit that the investors have to pay to invest during the NFO. XVIII. Tim elines for In accordance with SEBI Circular No. SEBI/HO/IMD/IMD-PoD- deployment of Funds 1/P/CIR/2025/23 dated February 27, 2025, the AMC shall deploy the funds garnered during the NFO within 30 Business Days from collected during New the date of allotment of units. Fund Offer (NFO) period In an exceptional case, if the AMC is not able to deploy the funds as per the aforesaid timeline, justification in writing, including details of efforts taken to deploy the funds shall be placed before the Investment Committee of the AMC. The Investment Committee, after examining the root cause for delay in deployment, may extend the timeline by 30 Business Days. The Investment Committee shall also recommend on how to ensure deployment within 30 Business Days going forward and monitor the same. However, an extension shall not be granted if the Scheme’s assets are liquid and readily available. In case the funds are not deployed as per the aforesaid mandated plus extended timelines, the AMC shall follow the requirements specified under the aforesaid circular including reporting the deviation to Trustees at each stage. The Trustees shall monitor the deployment of funds collected in NFO and take steps, as may be required, to ensure that the funds are deployed within a reasonable timeframe. XIX. Se gregated Currently, the scheme does not have a segregated portfolio. portfolio/side pocketing However, the Scheme has enabling provisions to create a disclosure segregated portfolio(s) under certain circumstances. (Consolidated Std. Obs. For Details, kindly refer SAI. 54) XX. Stohck Lending/Short The Scheme shall not engage in Stock Lending/Short selling. Seell ing For Details, kindly refer SAI. 7 HDFC Income Plus Arbitrage Omni FOF - SIDXXI. Ho w to Apply and other Investors can apply for their transactions requests either offline details (Consolidated or electronically using the relevant application / transaction request forms available on our website or at any of our Officials Std. Obs. 35) Points of Acceptance. The application form/transaction slip for subscription/ redemption/ switches can be submitted at our Official Points of Acceptances whose addresses are available on the website of the AMC. These include: 1. AMC / RTA’s branches i.e. Investor Services Centres* 2. HDFC MF website and App/RTA website for investors to transact 3. MFSS/BSE StAR MF/NMF II platforms of the Stock Exchanges(s) 4. Authorized Points of Service of MF Utilities India Private Limited (MFUI) 5. Channel partners/ Distributors/ RIAs/ Portfolio Managers/Execution Only Platforms (EOPs) who have tied up with the AMC 6. MF Central * Note: Business Centres i.e. Sales offices of HDFC AMC are not Official Points of Acceptance of transactions. The above list is indicative. For further details, including cut-off timing and applicability of NAV, refer Section II. Investors may apply through the ASBA process during the NFO period of the Scheme by filling in the ASBA form and submitting the same to their respective banks, which in turn will block the amount in the account as per the authority contained in ASBA form and undertake other tasks as per the procedure specified therein. For complete details on ASBA process refer Statement of Additional Information (SAI) made available on our website www.hdfcfund.com. XXII. Inv estor Services Contact details for general service requests: • call at 1800 3010 6767/1800 419 7676 (toll free), or • e-mail: hello@hdfcfund.com or • Investors may contact / visit any of the Investor Service Centres (ISCs) of the AMC; or • post their feedback/suggestions on our website www.hdfcfund.com under the section ‘Contact Us’ ➔ Get in touch ➔ Write to us. Contact details for complaints resolution: • call at 1800 3010 6767/1800 419 7676 (toll free) • e-mail: hello@hdfcfund.com 8 HDFC Income Plus Arbitrage Omni FOF - SIDFor any grievances with respect to transactions through NSE/BSE, the investors/Unit Holders should approach the investor grievance cell of the respective stock exchange. XXIII. Sp ecial Product SWITCHING OPTIONS DURING NFO available on Ongoing During the NFO period, the Unit holders holding Units in non- demat form will be able to invest in the NFO of the Scheme by basis 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. Switch request will be accepted upto 3.00 p.m. (or such other applicable cut-off time as notified by SEBI from time to time) on the last day of the NFO. However, investors should ensure to submit the switch-out request sufficiently in time before close of NFO, keeping in view the pay-out cycle of the switch-out scheme so that the monies are realized by the switch-in Scheme on or before the NFO allotment date. However, if application monies (including for switch-in) are not received before the allotment date, the application shall be liable to be rejected. This Option will be useful to Unit holders who wish to alter the allocation of their investment among the scheme(s) / plan(s) of the Mutual Fund (subject to completion of lock-in period, if any, of the Units of the scheme(s) from where the Units are being switched) in order to meet their changed investment needs. The Switch will be effected by way of a Redemption of Units from the Scheme/ Plan and a reinvestment of the Redemption proceeds in the Scheme and accordingly, to be effective, the Switch must comply with the Redemption rules of the Scheme/ Plan and the issue rules of the Scheme (e.g. as to the minimum number of Units that may be redeemed or subscribed, Exit Load etc). The price at which the Units will be Switched-out of the Scheme/ Plan will be based on the Redemption Price, and the proceeds will be invested in the Scheme at the prevailing sale price. If the amount of switch-in is in odd multiples, the application will be processed for the eligible amount and the balance amount will be refunded. The Switch request can be made on a Transaction Slip, which should be submitted at / sent by mail to any of the Official Points of Acceptance. During NFO, unitholders may purchase units of the Scheme through stock exchange platforms, channel distributors, MFU, electronic modes. SYSTEMATIC INVESTMENT PLAN (SIP) FACILITY DURING NFO 9 HDFC Income Plus Arbitrage Omni FOF - SIDInvestors can enroll for SIP facility during the NFO period by submitting duly completed SIP Enrolment Form available for Investments at the Official Point(s) of Acceptance. The first SIP installment through National Automated Clearing House (NACH) / Direct Debit / Standing Instruction will commence after 15 days from the closure of NFO. Where SIP application is accompanied with first cheque / payment, allotment shall be done under NFO for the same and the next SIP instalment will commence after 25 days from the closure of the NFO. Provided that SIP will commence only after and as per successful registration, for which a confirmation containing SIP details (viz., start date, end date amount etc) will be sent to the investor. OTHER FACILITIES DURING NFO The AMC may offer any other facility to invest during the NFO such as registration of Systematic Transfer Plan (STP), switches etc. from existing schemes into the NFO of this Scheme, subject to applicable terms and conditions. The following facilities are available during Continuous Offer Period: SYSTEMATIC INVESTMENT PLAN (SIP) The Unit holders under the eligible Scheme(s) can benefit by investing specified Rupee amounts at regular intervals for a continuous period. Under the SIP, Investors can invest a fixed amount of Rupees at regular intervals for purchasing additional Units of the Scheme(s) at Applicable NAV. SIP Top Up Facility Investors may avail SIP Top-up facility where they have options to increase the SIP Installment at pre-defined intervals. This will enhance the flexibility of the investor to invest higher amounts during the tenure of the SIP. MICRO SYSTEMATIC INVESTMENT PLAN ("MICRO SIP")/ PAN EXEMPT INVESTMENTS Investor i.e. either all joint holders or the first holder who do not hold PAN or are PAN exempt investors may invest (via lumpsum/SIP) up to Rs. 50,000 per year per investor. Such PAN exempt SIPs are referred to as Micro SIP. SIP PAUSE FACILITY The Fund offers Systematic Investment Plan ("SIP") Pause facility for investors who wish to temporarily pause their SIP in the Schemes of the Fund. FLEX SYSTEMATIC INVESTMENT PLAN (FLEXSIP) Flex SIP is a facility whereby investors can invest at predetermined intervals in Growth Option of open ended equity and hybrid schemes (the eligible schemes) of the Fund, higher 10 HDFC Income Plus Arbitrage Omni FOF - SIDamount(s) determined by a formula linked to value of investments, to take advantage of market movements. OTM - ONE TIME MANDATE ('FACILITY') OTM is a simple and convenient facility that enables the Unit holders to transact in the Schemes of the Fund by submitting OTM - One Time Mandate registration form to the Fund. Through OTM, investor authorizes the bank to debit their account upto a certain specified limit per transaction, on request received from the Fund, as and when the transaction is to be undertaken by the Unit holder, without the need of submitting cheque or fund transfer letter with every transaction thereafter. SYSTEMATIC TRANSFER PLAN (STP) A Unit holder holding units in non-demat form may enroll for the Systematic Transfer Plan and choose to Switch on a daily, weekly, monthly or quarterly basis from one HDFC Mutual Fund scheme to another scheme, which is available for investment at that time. HDFC FLEX SYSTEMATIC TRANSFER PLAN HDFC Flex Systematic Transfer Plan (Flex STP) is a facility wherein unit holder(s) holding units in non-demat form can opt to transfer variable amount(s) linked to value of investments under Flex STP on the date of transfer at pre-determined intervals from designated open-ended Scheme(s) of HDFC Mutual Fund i.e. Transferor Scheme to the Growth Option of designated open- ended Scheme(s) of HDFC Mutual Fund i.e. Transferee Scheme. HDFC SWING SYSTEMATIC TRANSFER PLAN HDFC Swing Systematic Transfer Plan (Swing STP) is a facility wherein unit holder(s) holding units in non-demat form can opt to transfer an amount at regular intervals from designated open- ended Scheme(s) of HDFC Mutual Fund i.e. Transferor Scheme to the Growth Option of designated open-ended Scheme(s) of HDFC Mutual Fund i.e. Transferee Scheme including a feature of Reverse Transfer from Transferee Scheme into the Transferor Scheme, in order to achieve the Target Market Value on each transfer date in the Transferee Scheme. TRANSFER OF INCOME DISTRIBUTION CUM CAPITAL WITHDRAWAL (IDCW) PLAN FACILITY "TIP FACILITY" Transfer of IDCW Plan (TIP) is a facility wherein unit holder(s) of "Source Scheme" of HDFC Mutual Fund can opt to automatically invest the IDCW (as reduced by the amount of applicable statutory levy) declared by the eligible Source Scheme into the "Target Scheme" of HDFC Mutual Fund. Open ended schemes which Offer IDCW option, can act as Source and / or Target Schemes. However, Schemes which do not offer IDCW Option, can act as only Target Schemes. 11 HDFC Income Plus Arbitrage Omni FOF - SIDSYSTEMATIC WITHDRAWAL ADVANTAGE PLAN (SWAP) This facility, available to the Unit holders of the Scheme holding units in non-demat form, enables them to withdraw (subject to deduction of tax at source, if any) fixed sum (Fixed Plan) or a variable amount (Variable Plan) from their Unit balance at periodic intervals (subject to completion of lock-in period, if any). Fixed Plan is available for Growth as well as IDCW Option and Variable Plan is available for Growth Option only for eligible Scheme(s)/Plan(s) under SWAP facility. HDFC FLEXINDEX PLAN This facility is available to Unit holders holding units in non-demat form of select debt/ liquid Schemes to automatically transfer the specified percentage of the amount registered in the Source schemes to select equity schemes on the trigger dates occurring during the period of 1 year from the date of registration. AUTOMATIC TRIGGER FACILITY Under this facility, a Unit holder holding units in non-demat form may opt for withdrawal and / or switch based on the Unit balance attaining a minimum capital appreciation / gains, events, dates etc (subject to deduction of tax at source, if any). The Units will be redeemed as and when the balance reaches a desired value or after certain period of time etc. SWITCHING OPTIONS Unit holders under the Scheme holding units in non-demat form have the option to Switch part or all of their Unit holdings in the Scheme to another scheme established by the Mutual Fund, or within the Scheme from one Plan / Option to another Plan / Option (subject to completion of lock-in period, if any) which is available for investment at that time, subject to applicable exit load. This Option will be useful to Unit holders who wish to alter the allocation of their investment among the Scheme(s) / Plan(s) / Option(s) of the Mutual Fund in order to meet their changed investment needs. The Switch will be effected by way of a Redemption of Units [On a First In First Out (FIFO) basis] from the Scheme / Plan and a reinvestment of the Redemption proceeds in the other Scheme / Plan and accordingly, to be effective, the Switch must comply with the Redemption rules of the Scheme and the issue rules of the other scheme (e.g. as to the minimum number of Units that may be redeemed or issued, Exit / Entry Load etc). For further details on the above special products / facilities, kindly refer SAI. 12 HDFC Income Plus Arbitrage Omni FOF - SIDXXIV. We blink Click here for Total Expense Ratio (TER) - https://www.hdfcfund.com/statutory-disclosure/total-expense- ratio-of-mutual-fund-schemes/reports Click here for factsheet – https://www.hdfcfund.com/investor- services/factsheets DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY 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 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 HDFC Income Plus Arbitrage Omni FOF approved by them is a new product offered by HDFC Mutual Fund and is not a minor modification of any existing scheme/fund/product. Date: ______________ Name: Supriya Sapre Place: Mumbai Designation: Chief Compliance Officer 13 HDFC Income Plus Arbitrage Omni FOF - SIDPART II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Instruments Indicative allocations (% of total assets) Minimum Maximum Units of domestic Arbitrage Schemes and 95 100 active/passive Debt Oriented Mutual Fund Schemes # Debt Securities & Money Market Instruments@ 0 5 (Consolidated Std. Obs. 13 and 21) #The exposure to units of debt oriented mutual fund schemes, debt securities and money market instruments shall be below 65%. @ Investments will be made in Cash or cash equivalents i.e. Government Securities, T-Bills and Repo on Government Securities, units of Liquid and Overnight Mutual Fund Schemes for liquidity purposes. (Consolidated Std. Obs. 14) The list of schemes includes: 1. HDFC Arbitrage Fund or any other Arbitrage Scheme(s) as found suitable by the Fund Manager. 2. HDFC Credit Risk Fund, HDFC Liquid Fund, HDFC Overnight Fund, HDFC Low Duration Fund, HDFC Medium Term Debt Fund, HDFC Income Fund, HDFC Dynamic Debt Fund, HDFC Gilt Fund, HDFC Ultra Short Term Fund and HDFC Long Duration Debt Fund, HDFC NIFTY G-Sec Apr 2029 Index Fund, HDFC Nifty G- Sec Dec 2026 Index Fund, HDFC Nifty G-Sec July 2031 Index Fund, HDFC Nifty G-Sec Jun 2027 Index Fund, HDFC Nifty G-Sec Jun 2036 Index Fund, HDFC Nifty G-Sec Sep 2032 Index Fund, HDFC NIFTY SDL Plus G- Sec Jun 2027 40:60 Index Fund, HDFC Nifty SDL Oct 2026 Index Fund, HDFC CRISIL-IBX Financial Services 3-6 Months Debt Index Fund and / or other Debt oriented schemes of HDFC Mutual Fund or other Mutual Funds having similar objectives, strategy, asset allocation and other attributes. The AMC reserves the right to modify the list of arbitrage schemes/ debt-oriented schemes from time to time and such change shall not tantamount to a change in the fundamental attributes of the Scheme. As per clause 12.24.1 of Master Circular, the cumulative gross exposure through all permissible investments viz Arbitrage funds, Debt Oriented Schemes, Government Securities, T-Bills and Repo on Government Securities shall not exceed 100% of the net assets of the scheme. (Consolidated Std. Obs. 17) Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) (Consolidated Std. Obs. 18) Sr. No Type of Instrument Percentage of exposure Circular references (Consolidated Std. Obs. 19) 1. Repo/ Reverse Repo / Tri- To meet liquidity requirements Clause 1 of Seventh Schedule Party repos (TREPS) on or pending deployment as per of SEBI Mutual Funds Government Securities and regulatory limits Regulations 14 HDFC Income Plus Arbitrage Omni FOF - SIDTreasury Bills (G-Secs and T- Bills) 2. Short Term deposits As per regulatory limits Clause 8 of Seventh Schedule of SEBI Mutual Funds Regulations and Clause 12.16 of Master Circular In addition to the instruments stated in the table above, the Scheme may also hold cash from time to time. While the Scheme will not directly invest in derivatives, overseas securities, securitized debt, stock lending and borrowing, debt Instruments with special features (AT1 and AT2 Bonds), debt Instruments with Structured Obligations (SO) or credit enhancement (CE), REITs and InvITs, repo/ reverse repo transactions in corporate debt securities, credit default swap transactions, the Underlying schemes may have exposure to these securities as per investments / transactions limits applicable to the Underlying Schemes. Changes in asset allocation pattern/Portfolio Rebalancing: (Consolidated Std. Obs. 22) Short Term Defensive Consideration: Subject to 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 and that they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. As per clause 1.14.1.2.b of Master Circular, as may be amended from time to time, such changes in the investment pattern will be for short term and for defensive consideration only. In the event of change in the asset allocation, the fund manager will carry out portfolio rebalancing within 30 calendar days or such other timeline as may be prescribed by SEBI from time to time. (Consolidated Std. Obs. 23) Portfolio rebalancing (in case of passive breaches): (Consolidated Std. Obs. 24) As per clause 2.9 of Master Circular, as may be amended/ clarified from time to time, in the event of change in the asset allocation due to passive breaches (occurrence of instances not arising out of omission and commission of the AMC), the fund manager is required to carry out portfolio rebalancing within 30 Business Days. In case the portfolio is not rebalanced within the period of 30 Business days, justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before the Investment Committee. The Investment Committee, if it so desires, can extend the timeline for rebalancing 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 the aforementioned mandated plus extended timelines, the AMC shall follow the requirements specified under the aforesaid circular including reporting the deviation to Trustees at each stage. B. WHERE WILL THE SCHEME INVEST? (Consolidated Std. Obs. 29) The Scheme will invest in securities as mentioned below. The investments will be made as per the limits specified in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations or any other applicable laws and guidelines. 15 HDFC Income Plus Arbitrage Omni FOF - SID• Units of domestic Arbitrage Schemes and active/passive Debt Oriented Mutual Fund Schemes; • Debt securities and Money market instruments; • Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals. For detailed disclosures, kindly refer Section II. C. WHAT ARE THE INVESTMENT STRATEGIES? The Scheme shall invest in units of Arbitrage and active/ passive Debt oriented schemes subject to permissible limits. The Fund Manager aims to create a portfolio keeping in mind the overall interest rate and economic outlook along with the arbitrage opportunities available between the cash market and Future & Options market. The Scheme has the flexibility to manage its allocation of its assets between Arbitrage Fund and active/ passive debt oriented schemes after evaluating various parameters like arbitrage spreads between the cash market and Future & Options market, credit risk, interest rate risk, RBI monetary policy outlook, shape of the yield curve, liquidity risk, and others as found suitable by the Fund Manager. (Consolidated Std. Obs. 27) A part of the funds may be invested in Government Securities, T-Bills and Repo on Government Securities as defined under asset allocation table to meet liquidity requirements. Though every endeavour will be made to achieve the objective of the Scheme, the AMC/Sponsor/Trustee do not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme. Risk Control (Consolidated Std. Obs. 9) 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 broadly comprises Arbitrage and active/ passive Debt oriented Mutual Fund schemes. Thus, the mitigation policies applicable to those Arbitrage and active/ passive Debt oriented Mutual Fund schemes will be applicable to this Scheme. PORTFOLIO TURNOVER The Scheme is an open-ended Scheme. It is expected that there would be a number of subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. A higher portfolio turnover results in higher brokerage and transaction cost. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 40% NIFTY 50 Arbitrage Index (TRI) + 60% NIFTY Short Duration Debt Index The Scheme intends to have a portfolio mix as represented by the benchmark indices selected from amongst those notified for the scheme category under the Standardized Framework for FOF Schemes. Hence, the benchmark is an appropriate benchmark for the Scheme. The performance will be benchmarked to the Total Returns Variant of the Index. 16 HDFC Income Plus Arbitrage Omni FOF - SIDThe Trustee reserves right to change the benchmark for performance of the scheme in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (MF) Regulations, and other prevailing guidelines, if any. 17 HDFC Income Plus Arbitrage Omni FOF - SIDE. WHO MANAGES THE SCHEME? (CONSOLIDATED STD. OBS. 33) The details of Fund Manager of the Scheme are as follows: Name & Educational Experience (last 10 years) Fund(s) Managed* Age Qualifications Bhavyesh Collectively around 18 years’ • CFA – L3 (CFA • HDFC Medium Term Divecha experience, of which 16 years are in Institute, USA) Debt Fund (co- credit risk analysis and investment 42 years • PGDM (IIM - managed Scheme) research. Ahmedabad) • B.E. Computers February 6, 2017 till date: HDFC (Mumbai Asset Management Company Limited Univesrity) April 1, 2014 to February 2, 2017: L&T Investment Management Limited Last Position Held – Credit Analyst *excluding Overseas investments if any. F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? Comparison of Domestic Fund of Fund Schemes having multiple underlying schemes of HDFC Mutual Fund Sr. No. Scheme Name 1. HDFC Multi-Asset Active FOF 2. HDFC Income Plus Arbitrage Active FOF For comparison between various schemes of HDFC Mutual Fund Visit: https://www.hdfcfund.com/statutory-disclosure/offer-document-disclosures G. HOW HAS THE SCHEME PERFORMED? This Scheme is a new Scheme and does not have any performance track record. H. ADDITIONAL SCHEME RELATED DISCLOSURES This is a new Scheme and therefore, the requirement of following additional disclosures is currently not applicable for the Scheme: i. The tenure for which the fund manager has been managing the Scheme. ii. Scheme ‘s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors). iii. Portfolio Disclosure – Monthly/ Half Yearly. iv. Portfolio Turnover Rate for equity-oriented schemes. v. Aggregate investment in the Scheme by Fund Manager(s), key personnel and AMC directors. However, the following disclosures will be made available as and when due, as given below: 18 HDFC Income Plus Arbitrage Omni FOF - SIDScheme’s portfolio holdings - https://www.hdfcfund.com/statutory-disclosure/portfolio/monthly-portfolio Portfolio Disclosure – • Monthly - https://www.hdfcfund.com/statutory-disclosure/portfolio/monthly-portfolio • Half yearly - https://www.hdfcfund.com/statutory-disclosure/scheme-financials For disclosure with respect to investments by key personnel and AMC directors including regulatory provisions in this regard, kindly refer SAI. INVESTMENT BY THE AMC IN THE SCHEME (Consolidated Std. Obs. 59) The AMC may invest in the Scheme during the continuous offer period subject to the SEBI (MF) Regulations. The AMC may also invest in other existing Schemes of the Mutual Fund. As per the existing SEBI (MF) Regulations and circulars issued thereunder, the AMC will not charge Investment Management and Advisory fee on the investment made by it in this Scheme or other existing Schemes of the Mutual Fund. For details of existing mandatory investments by AMC in various schemes, visit - https://www.hdfcfund.com/statutory-disclosure/mandatory-investment-amc PART III. OTHER DETAILS A. COMPUTATION OF NAV (Consolidated Std. Obs. 43) Methodology for Computation of NAV: The Net Asset Value (NAV) per Unit of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding under the Scheme on the valuation date. The AMC 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 and as stipulated in the Valuation Policy and Procedures of the Fund, provided in SAI / available on website. In case of any conflict between the Principles of Fair Valuation and valuation guidelines specified by SEBI, the Principles of Fair Valuation shall prevail. NAV of Units under each Scheme/ Plan shall be calculated as shown below: Market or Fair Value of the Scheme’s Investments + Current Assets NAV (Rs.) - Current Liabilities and Provisions = _____________________________________________ per Unit No. of Units outstanding under the Scheme/Plan The NAV of the Scheme will be calculated and disclosed at the close of every Business Day. Separate NAV will be calculated and announced for each of Plans/Options. The NAVs will be calculated upto 4 decimals. Units will be allotted upto 3 decimals. 19 HDFC Income Plus Arbitrage Omni FOF - SIDIllustration for Computation of NAV: NAV for the Scheme shall be calculated as shown below: Particulars Amount (In INR) Assets Investments (at Market Value) 10,000 Current Assets Interest receivable 1,000 Dividend Receivables 550 Trades Receivables 1,500 Total Assets (A) 13,050 Current Liabilities Trade Payables 1,500 Expense Payable 25 Dividend payable 25 Total Liabilities (B) 1,550 Net Assets (C) (A – B) 11,500 Units Outstanding (D) 1,000 NAV per unit (C/D) ₹ 11.50 METHODOLOGY FOR CALCULATION OF SALE AND REPURCHASE PRICE • Ongoing Price for subscription (purchase)/ switch-in (from other schemes/ plans of the mutual fund) by investors. (This is the price you need to pay for purchase/ switch-in): The Sale Price for a valid purchase will be the Applicable NAV. i.e. Sale Price = Applicable NAV For a valid purchase request of Rs. 10,000 where the applicable NAV is Rs. 11.1234, the units allotted will be: = 10,000 (i.e. purchase amount) 11.1234 (i.e. applicable NAV) = 899.006 units (rounded to three decimals) Charges/expenses, if any, borne by the investors have not been considered in the above illustration. 20 HDFC Income Plus Arbitrage Omni FOF - SID• Ongoing Price for redemption (sale)/ switch-outs (to other schemes/plans of the mutual fund) by investors. (This is the price you will receive for redemptions/ switch-outs): The Repurchase Price for a valid repurchase will be the applicable NAV reduced by any exit load (say 1%). i.e. applicable NAV - (applicable NAV X applicable exit load). For a valid repurchase request where the applicable NAV is Rs. 12.1234, the repurchase price will be: = 12.1234 - (12.1234 X 1.00%) = 12.1234 - 0.1212 = Rs. 12.0022 Therefore, for a repurchase of 899.006 units, the proceeds received by the investor will be - = 899.006 (units) * 12.0022 (Repurchase price) = Rs. 10,790.02 (rounded to two decimals) Charges/expenses, if any, borne by the investors have not been considered in the above illustration. While determining the price of the units, the mutual fund shall ensure that the repurchase price of an open ended scheme is not lower than 95 per cent of the Net Asset Value. For other details such as policies with respect to computation of NAV, rounding off, investment in foreign securities, 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, marketing and advertising, registrar expenses, printing and stationery, bank charges etc. The NFO Expenses shall be borne by the AMC / the Trustee Company/ Sponsor. C. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents fee, marketing and selling costs etc. as given in the table below. The AMC has estimated that upto 2.00% of the daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual fund. Expense Head % of daily net assets^ (estimated) (p.a.) Investment Management and Advisory Fees2 3 Trustee Fees & Expenses1 Audit Fees & Expenses Custodial Fees & Expenses Registrar & Transfer Agent Fees including cost of Upto 2.00%$ providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling expenses including Agents Commission and statutory advertisement Cost related to Investor Communications 21 HDFC Income Plus Arbitrage Omni FOF - SIDCost of fund transfer from location to location Brokerage & Transaction cost on value of trades 4 GST on expenses other than investment and advisory fees2 GST on brokerage and transaction cost2 Other Expenses (as per Reg 52 of SEBI MF Regulations) Maximum total expense ratio (TER) permissible Upto 2.00%$ under Regulation 52 (6) (c) 3 4 Additional expenses under Regulation 52 (6A) (c)3 4 # Upto 0.05% Additional expenses for gross new inflows from Upto 0.30% specified cities under Regulation 52 (6A) (b) 4 ^Direct Plan under the Scheme shall have a lower expense ratio excluding distribution expenses, commission, etc., and no commission shall be paid from Direct Plan. 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 a Regular Plan. $As per Regulation 52 (6) (a) (iii), the maximum total expenses including weighted average of charges levied by the Underlying Scheme shall not exceed 2.00 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 expense ratio levied by the underlying Scheme, subject to the overall ceiling of 2.00 percent stated above. (Consolidated Std. Obs. 46) The investors of the Scheme will bear dual recurring expenses, if any, viz, those of the Scheme and those of the underlying Scheme. # In terms of clause 10.1.7 of Master Circular, in case exit load is not levied / not applicable, the AMC shall not charge the said additional expenses. Notes: 1Trustee Fees and Expenses In accordance with the Trust Deed constituting the Mutual Fund, the Trustee is entitled to receive, in addition to the reimbursement of all costs, charges and expenses, a quarterly fee computed at a rate not exceeding 0.10% per annum of the daily net assets of the Scheme(s) or a sum of Rs. 15,00,000 per annum, whichever is higher. Such fee shall be paid to the Trustee within seven working days from the end of each quarter every year, namely, within 7 working days from June 30, September 30, December 31 and March 31 of each year. The Trustee may charge expenses as permitted from time to time under the Trust Deed and SEBI (MF) Regulations. 2 GST As per clause 10.3 of Master Circular, GST shall be charged as follows: 1. GST on investment management and advisory fees shall be charged to the Scheme in addition to the maximum limit of TER as prescribed in Regulation 52 (6) of the SEBI (MF) Regulations. 22 HDFC Income Plus Arbitrage Omni FOF - SID2. GST on other than investment management and advisory fees, if any, shall be borne by the Scheme within the maximum limit of TER as prescribed in Regulation 52 (6) of the SEBI (MF) Regulations. 3. GST on exit load, if any, shall be paid out of the exit load proceeds and exit load net of GST, if any, shall be credited to the Scheme. 4. GST on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under Regulation 52 of the SEBI (MF) Regulations. 3There shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 52 (2) and (4) viz. Investment Management and Advisory Fees and various sub-heads of recurring expenses, respectively. All scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily paid from the scheme only within the regulatory limits and not from the books of AMC, its associate, sponsor, trustees or any other entity through any route in terms of SEBI circulars, subject to the clarifications provided by SEBI to AMFI vide letter dated February 21, 2019 on implementation of clause 10.1.12 of Master Circular on Total Expense Ratio (TER) and performance disclosure for Mutual Fund. 4 Additional Expenses under Regulation 52 (6A): (Consolidated Std. Obs. 47) (i) Brokerage and transaction cost incurred for the purpose of execution of trade shall be charged to the schemes as provided under Regulation 52 (6A) (a) upto 12 bps and 5 bps for cash market transactions and derivatives transactions (if permitted under the scheme) respectively. Any payment towards brokerage and transaction costs, over and above the said 12 bps and 5 bps may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52. (ii) To improve the geographical reach of the Scheme in smaller cities / towns as may be specified by SEBI from time to time, expenses not exceeding 0.30% p.a. of daily net assets, if the new inflows from retail investors from such cities are at least (a) 30% of gross new inflows in the Scheme or (b) 15% of the average assets under management (year to date) of the Scheme, whichever is higher. (Consolidated Std. Obs. 47) In case inflows from retail investors from beyond top 30 cities is less than the higher of (a) or (b) above, additional TER on daily net assets of the scheme shall be charged on a proportionate basis as follows: Daily net assets X 30 basis points X New inflows from retail investors from beyond top 30 cities 365* X Higher of (a) or (b) above * 366, wherever applicable. The amount so charged shall be utilised for distribution expenses incurred for bringing inflows from retail investors from such cities. However, the amount incurred as expense on account of inflows from retail investors from such cities shall be credited back to the Scheme in case the said inflows are redeemed within a period of one year from the date of investment. Currently, SEBI has specified that the above additional expense may be charged for inflows from retail investors from beyond 'Top 30 cities'. Top 30 cities shall mean top 30 cities based on Association of Mutual Funds in India (AMFI) data on 'AUM by Geography - Consolidated Data for Mutual Fund Industry' as at the end of the previous financial year. 23 HDFC Income Plus Arbitrage Omni FOF - SIDInflows from "retail investors" shall mean inflows of amount upto Rs 2 lakhs per day, from individual investors. Note: SEBI vide its letter no. SEBI/HO/IMD-SEC-3/P/OW/2023/5823/1 dated February 24, 2023 and AMFI letter dated No. 35P/ MEM-COR/ 85-a/ 2022-23 dated March 02, 2023 has directed AMCs to keep B-30 incentive structure in abeyance with effect from March 01, 2023 till further notice. Accordingly, the B-30 incentive structure shall be implemented as per SEBI / AMFI directions from time to time. (iii)Expenses not exceeding 0.05% p.a. of daily net assets towards Investment Management and Advisory Fees and the various sub-heads of recurring expenses mentioned under Regulation 52 (2) and (4) respectively of SEBI (MF) Regulations. Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable. The total expenses charged to the Scheme shall not exceed the limits stated in Regulation 52 of the SEBI (MF) Regulations and as permitted under SEBI Circulars issued from time to time. Any expenditure in excess of the SEBI regulatory limits shall be borne by the AMC or by the Trustee or the Sponsor. The mutual fund would update the current expense ratios on the website (www.hdfcfund.com) at least three working days prior to the effective date of the change and update the TER under the Section titled “Statutory Disclosures” under sub-section titled “Total Expense Ratio of Mutual Fund Schemes”. Illustration: Impact of Expense Ratio on Scheme's return: (Consolidated Std. Obs. 45) 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) under the Growth Option, the impact of expenses charged will be as under: Particulars Regular Plan Direct Plan Amount invested at the beginning of the year (Rs.) 10,000 10,000 Returns before expenses (Rs.) 1,500 1,500 Expenses other than Distribution expenses (Rs.) 150 150 Distribution expenses (Rs.) 50 0 Returns after expenses at the end of the year (Rs.) 1300 1350 Returns (in %) 13% 13.5% 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. 24 HDFC Income Plus Arbitrage Omni FOF - SIDD. LOAD STRUCTURE Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC (www.hdfcfund.com) or you may call at 1800 3010 6767/1800 419 7676 or your distributor. Type of Load Load chargeable (as %age of NAV) Exit Load • In respect of each purchase / switch-in of Units, an Exit Load of 1.00% is payable if Units are redeemed/ switched-out within 18 months from the date of allotment. • No Exit Load is payable if Units are redeemed / switched-out after 18 months from the date of allotment. No Entry Load will be charged. (Consolidated Std. Obs. 48) (i) No Exit Load shall be levied for switching between Plans / Options within the Scheme. However, exit load will be applicable if the units are switched-out / redeemed from the Scheme within the exit load period from the initial date of purchase. (ii) No Exit load will be levied on bonus Units and on units allotted on Re-investment of Income Distribution cum Capital Withdrawal. (iii) No Exit load will be levied on Units allotted in the Target Scheme under the Transfer of Income Distribution cum Capital Withdrawal (IDCW) Plan Facility (TIP Facility). (vi) In case of Systematic Transactions such as Systematic Investment Plan (SIP), Flex Systematic Investment Plan (Flex SIP), Systematic Transfer Plan (STP), HDFC Flex Systematic Transfer Plan (Flex STP), HDFC Swing Systematic Transfer Plan (Swing STP), etc., Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. The AMC/ Trustee if it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund reserves the right to introduce/modify the Load Structure depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under the SEBI (MF) Regulations. While determining the price of the units, the mutual fund shall ensure that the repurchase price of an open ended scheme is not lower than 95 per cent of the Net Asset Value (Consolidated Std. Obs. 48). Exit load (net of GST) charged, if any, shall be credited to the Scheme. The investor is requested to check the prevailing load structure of the Scheme before investing. 25 HDFC Income Plus Arbitrage Omni FOF - SIDSECTION II I. INTRODUCTION A. DEFINITIONS / INTERPRETATION Visit: https://www.hdfcfund.com/statutory-disclosure/offer-document-disclosures B. RISK FACTORS (Consolidated Std. Obs. 8) (i) Scheme Specific Risk Factors: Some of the specific risk factors related to the Scheme include, but are not limited to the following: • HDFC Income Plus Arbitrage Omni FOF (“the Scheme”) will invest in units of Arbitrage and active/ passive Debt-oriented schemes. Hence, scheme specific risk factors and the positioning of the Underlying Schemes will be applicable. • All risks associated with Underlying Schemes, including performance of their underlying securities (equity & debt), derivative instruments, stock-lending, investments in foreign securities etc., will therefore be applicable in the case of the Scheme. The investors should refer to the Scheme Information Documents and the related addenda for the scheme specific risk factors of the respective Underlying Schemes. Investors who intend to invest in the Scheme are required to and deemed to have understood the risk factors of the Underlying Schemes. • Movements in the Net Asset Value (NAV) of the Underlying Schemes may impact the performance of the Scheme. Any change in the investment policies or fundamental attributes of the Underlying Schemes will affect the performance of the Scheme. • The investors of the Scheme shall bear the recurring expenses of the Scheme in addition to the expenses of the Underlying Schemes (subject to regulatory limits). Hence the investor under the Scheme may receive lower pre-tax returns than what they may receive if they had invested directly in the Underlying Schemes in the same proportions. Further, expenses charged being dependent on the structure and weightage of the underlying schemes, may lead to non-uniform charging of expenses over a period of time. • The Portfolio disclosure / Factsheet of this Scheme will be limited to providing the particulars of the allocation to the Underlying Schemes where the Scheme has invested and will not include the investments made by the Underlying Schemes. • Redemptions by the Scheme from the Underlying Schemes would be subject to applicable exit loads, which may impact performance of the Scheme. • Switch-out from an Underlying Scheme and Switch in to another Underlying Scheme will be subject to the provisions of applicability of NAV as also the payout and pay-in cycles applicable to redemption / purchase under the relevant schemes. In times of extreme volatility, this may have impact on the NAV of the Scheme, particularly at the time of portfolio rebalancing. Purchase of units in underlying schemes will attract applicable stamp duty. • A Fund Manager managing any one of the Fund of Funds schemes may also be the Fund Manager for the underlying schemes. 26 HDFC Income Plus Arbitrage Omni FOF - SID(ii) Risk Factors pertaining to Arbitrage Funds • Identification and exploitation of the strategies to be pursued by the Fund Manager involves uncertainty. No assurance can be given that Fund Manager for Arbitrage Fund will be able to locate investment opportunities or to correctly exploit price discrepancies in the capital markets. Reduction in mis-pricing opportunities between the cash market and Future and Options market may lead to lower level of activity affecting the returns. As Arbitrage Funds execute arbitrage transactions in various markets simultaneously, this may result in high portfolio turnover and, consequently, high transaction cost. • There may be instances, where the price spread between cash and derivative market is insufficient to meet the cost of carry. In such situations, the Fund Manager for Arbitrage Fund may not be able to outperform liquid / money market funds due to lack of opportunities in the derivative market. Though the constituent stocks of most indices are typically liquid, liquidity differs across stock. Due to heterogeneity in liquidity in the capital market segment, trades on this segment do not get implemented instantly. This often makes arbitrage expensive, risky and difficult to implement. (iii) Risk factors associated with investing in equities and equity related instruments: • Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. Investments in equity shares and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risks. • Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges. Investment in such securities may lead to increase in the scheme portfolio risk. • While securities that are listed on the stock exchange carry lower liquidity risk, the ability to sell these investments is limited by the overall trading volume on the stock exchanges and may lead to the Scheme incurring losses till the security is finally sold. • Scheme's performance may differ from the benchmark index to the extent of the investments held in the debt segment, as per the investment pattern indicated under normal circumstances. (iv) Risk factors associated with investing in Fixed Income Securities: • The Net Asset Value (NAV) of the Scheme, to the extent invested in Debt and Money Market instruments, will be affected by changes in the general level of interest rates. The NAV of the Scheme is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates. • Money market instruments, while fairly liquid, lack a well developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. • Investments in money market instruments involve credit risk commensurate with short term rating of the issuers. • Investment in Debt instruments are subject to varying degree of credit risk or default (i.e. the risk of an issuer's inability to meet interest or principal payments on its obligations) or any other issues, which may have their credit ratings downgraded. Changes in financial conditions of an issuer, changes in economic and political conditions in general, or changes in economic or and political conditions specific to an issuer, all of which are factors that may have an adverse impact on an issuer's credit quality and security values. This may increase the risk of the portfolio. The Investment Manager will endeavour to manage credit risk through in-house credit analysis. 27 HDFC Income Plus Arbitrage Omni FOF - SID• Prepayment Risk: Certain fixed income securities give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the Scheme to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the Scheme. • Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the "interest on interest" component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed. • Settlement risk: Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are uninvested and no return is earned thereon. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme's portfolio, due to the absence of a well developed and liquid secondary market for debt securities, may result at times in potential losses to the Scheme in the event of a subsequent decline in the value of securities held in the Scheme's portfolio. • Government securities where a fixed return is offered run price-risk like any other fixed income security. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. The new level of interest rate is determined by the rates at which government raises new money and/or the price levels at which the market is already dealing in existing securities. The price-risk is not unique to Government Securities. It exists for all fixed income securities. However, Government Securities are unique in the sense that their credit risk generally remains zero. Therefore, their prices are influenced only by movement in interest rates in the financial system. • Different types of fixed income securities in which the Scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly, the Scheme risk may increase or decrease depending upon its investment pattern. e.g. corporate bonds carry a higher level of risk than Government securities. Further even among corporate bonds, AAA rated bonds are comparatively less risky than AA rated bonds. • The AMC may, considering the overall level of risk of the portfolio, invest in lower rated / unrated securities offering higher yields as well as zero coupon securities that offer attractive yields. This may increase the absolute level of risk of the portfolio. • As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rates and are subject to issuer default risk. Therefore, the interest rate risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio. Zero coupon or deep discount bonds are debt obligations that do not entitle the holder to any periodic payment of interest prior to maturity or a specified date when the securities begin paying current interest and therefore, are generally issued and traded at a discount to their face values. The discount depends on the time remaining until maturity or the date when securities begin paying current interest. It also varies depending on the prevailing interest rates, liquidity of the security and the perceived credit risk of the Issuer. The market prices of zero coupon securities are generally more volatile than the market prices of securities that pay interest periodically. (v) Risks associated with investment in unlisted securities: • Except for any security of an associate or group company, the scheme can invest in securities which are not listed on a stock exchange (“unlisted Securities”) which in general are subject to greater price 28 HDFC Income Plus Arbitrage Omni FOF - SIDfluctuations, less liquidity and greater risk than those which are traded in the open market. Unlisted debt securities may lack a liquid secondary market and there can be no assurance that the Scheme will realise their investments in unlisted securities at a fair value. • Investment in unrated instruments may involve a risk of default or decline in market value higher than rated instruments due to adverse economic and issuer-specific developments. Such investments display increased price sensitivity to changing interest rates and to a deteriorating economic environment. The market values for unrated investments tends to be more volatile and such securities tend to be less liquid than rated debt securities. (vi) Risks associated with Investing in Structured Obligation (SO) & Credit Enhancement (CE) rated securities The risks factors stated below for the Structured Obligations & Credit Enhancement are in addition to the risk factors associated with debt instruments. Credit rating agencies assign CE rating to an instrument based on any identifiable credit enhancement for the debt instrument issued by an issuer. The credit enhancement could be in various forms and could include guarantee, shortfall undertaking, letter of comfort, etc. from another entity. This entity could be either related or non-related to the issuer like a bank, financial institution, etc. Credit enhancement could include additional security in form of pledge of shares listed on stock exchanges, etc. SO transactions are asset backed/ mortgage backed securities, securitized paper backed by hypothecation of car loan receivables, securities backed by trade receivables, credit card receivables etc. Hence, for CE rated instruments evaluation of the credit enhancement provider, as well as the issuer is undertaken to determine the issuer rating. In case of SO rated issuer, the underlying loan pools or securitization, etc. is assessed to arrive at rating for the issuer. Liquidity Risk: SO rated securities are often complex structures, with a variety of credit enhancements. Debt securities lack a well-developed secondary market in India, and due to the credit enhanced nature of CE securities as well as structured nature of SO securities, the liquidity in the market for these instruments is adversely affected compared to similar rated debt instruments. Hence, lower liquidity of such instruments, could lead to inability of the scheme to sell such debt instruments and generate liquidity for the scheme or higher impact cost when such instruments are sold. Credit Risk: The credit risk of debt instruments which are CE rated is based on the combined strength of the issuer as well as the structure. Hence, any weakness in either the issuer or the structure could have an adverse credit impact on the debt instrument. The weakness in structure could arise due to inability of the investors to enforce the structure due to issues such as legal risk, inability to sell the underlying collateral or enforce guarantee, etc. In case of SO transactions, comingling risk and risk of servicer increases the overall risk for the securitized debt or assets backed transactions. Therefore, apart from issuer level credit risk such debt instruments are also susceptible to structure related credit risk. (vii) Risk factors associated with investment in Tri-Party Repo: The mutual fund is a member of securities segment and Triparty Repo trade settlement of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in Tri-party Repo trades are settled centrally through the infrastructure and settlement systems provided by CCIL; thus, reducing the settlement and counterparty risks considerably for transactions in the said segments. The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL). 29 HDFC Income Plus Arbitrage Omni FOF - SIDAs per the waterfall mechanism, after the defaulter's margins and the defaulter's contribution to the default fund have been appropriated, CCIL's contribution is used to meet the losses. Post utilization of CCIL's contribution if there is a residual loss, it is appropriated from the default fund contributions of the non-defaulting members. Thus, the scheme is subject to risk of the initial margin and default fund contribution being invoked in the event of failure of any settlement obligations. In addition, the fund contribution is allowed to be used to meet the residual loss in case of default by the other clearing member (the defaulting member). CCIL shall maintain two separate Default Funds in respect of its Securities Segment, one with a view to meet losses arising out of any default by its members from outright and repo trades and the other for meeting losses arising out of any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to the default fund of CCIL, in the event that the contribution of the mutual fund is called upon to absorb settlement/default losses of another member by CCIL, as a result the scheme may lose an amount equivalent to its contribution to the default fund. (viii) Risk factors associated with Short Selling: Short-selling is the sale of shares which are not owned by the seller at the time of trade. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock he shorted and returns the stock to close out the loan. If the price of the stock corrects, Short seller can buy the stock back for less than he received for selling it and earn profit (the difference between higher short sale price and the lower purchase price). If the price of stock appreciates, short selling results in loss. Thus, Short positions carry the risk of losing money and these losses may grow theoretically unlimited if the price increases without limit and shall result into major losses in the portfolio. (ix) Risk factors associated with Repo in Corporate Debt Securities: In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at later date. The repurchase price should be greater than the original sale price, the difference effectively representing interest. A repo in corporate debt securities is economically similar to a secured loan, with the buyer receiving corporate debt securities as collateral to protect against default. Some of the risks associated with repo in corporate debt are given below: Counterparty Risk: Counterparty risk refers to the inability of the seller to meet the obligation to buy back securities at the contracted price on the contracted date. In case of over the counter (OTC) repo trades, the investment manager will endeavour to manage counterparty risk by dealing only with counterparties having strong credit profiles. Also, the counter-party risk is to an extent mitigated by taking collateral equivalent in value to the transaction after knocking off a minimum haircut on the intrinsic value of the collateral. In the event of default by the repo counterparty, the scheme shall have recourse to the corporate debt securities. In case the repo transaction is executed on exchange platform approved by RBI/SEBI, the exchange may also provide settlement guarantee. Collateral Risk: Collateral risk arises when the market value of the securities is inadequate to meet the repo obligations. This risk can be partly mitigated by restricting participation in repo transactions only in corporate debt securities which are approved by credit risk team. Additionally, to address the risk related to reduction in market value of corporate debt security held as collateral due to credit rating downgrade, the repo contract can incorporate either an early termination of the repo agreement or call for fresh margin to meet the minimum haircut requirement or call for replacement of security with eligible security. Moreover, the investment manager may apply a higher haircut on the underlying security than required as per RBI/SEBI regulation to adjust for the illiquidity and interest rate risk on 30 HDFC Income Plus Arbitrage Omni FOF - SIDthe underlying instrument. To mitigate the risk of price reduction due to interest rate changes, the adequacy of the collateral can be monitored on a daily basis by considering the daily market value & applying the prescribed haircut. The fund manager or the exchange can then arrange for additional collateral from the counterparty, within a prespecified period. If the counterparty is not able to top-up either in form of cash / collateral, it would tantamount to early termination of the repo agreement, and the outstanding amount can be recovered by sale of collateral. (x) Risk factors associated for investments in Mutual Fund Schemes: 1. Movements in the Net Asset Value (NAV) of these Schemes may impact the performance. Any change in the investment policies or fundamental attributes of these Schemes will affect the performance of the Scheme to the extent of investment in such schemes. 2. Redemptions by in these Schemes would be subject to applicable exit loads. (xi) General Risk factors: • Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The NAV of the Units of the Scheme can go up or down because of various factors that affect the capital markets in general. • As the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for redemption of Units may be significant in the event of an inordinately large number of redemption requests or restructuring of the Scheme. In view of the above, the Trustee has the right, in its sole discretion, to limit redemptions (including suspending redemptions) under certain circumstances, as described under section Right to Restrict Redemption and / or Suspend Redemption of the units. • At times, due to the forces and factors affecting the capital market, the Scheme may not be able to invest in securities falling within its investment objective resulting in holding the monies collected by it in cash or cash equivalent or invest the same in other permissible securities / investments amounting to substantial reduction in the earning capability of the Scheme. The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity requirements. • Investment strategy to be adopted by the Scheme may carry the risk of significant variance between the portfolio allocation of the Scheme and the Benchmark particularly over a short to medium term period. • Performance of the Scheme may be affected by political, social, and economic developments, which may include changes in government policies, diplomatic conditions, and taxation policies. • The Scheme at times may receive large number of redemption requests, leading to an asset-liability mismatch and therefore, requiring the investment manager to make a distress sale of the securities leading to realignment of the portfolio and consequently resulting in investment in lower yield instruments. C. RISK MITIGATION STRATEGIES (Consolidated Std. Obs. 9) The Scheme shall invest in units of domestic Arbitrage schemes and active / passive Debt oriented schemes. The scheme will endeavor to follow a diversified approach by allocating to different schemes and assets to mitigate portfolio risk. The mitigation strategies applicable to underlying schemes will also be 31 HDFC Income Plus Arbitrage Omni FOF - SIDapplicable to this scheme. For instance, HDFC Arbitrage Fund seeks to manage the duration of debt assets on a proactive basis to optimise returns, while balancing interest rate risks. In the event of inadequate arbitrage opportunities or inadequate liquidity in those securities, Arbitrage Fund provides for allocating upto 100% of assets in debt and money / market securities for generating regular income. Investments in debt / money market securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk. While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated. II. INFORMATION ABOUT THE SCHEME: A. WHERE WILL THE SCHEME INVEST? (Consolidated Std. Obs. 29) The Scheme will invest in securities as mentioned below. The investments will be made as per the limits specified in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations or any other applicable laws and guidelines. The corpus of the Scheme shall be invested in accordance with the investment objective in any (but not exclusively) of the following securities: • Units of domestic Arbitrage Schemes and active/passive Debt Oriented Mutual Fund Schemes; • Debt instruments: Debt instruments issued by statutory bodies (which may or may not carry a state/central government guarantee), Corporate Entities (Public / Private sector undertakings), Public / Private sector banks and development financial institutions and guaranteed by Government of India and State Governments such as: 1. Non-convertible debentures; 2. Bonds; 3. Secured premium notes; 4. Zero interest bonds; 5. Deep discount bonds; 6. Floating rate bond / notes; 7. Pass through certificates; 8. Asset backed securities; 9. Mortgage backed securities; 10. Structured Obligations, Credit enhanced Debt; 11. Any other permissible domestic fixed income instrument • Money Market Instruments include: 1. Commercial papers 2. Commercial bills 3. Treasury bills 32 HDFC Income Plus Arbitrage Omni FOF - SID4. Government securities having an unexpired maturity upto one year 5. Tri-party Repos / Reverse Repos on Government securities or treasury bills (TREPS) 6. Certificate of deposit 7. Usance bills 8. Permitted securities under a repo / reverse repo agreement 9. Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals. • As the Scheme invests in the Underlying Schemes, it will have exposure to derivatives, foreign securities, stock lending, etc. as per investments / transactions and limits of the Underlying Schemes. Investment in debt securities will usually be in instruments, which have been assessed as "high investment grade" by at least one credit rating agency authorised to carry out such activity under the applicable regulations. Pursuant to clause 12.12 of Master Circular, the AMC may constitute committee(s) to approve proposals for investments in unrated debt instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any unrated debt security does not fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought. Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC's view regarding current market conditions, interest rate outlook and the stability of ratings. Investments in Debt and Money Market Instruments will be as per the limits specified in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. Investments in Debt and Money Market Instruments will be made through secondary market purchases, and public offers, placements and right offers (including renunciation). The securities could be listed, unlisted (as permitted), privately placed, secured / unsecured, rated / unrated. Pending deployment as per investment objective, the moneys under the Scheme may be parked in short- term deposits of Scheduled Commercial Banks. The Scheme shall abide by the guidelines for parking of funds in short term deposits as per clause 12.16 of Master Circular, as may be amended from to time. For details, refer section ‘What are the Investment Restrictions’. The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI (MF) Regulations. As per the SEBI (MF) Regulations, no investment management fees will be charged for such investments and the aggregate inter scheme investment made by all the schemes of HDFC Mutual Fund or in the schemes of other mutual funds shall not exceed 5% of the net asset value of the HDFC Mutual Fund. • Debt Market In India 33 HDFC Income Plus Arbitrage Omni FOF - SIDThe instruments available in Indian Debt Market are classified into two categories, namely Government and Non - Government debt. The instruments available in these categories include: A] Government Debt Central Government Debt Treasury Bills Dated Government Securities – Coupon Bearing Bonds – Floating Rate Bonds – Zero Coupon Bonds State Government Debt – State Government Loans – Coupon Bearing Bonds B] Non-Government Debt Instruments issued by Government Agencies and other Statutory Bodies Government Guaranteed Bonds PSU Bonds Instruments issued by Public Sector Undertakings Commercial Paper PSU Bonds Fixed Coupon Bonds Floating Rate Bonds Zero Coupon Bonds Instruments issued by Banks and Development Financial Institutions Certificates of Deposit Promissory Notes Bonds Fixed Coupon Bonds Floating Rate Bonds Zero Coupon Bonds Instruments issued by Corporate Bodies Commercial Paper Non-Convertible Debentures Fixed Coupon Debentures Floating Rate Debentures Zero Coupon Debentures Pass Through Securities Activity in the Primary and Secondary Market is dominated by Central Government Securities including Treasury Bills. These instruments comprise close to 60% of all outstanding debt and more than 75% of the daily trading volume on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited. In the money market, activity levels of the Government and Non- Government Debt vary from time to time. Instruments that comprise a major portion of money market activity include, Overnight Call 34 HDFC Income Plus Arbitrage Omni FOF - SIDRepo/Reverse Repo Agreements Tri-party Repos on Government securities or treasury bills (TREPS) Treasury Bills Government Securities with a residual maturity of < 1 year Commercial Paper Certificates of Deposit Bills Rediscounting Scheme Though not strictly classified as Money Market Instruments, PSU/ DFI / Corporate paper with a residual maturity of < 1 year, are actively traded and offer a viable investment option. The following table gives approximate yields prevailing during the month ended August 31, 2025 on some of the instruments. These yields are indicative and do not indicate yields that may be obtained in future as interest rates keep changing consequent to changes in macro economic conditions and RBI policy. Instrument Yield Range (% per annum) Inter bank Call Money 4.8 -5.45 91 Day Treasury Bill 5.34 -5.5 364 Day Treasury Bill 5.46 -5.61 A1 + Commercial Paper 90 Days 5.78 -5.88 5 Year Government of India Security 6.04 -6.33 10 Year Government of India Security 6.32 -6.6 15 Year Government of India Security 6.66-6.98 1 Year Corporate Bond - AAA Rated 6.35 -6.58 3 Year Corporate Bond - AAA Rated 6.58 -6.98 5 Year Corporate Bond - AAA Rated 6.74 -7.1 Source: Bloomberg These yields are indicative and do not indicate yields that may be obtained in future as interest rates keep changing consequent to changes in macro economic conditions and RBI policy. The price and yield on various debt instruments fluctuate from time to time depending upon the macro economic situation, inflation rate, overall liquidity position, foreign exchange scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc. Generally, for instruments issued by a non-Government entity (corporate / PSU bonds), the yield is higher than the yield on a Government Security with corresponding maturity. The difference, known as credit spread, depends on the credit rating of the entity. 35 HDFC Income Plus Arbitrage Omni FOF - SIDB. WHAT ARE THE INVESTMENT RESTRICTIONS? As per the Regulations, the following investment restrictions are currently applicable to the Scheme: • 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 that the Mutual Fund may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. 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 Mutual Funds having an aggregate of securities worth Rs.10 crore or more as on the latest balance- sheet date, shall subject to such instructions as may be issued from time to time by SEBI, settle their transactions only through dematerialised securities. The Mutual Fund shall enter into transactions relating to Government Securities only in dematerialised form. • Save as otherwise expressly provided under SEBI (MF) Regulations, the Mutual Fund shall not advance any loans for any purpose. • The Mutual Fund shall get the securities purchased/ transferred in the name of the Mutual Fund on account of the respective Scheme, wherever the investments are intended to be of a long term nature. • The Scheme shall not invest more than 10% of its NAV 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 authorised to carry out such activity under the Act subject to the below limits at rating level. Such investment limit may be extended to 12% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of directors of the asset management company. The 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 overall limit of 12% of the NAV of the Scheme for a single issuer. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and Tri-party Repos on Government securities or treasury bills (TREPS). Provided further that investment within such limit can be made in mortgaged backed securitised debts which are rated not below investment grade by a credit rating agency registered with SEBI. 36 HDFC Income Plus Arbitrage Omni FOF - SIDProvided further that such limit shall not be applicable for investments in case of debt exchange traded funds or such other funds as may be specified by SEBI from time to time. • The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments. Provided that the Scheme may invest in unlisted nonconvertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by SEBI from time to time. Provided further that the Scheme shall comply with the norms under the above clauses within the time and in the manner as may be specified by SEBI. Provided further that the norms for investments by the Scheme in unrated debt instruments shall be as specified by SEBI from time to time. As per these norms, investments in unrated debt and money market instruments, other than government securities, treasury bills, derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc. by mutual fund schemes shall not exceed 5% of net assets of the Scheme. Further, the Scheme shall comply with provisions of clauses 4.3.1 and 12.1 of Master Circular regarding investment in Debt and Money Market Instruments, as amended from time to time, to the extent applicable to the Scheme. • The Scheme shall invest in Debt instruments having Structured Obligations/ Credit Enhancements in accordance with provisions of clause 12.1 of Master Circular as may be amended by SEBI from time to time. The same are currently as under: The investment of 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. For this purpose, a group means a group as defined under regulation 2 (mm) of the Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates. However, the above Investment limits shall not be applicable on investments in securitized debt instruments, as defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008. Investment in debt instruments, having credit enhancements backed by equity shares directly or indirectly, shall have a minimum cover of 4 times considering the market value of such shares. • As per AMFI Best Practices Guidelines Circular No.115/2024-25 as amended from time to time, investment in Partly Paid Debentures, if undertaken, will be subject to a cap on maximum investment of Mutual Fund Scheme at 5% of the AUM of the scheme. However, once the Partly Paid Debentures are fully paid up, the cap on maximum investment of Mutual Fund scheme at 5% of the AUM of the scheme will not apply. 37 HDFC Income Plus Arbitrage Omni FOF - SID• The Mutual Fund under all its Scheme will not own more than 10% of any Company's paid up capital carrying voting rights. Provided that the Sponsor of the Fund, its associate or group company including the asset management company of the Fund, through the Scheme(s) of the Fund or otherwise, individually or collectively, directly or indirectly, shall not have 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund. Provided that in the event of a merger, acquisition, scheme of arrangement or any other arrangement involving the sponsors of the mutual funds, shareholders of the asset management companies or trustee companies, their associates or group companies which results in the incidental acquisition of shares, voting rights or representation on the board of the asset management companies or trustee companies beyond the above specified limit, such exposure may be rebalanced within a period of one year of coming into force of such an arrangement. • Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed only if: - (a) such transfers are made at the prevailing market price for quoted Securities on spot basis Explanation: spot basis shall have the same meaning as specified by Stock Exchange for spot transactions. Provided that inter scheme transfer of money market or debt security (irrespective of maturity) shall take place based on prices made available by valuation agencies as prescribed by SEBI from time to time. (b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. (c) Inter Scheme Transfers are effected in accordance with the guidelines specified by SEBI vide clause 12.30 of Master as amended from time to time. (Consolidated Std. Obs. 30) • The Scheme may invest in another scheme(s) under the same AMC or any other mutual fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same AMC or in schemes under the management of any other asset management shall not exceed 5% of the net asset value of the Mutual Fund. Provided that the Scheme shall not invest in any fund of funds scheme. • The Scheme shall abide by the following guidelines for parking of funds in short term deposits as per clause 12.16 of Master Circular. 1. "Short Term" for parking of funds shall be treated as a period not exceeding 91 days. 2. Such short-term deposits shall be held in the name of the Scheme. 3. 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 theTrustee. 4. 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. 38 HDFC Income Plus Arbitrage Omni FOF - SID5. 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. 6. The Scheme shall not park funds in short-term deposit of a bank, which has invested in the Scheme. Trustees/AMC shall also take steps to ensure that a bank in which the Scheme has short term deposit does not invest in the Scheme until the Scheme has short term deposit with such bank. 7. No investment management and advisory fees will be charged for such investments in the respective Scheme. The aforesaid limits shall not be applicable to term deposits placed as margins for trading in cash and derivatives market. • The Scheme shall not make any investments in: (a) any unlisted security of an associate or group company of the Sponsors; (b) any security issued by way of private placement by an associate or group company of the Sponsors; (c) the listed securities of group companies of the Sponsors which is in excess of 25% of the net assets of the scheme, except for investments by equity oriented exchange traded funds (ETFs) and Index Funds and subject to such conditions as may be specified by SEBI; (d) any fund of funds scheme. • The Scheme may invest in the units of REITs and InvITs subject to the following: (a) HDFC Mutual Fund under all its Schemes shall not own more than 10% of units issued by a single issuer of REIT and InvIT; and (b) The Scheme shall not invest – (i) more than 10% of its NAV in the units of REIT and InvIT; and (ii) more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer. • The Scheme shall not invest more than 10% of its NAV in case of the equity shares or equity related instruments of any company. • The Scheme shall only invest in equity shares or equity related instruments which are listed or to be listed. The AMC / Trustee may alter these above stated restrictions from time to time to the extent the SEBI (MF) 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. The AMC/Trustee may from time to time alter these restrictions in conformity with the SEBI (MF) Regulations. Further, apart from the investment restrictions prescribed under SEBI (MF) Regulations, the Fund may follow any internal norms vis-à-vis restricting/ limiting exposure to a particular scrip or sector, etc. (Consolidated Std. Obs. 19) All investment restrictions shall be applicable at the time of making investment. C. FUNDAMENTAL ATTRIBUTES (Consolidated Std. Obs. 60) Following are the Fundamental Attributes of the Scheme, in terms of Clause 1.14 of Master Circular read with Regulation 18 (15A) of the SEBI (MF) Regulations. 39 HDFC Income Plus Arbitrage Omni FOF - SID(i) Type of a Scheme • An Open-ended Fund of Fund Scheme investing in units of Arbitrage and active/ passive Debt-oriented Schemes. • Hybrid FOF • Income Plus Arbitrage FOF (ii) Investment objective ● Main Objective - Please refer to section ‘Investment Objective’ under Section I, Part I – Highlights/Summary of The Scheme ● Investment pattern - Please refer to section ‘How will the Scheme Allocate its Assets?’ under Section I, Part II, Clause A (iii) Terms of Issue a) Liquidity provisions such as listing, repurchase, redemption. For further details, please refer to section “Other Scheme Specific Disclosures” under Section II, Part II, Clause E b) Aggregate Fees and expenses charged to the Scheme. For further details, please refer to section “Annual Scheme Recurring Expenses” under Section I, Part III, Clause C c) Any safety net or guarantee provided. This Scheme does not provide any guaranteed or assured return. Changes in Fundamental Attributes: 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 Master Circular, the Trustee and AMC shall ensure that no change in the fundamental attributes of the Scheme and the Plan(s)/Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme and the Plan(s)/ Option(s) thereunder affect the interest of Unit holders is carried out by the AMC unless: ● SEBI has reviewed and provided its comments on the proposal ● A written communication about the proposed change is sent to each Unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and ● The Unit holders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit Load. D. OTHER SCHEME SPECIFIC DISCLOSURES: Listing and transfer of Being an open ended Scheme under which Sale and Redemption of Units units will be made on continuous basis by the Mutual Fund (subject to completion of lock-in period, if any), the Units of the Scheme are not proposed to be listed on any stock exchange. However, the Mutual Fund may at its sole discretion list the Units under the Scheme on one or more stock exchange at a later date. The Units of the Schemes in Demat mode are freely transferable. Units 40 HDFC Income Plus Arbitrage Omni FOF - SIDheld in Statement of Account (SoA) mode may be transferred subject to prevailing AMFI / SEBI guidelines from time to time. If an applicant desires to transfer Units held in physical mode for e.g. in statement of account form, the AMC shall, upon receipt of valid and complete request for transfer together with the relevant documents, register the transfer within 30 days. Provided that the transferor(s) and the transferee(s) will have to comply with the procedure for transfer as may be laid down by the AMC or as required under the prevailing law from time to time including payment of stamp duty for transfer of Units, etc. Units held in Demat form are transferable in accordance with the provisions of Depositories Act, 1996 and the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 as may be amended from time to time.” For more details, refer SAI. Dematerialization of The Unit holders would have an option to hold the Units in demat form or units (Consolidated Std. account statement (non-demat) form. Units held in Demat Form are freely Obs. 58 (a and b)) transferable. The Applicant intending to hold Units in demat form will be required to have a beneficiary account with a Depository Participant (DP) of the NSDL/CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units. Minimum Target amount The minimum target amount to be raised during the NFO Period shall be Rs. to be raised 10 Crore. In case the Mutual Fund fails to collect the minimum subscription amount of Rs. 10 Crore under the Scheme, the Mutual Fund and the AMC shall be liable to refund the subscription amount to the Applicants of the Scheme. Dividend Policy (IDCW) The Trustee may decide to declare distributions under the IDCW Option of the Scheme subject to availability of distributable surplus. For IDCW Options having a defined frequency, the Trustee at its sole discretion may also declare interim distributions between two successive record dates. The declaration / actual payment of IDCW and the frequency thereof will depend on the availability of distributable surplus computed in accordance with SEBI (MF) Regulations. The decision of the Trustee in this regard shall be final. IDCW, if declared, will be paid (subject to deduction of tax at source, if any) to those Unit holders whose names appear in the Register of Unit holders on the record date. In case of units held in dematerialized mode, the Depositories (NSDL/CDSL) will provide the list of eligible demat account holders and the number of units held by them in electronic form on the Record date to the Registrars and Transfer Agent of the Mutual Fund. There is no assurance or guarantee to Unit holders as to the rate/quantum of IDCW distribution nor that IDCW will be paid regularly. On payment of IDCW, the NAV will stand reduced by the amount of IDCW and Dividend distribution 41 HDFC Income Plus Arbitrage Omni FOF - SIDtax /statutory levy (if applicable) paid. The Trustee/ AMC reserves the right to change the record date from time to time. IDCW Distribution Procedure In accordance with clause 11.6.1 of Master Circular, the procedure for IDCW Distribution would be as under: 1. Quantum of IDCW and the record date will be fixed by the Trustee in their meeting. IDCW so decided shall be paid, subject to availability of distributable surplus. 2. Within one calendar day of decision by the Trustee, the AMC shall issue notice to the public communicating the decision about the IDCW including the record date, 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. 3. The Record Date will be 2 working days from the date of publication in at least one English newspaper or in a newspaper published in the language of the region where the Head Office of the mutual fund is situated, whichever is issued earlier. Record date shall be the date which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of Unit holders maintained by the Mutual Fund/ statement of beneficial ownership maintained by the Depositories, as applicable, for receiving IDCW. 4. The notice will, in font size 10, bold, categorically state that pursuant to payment of IDCW, the NAV of the Scheme would fall to the extent of payout and statutory levy (if applicable). 5. The NAV will be adjusted to the extent of IDCW distribution and statutory levy, if any, at the close of business hours on record date. 6. Before the issue of such notice, no communication indicating the probable date of IDCW declaration in any manner whatsoever will be issued by Mutual Fund. The requirement of giving notice shall not be applicable for IDCW Options having frequency upto one month. Note: a) IDCW payable to the unitholder under the Scheme, irrespective of mode of payout (i.e. electronic or physical), for a particular Record Date, under the folio which is less than Rs.100/- shall compulsorily be reinvested in the reinvestment sub- option / facility and the details will be made available in the monthly CAS which will be sent to the investor. b) Where an IDCW payout to a unitholder under the Scheme, irrespective of mode of payment (i.e. electronic or physical), results into an unclaimed amount, all future IDCWs shall compulsorily be reinvested into the reinvestment sub-option / facility and the details 42 HDFC Income Plus Arbitrage Omni FOF - SIDwill be made available in the monthly CAS which will be sent to the investor. Allotment All Applicants whose monies towards purchase of Units have been realised by the Fund will receive a full and firm allotment of Units, provided also the applications are complete in all respects and are found to be in order. Any application for subscription of units may be rejected if found invalid, incomplete or due to unavailability of underlying securities, etc. For applicants applying through 'APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA)', on allotment, the amount will be unblocked in their respective bank accounts and account will be debited only to the extent required to pay for allotment of Units applied in the application form. Units will be allotted upto 3 decimals. Face Value per unit of all Plans/ Options under the Scheme is Rs. 10. Applicants under the Scheme will have an option to hold the Units either in physical form (i.e. account statement) or in dematerialized form. Accordingly, the AMC shall allot units either in physical form (i.e. account statement) or in dematerialized form within 5 working days from the date of closure of the NFO period / date of receipt of valid application during Continuous Offer Period. Dematerialization The Applicants intending to hold the Units in dematerialized mode will be required to have a beneficiary account with a Depository Participant (DP) of the NSDL/CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units. The Units allotted will be credited to the DP account of the Unit holder as per the details provided in the application form. The statement of holding of the beneficiary account holder for units held in demat will be sent by the respective DPs periodically. Units held in demat form are freely transferable. If the Unit holder desires to hold the Units in a Dematerialized / Rematerialized form at a later date, the request for conversion of units held in Account Statement (non demat) form into Demat (electronic) form or vice versa should be submitted alongwith a Demat/Remat Request Form to their Depository Participants. The AMC shall issue units in dematerialized form to a unit holder in a scheme within two working days of the receipt of request from the unit holder. However, the Trustee / AMC reserves the right to change the dematerialization / rematerialization process in accordance with the procedural requirements laid down by the Depositories, viz. NSDL/ CDSL and/or in accordance with the provisions laid under the Depositories Act, 1996 and Regulations thereunder. All Units will rank pari passu, among Units within the same Option in the Scheme concerned as to assets, earnings and the receipt of Distributions, if any, as may be declared by the Trustee. 43 HDFC Income Plus Arbitrage Omni FOF - SIDAllotment Confirmation An allotment confirmation specifying the units allotted shall be sent by way of email and/or SMS within 5 working days of the closure of the NFO Period / date of receipt of valid application during Continuous Offer Period to the Unit holder's registered e-mail address and/or mobile number. Note: Allotment of units will be done after deduction of applicable stamp duty. Note: For the purpose of allotment of units / refund of monies under NFO the term "working days" shall include Business Days but shall not include Holidays. Refund In case the Scheme fails to collect the minimum subscription amount of Rs. 10 Crore, the Mutual Fund and the AMC shall be liable to refund the subscription amount to the Applicants of the Scheme. Refunds of subscription money, if any, shall be completed within 5 working days from the closure of the New Fund Offer Period. No Interest will be payable by the AMC on any subscription money refunded within 5 working days from the closure of the New Fund Offer Period. Interest on subscription amount will be payable for amounts refunded by the AMC later than 5 working days from the closure of the New Fund Offer Period at the rate of 15% per annum for the period in excess of 5 working days and will be charged to the AMC. Refund payments may be made through electronic modes such as RTGS, NEFT, IMPS, direct credit, etc. as permitted by RBI from time to time or in any other manner specified by SEBI from time to time. Payment will be made favouring the Sole / First Applicant. Note: For the purpose of allotment of units / refund of monies under NFO the term "working days" shall include Business Days but shall not include Holidays. Who can invest The following persons (i.e. an indicative list of persons) are eligible and may apply for subscription to the Units of the Scheme provided they are not This is an indicative list and prohibited by any law/Constitutive documents governing them: investors shall consult their financial advisor to 1. Resident adult individuals either singly or jointly (not exceeding three) or ascertain whether the on an Anyone or Survivor basis; scheme is suitable to their 2. Karta of Hindu Undivided Family (HUF); risk profile. 3. Minor (as the first and the sole holder only) through a natural guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian. There shall not be any joint holding in a minor’s folio. Payment for investment shall be accepted from the bank account of the minor, parent or legal guardian of the minor or from a joint account of the minor with the parent or legal guardian. (Consolidated Std. Obs. 37) 4. Partnership Firms & Limited Liability Partnerships (LLPs); 44 HDFC Income Plus Arbitrage Omni FOF - SID5. Companies, Bodies Corporate, Public Sector Undertakings, Association of Persons or bodies of individuals and societies registered under the Societies Registration Act, 1860, Co-Operative Societies registered under the Co-Operative Societies Act, 1912, One Person Company; 6. Banks & Financial Institutions; 7. Mutual Funds/Alternative Investment Funds registered with SEBI; 8. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds; 9. Non-resident Indians (NRIs)/Persons of Indian Origin residing abroad (PIO)/Overseas Citizen of India (OCI) on repatriation basis or on non- repatriation basis; 10. Foreign Portfolio Investors (FPI) registered with SEBI in accordance with applicable laws; 11. Army, Air Force, Navy and other paramilitary units and bodies created by such institutions; 12. Council of Scientific and Industrial Research, India; 13. Multilateral Financial Institutions/Bilateral Development Corporation Agencies/Bodies Corporate incorporated outside India with the permission of Government of India/Reserve Bank of India; 14. Other Schemes of HDFC Mutual Fund subject to the conditions and limits prescribed by SEBI (MF) Regulations; 15. Trustee, AMC, Sponsor and their associates may subscribe to Units under the Scheme; 16. Such other category of investors as may be decided by the AMC/Trustee from time to time provided their investment is in conformity with the applicable laws and SEBI (MF) Regulations. Note: 1. Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad/Overseas Citizens of India (OCI)/Foreign Portfolio Investors (FPIs) have been granted a general permission by Reserve Bank of India under Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 for investing in/redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations. 45 HDFC Income Plus Arbitrage Omni FOF - SID2. In case of application(s) made by Individual Investors under a Power of Attorney, the original Power of Attorney or a duly notarized copy should be submitted. In case of applications made by Non-Individual Investors, the authorized signatories/officials of such Non-Individual investors should sign the application under their official designation and as per the authority granted to them under their Constitutive Documents/Board resolutions, etc. A list of specimen signatures of the authorized officials, duly certified/attested should also be attached to the Application Form. The Fund/AMC/Trustees shall deem that the investments made by the Investors are not prohibited by any law/Constitutive documents governing them and they possess the necessary authority to invest/transact. 3. Investors desiring to invest/transact in mutual fund schemes are required to mandatorily furnish PAN (PAN of the guardian in case minor does not have a PAN) and comply with the KYC norms applicable from time to time. Under the KYC norms, Investors are required to provide prescribed documents for establishing their identity and address including in case of non-individuals copy of the Memorandum and Articles of Association/bye- laws/trust deed/partnership deed/Certificate of Registration along with the proof of authorization to invest, as applicable, to the KYC Registration Agency (KRA) registered with SEBI. The Fund/AMC/Trustees/other intermediaries will rely on the declarations/affirmations provided by the Investor(s) in the Application/Transaction Form(s) and the documents furnished to the KRA that the Investor(s) is permitted/authorised by the Constitution document/their Board of Directors etc. to make the investment/transact. Further, the Investor shall be liable to indemnify the Fund/AMC/Trustee/other intermediaries in case of any dispute regarding the eligibility, validity and authorization of the transactions and/or the applicant who has applied on behalf of the Investors. The Fund/AMC/Trustee reserves the right to call for such other information and documents as may be required by it in connection with the investments made by the investor. Where the Units are held by a Unit holder in breach of any Regulations, AMC/the Fund may effect compulsory redemption of such units. 4. Returned cheques may not to be presented again for collection, and the accompanying application forms are liable to be rejected by the AMC. In case the returned cheques are presented again, the necessary charges are liable to be debited to the investor. 5. The Trustee reserves the right to recover from an investor any loss caused to the Scheme on account of dishonour of cheques issued by the investor for purchase of Units of this Scheme. 46 HDFC Income Plus Arbitrage Omni FOF - SID6. Subject to the SEBI (MF) Regulations, the Trustee may inter-alia reject any application for the purchase of Units if the application is invalid or incomplete or non-permissible under law or if the AMC/Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its Unitholders to accept such an application. Who cannot invest The persons/entities as specified under section “Who Can Invest?” shall not be eligible to invest in the Scheme, if such persons/entities are: 1. United States Person (U.S. person*) as defined under the extant laws of the United States of America, except the following: a. NRIs/PIOs may invest/transact, in the Scheme, when present in India, as lump sum subscription, redemption and/or switch transaction, including registration of systematic transactions only through physical form and upon submission of such additional documents/undertakings, etc., as may be stipulated by AMC/Trustee from time to time and subject to compliance with all applicable laws and regulations prior to investing in the Scheme. b. FPIs may invest in the Scheme as lump sum subscription and/or switch transaction (other than systematic transactions) through submission of physical form in India, subject to compliance with all applicable laws and regulations and the terms, conditions, and documentation requirements stipulated by the AMC/Trustee from time to time, prior to investing in the Scheme. The Trustee/AMC reserves the right to put the transaction requests received from such U.S. person on hold/reject the transaction request/redeem the units, if allotted, as the case may be, as and when identified by the AMC that the same is not in compliance with the applicable laws and/or the terms and conditions stipulated by Trustee/AMC from time to time. Such redemptions will be subject to applicable taxes and exit load, if any. The physical application form(s) for transactions (in non-demat mode) from such U.S. person will be accepted ONLY at the Investor Service Centres (ISCs) of HDFC Asset Management Company Limited (HDFC AMC). Additionally, such transactions in physical application form(s) will also be accepted through Distributors and other platforms subject to receipt of such additional documents/undertakings, etc., as may be stipulated by AMC/Trustee from time to time from the Distributors/Investors. 2. Residents of Canada; 47 HDFC Income Plus Arbitrage Omni FOF - SID3. Investor residing in any Financial Action Task Force (FATF) designated High Risk jurisdiction. *The term “U.S. person” means any person that is a U.S. person within the meaning of Regulations under the Securities Act of 1933 of U.S. or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc, as may be in force from time to time. How to Apply and other The Applications Forms are available at Investor Service Centres details (Consolidated (ISCs)/Official Points of Acceptance (OPAs) of Mutual Fund and/or may be Std. Obs. 35) downloaded from the website of AMC. The application forms should be submitted at ISCs /OPAs. OPAs include various Distributors, Registered Investment Advisers (RIAs), Portfolio Managers, Execution only Platforms (EOPs), Stock Exchange Platforms and other transaction platforms with whom AMC has entered into tie up to accept transactions from their customers. Investors may apply through the ASBA process during the NFO period of the Scheme by filling in the ASBA form and submitting the same to their respective banks, which in turn will block the amount in the account as per the authority contained in ASBA form and undertake other tasks as per the procedure specified therein. For complete details on ASBA process refer Statement of Additional Information (SAI) made available on our website www.hdfcfund.com. Refer back cover page for contact details of Registrar and Transfer Agent (CAMS), brief details various official points of acceptance, collecting bankers during NFO (if any), etc. The list of the ISCs/ OPAs, of the Mutual Fund is provided on the website of the AMC. i.e. www.hdfcfund.com. For further details, please refer to the SAI and Application form available on the website for the instructions. It is mandatory for investors to mention bank account numbers in their applications/requests for redemption. The policy regarding Presently, the AMC does not intend to reissue the repurchased units. reissue of repurchased However, the Trustee reserves the right to reissue the repurchased units at units, including the a later date after issuing adequate public notices and taking approvals, if any, maximum extent, the from SEBI. manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on RIGHT TO RESTRICT REDEMPTION AND / OR SUSPEND REDEMPTION the right to freely retain OF THE UNITS (as per clause 1.12 of Master Circular): or dispose of units being offered. 48 HDFC Income Plus Arbitrage Omni FOF - SIDThe Fund at its sole discretion reserves the right to restrict Redemption (including switch-out) of the Units (including Plan /Option) of the Scheme of the Fund upon occurrence of the below mentioned events for a period not exceeding ten (10) working days in any ninety (90) days period subject to approval of the Board of Directors of the AMC and the Trustee. The restriction on Redemption (including switch-out) shall be applicable where the Redemption (including switch-out) request is for a value above Rs. 2,00,000/- (Rupees Two Lakhs). Further, no restriction shall be applicable to the Redemption / switch-out request upto Rs. 2,00,000/- (Rupees Two Lakhs). It is further clarified that, in case of redemption request beyond Rs. 2,00,000/- (Rupees Two Lakhs), no restriction shall be applicable on first Rs. 2,00,000/- (Rupees Two Lakhs). The Trustee / AMC reserves the right to restrict Redemption or suspend Redemption of the Units in the Scheme of the Fund on account of circumstances leading to a systemic crisis or event(s) that severely constrict market liquidity or the efficient functioning of the markets. A list of such circumstances under which the restriction on Redemption or suspension of Redemption of the Units in the Scheme of the Fund may be imposed are as follows: 1. Liquidity issues- when market at large becomes illiquid affecting almost all securities rather than any issuer specific security; or 2. Market failures / Exchange closures; or 3. Operational issues; or 4. If so directed by SEBI. It is clarified that since the occurrence of the abovementioned eventualities have the ability to impact the overall market and liquidity situation, the same may result in exceptionally large number of Redemption requests being made and in such a situation the indicative timelines, if any mentioned by the Fund in the scheme offering documents, for processing of requests for Redemption may not be applicable. Any restriction on Redemption or suspension of Redemption of the Units in the Scheme(s) of the Mutual Fund shall be made applicable only after specific approval of the Board of Directors of the AMC and Trustee Company and thereafter, immediately informing the same to SEBI. The AMC / Trustee reserves the right to change / modify the provisions of right to restrict Redemption and / or suspend Redemption of the Units in the Scheme of the Fund. Cut off timing for The below cut-off timings and applicability of NAV shall be applicable in subscriptions/ respect of valid applications received at the Official Point(s) of Acceptance redemptions/ switches on a Business Day: This is the time before A] For Purchase (including switch-in) of any amount: which your application (complete in all ● In respect of valid applications received upto 3.00 p.m. and where the respects) should reach the funds for the entire amount are available for utilization before the cut- official points of off time i.e. credited to the bank account of the Scheme before the cut- acceptance. off time - the closing NAV of the day shall be applicable. 49 HDFC Income Plus Arbitrage Omni FOF - SID● In respect of valid applications received after 3.00 p.m. and where the funds for the entire amount are credited to the bank account of the Scheme either at any time on the same day or before the cut-off time of the next Business Day i.e. available for utilization before the cut-off time of the next Business Day - the closing NAV of the next Business Day shall be applicable. ● Irrespective of the time of receipt of application, where the funds for the entire amount are credited to the bank account of the Scheme before the cut-off time on any subsequent Business Day i.e. available for utilization before the cut-off time on any subsequent Business Day - the closing NAV of such subsequent Business Day shall be applicable. B] For Switch-ins of any amount: For determining the applicable NAV, the following shall be ensured: ● Application for switch-in is received before the applicable cut-off time. ● Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank account of the Scheme before the cut-off time. ● The funds are available for utilization before the cut-off time. ● In case of ‘switch’ transactions from one scheme to another, the allocation shall be in line with redemption payouts. In case of switches, the request should be received on a day which is a Business Day for the Switch-out scheme. Redemption for switch-out shall be processed at the applicable NAV as per cut-off timing. Switch- in will be processed at the Applicable NAV (on a Business Day) based on realization of funds as per the redemption pay-out cycle for the switch-out scheme. For investments through systematic investment routes such as Systematic Investment Plans (SIP), Flex SIP, Systematic Transfer Plans (STP), Flex- STP, Swing STP, Transfer of Income Distribution cum Capital Withdrawal (IDCW) Plan facility (TIP), etc. the units will be allotted as per the closing NAV of the day on which the funds are available for utilization by the Target Scheme irrespective of the installment date of the SIP, STP or record date of IDCW etc. While the AMC will endeavour to deposit the payment instruments accompanying investment application submitted to it with its bank expeditiously, it shall not be liable for delay in realization of funds on account of factors beyond its control such as clearing / settlement cycles of the banks. Since different payment modes have different settlement cycles including electronic transactions (as per arrangements with Payment Aggregators / Banks / Exchanges etc), it may happen that the investor's account is debited, but the money is not credited within cut-off time on the same date to the Scheme's bank account, leading to a gap / delay in Unit allotment. Investors are therefore urged to use the most efficient electronic payment modes to avoid delays in realization of funds and consequently in Unit allotment. 50 HDFC Income Plus Arbitrage Omni FOF - SIDC] For Redemption (including switch-out) applications ● In respect of valid applications received upto 3 p.m. on a Business Day by the Fund, same day's closing NAV shall be applicable. ● In respect of valid applications received after 3 p.m. on a Business Day by the Fund, the closing NAV of the next Business Day shall be applicable. Transactions through online facilities / electronic modes: The time of transaction done through various online facilities / electronic modes offered by the AMC, for the purpose of determining the applicability of NAV, would be the time when the request for purchase / sale / switch of units is received in the servers of AMC/RTA. The AMC has the right to amend cut off timings subject to SEBI (MF) Regulations for the smooth and efficient functioning of the Scheme. Minimum amount for Minimum amount for Purchase/Redemption (including Switch-in/out): purchase/redemption/sw For details refer section 'Highlights / Summary of the Scheme'. itches Provisions for minimum amount of purchase / redemptions are not applicable in case of mandatory investments by the Designated Employees of the AMC in accordance with clause 6.10 of Master Circular. 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 under the stated Plan / Option of the Scheme shall be redeemed. Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by (Consolidated Std. Obs. way of email and/or SMS within 5 working days from the closure of the NFO 51 and 61) period/ receipt of valid 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). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds and holdings at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the 51 HDFC Income Plus Arbitrage Omni FOF - SIDmonth on registered email address or before 12th of the succeeding month and by 15th of the succeeding month for those who have opted for physical copy. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before 18th day of succeeding month on registered email address and 21st for those who have opted for physical copy, 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 The payment of dividend/IDCW to the unitholders shall be made within 7 working days from the record date or as per timelines prescribed by SEBI/AMFI. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within 3 working days from the date of redemption or repurchase or such other timelines as may be specified by SEBI / AMFI from time to time in case of exceptional circumstances or otherwise. For details refer para 14.1.3 of Master Circular. Bank Mandate BANK DETAILS (Consolidated Std. Obs. In order to protect the interest of Unit holders from fraudulent encashment of 62) redemption / IDCW cheques, SEBI has made it mandatory for investors to provide their bank details viz. name of bank, branch, address, account type and number, etc. to the Mutual Fund. Payment will be made only in the Bank Account registered with the Mutual Fund. In case of units held in demat mode, payment will be made to the bank account linked to the demat account. The bank account registered in the folio of a minor should be that of the minor or should be a joint account of the minor with the guardian. Applications without complete bank details shall be rejected. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques/ warrants and/ or any delay/ loss in transit. ● Multiple Bank Accounts Registration The AMC/ Mutual Fund provides a facility to the investors to register multiple bank accounts (currently upto 5 for Individuals and 10 for Non - Individuals) for receiving redemption/ IDCW proceeds etc. by providing necessary documents. Investors must specify any one account as the "Default Bank Account". ● Change in Bank Account For investors holding units in demat mode, the procedure for change in bank details would be as determined by the depository participant. For investors holding units in non-demat mode, the Unit holders may change their bank details registered with the Mutual Fund by submitting 'Multiple 52 HDFC Income Plus Arbitrage Omni FOF - SIDBank Account Registration Form' or a standalone separate Change of Bank Details Form. Delay in payment of The AMC shall be liable to pay interest to the Unit holders at 15% or such redemption /repurchase other rate as may be prescribed by SEBI from time to time, in case the proceeds/dividend redemption/ repurchase/ IDCW proceeds are not transferred within the prescribed timeline. 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 required by a regulatory body or any government authority, which results in delay in processing the application. Unclaimed Redemption The unclaimed Redemption and IDCW amounts (the funds) are currently and Income Distribution deployed by the Mutual Fund only in TREPS. However, the same may be cum Capital Withdrawal deployed in other permissible instruments such as call money market or Amount (Consolidated money market instruments or in a separate plan specifically launched under Std. Obs. 53) Overnight/Liquid/ Money Market Mutual Fund schemes to deploy unclaimed Redemption and IDCW amounts. Investors who claim the unclaimed amounts during a period of three years from the due date shall be paid initial unclaimed amount along-with the income earned on its deployment. Investors, who claim these amounts after 3 years, shall be paid initial unclaimed amount along-with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. The AMC will make a continuous effort to remind the investors through letters to take their unclaimed amounts. The details of such unclaimed redemption/IDCW amounts are made available to investors upon them providing proper credentials, on website of the Mutual Fund and AMFI along with the information on the process of claiming the unclaimed amount and the necessary forms/documents required for the same. Further, the information on unclaimed amount along-with its prevailing value (based on income earned on deployment of such unclaimed amount), will be separately disclosed to investors through the periodic statement of accounts/Consolidated Account Statement sent to the investors. Further, the investment management fee charged by the AMC for managing the said unclaimed amounts shall not exceed 50 basis points. Disclosure with respect Investments (including through existing SIP registrations) in the name of to investment by minors minors shall be permitted only from bank account of the minor, parent or legal (Consolidated Std. Obs. guardian of the minor or from a joint account of the minor with the parent or 37) legal guardian. It is reiterated that the redemption/ Income Distribution cum Capital Withdrawal (IDCW) proceeds for investments held in the name of Minor shall continue to be transferred to the verified bank account of the minor (i.e. of the minor or joint account of minor with parent/ legal guardian) only. Therefore, investors must ensure to update the folios with minor’s bank account details 53 HDFC Income Plus Arbitrage Omni FOF - SIDas the ‘Pay-out Bank account’ by providing necessary documents before tendering redemption requests / for receiving IDCW distributions. MINOR ATTAINING MAJOR STATUS The Mutual Fund/AMC will register SIP/STP/SWAP/or any other systematic enrollment in the folio held by a minor only till the date of the minor attaining majority, even though the instructions may be for a period beyond that date. Such enrollments will automatically stand terminated upon the Unit Holder attaining 18 years of age. For folios where the units are held on behalf of the minor, the account shall be frozen for operation by the guardian on the day the minor attains majority and no transactions shall be permitted till the requisite documents for changing the status of the account from 'minor' to 'major' are submitted. III. OTHER DETAILS A. DETAILS ABOUT THE UNDERLYING SCHEMES (Consolidated Std. Obs. 26) This Scheme is a new Scheme, hence, not applicable. B. PERIODIC DISCLOSURES Sr. Name of the Frequen Timelines Disclosed on Links no. Disclosure cy 1. Half Yearly Half yearly within one AMC website https://www.hdfcfund.com/statutory- Results month from disclosure/scheme-financials (Unaudited) the close of each half year i.e. on www.amfiindia.com/research- 31st March AMFI website information/other-data/accounts-data and on 30th September. 2. Annual Report Annually not later than AMC website https://www.hdfcfund.com/statutory- four months disclosure/annual-reports from the date of closure of the relevant amfiindia.com/research- AMFI website account’s information/other-data/accounts-data year (i.e. 31st March each year). 3. Daily Daily - AMFI website amfiindia.com/research- Performance information/other-data/mf-scheme- Disclosure performance-details (after scheme completes six 54 HDFC Income Plus Arbitrage Omni FOF - SIDmonths of existence) 4. Portfolio Monthly/ within 10 AMC website Monthly Portfolio - HDFC Mutual Fund Disclosure days from the (hdfcfund.com) Half close of each yearly month/half- year https://www.amfiindia.com/research- AMFI website respectively. information/other-data/accounts-data 5. Monthly Monthly within 7 AMC website https://www.hdfcfund.com/statutory- Average Asset working days disclosure/aum under from the end Management of the month. (Monthly AAUM) Disclosure 6. Scheme and Monthly within 10 AMC website Monthly Portfolio - HDFC Mutual Fund Benchmark days from the (hdfcfund.com) Riskometer close of each https://www.amfiindia.com/research- (Consolidated month. AMFI website information/other-data/accounts-data Std. Obs. 38) 7. Scheme Monthly To be AMC website https://www.hdfcfund.com/investor- Summary updated on a services/fund-documents/scheme- AMFI website Documents monthly basis summary (Consolidated or on BSE website https://www.amfiindia.com/research- Std. Obs. 38) changes in NSE website information/other-data/scheme-details any of the specified https://www.bseindia.com/Static/Market fields, s/MutualFunds/listOfAmc.aspx whichever is https://www.nseindia.com/ earlier. 8. Investor - As and when AMC website Charter updated C. TRANSPARENCY/NAV DISCLOSURE Net Asset Value The AMC will calculate and disclose the first NAVs of the Scheme not later than 5 Business Days from the date of allotment of units under the NFO. This is the value per unit of Subsequently, the AMC will calculate and disclose NAVs at the close of every the scheme on a particular Business Day. day. You can ascertain the As required by SEBI, the NAVs shall be disclosed in the following manner: value of your investments by multiplying the NAV with your i) Displayed on the website of the Mutual Fund (www.hdfcfund.com) 55 HDFC Income Plus Arbitrage Omni FOF - SIDunit balance. (Consolidated ii) Displayed on the website of Association of Mutual Funds in India (AMFI) Std. Obs. 41 and 42) (www.amfiindia.com). iii) Any other manner as may be specified by SEBI from time to time. AMC shall update the NAVs on the website of the Fund and AMFI by 10.00 a.m. on the next Business day. In case of any delay in uploading on AMFI website, the reasons for such delay would be explained to AMFI and SEBI in writing. If the NAVs are not available before commencement of business hours on the following day due to any reason, Mutual Fund shall issue a press release providing reasons and explaining when the Mutual Fund would be able to publish the NAVs. Mutual Fund / AMC will provide facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard. D. TRANSACTION CHARGES AND STAMP DUTY Transaction Charges No transaction charges shall be deducted from the subscription amount for transactions /applications received through the distributors (i.e. in Regular Plan). Stamp Duty On Mutual fund units issued against Purchase transactions (whether through lump- Allotment/Transfer Of sum investments or SIP or STP or switch-ins or reinvestment under IDCW Option) Units would be subject to levy of stamp duty @ 0.005% of the amount invested. Transfer of mutual fund units (such as transfers between demat accounts) are subject to payment of stamp duty @ 0.015%. Stamp duty is charged pursuant to Notification No. S.O. 4419(E) dated December 10, 2019 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, and subsequent Notification dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India. The rate and levy of stamp duty may vary as amended from time to time. For further details, 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: Other than Equity Oriented Funds Tax implications on distributed income by Mutual Funds^^: 56 HDFC Income Plus Arbitrage Omni FOF - SIDParticulars Resident Investors Non-Resident Investors Mutual Fund* (I) Other than Equity Oriented Funds (including specified mutual funds): Dividend: TDS rate 10% (if dividend income exceeds 20% + applicable Nil INR 10,000 in a financial year) Surcharge + Cess Tax rate Individual / HUF: 20%1 Nil Applicable rates1 Domestic Company1: 30% / 25%2 / 22%2 / 15%2 (II) Other than Equity Oriented Funds (other than specified mutual funds): Capital Gains1: Long Term Capital 12.5%2 without indexation 12.5%2 without indexation Nil Gains (period of and without foreign holding more than 12 currency fluctuation months for listed benefits units and 24 months for unlisted units) - Short Term Capital Individual / HUF: Non-resident (other than - Nil Gains (period of Foreign Company): Applicable rates holding less than or Applicable rates equal to 12 months Domestic Company: for listed units and 24 Foreign Company: 35% months for unlisted 30% / 25%2 / 22%2 / 15%2 units) (III) Specified Mutual Funds$: Deemed Short Term irrespective of holding period. The capital gains will be taxed at applicable rates1. Notes: *The levy of tax on distributed income payable by Mutual Funds has been abolished w.e.f. April 1, 2020, and instead tax on income from mutual fund units in the hands of the unit holders at their applicable rates has been adopted. 1Tax rate to be increased by applicable surcharge and health and education cess at 4% on aggregate of base tax and surcharge. 2Subject to conditions as per the provisions of the Income-tax Act, 1961. $ Deemed Short Term Capital Gains - Capital gains from transfer of units of “Specified Mutual Fund Schemes” acquired on or after 1st April 2023 are treated as deemed short term capital gains taxable at applicable rates as provided above irrespective of the period of holding of such mutual fund units. 57 HDFC Income Plus Arbitrage Omni FOF - SIDFor this purpose, from FY 2025-26 specified mutual fund means: (a) Mutual fund which invests more than 65 per cent of its total proceeds in debt and money market instruments; or (b) a fund which invests 65 per cent or more of its total proceeds in units of a fund referred to in above sub- clause (a). Provided that the percentage of investment in debt and money market instruments or in units of a fund, as the case may be, in respect of the Specified Mutual Fund, shall be computed with reference to the annual average of the daily closing figures. Provided further that for the purposes of this clause, "debt and money market instruments" shall include any securities, by whatever name called, classified or regulated as debt and money market instruments by the Securities and Exchange Board of India. ^^ The information set out is neither a complete disclosure of every material fact of the Income-tax Act, 1961 nor does it constitute tax or legal advice. Investors should be aware that the fiscal rules/ tax laws may change and there can be no guarantee that the current tax position may continue indefinitely. The information/ data herein alone is not sufficient and shouldn’t be used or should not be construed as any advice. In view of the individual nature of tax implications, investors should make his/her/their own investigation and/or are advised to consult their professional tax advisor. For further details on taxation, please refer to the Section on Taxation on investing in Mutual Funds in Statement of Additional Information {SAI}. G. RIGHTS OF UNITHOLDERS Please refer to SAI for details. H. LIST OF OFFICIAL POINTS OF ACCEPTANCE: AMC/ RTA offices - https://www.hdfcfund.com/contact-us/visit-us Other OPAs - https://www.hdfcfund.com/statutory-disclosure/offer-document-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 (Consolidated Std. Obs. 49 and 50) Visit: https://www.hdfcfund.com/statutory-disclosure/offer-document-disclosures Notes: 1. Any amendments / replacement / re-enactment of SEBI (MF) Regulations subsequent to the date of the Scheme Information Document shall prevail over those specified in this Scheme Information Document. 2. The Scheme under this Scheme Information Document was approved by the Trustee vide its resolution dated __________. 58 HDFC Income Plus Arbitrage Omni FOF - SID3. The Scheme Information Document is an updated version of the same in line with the current laws/ regulations and other developments. 4. Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and circulars and the guidelines there under shall be applicable. (Consolidated Std. Obs. 64) For and on behalf of the Board of Directors of HDFC Asset Management Company Limited NAVNEET MUNOT Place: Mumbai Managing Director and Date: _________ Chief Executive Officer 59 HDFC Income Plus Arbitrage Omni FOF - SIDDETAILS OF OFFICIAL POINTS OF ACCEPTANCE (OPA) FOR HDFC MUTUAL FUND SELF CERTIFIED SYNDICATE BANKS (SCSBS) FOR ASBA APPLICATIONS (DURING NFO PERIOD) Investor may approach any of the below banks for submitting their ASBA Application forms during this NFO. Ahmedabad Mercantile Co-Op Bank Ltd, AU Small Finance Bank Limited, Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Barclays Plc., BNP Paribas, Canara Bank, Catholic Syrian Bank Limited, Central Bank of India, CITI Bank NA, City Union Bank Ltd., DBS Bank Ltd., DCB Bank Ltd., Deutsche Bank, Dhanlaxmi Bank Limited, Equitas Small Finance Bank, GP Parsik Sahakari Bank Limited, HDFC Bank Ltd., HSBC Ltd., ICICI Bank Ltd., IDBI Bank Ltd., IDFC First Bank, Indian Bank, Indian Overseas Bank Ltd., Indusind Bank Ltd., J. P. Morgan Chase Bank NA., Jammu and Kashmir bank, Bank, Janata Sahakari Bank Ltd, Karnataka Bank, Karur Vasya Bank Ltd., Kotak Mahindra Bank Ltd., Mehsana Urban Co-operative Bank Limited, Nutan Nagarik Sahakari Bank Ltd, Punjab & Sind Bank, Punjab National Bank, Rajkot Nagarik Sahakari Bank Ltd, RBL Bank Limited, South Indian Bank, Standard Chartered Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of India, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, SVC Co-operative Bank Ltd., Syndicate Bank, Tamilnadu Mercantile Bank Ltd., The Ahmedabad Mercantile Co- Op. Bank Ltd, The Federal Bank, The Jammu & Kashmir Bank Limited, The Kalupur Commercial Co-operative Bank Ltd., The Lakshmi Vilas Bank Ltd., The Saraswat Co-operative Bank Ltd., The Surat Peoples Co-op Bank, TJSB Sahakari Bank Ltd, UCO Bank, Union Bank of India, YES Bank Ltd. The above list is subject to change from time to time. For the updated list of Self Certified Syndicate Banks (SCSBs) and their Designated Branches (DBs) and their details, please refer to the website of SEBI, BSE, NSE. FOR TRANSACTIONS THROUGH THE STOCK EXCHANGE(S) INFRASTRUCTURE Units of the scheme shall be available for purchase / redemption / switch through stock exchange platform(s) as may be made available from time to time by NSE and/or BSE. Accordingly, investors may approach their stock brokers / registered investment advisers / mutual fund distributors /Depository Participant, etc. for their transactions through the applicable platforms. The eligible AMFI certified stock exchange Brokers/ Clearing Members/ Depository Participants# who have complied with the conditions stipulated in clause 16.2.4.8 of Master Circular for stock brokers viz. AMFI/ NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund or the stock exchange platform (for transactions from RIAs, MFDs who are not stock brokers and Investors directly accessing stock exchange platform) will be eligible to be considered as Official Points of Acceptance (OPA). # For Processing only Redemption Request of Units Held in Demat Form. FOR TRANSACTIONS THROUGH MF UTILITIES INDIA PRIVATE LIMITED ('MFU') Both financial and non-financial transactions pertaining to scheme(s) of HDFC Mutual Fund can be done through MFU at the authorized Points of Service ("POS") of MFU. The details of POS published on MFU website at www.mfuindia.com will be considered as Official Point of Acceptance (OPA) for transactions in the Scheme. FOR TRANSACTIONS THROUGH MF CENTRAL As per clause 16.6 of Master Circular, Kfin Technologies Private Limited (“KFintech”) and Computer Age Management Services Limited (“CAMS”) have jointly developed MFCentral - A digital platform for 60 HDFC Income Plus Arbitrage Omni FOF - SIDtransactions/ service requests by Mutual Fund investors. Accordingly, MF Central will be considered as an Official Point of Acceptance (OPA) for transactions in the Scheme. TRANSACTIONS THROUGH "CHANNEL PARTNERS" Investors may enter into an agreement with certain distributors/ Registered Investment Advisers (RIAs) / Portfolio Managers / Execution Only Platforms (EOPs) (with whom AMC also has a tie up) singly and collectively referred to as "Channel Partners" who provide the facility to investors to transact in units of mutual funds through various modes such as their website / other electronic means or through Power of Attorney/agreement/ any such arrangement in favour of the Channel Partners, as the case may be. Under such arrangement, the Channel Partners will forward the details of transactions (viz. subscriptions/redemptions/switches) of investors electronically to the AMC / RTA for processing on daily basis as per the cut-off timings applicable to the relevant schemes and in accordance with applicable SEBI / AMFI circulars issued from time to time. FOR TRANSACTIONS IN ELECTRONIC FORM Eligible investors can undertake any transaction, including purchase / redemption / switch and avail of any services as may be provided by HDFC Asset Management Company Limited (AMC) from time to time through the online/electronic modes (including email) via various sources like its official website - www.hdfcfund.com, mobile handsets, designated email-id(s), etc. Additionally, this will also cover transactions submitted in electronic mode by specified banks, financial institutions, distributors viz. Channel Partners, etc. on behalf of investors, with whom AMC has entered or may enter into specific arrangements or directly by investors through secured internet sites operated by CAMS or other electronic platforms. The servers including email servers (maintained at various locations) of AMC and CAMS or any other service provider/transaction platform with whom the AMC has tied up for this purpose will be the official point of acceptance for all such online / electronic transactions. For the purpose of determining the applicability of NAV, the time when the request for purchase / sale / switch of units is received in the servers of AMC/ RTA or such other service provider/ transaction platform, shall be considered. TRANSACTIONS ON CALL Transact On call (“the Facility”) enables Investors to undertake Eligible Transaction(s) on phone / Interactive Voice Response (IVR) as may decided from time to time by the Fund, through its Authorized Call Centre(s), in relation to the Eligible Scheme(s) of the Fund. Accordingly, the Authorized Call Centre(s) of the Fund shall act as Official Point(s) of Acceptance of transactions under the Facility. The detailed Terms and Conditions which govern the use of the Facility from time to time shall be made available on the website of the Fund viz. www.hdfcfund.com. The Investors should carefully read the Terms and conditions before placing / confirming any transaction requests on phone. TRANSACTIONS AT AMC AND RTA OFFICES Offices of AMC (excluding Business Centres) and RTA i.e. Investor Service Centres (ISCs) and CAMS Transaction Points (TPs) and Limited Transaction Points (LTPs) shall act as the OPAs to accept transactions in schemes of HDFC Mutual Fund. For their addresses, visit: https://www.hdfcfund.com/contact-us/visit-us 61 HDFC Income Plus Arbitrage Omni FOF - SIDHDFC ASSET MANAGEMENT COMPANY LIMITED Registered Office: HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020 Tel.: 022-66316333 • Toll Free no. 1800 3010 6767/1800 419 7676 e-mail for Investors: hello@hdfcfund.com e-mail for Distributors: partners@hdfcfund.com website: www.hdfcfund.com Registrar and Transfer Agent - Computer Age Management Services Limited (CAMS) (Unit: HDFC Mutual Fund) Rayala Towers, 6th Floor, Tower 1, 158, Anna Salai, Chennai - 600002. Telephone No: 044-30212816 Email: enq_h@camsonline.com website: www.camsonline.com 62 HDFC Income Plus Arbitrage Omni FOF - SID