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DRAFT SCHEME INFORMATION DOCUMENT
SO-1
SECTION I
Mirae Asset Gold Silver Passive FoF
(An open-ended fund of fund scheme predominantly investing in units of Mirae Asset Gold ETF and
SO-3 Mirae Asset Silver ETF)
Note: The Product Labelling assigned during the New Fund Offer (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.
The subscription list may be closed earlier by giving at least one day’s notice in one daily newspaper, however the
NFO period shall be open for minimum 3 working days. The Trustee reserves the right to extend the closing date of
the New Fund Offer Period, subject to the condition that the subscription list of the NFO period shall not be kept
open for more than 15 days.
Offer for units of Rs. 10/- each for cash during the New Fund Offer and continuous offer for units at NAV based
prices.
New Fund Offer opens on: - XX/XX/XXXX
New Fund Offer closes on: - XX/XX/XXXX
Scheme re-opens for continuous Sale and Repurchase from: - XX/XX/XXXX
Name of Mutual Fund: Mirae Asset Mutual Fund
Name of Asset Management Company: Mirae Asset Investment Managers (India) Private Limited
CIN: U65990MH2019PTC324625
Name of Trustee Company: Mirae Asset Trustee Company Private Limited
CIN: U65191MH2007FTC170231
Registered & Corporate Office:
Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai – 400098
Tel. No.: 022-678 00 300 Fax No.: 022- 6725 3940 - 47
Website: www.miraeassetmf.co.in E-mail: miraeasset@miraeassetmf.co.in
The particulars of the Scheme have been prepared in accordance with Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996 (hereinafter referred to as SEBI (Mutual Funds) Regulations) as amended till
date and and circulars issued thereunder filed with SEBI, along with Due Diligence Certificate from the Asset
Management Company. 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 SID.
The Scheme Information Document sets forth concisely the information about Mirae Asset Gold Silver Passive
FOF that a prospective investor ought to know before investing. Before investing, investors should also ascertain
about any further changes to this SID after the date of this Document from the Mutual Fund/ Investor Service
Centers/ Website/ Distributors or Brokers.
The Investors are advised to refer to the Statement of Additional Information (SAI) for details of Mirae Asset
Mutual Fund, standard risk factors, special considerations, tax and legal issues and general information on
www.miraeassetmf.co.in
SAI is incorporated by reference (is legally a part of the SID). For a free copy of the current SAI, please
Page 1 of 60
Mirae Asset Gold and Silver Passive FoFcontact your nearest Investor Service Centre or log on to our website.
The SID (Section I and II) should be read in conjunction with SAI and not in isolation.
This SID is dated XX/XX/XXXX
Page 2 of 60
Mirae Asset Gold and Silver Passive FoFTable of Contents
SECTION I ............................................................................................................................................................ 1
Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME .................................................................................. 4
DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY .............................................................. 9
Part II. INFORMATION ABOUT THE SCHEME....................................................................................... 10
A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ..................................................................... 10
B. WHERE WILL THE SCHEME INVEST? ............................................................................................. 12
C. WHAT ARE THE INVESTMENT STRATEGIES?............................................................................... 12
D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................. 13
E. WHO MANAGES THE SCHEME? ....................................................................................................... 14
F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? .. 14
G. HOW HAS THE SCHEME PERFORMED ............................................................................................ 15
H. ADDITIONAL SCHEME RELATED DISCLOSURES ........................................................................ 15
Part III- OTHER DETAILS .............................................................................................................................. 16
A. COMPUTATION OF NAV .................................................................................................................... 16
B. NEW FUND OFFER (NFO) EXPENSES ............................................................................................... 17
C. ANNUAL SCHEME RECURRING EXPENSES ................................................................................... 17
D. LOAD STRUCTURE .................................................................................................................................. 19
Section II .............................................................................................................................................................. 21
I. Introduction ............................................................................................................................................. 21
A. Definitions/interpretation ......................................................................................................................... 21
B. Risk factors .............................................................................................................................................. 21
C. Risk Mitigation Strategies ....................................................................................................................... 32
II. Information about the scheme: .................................................................................................................... 33
A. Where will the scheme invest? ................................................................................................................ 33
B. What are the investment restrictions? ...................................................................................................... 34
C. Fundamental Attributes ........................................................................................................................... 37
D. Index methodology .................................................................................................................................. 39
E. Other Scheme Specific Disclosures: ........................................................................................................ 39
III. Other Details ............................................................................................................................................... 49
A. Details of Underlying Fund ..................................................................................................................... 49
B. Periodic Disclosures ................................................................................................................................ 55
C. Transparency/NAV Disclosure ................................................................................................................ 57
D. Transaction charges and stamp duty- ....................................................................................................... 57
E. Associate Transactions ............................................................................................................................ 58
F. Taxation ................................................................................................................................................... 58
G. Rights of Unitholders ............................................................................................................................... 59
H. List of official points of acceptance ......................................................................................................... 59
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 ........................ 59
Page 3 of 60
Mirae Asset Gold and Silver Passive FoFPart I. HIGHLIGHTS/SUMMARY OF THE SCHEME
Sr. No. Title Description
I. Name of the scheme M irae Asset Gold Silver Passive FoF
II. Category of the Commodity based FoF
Scheme
III. Scheme type An open-ended fund of fund scheme predominantly investing in units of Mirae Asset
Gold ETF and Mirae Asset Silver ETF
SO-7 IV. Scheme code It is to be obtained from NSDL and will be updated at the time of filing launch SID with
SEBI.
V. Investment The investment objective of the scheme is to provide long-term capital appreciation from
objective a portfolio investing in units of Mirae Asset Gold ETF and Mirae Asset Silver ETF.
SO-5
There is no assurance that the investment objective of the Scheme will be realized.
VI. Liquidity Facility The Scheme will offer units for purchases/switch-ins and redemptions/switch-outs at NAV
based prices on all business days on an ongoing basis.
Repurchase of Units will be at the NAV prevailing on the date the units are tendered for
repurchase.
As per SEBI Regulations, the Mutual Fund shall dispatch redemption proceeds within 4
Business Days of receiving a valid redemption request. A penal interest of 15% per annum
or such other rate as may be prescribed by SEBI from time to time, will be paid in case
the redemption proceeds are not made within 4 Business Days from the date of receipt of
a valid redemption request.
Further, AMFI vide circular dated January 17, 2023 has provided list of exceptional
instances wherein additional time has been allowed for payment of redemption proceeds.
Currently the Units of the Scheme are not proposed to be listed on any stock exchange.
VII. Benchmark The benchmark of the scheme is Domestic Price of Gold (50%) + Domestic Price of
Silver (50%)
Rationale for adoption of benchmark:
The benchmark of the scheme would be linked to the domestic prices of gold and silver
as derived from LBMA daily spot fixing prices. As per SEBI framework for launching
Fund of Fund schemes with multiple underlying funds, the benchmark of a commodity-
based FOF should have weightages that should be at least minimum of the investment
range of the particular underlying fund.
The Trustees may change the benchmark in future if a benchmark better suited to the
investment objective of the Scheme is available.
SO-41 VIII. NAV disclosure The AMC will calculate and disclose the first NAV under the Scheme not later than 5
Business Days from the date of allotment of units under the NFO Period. Subsequently,
the NAV will be calculated and disclosed on all Business Day.
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Mirae Asset Gold and Silver Passive FoFThe AMC shall update the NAVs on the website of the Mutual Fund
https://www.miraeassetmf.co.in/ and on the website of Association of Mutual Funds in
India - AMFI (www.amfiindia.com) by 10.00 a.m. of the following business day.
Further Details in Section II.
IX. Applicable timelines Timeline for
• Dispatch of redemption proceeds: 4 working days from the date of redemption
• Dispatch of IDCW (if applicable) etc.: within 7 working days from the record date
X. Plans and Options The Scheme will have Regular Plan and Direct Plan** with a common portfolio and
Plans/Options and separate NAVs. Investors should indicate the Plan for which the subscription is made by
sub options under indicating the choice in the application form.
the Scheme
Each of the above Regular and Direct Plan under the scheme will have the following
Options: (1) Growth Option and (2) Income Distribution cum Capital Withdrawal
(IDCW) Option.
The IDCW Option shall have the following 2 sub-options:
a) Payout of Income Distribution cum capital withdrawal option (“Payout of IDCW”)
b) Reinvestment of Income Distribution cum capital withdrawal option (“Reinvestment
of IDCW”).
The default option for the unitholders will be Regular Plan - Growth Option if he is routing
his investments through a distributor and Direct Plan – Growth option if he is a direct
investor.
If the unit holders select IDCW option but does not specify the sub-option then the default
sub-option shall be Reinvestment of IDCW.
Amounts can be distributed out of investors capital (Equalization Reserve), which is part
of sale price that represents realized gains.
Investors subscribing under Direct Plan of the Scheme will have to indicate “Direct Plan”
against the Scheme name in the application form i.e. “Mirae Asset Gold Silver Passive
FoF - Direct Plan”.
Guidelines for Processing of transactions received under Regular Plan with invalid
ARN
In accordance with AMFI circular no. 135/BP/ 111 /2023-24 dated February 2, 2024,
transactions received in Regular Plan with Invalid ARN shall be processed in Direct Plan
of the same Scheme (even if reported in Regular Plan), applying the below logic:
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Mirae Asset Gold and Silver Passive FoFExecu
SUB tion
EUI Regular Plan /
Transa Primary ARN distributor Only
N* Direct Plan
ction ARN Menti
Type oned
Va Inv Empa Vali Inv Vali
Yes
lid alid nelled d alid d
Lump
Y Y Y Regular
Sum/
Registr
Y N Not applicable Direct
ation
Y Y N.A N.A N.A N Regular
Y Y Y Y Regular
Y Direct
Y Y Y Y Regular
Y Y Y Direct
Y Not applicable Regular
Trigger
Y Not applicable Direct
The AMC reserves the right to introduce a new option / investment Plan at a later date,
subject to the SEBI (MF) Regulations. The AMC also reserves the right to discontinue /
withdraw any option / investment plan, if deemed fit, after taking approval of the Board of
Directors of AMC and Trustee.
**DIRECT PLAN: Direct Plan is only for investors who purchase /subscribe Units in a
Scheme directly with the Mutual Fund or through the stock exchange and is not available
for investors who route their investments through a Distributor.
For detailed disclosure on default plans and options, kindly refer SAI.
XI. Load Structure Exit Load: If redeemed or switched out within 15 days from the date of allotment:
0.05%, if redeemed or switched out after 15 days from date of allotment: Nil
XII. Minimum During NFO and on continuous basis: Rs. 5,000 per application and in multiples of Re.
Application 1 thereafter. Units will be allotted in whole figures and the balance amount will be
Amount/switch in refunded.
Investments through SIP: Rs. 99/- and in multiples of Re.1/- thereafter
The Minimum Application amount mentioned above shall not be applicable to the
mandatory investments made in the Scheme pursuant to the provisions of clause 6.9 and
6.10 of SEBI Master Circular dated June 27, 2024, as amended from time to time.
XIII. Minimum For subsequent additional purchases, the investor can invest with the minimum amount of
Additional Rs. 1,000/- and in multiples of Re. 1/- thereafter.
Purchase Amount
XIV. Minimum The minimum redemption amount shall be ‘any amount’ or ‘any number of units’ as
Redemption/switch requested by the investor at the time of redemption request.
out amount
XV. New Fund Offer NFO for Mirae Asset Gold Silver Passive FoF:
Period
opens on: XX/XX/XXXX
SO-34 This is the period closes on: XX/XX/XXXX
during which a new
scheme sells its units The Trustee may close subscription list earlier by giving at least one day’s notice in one
to the investors daily national newspaper. The Trustee reserves the right to extend the closing date of
Page 6 of 60
Mirae Asset Gold and Silver Passive FoFthe NFO Period, subject to the condition that the entire NFO period including the
extension, shall not be kept open for more than 15 days. Further, the NFO shall remain
open for subscription for a minimum period of 3 working days in accordance with
clause 1.10.1A of SEBI Master Circular dated June 27, 2024. Any such extension shall
be announced by way of a notice – cum – addendum as prescribed by the SEBI
regulation.
Any modification to the New Fund Offer Period shall be announced by way of an
Addendum uploaded on website of the AMC.
XVI. New Fund Offer Offer for units of Rs. 10/- each during the New Fund Offer and continuous offer for
Price units at NAV based prices.
This is the price per
unit that the
investors have to pay
to invest during the
NFO
XVII. Segregated The Scheme has the provision to segregate a portfolio comprising of debt or money
SO-53
portfolio/side market instrument affected by a credit event.
pocketing
disclosure Currently, there is no segregated portfolio created in the Scheme
For Details, kindly refer SAI
XVIII Swing pricing Not Applicable
disclosure
XIX. Stock lending/short The Scheme does not intend to participate in stock lending/securities lending.
selling
XX. How to Apply and Investors can undertake transactions in the Schemes of Mirae Asset Mutual Fund either
other details through physical, online / electronic mode or any other mode as may be prescribed from
time to time.
Physical Transaction:
Application form and Key Information Memorandum may be obtained from Official
Points of Acceptance (OPAs) / Investor Service Centres (ISCs) of the AMC or RTA or
Distributors or can be downloaded from our website www.miraeassetmf.co.in.
Online / Electronic Transactions
Investors can undertake transactions via electronic mode through various online facilities
offered by MAMF and other platforms specified by AMC from time to time.
For further details of online / electronic mode please refer SAI.
The list of the OPA / ISC are available on our website as well.
For further details, refer Section II.
XXI. Investor services Contact Details for general service requests and complaint resolution:
Mr. Chaitanya Chaubal
Mirae Asset Investment Managers (India) Pvt. Ltd.
606, 6th Floor, Windsor Bldg, Off CST Road, Kalina, Santacruz (E), Mumbai - 400 098.
Telephone Nos.: 6780 0300
Page 7 of 60
Mirae Asset Gold and Silver Passive FoFe-mail: customercare@miraeasset.com
Investors may contact any of the ISCs or the AMC by calling the investor line of
the AMC at "1800 2090 777" or visit the website at www.miraeassetmf.co.in for
complete details.
XXIII Specific attribute of Nil
the scheme (such as
lock in, duration in
case of target
maturity
scheme/close ended
schemes) (as
applicable)
XXIV Special product The following facilities are available under the Scheme during the NFO:
/facility available • Auto Switch facility
during NFO and on • Switching
ongoing basis • Transaction through electronic mode
The following facilities are available under the Scheme on an ongoing basis:
• Systematic Investment Plan
- Top-up Facility
- SIP Pause Facility
- Multi-SIP Facility
- SIP Step-up & Top-up facility
• Mirae Asset MF Mobile Application Facility
• Transacting through Email
• Systematic Transfer Plan
- Flexi STP (Flexible STP)
• Systematic Withdrawal Plan
• C- SIP (Corporate SIP)
• WhatsApp Chatbot facility
• One Time Mandate (OTM) Facility
• UPI (Unified Payments Interface) AutoPay Mandate facility
• Interscheme Switching
• Intrascheme Switching
For further details of above special products / facilities, kindly refer SAI.
XXV. Weblink A weblink for Daily TER and TER for last 6 months:
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/total-expense-ratio
A weblink for scheme factsheet:
https://www.miraeassetmf.co.in/downloads/factsheet
Page 8 of 60
Mirae Asset Gold and Silver Passive FoFDUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Draft 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) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme
Information Documents and other than cited deviations/ that there are no deviations from the
regulations
(vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.
(viii) The Trustees have ensured that the Mirae Asset Gold Silver Passive FoF approved by them is a new
product offered by Mirae Asset Mutual Fund and is not a minor modification of any existing
scheme/fund/product.
Sd/-
Date: XX/XX/XXXX Name: Rimmi Jain
Place: Mumbai Designation: Head – Compliance. Legal & Company Secretary
Page 9 of 60
Mirae Asset Gold and Silver Passive FoFPart II. INFORMATION ABOUT THE SCHEME
A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances, the asset allocation will be as follows:
Indicative allocation
Types of Instruments (% of tot al assets)
Minimum Maximum
Units of Mirae Asset Gold ETF and Mirae Asset Silver ETF 95 100
Money market instruments including Tri Party REPO/ debt securities, 0 5
SO-21 Instruments and/or units of debt/liquid schemes of domestic Mutual
Funds
The Scheme does not intend to undertake/ invest/ engage in:
SO-18
• Securitised debt
• Debt Instruments with Structured obligation/Credit enhancements
• Debt Instruments having Special Features as defined under clause 12.2 of SEBI Master Circular dated
June 27, 2024
• Derivatives
• Repo in corporate debt securities
• Securities lending or short selling
• Credit Default Swaps
• ADR/ GDR / Foreign Securities
• Unrated debt and money market instruments (except G-Secs, T-Bills and other money market
instruments)
• Unlisted debt instrument
• Bespoke or complex debt products
• ReITs and InvITs
• Fund of Fund Schemes
The Scheme will invest in the units of Mirae Asset Gold ETF and Mirae Asset Silver ETF managed by Mirae
SO-17 Asset Mutual Fund as per the above stated asset allocation. The cumulative gross exposure through Units of
Mirae Asset Gold ETF, Mirae Asset Silver ETF, Money market instruments / debt securities including Tri
Party REPO/ debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds shall
not exceed 100% of the net assets of the Scheme in accordance with Clause 12.24 of SEBI Master Circular
dated June 27, 2024.
Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any
SO-14
exposure. SEBI vide letter dated November 3, 2021 has clarified that Cash Equivalent shall consist of
Government Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91
days.
Debt securities include, but are not limited to, debt securities of the Government of India, State and Local
Governments, Government Agencies, Statutory Bodies, Public Sector Undertakings, Public Sector Banks or
Private Sector Banks or any other Banks, Financial Institutions, Development Financial Institutions, and
Corporate Entities, collateralized debt securities or any other instruments as may be prevailing and
permissible under the Regulations from time to time).
The debt securities (including money market instruments) referred to above could be fixed rate or floating
rate, listed, unlisted, privately placed, unrated among others, as permitted by regulation.
Page 10 of 60
Mirae Asset Gold and Silver Passive FoFPending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a
mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks. The
investment in these deposits shall be in accordance with clause 12.16 of SEBI Master Circular dated June
27, 2024.
Further, the Scheme may, for meeting liquidity requirements invest in units of money market/liquid schemes
SO-13 of Mirae Asset Mutual Fund and/or any other mutual fund provided that aggregate inter-scheme investment
made by all schemes under the same management or in schemes under the management of any other asset
management company shall not exceed 5% of the net asset value of the mutual fund in accordance with
Clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996.
Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars)
SO-19
Sl. no Type of Instrument Percentage of Circular references*
exposure
1. Securities Lending/ Short 0% Clause 12.11 of SEBI Master Circular
selling dated June 27, 2024
SO-20 2. Derivatives 0% Clause 12.25 of SEBI Master Circular
dated June 27, 2024
3. Securitized Debt 0% Clause 12.15 of SEBI Master Circular
dated June 27, 2024
4. Overseas Securities 0% Clause 12.19 of SEBI Master Circular
dated June 27, 2024
5. Debt Instruments with 0% Clause 12.3 of SEBI Master Circular
Structured Obligations/credit dated June 27, 2024
enhancement
6. Repo in Corporate Debt 0% Clause 12.18 of SEBI Master Circular
Securities dated June 27, 2024
7. Credit default swaps 0% Clause 12.28 of SEBI Master Circular
dated June 27, 2024
8. Unrated Debt instruments 0% Clause 12.1 of SEBI Master Circular
dated June 27, 2024
9. REITs and InvITs 0% Clause 12.21 of SEBI Master Circular
dated June 27, 2024
10. Units of underlying ETF Upto 100% --
11. Debt Instruments having 0% Clause 12.2 of SEBI Master Circular
Special Features SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated June 27, 2024
12. Fund of Fund Schemes 0% Clause 9A of Seventh Schedule of SEBI
(Mutual Funds) Regulations, 1996
13. Units of Mutual Funds 5% of the net asset Clause 4 of the seventh schedule on
(including ETFs) value of the ‘Restriction on Investments’ of SEBI
mutual fund (Mutual Funds) Regulations, 1996
*SEBI circular references (wherever applicable) in support of exposure limits of different types of asset
classes in asset allocation shall be provided.
However, as the Scheme invests in the Underlying Schemes, it will have exposure to other instruments,
including the above, as per investments / transactions and limits of the respective Underlying Schemes.
SO-24 Rebalancing due to passive breach
Page 11 of 60
Mirae Asset Gold and Silver Passive FoFIn the event of deviation from mandated asset allocation mentioned above due to passive breaches, the
SO-22 rebalancing will be carried out in 30 business/calendar days. Where the portfolio is not rebalanced within 30
business/calendar days, justification for the same including details of efforts taken to rebalance the portfolio
shall be placed before the Investment Committee and reasons for the same shall be recorded in writing. The
Investment Committee, if so desires, can extend the timelines up to sixty (60) business days from the date
of completion of mandated rebalancing period in accordance with clause 2.9 of SEBI Master Circular dated
June 27, 2024. However, at all times the portfolio will adhere to the overall investment objectives of the
Scheme.
In case the portfolio of schemes is not rebalanced within the aforementioned mandated plus extended
timelines, AMCs shall:
i. not be permitted to launch any new scheme till the time the portfolio is rebalanced;
ii. not to levy exit load, if any, on the investors exiting such scheme
Rebalancing of deviation due to short term defensive consideration
SO-23
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 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 of SEBI Master Circular dated June 27, 2024 such changes in the
investment pattern will be for short term and for defensive consideration only. In the event of deviations,
portfolio rebalancing will be carried out within 30 calendar days in such cases.
Timelines for deployment of funds collected in NFO:
In line with SEBI circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025,
deployment of the funds garnered in NFO shall be made within 30 business days from the date of allotment
of units.
In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing,
including details of efforts taken to deploy the funds, shall be placed before the Investment Committee. The
Investment Committee, after examining the root cause for delay may extend the timeline by 30 business
days.
B. WHERE WILL THE SCHEME INVEST?
SO-29
1. Units of Mirae Asset Gold ETF
2. Units of Mirae Asset Silver ETF
3. Debt & Money Market Instruments
4. Mutual Fund Units
Detailed definition and applicable regulations/guidelines for each instrument shall be included in Section II.
SO-27 C. WHAT ARE THE INVESTMENT STRATEGIES?
& 28
As per investment objective, the scheme will predominantly invest in the units of Mirae Asset Gold ETF
and Mirae Asset Silver ETF. Based on various macro/technical/fundamental factors the Fund Manager shall
decide allocation towards units of Mirae Asset Gold ETF and/or Mirae Asset Silver ETF. The Scheme shall
invest in units of Mirae Asset Gold ETF and Mirae Asset Silver ETF directly or through secondary market.
A small portion of the net assets will be held as cash or will be invested in debt and money market instruments
permitted by SEBI/RBI including TREPS or in alternative investment for the TREPS as may be provided
by the RBI, to meet the liquidity requirements under the Scheme.
Page 12 of 60
Mirae Asset Gold and Silver Passive FoFInvestments made from the net assets of the Scheme would be in accordance with the investment objective
of the Scheme and the provisions of the SEBI (MF) Regulations. The AMC will strive to achieve the
investment objective by way of a judicious portfolio mix comprising of Debt and Money Market Instruments
and commodity instruments
Subject to the Regulations and the applicable guidelines the Scheme may invest in the schemes of Mutual
Funds. The investment strategy shall be in line with the asset allocation mentioned under “Part II - A: How
will the Scheme allocate its assets?”.
Though every endeavour will be made to achieve the objective of the Scheme, the
AMC/Sponsors/Trustee does not guarantee that the investment objective of the Scheme will be
achieved. No guaranteed returns are being offered under the Scheme.
RISK CONTROL
Investments made from the corpus of the Scheme would be in accordance with the investment objective of
the Scheme and the provisions of the SEBI (MF) Regulations. The Scheme's portfolio shall predominantly
consist of commodity-based schemes. Thus, the mitigation policies applicable to those Schemes will be
applicable to this Scheme.
Policy for Investment decisions
The investment policy of the AMC has been determined by the Investment Committee (“IC”) which has
been ratified by the Boards of the AMC and Trustee. At the strategic level, the broad investment philosophy
of the AMC and the authorized exposure limits are spelt out in the Investment Policy of the AMC. During
trading hours, the Fund Managers have the discretion to take investment decisions for the Scheme within
the limits defined in the Investment Policy, these decisions and the reasons thereof are communicated to the
CEO for post facto approval.
The designated Fund Manager(s) of the Scheme will be responsible for taking day-to-day investment
decisions and will inter-alia be responsible for asset allocation, security selection and timing of investment
decisions.
Portfolio Turnover Policy
Portfolio turnover is defined as the aggregate value of purchases or sales as a percentage of the corpus of a
scheme during a specified period of time. The Scheme is open ended, with subscriptions and redemptions
expected on a daily basis, resulting in net inflow/outflow of funds, and on account of the various factors that
affect portfolio turnover; it is difficult to give an estimate, with any reasonable amount of accuracy.
However, during volatile market conditions, the fund manager has the flexibility to churn the portfolio
actively to optimize returns keeping in mind the cost associated with it.
D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
Benchmark (Total Return Index): Domestic Price of Gold (50%) + Domestic Price of Silver (50%)
Rationale for adoption of benchmark:
The benchmark selected aligns with the prescribed policy framework for the composition of the
benchmark in the multi-asset allocation fund category, as outlined in the "Framework for Launching FoF
Schemes with Multiple Underlying Funds.”
The benchmark of the scheme would be linked to the domestic prices of gold and silver as derived from
LBMA daily spot fixing prices.
Page 13 of 60
Mirae Asset Gold and Silver Passive FoFThe Trustees may change the benchmark in future if a benchmark better suited to the investment objective
of the Scheme is available.
The Fund reserves the right to change the said benchmark and/or adopt one/more other benchmarks to
compare the performance of the Scheme. The performance of this scheme will be compared with its peers
in the Industry. The performance will be placed before the Investment Committee as well as the Board of
Directors of the AMC and the Trustee Company in each of their meetings.
The Trustee reserves the right to change the benchmark for evaluation of performance of the Scheme from
time to time in conformity with the investment objectives and appropriateness of the benchmark subject to
SEBI (MF) Regulations, and other prevailing guidelines, if any.
E. WHO MANAGES THE SCHEME?
SO-33
Sr. No. Particulars Details
i. Name Ms. Ritesh Patel
ii. Age 34 years
iii. Qualification Bachelors in financial market, CMT L-2 Candidate
iv. Past experience Mr. Ritesh Patel has over 13 years of experience in Commodities market.
Prior to joining Mirae Asset Investment Managers (India) Private Limited,
Mr. Patel has worked with companies like Aditya Birla Money Ltd, IIFL
Securities, Ventura Securities, Choice Broking Pvt. Ltd and Waves
research.
Others schemes managed by Mr. Patel are:
1. Mirae Asset Nifty 50 ETF
2. Mirae Asset Nifty Next 50 ETF
3. Mirae Asset Nifty Financial Services ETF
4. Mirae Asset Nifty Midcap 150 ETF
5. Mirae Asset BSE Sensex ETF
6. Mirae Asset Nifty500 Multicap 50:25:25 ETF
7. Mirae Asset Nifty Bank ETF
8. Mirae Asset Nifty IT ETF
9. Mirae Asset Gold ETF
10. Mirae Asset Silver ETF
11. Mirae Asset Gold ETF Fund of Fund
12. Mirae Asset Nifty LargeMidcap 250 Index Fund
13. Mirae Asset Nifty 50 Index Fund
14. Mirae Asset Nifty Total Market Index Fund
15. Mirae Asset Multi Asset Allocation Fund (Commodity portion)
v. Tenure for which the Nil, Since it’s a new Scheme
fund manager has been
managing the scheme
F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL
FUND?
The existing Fund of Fund of Mirae Asset Mutual Fund are as below:
1. Mirae Asset Diversified Equity Allocator Passive FOF (Formerly Known as Mirae Asset Equity
Allocator Fund of Fund)
2. Mirae Asset Global X Artificial Intelligence & Technology ETF Fund of Fund
3. Mirae Asset Nifty 100 ESG Sector Leaders Fund of Fund
Page 14 of 60
Mirae Asset Gold and Silver Passive FoF4. Mirae Asset NYSE FANG+ ETF Fund of Fund
5. Mirae Asset S&P 500 Top 50 ETF Fund of Fund
6. Mirae Asset Hang Seng TECH ETF Fund of Fund
7. Mirae Asset Nifty India Manufacturing ETF Fund of Fund
8. Mirae Asset Global Electric & Autonomous Vehicles Equity Passive FOF (formerly known as Mirae
Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund)
9. Mirae Asset Nifty Smallcap250 Momentum Quality 100 ETF Fund of Fund
10. Mirae Asset Nifty Midsmallcap400 momentum quality 100 ETF Fund of Fund
11. Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund
12. Mirae Asset Gold ETF Fund of Fund
13. Mirae Asset BSE 200 Equal Weight ETF Fund of Fund
14. Mirae Asset Nifty India New Age Consumption ETF Fund of Fund
15. Mirae Asset BSE Select IPO ETF Fund of Fund
The table showing the differentiation of the Scheme with the existing Fund of Fund of Mirae Asset Mutual
Fund is available at: https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-
disclosure/offer-documents-data
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 shall not be
applicable for the Scheme:
i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors
are available on functional website link
ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of
NAV of the scheme in case of debt and equity ETFs/index funds through a functional website link
that contains detailed description
iii. Functional website link for Portfolio Disclosure
iv. Portfolio Turnover Ratio: N.A since it is a Fund of Fund
v. The aggregate investment in the Scheme by
For any other disclosure w.r.t investments by key personnel and AMC directors including
regulatory provisions in this regard kindly refer SAI.
vi. Investments of AMC in the Scheme
The AMC shall not invest in any of the schemes unless full disclosure of its intention to invest has
SO-58 been made in the Scheme Information Document and that the AMC shall not be entitled to charge
any fees on such investment
Page 15 of 60
Mirae Asset Gold and Silver Passive FoFPart III- OTHER DETAILS
A. COMPUTATION OF NAV
The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number
of Units outstanding on the valuation date.
NAV of Units under the Options there under can be calculated as shown below:
NAV = (Market or Fair Value of Scheme’s investments + Current assets including Accrued Income - Current
Liabilities and provisions including accrued expenses)
__________________________________________________________________
No. of Units outstanding under the Scheme/Option.
The NAV, the sale and repurchase prices of the Units will be calculated and announced at the close of each
working day. The NAVs of the Scheme will be computed and units will be allotted upto 3 decimals.
Computation of NAV will be done after considering IDCW paid, if any, and the distribution tax/TDS thereon,
if applicable. Therefore, once IDCW are distributed under the IDCW Option, the NAV of the Units under the
IDCW Option would always remain lower than the NAV of the Units issued under the Growth Option. The
income earned and the profits realized in respect of the Units issued under the Growth Option remain invested
and are reflected in the NAV of the Units.
The valuation of the Schemes’ assets and calculation of the Schemes’ NAVs shall be subject to audit on an
annual basis and such regulations as may be prescribed by SEBI from time to time.
Illustration on Computation of NAV:
SO-42
If the net assets of the Scheme are Rs.10,65,44,345.34 and units outstanding are 1,00,00,000 then the NAV
per unit will be computed as follows:
10,65,44,345.34 / 1,00,00,000 = Rs. 10.654 p.u. (rounded off to three decimals)
Methodology for calculation of sale and re-purchase price of the units of mutual fund scheme:
• 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)
Transaction charges and other charges/expenses, if any, borne by the investors have not been considered
in the above illustration.
• 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):
Page 16 of 60
Mirae Asset Gold and Silver Passive FoFThe 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. 10,790.049 (rounded to three decimals)
Transaction charges and other charges/expenses, if any, borne by the investors have not been considered
in the above illustration.
The Mutual Fund may charge the load within the stipulated limit of 5% and without any discrimination to any
specific group. The Repurchase Price however, will not be lower than 95% of the NAV.
For other details such as policies w.r.t 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 incurred for the purpose of various activities related to the NFO like sales and distribution
fees paid marketing and advertising, registrar expenses, printing and stationary, bank charges etc. will be
borne by the AMC. No NFO expenses will be charged to the Scheme.
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 1% 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 https://www.miraeassetmf.co.in/downloads/statutory-disclosure/total-expense-ratio
% p.a. of daily
Net Assets*
Expense Head
(Estimated
p.a.)
Investment Management & Advisory Fee Upto 1.00%
Audit fees/fees and expenses of trustees
Custodial Fees
Registrar & Transfer Agent Fees including cost of providing account statements / IDCW
/ redemption cheques/ warrants
Marketing & Selling Expenses including Agents Commission and statutory
advertisement**
Costs related to investor communications
Costs of fund transfer from location to location
Page 17 of 60
Mirae Asset Gold and Silver Passive FoFBrokerage & transaction cost pertaining to distribution of units
Goods & Services Tax on expenses other than investment and advisory fees
Goods & Services Tax on brokerage and transaction cost
Other Expenses (to be specified as per Reg 52 of SEBI MF Regulations) *
Maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) U p t o 1.00%
^ Additional expenses under regulation 52 (6A) (c) Upto 0.05%
Since it is a Fund of Fund Scheme, the investor shall bear the recurring expense of the scheme in addition to the
expense of the underlying scheme.
Provided that the total expense ratio to be charged over and above the weighted average of the total expense ratio
SO-45
of the underlying scheme shall not exceed two times the weighted average of the total expense ratio levied by the
underlying scheme(s), subject to the overall ceilings as stated in the above table.
The total expense ratio of Mirae Asset Gold Silver Passive FoF including the total expense ratio of underlying
scheme shall be within the regulatory limits of 1% in terms of Regulation 52 clause 6 sub clause (a)(i) of the SEBI
Mutual Funds Regulations.
*Other expenses: Any other expenses which are directly attributable to the Scheme, may be charged with approval
of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically
prohibited.
^ Such expenses will not be charged if exit load is not levied/not applicable to the scheme.
For the actual current expenses being charged, the investor should refer to the website of the Mutual Fund.
**Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no
commission for distribution of Units will be paid / charged under Direct Plan. The TER of the Direct Plan will be
lower to the extent of the abovementioned distribution expenses/ commission which is charged in the Regular
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.
The purpose of the above table is to assist the investor in understanding the various costs & expenses that the
investor in the Scheme will bear directly or indirectly. These estimates have been made in good faith as per the
information available to the AMC and the above expenses (including investment management and advisory fees)
are subject to inter-se change and may increase/decrease as per actual and/or any change in the Regulations, as
amended from time to time.
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 be paid from the scheme only within the regulatory limits and
not from the books of the Asset Management Companies (AMC), its associate, sponsor, trustee or any other entity
through any route.
In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations 1996 [‘SEBI
Regulations’] or the Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or
expenses may be charged to the scheme namely:-
a) GST payable on investment and advisory service fees (‘AMC fees’) charged by Mirae Asset Investment
Managers (India) Private Limited (‘Mirae Asset AMC)’;
Within the Total Expense Limit chargeable to the Scheme, following will be charged to the Scheme:
a) GST on other than investment and advisory fees, if any, (including on brokerage and transaction costs on
execution of trades) shall be borne by the Scheme;
Page 18 of 60
Mirae Asset Gold and Silver Passive FoFb) Brokerage and transaction cost incurred for the purpose of execution shall be charged to the schemes (a) up
to 12 bps and 5 bps for cash market transactions and derivatives transactions respectively. Any
payment towards brokerage & transaction costs, over and above the said 12 bps and 5 bps for cash market
transactions and derivatives transactions respectively may be charged to the Scheme within the maximum
limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (Mutual Funds)
Regulations, 1996.
The current expense ratios will be updated on the AMC website
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/total-expense-ratio at least 3 working days prior
to the effective date of the change.
Further, the notice of change in base TER (i.e. TER excluding additional expenses provided in Regulation 52(6A)
(b) and 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996) in comparison to previous base TER charged to
the scheme will be communicated to investors of the scheme through notice via email or SMS at least three
working days prior to effecting such change.
However, any decrease in TER due to decrease in applicable limits as prescribed in Regulation 52 (6) (i.e. due to
increase in daily net assets of the scheme) would not require issuance of any prior notice to the investors.
The above change in the base TER in comparison to previous base TER charged to the scheme shall be intimated
to the Board of Directors of AMC along with the rationale recorded in writing.
The changes in TER shall also be placed before the Trustees on quarterly basis along with rationale for such
changes.
Illustration of impact of expense ratio on scheme’s returns (by providing simple example)
SO-44
Particulars Regular Plan Direct Plan
Opening NAV per unit A 10.0000 10.0000
Gross Scheme Returns @ 8.75% B 0.8750 0.8750
Expense Ratio @ 1.50 % p.a. C = (A x 1.50%) 0.1500 0.1500
Distribution Expense Ratio @ 0.25 % p.a. * D = (A x 0.25%) 0.0250 0.0000
Total Expenses E = C + D 0.1750 0.1500
Closing NAV per unit F = A + B - E 10.7000 10.7250
Net 1 Year Return F/A - 1 7.00% 7.25%
*Distribution/Brokerage expense is not levied
The above calculation is provided to illustrate the impact of expenses on the scheme returns and should not be
construed as indicative Expense Ratio, yield or return.
D. 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 (https://www.miraeassetmf.co.in/) or may call at ‘1800 2090 777’ or your distributor.
Type of Load Load chargeable (as %age of NAV)
Exit If redeemed or switched out within 15 days from the date of allotment: 0.05%, if
redeemed or switched out after 15 days from date of allotment: Nil
Page 19 of 60
Mirae Asset Gold and Silver Passive FoFFor any change in exit load, AMC will issue an addendum and display it on the website/Investor Service
Centres.
No Exit Load shall be levied in case of switch transactions from Regular Plan to Direct Plan and vice versa.
The Mutual Fund may charge exit load within the stipulated limit of 5% and without any discrimination to any
SO-47
specific group. The Repurchase Price however, will not be lower than 95% of the NAV.
The exit load charged if any shall be credited to the scheme
The Trustee reserves the right to modify/alter the load structure and may decide to charge on the Units with
prospective effect, subject to the maximum limits as prescribed under the SEBI Regulations. At the time of
changing the load structure, the AMC shall take the following steps:
• Arrangements shall be made to display the changes/modifications in the SID in the form of a notice in all
the Mirae Asset ISCs’ and distributors’ offices and on the website of the AMC.
• The notice–cum-addendum detailing the changes shall be attached to SIDs and Key Information
Memoranda. The addendum will be circulated to all the distributors so that the same can be attached to all
SIDs and Key Information Memoranda already in stock.
• The introduction of the exit load along with the details shall be stamped in the acknowledgement slip issued
to the investors on submission of the application form and may also be disclosed in the statement of
accounts issued after the introduction of such load.
• A public notice shall be given in respect of such changes in one English daily newspaper having nationwide
circulation as well as in a newspaper published in the language of region where the Head Office of the
Mutual Fund is situated.
• Any other measures which the mutual funds may feel necessary.
The AMC may change the load from time to time and in case of an exit/repurchase load this may be linked to
the period of holding. It may be noted that any such change in the load structure shall be applicable on
prospective investment only. The exit load (net off GST, if any, payable in respect of the same) shall be
credited to the Scheme of the Fund.
The distributors should disclose all the commissions (in the form of trail commission or any other mode)
payable to them for the different competing schemes of various mutual funds from amongst which the scheme
is being recommended to the investor.
Page 20 of 60
Mirae Asset Gold and Silver Passive FoFSection II
I. Introduction
A. Definitions/interpretation
Please refer the definitions/interpretation as disclosed under:
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-documents-data
B. Risk factors
Standard Risk Factors:
• Investment in Mutual Fund units involves investment risks such as trading volumes, settlement risk, liquidity
risk, default risk including the possible loss of principal
• As the price / value / interest rate of the securities in which the Scheme invests fluctuates, the value of your
investment in the scheme can go up or down depending on various factors and forces affecting capital markets
and money markets.
• Past performance of the Sponsor/ AMC/ Mutual Fund does not guarantee the future performance of the
Scheme.
• The name of the Scheme does not in any manner indicate its quality or its future prospects and returns.
• The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the
initial contribution of Rs. 1 lakh made by it towards setting up the Fund.
• The present scheme is not a guaranteed or assured return scheme.
SO-8 Scheme Specific Risk Factors
Some of the specific risk factors related to the Scheme include, but are not limited to the following:
• As the investors are incurring expenditure at both the Fund of Funds level and the scheme into which the
Fund of Funds invests, the returns that they may obtain may be materially impacted or may at times be lower
than the returns that investors may obtain by directly investing in such schemes.
• As the Fund of Funds scheme will invest into an underlying scheme, the expense charged being dependent
on the structure of the underlying scheme (being different), it may lead to a non- uniform charging of expenses
over a period of time.
• In the Fund of Funds (FOF) factsheets and disclosures of portfolio will be limited to providing the particulars
of the schemes invested at FOF level, thus investors may not be able to obtain specific details of the
investments of the underlying schemes.
• The fund of funds scheme may have different returns/performance than the underlying scheme due to various
reasons. The return of the Fund of Funds may be adversely impacted by Total expense ratio, cash drag, timing
and pricing difference b/w the subscription/redemption in the Fund of Funds v/s underlying scheme,
operational and transactional reasons etc.
• The scheme specific risk factors of the underlying schemes become applicable where a fund of funds invest.
Investors who intend to invest in Fund of Funds are required to and are deemed to have read and understood
the risk factors of the underlying scheme in which Fund of Funds scheme invest in. Copies of the Scheme
Information Documents pertaining to the various schemes of Mirae Asset Mutual Fund, which disclose the
relevant risk factors, are available at the Investor/Customer Service Centers or may be accessed at
www.miraeassetmf.co.in.
Page 21 of 60
Mirae Asset Gold and Silver Passive FoF• The FoF may invest in the underlying ETF through stock exchange, where market price of underlying ETF
may be different from its Indicative Net Asset Value (INAV)/NAV. This may affect the performance of the
scheme.
• The subscription and redemption in FoF is also dependent on the liquidity of the underlying scheme. The
illiquidity of the same may affect the performance of the FoF.
A Fund Manager managing the Fund of Funds scheme may also be the Fund Manager for any underlying
schemes.
Risks associated with ADR / GDR / Foreign Securities:
• The scheme will not have any exposure to ADR / GDR / Foreign Securities.
Risks associated with Derivatives:
• The scheme will not have any exposure to Derivatives.
Risks associated with Securitized Debt
• The scheme will not have any exposure to Securitized debt.
Risks associated with Short Selling and Securities Lending
• The scheme does not intend to short sell the securities and will not engage in Securities lending.
Risks Associated with Debt & Money Market Instruments
• Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market
instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed
income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the
prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of
interest rates.
• Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money market
instrument may default on interest payment or even in paying back the principal amount on maturity. Even
where no default occurs, the price of a security may go down because the credit rating of an issuer goes
down. It must, however, be noted that where the Scheme has invested in Government securities, there is no
credit risk to that extent.
• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its
valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price
and the offer price quoted by a dealer. Liquidity risk is today characteristic of the Indian fixed income market.
• Reinvestment Risk: Investments in fixed income securities may carry reinvestment risk as interest rates
prevailing on the interest or maturity due dates may differ from the original coupon of the bond.
Consequently, the proceeds may get invested at a lower rate.
• Pre-payment 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
fund to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower
interest income for the fund.
Page 22 of 60
Mirae Asset Gold and Silver Passive FoF• Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the
benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the
portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the
underlying benchmark might increase leading to loss in value of the security.
• Concentration Risk: The Scheme portfolio may have higher exposure to a single sector, subject to maximum
of 20% of net assets, depending upon availability of issuances in the market at the time of investment,
resulting in higher concentration risk. Any change in government policy / businesses environment relevant
to the sector may have an adverse impact on the portfolio.
• Different types of securities in which the scheme would invest as given in the SID carry different levels and
types of risk. Accordingly, the scheme’s risk may increase or decrease depending upon its investment
pattern. E.g. corporate bonds carry a higher amount of risk than Government securities. Further even among
corporate bonds, bonds, which are AA rated, are comparatively riskier than bonds, which are AAA rated.
Risks associated with segregated portfolio
• Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery
of money from the issuer.
• Security comprises of segregated portfolio may not realize any value.
• Listing of units of segregated portfolio in recognized stock exchange does not necessarily guarantee their
liquidity. There may not be active trading of units in the stock market. Further trading price of units on the
stock market may be significantly lower than the prevailing NAV.
Risks associated with investing in Tri-Party Repo through CCIL (TREPS)
The mutual fund is a member of securities segment and Tri-party Repo trade settlement of the Clearing
Corporation of India (CCIL). All transactions of the mutual fund in government securities and in Triparty
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. CCIL
maintains prefunded resources in all the clearing segments to cover potential losses arising from the default
member. In the event of a clearing member failing to honor his settlement obligations, the default Fund is
utilized to complete the settlement. The sequence in which the above resources are used is known as the
“Default Waterfall”. As 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). However, it may be noted that a member shall have the right to submit
resignation from the membership of the Security segment if it has taken a loss through replenishment of its
contribution to the default fund for the segments and a loss threshold as notified have been reached. The
maximum contribution of a member towards replenishment of its contribution to the default fund in the 7
days (30 days in case of securities segment) period immediately after the afore-mentioned loss threshold
having been reached shall not exceed 5 times of its contribution to the Default Fund based on the last re-
computation of the Default Fund or specified amount, whichever is lower. Further, it may be noted that,
CCIL periodically prescribes a list of securities eligible for contributions as collateral by members. Presently,
all Central Government securities and Treasury bills are accepted as collateral by CCIL. The risk factors
may undergo change in case the CCIL notifies securities other than Government of India securities as eligible
for contribution as collateral.”
The underlying schemes having exposure to the fixed income securities and/ or equity and equity related
securities will be subject to the following risks and in turn the Scheme’s/ Plans’ performance will be affected
accordingly.
Page 23 of 60
Mirae Asset Gold and Silver Passive FoFRisk associated with investing in Mutual Funds units
Investment in units of Mutual Fund scheme involves investment risks such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of
the underlying securities in which the mutual fund scheme invests fluctuates, the value of units of mutual
fund scheme may go up or down. The value of underlying securities may be affected, inter-alia, by changes
in the market, interest rates, changes in credit rating, trading volumes, settlement periods and transfer
procedures; the NAV is also exposed to Price/Interest-Rate Risk and Credit Risk and may be affected inter-
alia, by government policy, volatility and liquidity in the money markets and pressure on the exchange rate
of the rupee. Investment in units of mutual fund scheme is also exposed to risk of suspension of subscriptions
/ redemptions of the units, change in fundamental attributes etc. Since the Scheme may invest in schemes of
Mutual Funds, scheme specific risk factors of each such mutual fund schemes will be applicable to the
Scheme portfolio.
Risk Associated while transacting through Email
The AMC allows investors for transacting in mutual fund units through email. This may involve certain risks
which the investor should carefully consider. Investors should note that email-based instructions are
inherently vulnerable to risks such as interception, unauthorized access, phishing, spoofing, failed delivery
and unintended transmission and should ensure appropriate safeguards are in place when using such mode
of transaction. The AMC does not accept any responsibility or liability for any loss, damages or
inconvenience caused due to errors, delays, non - receipt or unauthorized access associated with transacting
through email.
RISKS ASSOCIATED WITH INVESTING IN UNDERLYING SCHEMES:
The scheme specific risk factors of the underlying schemes become applicable where a fund of funds invests.
Investors who intend to invest in Fund of Funds are required to and are deemed to have read and understood
the risk factors of the underlying scheme in which the Fund of Funds scheme invest in. Copies of the Scheme
Information Documents pertaining to the various schemes of Mirae Asset Mutual Fund, which disclose the
relevant risk factors, are available at the Customer Service Centers or may be accessed at
www.miraeassetmf.co.in.
Investors who intend to invest in the Fund of Funds are required to and are deemed to have read and
understood the risk factors of the underlying schemes in which the Fund of Funds scheme invest in.
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 may
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. Investors may refer to the portfolios of the relevant
underlying schemes for details.
• 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
Page 24 of 60
Mirae Asset Gold and Silver Passive FoFof 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.
Risk factors associated with investing in Gold and Gold related instruments
◼
The NAV of the Units relates directly to the value of the gold held by the Scheme minus the expenses
⚫
incurred in managing of the scheme including but not limited to management fees, Operational
expenses, cost incurred to buy and sell, taxes, other charges, tracking error, tracking difference (Positive
or negative) and fluctuations in the price of gold adversely affect investment value of the Units. The
factors that may affect the price of gold, inter-alia, include economic and political developments,
changes in interest rates and perceived trends in bullion prices, exchange rates, inflation trends, market
movements, etc.
Actual or perceived disruptions in the processes used to determine the LBMA Gold Price, or lack of
⚫
confidence in that benchmark, may adversely affect the return on your investment in the scheme (if
any).
Future governmental decisions may have significant impact on the price of gold, which may result in a
⚫
significant decrease or increase in the value of the net assets and the net asset value.
Because the ETF holds only gold, an investment in the ETF may be more volatile than an investment in
⚫
a more broadly diversified portfolio.
To the extent that demand for gold exceeds the available supply at that time, Authorized Participants
⚫
may not be able to readily acquire sufficient amounts of gold necessary for the creation of a Basket.
Market speculation in gold could result in increased requests for the issuances. It is possible that
Authorized Participants may be unable to acquire sufficient gold that is acceptable for delivery for the
issuance of new Baskets due to a limited then-available supply coupled with a surge in demand for the
ETF units. In such circumstances, the AMC may suspend or restrict the issuance of Baskets. Such
occurrence may lead to further volatility in Share price and deviations, which may be significant, in the
market price of the ETF units relative to the NAV.
The gold market in general has experienced extreme price and volume fluctuations that have often been
⚫
unrelated or disproportionate to factors such as gold's uses in jewellery, technology, and industrial
applications, or cost and production levels in major gold-producing countries such as China, Mexico,
and Peru. In particular, supply chain disruptions resulting from the COVID-19 outbreak and investor
speculation have significantly contributed to recent price and volume fluctuations.
The formula for determining NAV of the Units is based on the imported (landed) value of gold. The
⚫
landed value of gold is computed by multiplying international market price by US dollar value. The
value of gold or NAV, therefore will depend upon the conversion value of US dollar into Indian rupee
and attracts all the risks attached to such conversion and forex volatility.
There is no Exchange for physical gold in India. The Scheme may have to buy or sell gold from the
⚫
open market, which may lead to counter party risks for the Scheme for trading and settlement.
The returns from physical gold in which the Scheme invests may underperform returns from other
⚫
securities or asset classes.
There is a risk that part or all of the Scheme’s gold could be lost, damaged or stolen. Access to the
⚫
Scheme’s gold could also be restricted by natural events or human actions. Any of these actions may
have adverse impact on the operations of the Scheme and consequently on investment / redemption in
Units.
The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity
⚫
requirements. The Scheme has to sell gold only to bullion bankers / traders who are authorized to buy
gold. Though, there are adequate numbers of players (commercial or bullion bankers) to whom the
Scheme can sell gold, the Scheme may have to resort to distress sale of gold if there is no or low demand
for gold to meet its cash needs of redemption or expenses. The distress sale may affect the redemption
value of the units adversely. The Trustee, in general interest of the Unit holders of the Scheme offered
under this Scheme Information Document and keeping in view of the unforeseen circumstances /
unusual market conditions, may limit the total number of Units, which can be redeemed on any Business
Day.
Page 25 of 60
Mirae Asset Gold and Silver Passive FoFAny changes in trading regulations by the stock exchange(s) or SEBI may affect the ability of
⚫
Authorised Participant to arbitrage resulting into wider premium / discount to NAV. Any changes in the
regulations relating to import and export of gold or gold jewellery (including customs duty, sales tax
and any such other statutory levies) may affect the ability of the Scheme to buy / sell gold against the
purchase and redemption requests received.
The Scheme is not actively managed. The performance of the Scheme may be affected by a general
⚫
price decline in the Gold prices. The Scheme invests in the physical Gold regardless of their investment
merit. The AMC does not attempt to take defensive positions in declining markets.
For the valuation of gold by the Scheme, indirect taxes like customs duty, VAT, etc. would also be
⚫
considered. Hence, any change in the rates of indirect taxation / applicable taxes would affect the
valuation of the Scheme.
Gold Exchange Traded Funds (GETFs) are relatively new products and their value could decrease if
⚫
unanticipated operational or trading problems arise. Mirae Asset Gold ETF, an open ended Exchange
Traded Fund, is therefore subject to operational risks.
Though this is an open-ended scheme, the Scheme would ordinarily repurchase Units in Creation Unit
⚫
Size. Thus Unit holding less than Creation Unit Size can only be sold through the secondary market on
the Exchange. Further, the price received upon the redemption of Units of the Scheme may be less than
the value of the gold represented by them.
A day on which valuation on London Bullion Market Association (LBMA) is not available shall not be
⚫
a Business day and hence NAV for the said day shall not be available to the Investors.
Mirae Asset Gold ETF (the Scheme) is a passively managed fund that shall be investing substantial
⚫
portion of its assets in physical gold and tracking its performance as close as possible to the price of
gold. Therefore, irrespective of decline / rise in prices of physical gold, the Scheme shall remain invested
in gold and being a passively managed fund, no active calls based on outlook of gold prices will be
taken by the Fund.
Investments by the Scheme are subject to availability of Gold. If favorable investment opportunities do
⚫
not exist or opportunities have notably diminished, the scheme may suspend accepting fresh
subscriptions.
Performance of the Scheme may be affected by political, social and economic developments, which
⚫
may include changes in government policies, diplomatic conditions, taxation and other policies.
ETF units are created to reflect, at any given time, the market price of gold. Because the value of ETFs
⚫
depends on the price of gold, it is subject to fluctuations similar to those affecting gold prices. The price
of gold has fluctuated widely over the past several years. If gold markets continue to be characterized
by the wide fluctuations that they have shown in the past several years, the price of the ETF units will
change widely and in an unpredictable manner. This exposes your investment in ETF units to potential
losses if you need to sell your ETF units at a time when the price of gold is lower than it was when you
made your investment in ETF units. Even if you are able to hold ETF units for the mid- or long-term
you may never realize a profit, because gold markets have historically experienced extended periods of
flat or declining prices. Investors should be aware that while gold is used to preserve wealth by investors
around the world, there is no assurance that gold will maintain its long-term value in terms of future
purchasing power. In the event the price of gold declines, it is expected the value of an investment in
the ETFs to decline proportionately.
During the process of creation or redemption of the Scheme in creation unit size, the AMC will source
⚫
or sell the physical gold from a counterparty. The price at which the gold is bought or sold at will include
a spread also, apart from cost price of the gold, taxes and other transaction cost. Thus cost may vary
depending on the source from which gold is bought or sold, due to different cost being charged by the
counterparty. This varying buying or selling cost will impact the cost at which units are created for the
investor or redeemed for the investor. AMC will most likely be passing on all the cost associated with
buying and selling of the physical gold, including spread, transaction cost, taxes etc. on to the
investor/investors. This will impact the per unit cost realized by the investor in case of creation or
redemption directly with the AMC
The AMC within the regulatory guidelines and room given in Scheme information document, may use
⚫
derivative on gold (like Futures) for rebalancing, holding, creation of fresh units or redemption of
existing units for the Scheme. The use of derivatives may affect the performance of the scheme and
tracking error. It may also impact the value at units are created or redeemed by the scheme.
Page 26 of 60
Mirae Asset Gold and Silver Passive FoF• If the process of creation and redemption of Baskets encounters any unanticipated difficulties or is
materially restricted due to any illiquidity in the market for physical gold, the possibility for arbitrage
transactions by Authorized Participants, intended to keep the price of the ETF units closely linked to
the price of gold may not exist and, as a result, the price of the ETF units may fall or otherwise diverge
from NAV.
Risk factors associated with investing in Gold Monetisation Scheme (GMS) and Gold Deposit Scheme
◼
(GDS)
The ETF shall, as permitted by SEBI, may invest a part of its pool of physical gold assets in Gold
Monetisation Scheme/Gold Deposit Scheme run by Banks. Under the GMS/GDS, the ETF will deposit its
physical gold assets as principal with the Banks which offer such facility (“the issuer”). A situation could
arise where the issuer is unable to return the principal physical gold to ETF upon maturity or in case of an
early redemption. Such inability to return physical gold could arise on account of liquidity problems or
general financial health of the issuer. A default by the issuer under a GMS /GDS may result in losses to the
Unit holders of the ETF. GMS/GDS being an unlisted and non-transferrable security can be Redeemed only
with the issuer and hence, is subject to the risk of an issuer’s inability to meet principal and interest payments
on the obligation (credit risk). Credit Risk means that the issuer of a Security may default on interest
payments or even paying back the principal amount on maturity (i.e. the issuer may be unable to make
timely principal and interest payments on the Security) which may result in losses to the Unitholders of the
ETF.
• Risk factors associated with investing in Silver and Silver related instruments
The NAV of the Units relates directly to the value of the silver held by the Scheme minus the expenses
⚫
incurred in managing of the scheme including but not limited to management fees, Operational
expenses, cost incurred to buy and sell, taxes, other charges, tracking error, tracking difference (Positive
or negative) and fluctuations in the price of could adversely affect investment value of the Units. The
factors that may affect the price of silver, inter-alia, include economic and political developments,
changes in interest rates and perceived trends in bullion prices, exchange rates, inflation trends, market
movements, etc.
Actual or perceived disruptions in the processes used to determine the LBMA Silver Price, or lack of
⚫
confidence in that benchmark, may adversely affect the return on your investment in the scheme (if
any).
Future governmental decisions may have significant impact on the price of silver, which may result in
⚫
a significant decrease or increase in the value of the net assets and the net asset value.
Because the ETF holds only silver, an investment in the ETF may be more volatile than an investment
⚫
in a more broadly diversified portfolio.
To the extent that demand for silver exceeds the available supply at that time, Market Makers may not
⚫
be able to readily acquire sufficient amounts of silver necessary for the creation of a Basket. Market
speculation in silver could result in increased requests for the issuances. It is possible that Market
Makers may be unable to acquire sufficient silver that is acceptable for delivery for the issuance of new
Baskets due to a limited then-available supply coupled with a surge in demand for the ETF units. In
such circumstances, the AMC may suspend or restrict the issuance of Baskets. Such occurrence may
lead to further volatility in Share price and deviations, which may be significant, in the market price of
the ETF units relative to the NAV.
The silver market in general has experienced extreme price and volume fluctuations that have often
⚫
been unrelated or disproportionate to factors such as silver's uses in jewellery, technology, and
industrial applications, or cost and production levels in major silver-producing countries such as China,
Mexico, and Peru. In particular, supply chain disruptions resulting from the COVID-19 outbreak and
investor speculation have significantly contributed to recent price and volume fluctuations.
The formula for determining NAV of the Units is based on the imported (landed) value of silver. The
⚫
landed value of silver is computed by multiplying international market price by US dollar value. The
value of silver or NAV, therefore will depend upon the conversion value of US dollar into Indian rupee
and attracts all the risks attached to such conversion and forex volatility.
Page 27 of 60
Mirae Asset Gold and Silver Passive FoFThere is no Exchange for physical silver in India. The Scheme may have to buy or sell silver from the
⚫
open market, which may lead to counter party risks for the Scheme for trading and settlement.
The returns from physical silver in which the Scheme invests may underperform returns from other
⚫
securities or asset classes.
There is a risk that part or all of the Scheme’s silver could be lost, damaged or stolen. Access to the
⚫
Scheme’s silver could also be restricted by natural events or human actions. Any of these actions may
have adverse impact on the operations of the Scheme and consequently on investment / redemption in
Units.
The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity
⚫
requirements. The Scheme has to sell silver only to bullion bankers / traders who are authorized to buy
silver. Though, there are adequate numbers of players (commercial or bullion bankers) to whom the
Scheme can sell silver, the Scheme may have to resort to distress sale of silver if there is no or low
demand for silver to meet its cash needs of redemption or expenses. The distress sale may affect the
redemption value of the units adversely. The Trustee, in general interest of the Unit holders of the
Scheme offered under this Scheme Information Document and keeping in view of the unforeseen
circumstances / unusual market conditions, may limit the total number of Units, which can be redeemed
on any Business Day.
Any changes in trading regulations by the stock exchange(s) or SEBI may affect the ability of Market
⚫
Maker to arbitrage resulting into wider premium / discount to NAV. Any changes in the regulations
relating to import and export of silver or silver jewellery (including customs duty, sales tax and any
such other statutory levies) may affect the ability of the Scheme to buy / sell silver against the purchase
and redemption requests received.
The Scheme is not actively managed. The performance of the Scheme may be affected by a general
⚫
price decline in the Silver prices. The Scheme invests in the physical Silver regardless of their
investment merit. The AMC does not attempt to take defensive positions in declining markets.
For the valuation of silver by the Scheme, indirect taxes like customs duty, VAT, etc. would also be
⚫
considered. Hence, any change in the rates of indirect taxation / applicable taxes would affect the
valuation of the Scheme.
Silver Exchange Traded Funds (SETFs) are relatively new products and their value could decrease if
⚫
unanticipated operational or trading problems arise. Mirae Asset Silver ETF, an open-ended Exchange
Traded Fund, is therefore subject to operational risks.
Though this is an open-ended scheme, the Scheme would ordinarily repurchase Units in Creation Unit
⚫
Size. Thus, Unit holding less than Creation Unit Size can only be sold through the secondary market
on the Exchange. Further, the price received upon the redemption of Units of the Scheme may be less
than the value of the silver represented by them.
A day on which valuation on London Bullion Market Association (LBMA) is not available shall not
⚫
be a Business day and hence NAV for the said day shall not be available to the Investors.
Mirae Asset Silver ETF (the Scheme) is a passively managed fund that shall be investing substantial
⚫
portion of its assets in physical silver and tracking its performance as close as possible to the price of
silver. Therefore, irrespective of decline / rise in prices of physical silver, the Scheme shall remain
invested in silver and being a passively managed fund, no active calls based on outlook of silver prices
will be taken by the Fund.
Investments by the Scheme are subject to availability of Silver. If favourable investment opportunities
⚫
do not exist or opportunities have notably diminished, the scheme may suspend accepting fresh
subscriptions.
Performance of the Scheme may be affected by political, social and economic developments, which
⚫
may include changes in government policies, diplomatic conditions, taxation and other policies.
ETF units are created to reflect, at any given time, the market price of silver. Because the value of ETFs
⚫
depends on the price of silver, it is subject to fluctuations similar to those affecting silver prices. The
price of silver has fluctuated widely over the past several years. If silver markets continue to be
characterized by the wide fluctuations that they have shown in the past several years, the price of the
ETF units will change widely and in an unpredictable manner. This exposes your investment in ETF
units to potential losses if you need to sell your ETF units at a time when the price of silver is lower
than it was when you made your investment in ETF units. Even if you are able to hold ETF units for
the mid- or long-term you may never realize a profit, because silver markets have historically
Page 28 of 60
Mirae Asset Gold and Silver Passive FoFexperienced extended periods of flat or declining prices. Investors should be aware that while silver is
used to preserve wealth by investors around the world, there is no assurance that silver will maintain
its long-term value in terms of future purchasing power. In the event the price of silver declines, it is
expected the value of an investment in the ETFs to decline proportionately.
During the process of creation or redemption of the Scheme in creation unit size, the AMC will source
⚫
or sell the physical silver from a counterparty. The price at which the silver is bought or sold at will
include a spread also, apart from cost price of the silver, taxes and other transaction cost. Thus cost
may vary depending on the source from which silver is bought or sold, due to different cost being
changed by the counterparty. This varying buying or selling cost will impact the cost at which units are
created for the investor or redeemed for the investor. AMC will most likely be passing on all the cost
associated with buying and selling of the physical silver, including spread, transaction cost, taxes etc.
on to the investor/investors. This will impact the per unit cost realized by the investor in case of creation
or redemption directly with the AMC
The AMC within the regulatory guidelines and room given in Scheme information document, may use
⚫
derivative on silver (like Futures) for rebalancing, holding, creation of fresh units or redemption of
existing units for the Scheme. The use of derivatives may affect the performance of the scheme and
tracking error. It may also impact the value at units are created or redeemed by the scheme.
• If the process of creation and redemption of Baskets encounters any unanticipated difficulties or is
materially restricted due to any illiquidity in the market for physical silver, the possibility for arbitrage
transactions by Market Makers, intended to keep the price of the ETF units closely linked to the price
of silver may not exist and, as a result, the price of the ETF units may fall or otherwise diverge from
NAV.
Risks associated with handling, storing and safekeeping of physical gold/Silver:
◼
All physical gold/silver procured must follow the LMBA guidelines as per prescribed SEBI guidelines.
Risk arises when part or all of the gold/silver held by the Fund could be lost, stolen or damaged and access
to gold/silver may be restricted due to natural calamities or human actions, loss or damage directly or
indirectly occasioned by, happening through or in consequence of war, invasion, acts of foreign enemies,
hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped
power. Loss due to aridity, humidity, exposure to light or extremes of temperature. Hence, the Custodian
maintains insurance in regard to the business on terms and conditions and the custodian is also responsible
for all costs arising from the insurance policies.
The custodian taking delivery on behalf of the AMC needs to ensure the weight, purity, and the source of
gold/silver as specified under the LMBA guidelines.
Since this is paramount to the SEBI guidelines the risk arises in violation of same.
Safekeeping of physical gold/silver requires appropriate vaulting space, confirming to the best global
standards. The vaulting agents engaged by the custodian needs to ensure the same.
Risks Related to the Custody of Gold/Silver
◼
• The Custodian is responsible for the safekeeping of the gold and silver bullion and also facilitates the transfer
of gold bullion into and out of the vault. Although the Custodian is a market maker, clearer and approved
weigher under the rules of the LBMA (which sets out good practices for participants in the bullion market),
the LBMA is not an official or governmental regulatory body. Accordingly, the ETF is dependent on the
Custodian to comply with the best practices of the LBMA and to implement satisfactory internal controls for
its gold/silver bullion custody operations in order to keep the gold/silver bullion secure.
• The Custodian is responsible for loss or damage to the gold / silver only under limited circumstances. The
Custodian Agreement contemplates that the Custodian will be responsible to the AMC only if it acts with
negligence, fraud or in willful default of its obligations under the Custodian Agreement. In addition, the
Custodian has agreed to indemnify the Trust for any loss or liability directly resulting from a breach of the
Page 29 of 60
Mirae Asset Gold and Silver Passive FoFCustodian’s representations and warranties in the Custodian Agreement, a failure of the Custodian to act in
accordance with the instructions or any physical loss, destruction or damage to the gold/ silver held for the
Trust’s account, except for losses due to nuclear fission or fusion, radioactivity, war, terrorist event, invasion,
insurrection, civil commotion, riot, strike, act of government or public authority, act of God or a similar cause
that is beyond the control of the Custodian for which the Custodian will not be responsible to the AMC. The
Custodian’s liability to the AMC, if any, will be limited to the value of any gold/silver lost, or the amount of
any balance held on an unallocated basis, at the time of the Custodian’s negligence, fraud or willful default,
or at the time of the act or omission giving rise to the claim for indemnification.
• Neither the Shareholders nor any Authorized Participant have a right under the Custodian Agreement to assert
a claim against the Custodian. Claims under the Custodian Agreement may only be asserted by the AMC.
• The procedures agreed to with the Custodian contemplate that the Custodian must undertake certain tasks in
connection with the inspection of gold/silver delivered by Authorized Participants in exchange for Baskets.
The Custodian’s inspection includes review of the corresponding bar list to ensure that it accurately describes
the weight, fineness, refiner marks and bar number appearing on the gold/silver bars, but does not include
any chemical or other tests designed to verify that the gold/silver received does, in fact, meet the purity
requirements. Accordingly, such inspection procedures may not prevent the deposit of gold/silver that fails
to meet these purity standards. The Custodian will not be responsible or liable to the Trust or to any investor
in the event any gold/silver otherwise properly inspected by it does not meet the purity requirements
• The AMC does not insure its gold/silver (Underlying gold/silver of the scheme). The Custodian maintains
insurance on such terms and conditions as it considers appropriate in connection with its custodial obligations
under the Custodian Agreement and is responsible for all costs, fees and expenses arising from the insurance
policy or policies. The AMC is not a beneficiary of any such insurance and does not have the ability to dictate
the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian
maintains adequate insurance or any insurance with respect to the gold/silver held by the Custodian on behalf
of the Trust.
SO-10 Tracking Error and Tracking Difference Risk
The Fund Manager would not be able to invest the entire corpus exactly in the same proportion as in the
underlying index due to certain factors such as the fees and expenses of the Scheme, corporate actions, cash
balance, changes to the underlying index and regulatory restrictions, which may result in Tracking Error with
the underlying index. The Scheme’s returns may therefore deviate from those of the underlying index.
“Tracking Error” is defined as the standard deviation of the difference between daily returns of the underlying
index and the NAV of the Scheme. Tracking Difference” is the annualized difference of daily returns between
the Index and the NAV of the scheme (difference between fund return and the index return). Tracking Error
and Tracking difference may arise including but not limited to the following reasons:
• Expenditure incurred by the Fund.
• Available funds may not be invested at all times as the Scheme may keep a portion of the funds in cash to
meet Redemptions, for corporate actions or otherwise.
• Securities trading may halt temporarily due to circuit filters.
• Corporate actions such as debenture or warrant conversion, rights issuances, mergers, change in
constituents etc.
• Rounding-off of the quantity of shares in the underlying index.
• Dividend payout.
• Index providers undertake a periodical review of the scrips that comprise the underlying index and may
either drop or include new scrips. In such an event, the Fund will try to reallocate its portfolio but the
available investment/reinvestment opportunity may not permit absolute mirroring immediately.
SEBI Regulations (if any) may impose restrictions on the investment and/or divestment activities of the
Scheme Such restrictions are typically outside the control of the AMC and may cause or exacerbate the
Tracking Error.
It will be the endeavour of the fund manager to keep the tracking error as low as possible. However, in case
of events like, dividend received from underlying securities, rights issue from underlying securities, and
Page 30 of 60
Mirae Asset Gold and Silver Passive FoFmarket volatility during rebalancing of the portfolio following the rebalancing of the underlying index, etc.
or in abnormal market circumstances may result in tracking error. There can be no assurance or guarantee
that the Scheme will achieve any particular level of tracking error relative to performance of the Index.
• Risk associated with Lending of physical Gold
Market Trading Risks
◼
Although Units of Scheme described in this Scheme Information Document are listed / to be listed
⚫
on the Exchange, there can be no assurance that an active secondary market will be developed or be
maintained.
Trading in Units of the Scheme on the Exchange may be halted because of market conditions or for
⚫
reasons that in view of the Exchange Authorities or SEBI, trading in Units of the Scheme is not
advisable. In addition, trading in Units of the Scheme is subject to trading halts caused by
extraordinary market volatility and pursuant to the Exchange and SEBI ‘circuit filter’ rules. There
can be no assurance that the requirements of the Exchange necessary to maintain the listing of Units
of the Scheme will continue to be met or will remain unchanged.
Any changes in trading regulations by the Stock Exchange(s) or SEBI may affect the ability of
⚫
market maker to arbitrage resulting into wider premium / discount to NAV. The Units of the Scheme
may trade above or below their NAV. The NAV of the Scheme will fluctuate with changes in the
market value of Scheme’s holdings. The trading prices of Units of the Scheme will fluctuate in
accordance with changes in their NAV as well as market supply and demand for the Units of the
Scheme.
The Units will be issued only in demat form through depositories. The records of the depository are
⚫
final with respect to the number of Units available to the credit of Unit holder. Settlement of trades,
repurchase of Units by the Mutual Fund during liquidity window depends upon the confirmations to
be received from depository(ies) on which the Mutual Fund has no control.
Governments, central banks and related institutions worldwide, own a significant portion of the
⚫
aggregate world gold holdings. If one or more of these institutions decides to sell in amounts large
enough to cause a decline in world gold prices, the price of Units of the Scheme will be adversely
affected.
The Scheme provides for the creation and redemption of Units in Creation Unit Size directly with
⚫
the Fund and therefore, it is expected that large discounts or premiums to the NAV of the Units of
the Scheme will not sustain due to arbitrage opportunity available.
Conversion of underlying physical gold/silver into the Units of the Scheme may attract capital gain
⚫
tax depending on acquisition cost and holding period.
Risks Associated with Debt & Money Market Instruments
• Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market
instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed
income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the
prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of
interest rates.
• Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money market
instrument may default on interest payment or even in paying back the principal amount on maturity. Even
where no default occurs, the price of a security may go down because the credit rating of an issuer goes
down. It must, however, be noted that where the Scheme has invested in Government securities, there is no
credit risk to that extent.
• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its
valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price
and the offer price quoted by a dealer. Liquidity risk is today characteristic of the Indian fixed income market.
Page 31 of 60
Mirae Asset Gold and Silver Passive FoF• Reinvestment Risk: Investments in fixed income securities may carry reinvestment risk as interest rates
prevailing on the interest or maturity due dates may differ from the original coupon of the bond.
Consequently, the proceeds may get invested at a lower rate.
• Pre-payment 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
fund to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower
interest income for the fund.
• Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the
benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the
portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the
underlying benchmark might increase leading to loss in value of the security.
• Concentration Risk: The Scheme portfolio may have higher exposure to a single sector, subject to maximum
of 20% of net assets, depending upon availability of issuances in the market at the time of investment,
resulting in higher concentration risk. Any change in government policy / businesses environment relevant
to the sector may have an adverse impact on the portfolio.
• Different types of securities in which the scheme would invest as given in the SID carry different levels and
types of risk. Accordingly the scheme’s risk may increase or decrease depending upon its investment pattern.
E.g. corporate bonds carry a higher amount of risk than Government securities. Further even among
corporate bonds, bonds, which are AA rated, are comparatively more risky than bonds, which are AAA
rated.
C. Risk Mitigation Strategies
SO-9
RISK MITIGATION MEASURES FOR THE SCHEME
Risks Associated with Debt & Money Market Instruments
Credit Risk - The fund has a rigorous credit research process. There is a regulatory and internal cap on exposure
to each issuer. This ensures a diversified portfolio and reduced credit risk in the portfolio.
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.
RISK MITIGATION MEASURES FOR UNDERLYING SCHEMES
Risks Associated with Debt & Money Market Instruments
Credit Risk - The fund has a rigorous credit research process. There is a regulatory and internal cap on exposure
to each issuer. This ensures a diversified portfolio and reduced credit risk in the portfolio.
Market Liquidity Risk: The Investment Manager will select fixed income securities, which have or are expected
to have high secondary market liquidity.
Interest Rates Risk: As the investments of the Scheme are expected to be of short duration in nature, the risk can
be expected to be minimum.
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.
Page 32 of 60
Mirae Asset Gold and Silver Passive FoFII. Information about the scheme:
A. Where will the scheme invest?
SO-29
Commodities and Commodity Related Instruments
The Scheme will invest in the units of Mirae Asset Gold ETF and Mirae Asset Silver ETF managed by Mirae
Asset Mutual Fund as per the above stated asset allocation. The cumulative gross exposure through Units of Mirae
Asset Gold ETF, Mirae Asset Silver ETF, Money market instruments / debt securities including Tri Party REPO/
debt securities Instruments and/or units of debt/liquid schemes of domestic Mutual Funds shall not exceed 100%
of the net assets of the Scheme.
Debt & Money Market Instruments:
The Scheme will invest in debt and money market instruments. It retains the flexibility to invest across all the
securities in the debt and money markets.
Debt securities and Money Market Instruments will include but will not be limited to:
a. Securities created and issued by the Central and State Governments as may be permitted by RBI (including
but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
b. Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing
bonds, zero coupon bonds and treasury bills).
c. Debt securities of domestic Government agencies and statutory bodies, which may or may not carry a
Central/State Government guarantee.
d. Corporate debt (of both public and private sector undertakings).
e. Money market instruments permitted by SEBI/RBI, or in alternative investment for the call money market as
may be provided by the RBI to meet the liquidity requirements.
f. Certificate of Deposits (CDs).
g. Commercial Paper (CPs). A part of the net assets may be invested in the Tri-party repo or in an alternative
investment as may be provided by RBI to meet the liquidity requirements.
h. The non-convertible part of convertible securities.
i. Any other domestic fixed income securities as permitted by SEBI / RBI from time to time.
j. Any other instruments/securities, which in the opinion of the fund manager would suit the investment objective
of the scheme subject to compliance with extant Regulations.
The Investment Manager will invest only in those debt securities that are rated investment grade by a domestic
credit rating agency authorized to carry out such activity, such as CRISIL, ICRA, CARE, FITCH, etc. The
securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private
placement, rights offer or negotiated deals.
The Scheme shall not enter into any repurchase and reverse repurchase obligations in all securities held by it.
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
Page 33 of 60
Mirae Asset Gold and Silver Passive FoFinvestments and the aggregate inter scheme investment made by all the schemes of Mirae Asset Mutual Fund or
in the schemes of other mutual funds shall not exceed 5% of the net asset value of the Mirae Asset Mutual Fund.
However, that this clause shall not apply to any fund of funds scheme
Overview of Debt Markets in India
Indian fixed income market, one of the largest and most developed in South Asia, is well integrated with the
global financial markets. Screen based order matching system developed by the Reserve Bank of India (RBI) for
trading in government securities, straight through settlement system for the same, settlements guaranteed by the
Clearing Corporation of India and innovative instruments like TREPS have contributed in reducing the settlement
risk and increasing the confidence level of the market participants.
The RBI reviews the monetary policy six times a year giving the guidance to the market on direction of interest
rate movement, liquidity and credit expansion. The central bank has been operating as an independent authority,
formulating the policies to maintain price stability and adequate liquidity. Bonds are traded in dematerialized
form. Credit rating agencies have been playing an important role in the market and are an important source of
information to manage the credit risk.
Government (Central and State) is the largest issuer of debt in the market. Public sector enterprises, quasi
government bodies and private sector companies are other issuers. Insurance companies, provident funds, banks,
mutual funds, financial institutions, corporates and FPIs are major investors in the market. Government loans are
available up to 40 years maturity. Variety of instruments available for investments including plain vanilla bonds,
floating rate bonds, money market instruments, structured obligations and interest rate derivatives make it possible
to manage the interest rate risk effectively.
Indicative levels of the instruments as on May 31, 2025 are as follows:
Instrument Maturity Tenure Yield Liquidity
TREPS / Repo Short Overnight 5.45 Very High
3 months CP* 6.51
CP / CD / T Bills Short High
3 months CD 6.14
1 Year CP* 6.95
1 Year CD 6.50
Central Government securities Low to High 10 years 6.29 Medium
Source: Bloomberg *Data is for NBFC.
B. What are the investment restrictions?
The following investment limitations and other restrictions, inter-alia, as contained in the Trust Deed and the
Regulations apply to the Scheme:
• A mutual fund scheme shall not invest more than 10% of its NAV in debt instruments comprising money
market instruments and non-money market instruments issued by a single issuer which are rated not below
investment grade by a credit rating agency authorized to carry out such activity under the Act. 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. Provided that such limit shall not
be applicable for investments in Government Securities, treasury bills and 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 the Board.
Further, in accordance with Clause 12.8 of SEBI Master Circular Dated June 27, 2024, the Scheme shall not
invest more than:
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Mirae Asset Gold and Silver Passive FoFa) 10% of its NAV in debt and money market securities rated AAA; or
b) 8% of its NAV in debt and money market securities rated AA; or
c) 6% of its NAV in debt and money market securities rated A and below issued by a single Issuer.
The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval
of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12%
limit specified above.
Considering the nature of the scheme, investments in such instruments will be permitted upto 5% of its
NAV.
• Debentures, irrespective of any residual maturity period (above or below one year), shall attract the
investment restrictions as applicable for debt instruments.
• The Scheme shall not invest in unlisted debt instruments including commercial papers (CPs), other than (a)
government securities, (b) other money market instruments and (c) derivative products such as Interest Rate
Swaps (IRS), Interest Rate Futures (IRF), etc.
However, the scheme may invest in unlisted Non-Convertible debentures (NCDs) not exceeding 10% of the
debt portfolio of the scheme subject to the condition that such unlisted NCDs have a simple structure (i.e.
with fixed and uniform coupon, fixed maturity period, without any options, fully paid up upfront, without
any credit enhancements or structured obligations) and are rated and secured with coupon payment
frequency on monthly basis.
• Inter scheme transfers (ISTs) of investments from one scheme to another scheme in the same Mutual Fund
SO-30
shall be allowed only if such transfers are done at the prevailing market price for quoted instruments on spot
basis. Explanation -“Spot basis” shall have same meaning as specified by stock exchange for spot
transactions. The securities so transferred shall be in conformity with the investment objective of the scheme
to which such transfer has been made.
Further, ISTs may be allowed in the following scenarios:
i. for meeting liquidity requirement in a scheme in case of unanticipated redemption pressure
ii. for Duration/ Issuer/ Sector/ Group rebalancing
No IST of a security shall be done, if there is negative news or rumors in the mainstream media or an alert
is generated about the security, based on internal credit risk assessment. The Scheme shall comply with the
guidelines for inter-scheme transfers as specified under clause 12.30 of SEBI Master Circular dated June
27, 2024.
• The scheme shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take
delivery of relative securities and in all cases of sale, deliver the securities; Further, the scheme shall not
engage in short selling or securities lending and borrowing scheme. The scheme shall also not enter into
derivatives transactions.
• The Scheme shall get the securities purchased or transferred in the name of the mutual fund on account of
the concerned scheme, wherever investments are intended to be of long-term nature.
• The Scheme shall not make any investment in: a) Any unlisted security of an associate or group company
of the Sponsor; or b) Any security issued by way of private placement by an associate or group company of
the sponsor; or c) The listed securities of group companies of the Sponsor which is in excess of 25% of the
net assets.
• The scheme shall not make any investment in any fund of funds scheme.
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Mirae Asset Gold and Silver Passive FoF• The Mutual Fund having an aggregate of securities which are worth Rs.10 crores 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 entered on or after January 15, 1998 only through dematerialized securities. Further, all
transactions in government securities shall be in dematerialized form.
• The mutual fund shall not borrow except to meet temporary liquidity needs of the mutual funds for the
purpose of repurchase, redemption of units or payment of interest or dividend to the unitholders. Provided
that the mutual fund shall not borrow more than 20 per cent of the net asset of the scheme and the duration
of such a borrowing shall not exceed a period of six months.
• Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a
mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks. The
investment in these deposits shall be in accordance with clause 12.16 of SEBI Master Circular dated June
27, 2024.
As per clause 12.16 of SEBI Master Circular dated June 27, 2024 on investments in Short Term Deposits
(STDs) of Scheduled Commercial Banks:
• Total investment of the Scheme in Short term deposit(s) of all the Scheduled Commercial Banks put together
shall not exceed 15% of the net assets. However, this limit can be raised upto 20% of the net assets with
prior approval of the trustees. Further, investments 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.
• “Short Term” for parking of funds by Mutual Funds shall be treated as a period not exceeding 91 days
• The Scheme shall not invest more than 10% of the net assets in short term deposit(s), of any one scheduled
commercial bank including its subsidiaries.
• The Scheme shall not invest in short term deposit of a bank which has invested in that Scheme. AMC shall
also ensure that the bank in which a scheme has Short term deposit do not invest in the said scheme until
the scheme has Short term deposit with such bank.
• Asset Management Company (AMC) shall not be permitted to charge any investment management and
advisory fees for parking of funds in short term deposits of scheduled commercial banks.
• The investments in short term deposits of scheduled commercial banks will be reported to the Trustees along
with the reasons for the investment which, inter-alia, would include comparison with the interest rates
offered by other scheduled commercial banks. Further, AMC shall ensure that the reasons for such
investments are recorded in the manner prescribed in clause 12.23 of SEBI Master Circular dated June 27,
2024.
• The Scheme will comply with SEBI regulations and any other regulations applicable to the investments of
Funds from time to time. The Trustee may alter the above restrictions from time to time to the extent that
changes in the regulations may allow. All investment restrictions shall be applicable at the time of making
investment.
• In accordance with SEBI Circular No. SEBI SEBI/IMD/CIR No.7/129592/08 dated June 23, 2008, the
aforesaid limits shall not be applicable to term deposits placed as margins for trading in cash and derivatives
market.
Apart from the investment restrictions prescribed under SEBI (MF) Regulations, does the fund follow any internal
SO-19
norms vis-à-vis limiting exposure to a particular scrip or sector, etc.
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Mirae Asset Gold and Silver Passive FoFC. Fundamental Attributes
SO-59
Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master Circular
for Mutual Funds dated June 27, 2024:
(i) Type of a scheme
An open-ended fund of fund scheme predominantly investing in units of Mirae Asset Gold ETF and Mirae
Asset Silver ETFs.
Commodity based FoF
(ii) Investment Objective
The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing
in units of Mirae Asset Gold ETF and Mirae Asset Silver ETF.
There is no assurance that the investment objective of the Scheme will be realized.
• Main Objective - Growth and Income
• Investment pattern
Asset allocation:
Indicative allocation
Types of Instruments (% of tot al assets)
Minimum Maximum
Units of Mirae Asset Gold ETF and Mirae Asset Silver ETF 95 100
Money market instruments including Tri Party REPO/ debt securities, 0 5
Instruments and/or units of debt/liquid schemes of domestic Mutual Funds
Rebalancing of deviation due to 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 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 of SEBI Master Circular dated June 27, 2024 such changes in the investment pattern will be
for short term and for defensive consideration only. In the event of deviations, portfolio rebalancing will be
carried out within 30 calendar days in such cases.
(iii) Terms of Issue
• Listing:
The Scheme being open ended, the Units are not proposed to be listed on any stock exchange and no transfer
facility on the exchange is provided. However, the Trustee reserves the right to list the units as and when open-
end Schemes are permitted to be listed under the Regulations, and if the Trustee considers it necessary in the
interest of unit holders of the Scheme.
Redemption:
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Mirae Asset Gold and Silver Passive FoFThe Unit Holder has the option to request for Redemption either in amount in rupees or in number of Units. In
case the request for Redemption specifies both, i.e. amount in rupees as well the number of Units to be redeemed,
then the latter will be considered as the redemption request and redemption will be processed accordingly. The
minimum redemption amount shall be ‘any amount’ or ‘any number of units’ as requested by the investor at the
time of redemption request. The Trustees have authorized the AMC to suo moto redeem such fractional balance
units (less than 1 unit), on periodic basis across all schemes, as and when decided by the AMC. Units can be
redeemed (sold back to the Fund) at the Redemption Price during the Ongoing Offer Period. If an investor has
purchased Units of a Scheme on more than one Business Day the Units will be redeemed on a first-in-first-out
basis. If multiple Purchases are made on the same day, the Purchase appearing earliest in the account statement
will be redeemed first.
Redemption Price:
The Redemption Price of the Units is the price at which a Unit Holder can redeem Units of a scheme. It will be
calculated as described below:
Redemption Price = Applicable NAV - (Applicable NAV x Exit Load*)
* Exit Load, whatever is applicable, will be charged.
Redemption Price will be calculated for up to three decimal places for the Scheme.
For example, if the Applicable NAV of a Scheme is Rs.10.5550, and it has a 2% Exit Load, the Redemption Price
will be calculated as follows:
Redemption Price = 10.5550 - (10.5550 X 2.00%) i.e. 10.4550 - 0.2110 = 10.3440
If the Scheme has no Exit Load, the Redemption Price will be equal to the Applicable NAV.
The Securities Transaction Tax levied under the Income Tax Act, 1961, at the applicable rate on the amount of
redemption will be reduced from the amount of redemption.
To illustrate:
If a Redemption of 4,900 units is sought by the Unit Holder at a Redemption Price of Rs. 10.3440 (as calculated
above), the redemption amount is Rs. 50,685.60. Securities Transaction Tax (STT) for instance is 0.001%. This
will be further reduced by the STT of Re. 0.50 (i.e. Rs. 50,685.60 x 0.001%), making the net redemption amount
Rs. 50,685.10.
If a Redemption of Rs. 10,000 is sought by the Unit Holder at a Net Redemption Price of Rs. 10.3440 (as calculated
above), which will give 966.744 Units; the effective redemption amount will be grossed up to Rs. 10,204.08 (i.e.
10,000 ÷ (1-2%)) and 966.744 units (10,204.08 ÷ 10.555) will be redeemed. This is to ensure that the Unit Holder
receives the net amount of Rs. 10,000 as desired.
Investors may note that the Trustee has a right to modify the existing Load structure in any manner subject to a
maximum as prescribed under the Regulations and with prospective effect only.
Please refer section – LOAD STRUCTURE.
Applicable NAV for Redemption / Switch-Out / Systematic Transfer Plan:
In respect of valid Redemption applications accepted at a Designated Collection Centre up to 3 p.m. on a Business
Day, the NAV of such day will be applicable.
In respect of valid Redemption applications accepted at a Designated Collection Centre after 3 p.m. on a Business
Day, the NAV of the next Business Day will be applicable.
Page 38 of 60
Mirae Asset Gold and Silver Passive FoF• Aggregate fees and expenses charged to the scheme
For detailed fees and expenses charged to the scheme please refer to section- I Part - III ‘C – Annual Scheme
Recurring Expenses’.
• Any safety net or guarantee provided
There is no assurance OR guarantee of returns.
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master
Circular for Mutual Funds dated June 27, 2024 the Trustees shall ensure that no change in the fundamental
attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable
or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect
the interests of Unitholders is carried out unless:
SO-59 • SEBI has reviewed and provided its comments on the proposal
• A written communication about the proposed change is sent to each Unitholder and an advertisement
is given in one English daily newspaper having nationwide circulation as well as in a newspaper
published in the language of the region where the Head Office of the Mutual Fund is situated; and
• The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing
Net Asset Value without any exit load.
D. Other Scheme Specific Disclosures:
Listing and Transfer of units: The Scheme being open ended, the Units are not proposed to be listed on
any stock exchange and no transfer facility on the exchange is provided.
However, the Trustee reserves the right to list the units as and when open-
end Schemes are permitted to be listed under the Regulations, and if the
Trustee considers it necessary in the interest of unit holders of the Scheme.
Units held in Demat form are transferable (subject to lock-in period, if any
and subject to lien, if any marked on the units) in accordance with the
provisions of SEBI (Depositories and Participants) Regulations, 2018, as
may be amended from time to time. Transfer can be made only in favor of
transferees who are capable of holding Units and having a Demat Account.
The delivery instructions for transfer of Units will have to be lodged with
the DP in requisite form as may be required from time to time and transfer
will be affected in accordance with such rules / regulations as may be in
force governing transfer of securities in dematerialized mode. Further, for
the procedure of release of lien, the investors shall contact their respective
Depository.
However, if a person becomes a holder of the Units consequent to operation
of law or upon enforcement of a pledge, the Mutual Fund will, subject to
production of satisfactory evidence, effect the transfer, if the transferee is
otherwise eligible to hold the Units. Similarly, in cases of transfers taking
place consequent to death, insolvency etc., the transferee’s name will be
recorded by the Mutual Fund subject to production of satisfactory evidence.
Please refer SAI for details on transmission, nomination, lien, pledge,
duration of the Scheme and Mode of Holding.
Transfer of units held in Non-Demat [Statement of Account (‘SOA’)]
mode:
Page 39 of 60
Mirae Asset Gold and Silver Passive FoFPursuant to AMFI Best Practices Guidelines Circular No. 135/BP/116/2024-
25 dated August 14, 2024 read with AMFI Best Practices Guidelines
Circular No. 135/BP/119/2025-26 dated May 08, 2025, the facility for
transfer of units held in SoA mode shall be available to all the investors
under Resident/ non-resident individual category including individual
unitholders falling under the following three categories:-
a. Surviving joint unitholder, who wants to add new joint holder(s) in the
folio upon demise of one or more joint unitholder(s).
b. A nominee of a deceased unitholder, who wants to transfer the units to
the legal heirs of the deceased unitholder, post the transmission of units
in the name of the nominee
c. A minor unitholder who has turned a major and has changed his/her
status from minor to major, wants to add the name of the
parent/guardian, sibling, spouse etc. in the folio as joint holder(s).
Partial transfer of units held in a folio shall be allowed. However, if the
balance units in the transferor’s folio falls below specified threshold /
minimum number of units as specified in the SID, such residual units shall
be compulsorily redeemed, and the redemption amount will be paid to the
transferor.
If the request for transfer of units is lodged on the record date, the IDCW
payout/ reinvestment shall be made to the transferor.
Redemption of the transferred units shall not be allowed for 10 days from
the date of transfer. This will enable the investor to revert in case the transfer
is initiated fraudulently.
The facility for transfer of Units held in Non-Demat (SOA) mode shall be
made available only through online mode via the transaction portals of the
RTAs and the MF Central i.e., the transfer of units held in SoA mode shall
not be allowed through physical/ paper-based mode or via the stock
exchange platforms, MFU, channel partners and EOPs etc.
For further details on Pre-requisites and Payment of Stamp duty on Transfer
of Units, please refer SAI.
Dematerialization of units The Unit holders are given an Option to hold the units by way of an Account
Statement (Physical form) or in Dematerialized (‘Demat’) form.
SO-57(a)
Mode of holding shall be clearly specified in the KIM cum application form.
The Unit holder intending to hold the units in Demat form are required to
have a beneficiary account with the Depository Participant (DP) (registered
with NSDL / CDSL). Unit holders opting to hold the units in demat form
SO-57©
must provide their Demat Account details like the DP’s name, DP ID
Number and the beneficiary account number of the applicant with the DP,
in the specified section of the application form.
In case Unit holders do not provide their Demat Account details, unit will
be allotted to them in physical form and an Account Statement shall be sent
to them.
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Mirae Asset Gold and Silver Passive FoFInvestors holding units in dematerialized form as well as investors holding
units in physical form, both shall be able to trade on the BSE StAR MF
Platform, NSE NMF II and ICEX.
Minimum Target amount The Scheme seeks to collect a minimum subscription amount of Rs. 10
Crores under the Scheme during the NFO Period.
(This is the minimum amount
required to operate the scheme if
this is not collected during NFO
period, then the investors would
be refunded the amount invested
without any return)
Maximum Amount to be raised There is no upper limit on the total amount to be collected under the Scheme
(if any) during the NFO Period.
Dividend Policy (IDCW) The IDCW warrants shall be dispatched to the unit holders within 7 working
days from the record date.
In case of Unit Holder having a bank account with certain banks with which
the Mutual Fund would have made arrangements from time to time, the
IDCW proceeds shall be directly credited to their account.
The IDCW will be paid by warrant and payments will be made in favor of
the Unit holder (registered holder of the Units or, if there is more than one
registered holder, only to the first registered holder) with bank account
number furnished to the Mutual Fund (please note that it is mandatory for
the Unit holders to provide the Bank account details as per the directives of
SEBI).
Further, the IDCW proceeds may be paid by way of
ECS/EFT/NEFT/RTGS/any other manner through which the investor’s
bank account specified in the Registrar & Transfer Agent’s records is
credited with the IDCW proceeds as per the instructions of the Unit holders.
In case the delay is beyond seven working days, then the AMC shall pay
interest @ 15% p.a. from the expiry of seven working days till the date of
dispatch of the warrant.
Allotment Subject to the receipt of the specified minimum subscription amount, full
allotment of Units applied for will be made within 5 business days from the
date of closure of the NFO Period for all valid applications received during
the NFO Period.
An account statement will be sent by ordinary post/courier/secured
encrypted electronic mail to each Unit Holder, stating the number of Units
purchased, not later than 5 business days from the close of the NFO Period.
In case of specific request received from investors, Mutual Fund shall
SO-60
provide the account statement to the investors within 5 working days from
the receipt of such request without any charges. Allotment of Units and
dispatch of Account Statements to FPIs will be subject to RBI approval, if
required.
For investors who have given Demat account details in the application form,
the Units issued by the AMC shall be credited by the Registrar to the
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Mirae Asset Gold and Silver Passive FoFinvestors’ beneficiary account with the DP as per information provided in
the application form and information of allotment will be accordingly sent
by the Registrar.
Full allotment will be made to all valid applications received during the New
Fund Offer Period. Allotment of Units shall be completed not later than five
business days after the close of the New Fund Offer Period. The Units will
be computed and accounted for up to whole numbers (complete integers)
only and no fractional units will be allotted for all Subscriptions/Application
Money.
Dematerialization
The Units of the Scheme will be available in dematerialized (electronic)
form. The investor intending to invest in Units of the Scheme 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 of the Scheme will be issued, traded and settled compulsorily in
dematerialized (electronic) form.
The Units allotted will be credited to the DP account of the Unit holder as
per the details provided in the application form.
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 the Regulations thereunder.
Refund If the Schemes fail to collect the minimum subscription amount of Rs. 10
Crores, the Mutual Fund shall be liable to refund the money to the applicants
within 5 business days from the closure of the NFO.
If application is rejected, full amount will be refunded within 5 business days
from the closure of NFO. If refunded later than 5 business days, interest
@15% p.a. for delayed period will be paid and charged to the AMC.
Who can invest • Indian resident adult individuals, either singly or jointly (not exceeding
This is an indicative list and three);
investors shall consult their • Minor through parent / lawful guardian; (please see the note below)
financial advisor to ascertain • Companies, bodies corporate, public sector undertakings, association of
whether the scheme is suitable to persons or bodies of individuals and societies registered under the
their risk profile. Societies Registration Act, 1860;
• Partnership Firms constituted under the Partnership Act, 1932;
• Limited Liability Partnerships (LLP);
• A Hindu Undivided Family (HUF) through its Karta;
• Banking Company as defined under the Banking Regulation Act, 1949;
• Banks (including Co-operative Banks and Regional Rural Banks) and
Financial Institutions;
• Public Financial Institution as defined under the Companies Act, 1956;
• Insurance Company registered with the Insurance Regulatory and
Development Authority (IRDA);
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Mirae Asset Gold and Silver Passive FoF• Non-Resident Indians (NRIs) / Persons of Indian Origin (PIO) on full
repatriation basis or on non-repatriation basis;
• Foreign Portfolio Investors (FPI) (including overseas ETFs, Fund of
Funds) registered with SEBI on repatriation basis;
• Mutual Funds/ Alternative Investment Funds registered with SEBI
• Army, Air Force, Navy and other para-military funds and eligible
institutions;
• Scientific and Industrial Research Organizations;
• Provident / Pension / Gratuity and such other Funds as and when
permitted to invest;
• International Multilateral Agencies approved by the Government of
India / RBI; and
• The Trustee, AMC or Sponsor or their associates (if eligible and
permitted under prevailing laws).
• A Mutual Fund through its schemes if permitted by the regulatory
authorities.
• Special Purpose Vehicles (SPVs) approved by appropriate authority
(subject to RBI approval).
• Religious and Charitable Trusts, Wakfs or endowments of private trusts
(subject to receipt of necessary approvals as required) and Private Trusts
authorized to invest in mutual fund schemes under their trust deeds;
• Qualified Foreign Investors subject to the conditions prescribed by
SEBI, RBI, Income Tax authorities and the AMC, from time to time on
repatriation basis.
• Such other individuals/institutions/body corporate etc., as may be
decided by the AMC from time to time, so long as wherever applicable
they are in conformity with SEBI Regulations/RBI, etc.
Note: 1.
Minor Unit Holder on becoming major may inform the Registrar about
attaining majority and provide his specimen signature duly authenticated by
his banker as well as his details of bank account and a certified true copy of
the PAN card as mentioned under the paragraph “Anti Money Laundering
and Know Your Customer” to enable the Registrar to update their records
and allow him to operate the Account in his own right.
Note 2. Applicants under Power of Attorney:
An applicant willing to transact through a power of attorney must lodge the
photocopy of the Power of Attorney (PoA) attested by a Notary Public or the
original PoA (which will be returned after verification) within 30 Days of
submitting the Application Form / Transaction Slip at a Designated
Collection Centre. Applications are liable to be rejected if the power of
attorney is not submitted within the aforesaid period.
Who cannot invest It should be noted that the following entities cannot invest in the scheme:
• Any individual who is a foreign national or any other entity that is not an
Indian resident under the Foreign Exchange Management Act, 1999,
except where registered with SEBI as a FPI. However, there is no
restriction on a foreign national from acquiring Indian securities
provided such foreign national meets the residency tests as laid down by
Foreign Exchange Management Act, 1999.
• Overseas Corporate Bodies (OCBs) shall not be allowed to invest in the
Scheme. These would be firms and societies which are held directly or
indirectly but ultimately to the extent of at least 60% by NRIs and trusts
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Mirae Asset Gold and Silver Passive FoFin which at least 60% of the beneficial interest is similarly held
irrevocably by such persons (OCBs.)
• Non-Resident Indians residing in the Financial Action Task Force
(FATF) Non-Compliant Countries and Territories (NCCTs)
• “U.S. Person” under the U.S. Securities Act of 1933 and corporations or
other entities organized under the laws of U.S.
• Residents of Canada or any Canadian jurisdiction under the applicable
securities laws.
• The Fund reserves the right to include / exclude new / existing categories
of investors to invest in the Scheme from time to time, subject to SEBI
Regulations and other prevailing statutory regulations, if any.
Subject to the Regulations, any application for subscription of Units may be
accepted or rejected if found incomplete or due to unavailability of
underlying securities, etc. For example, the Trustee may reject any
application for the Purchase of Units if the application is invalid or
incomplete or if, in its opinion, increasing the size of any or all of the
Scheme's Unit capital is not in the general interest of the Unit Holders, or if
the Trustee for any other reason does not believe that it would be in the best
interest of the Scheme or its Unit Holders to accept such an application.
The AMC / Trustee may need to obtain from the investor verification of
identity or such other details relating to a subscription for Units as may be
required under any applicable law, which may result in delay in processing
the application.
How to apply and other details Application form and Key Information Memorandum may be obtained from
SO-35
Official Points of Acceptance (OPAs) / Investor Service Centres (ISCs) of
the AMC or RTA or Distributors or can be downloaded from our website
www.miraeassetmf.co.in.
The list of the OPA / ISC are available on our website as well.
Investors intending to trade in Units of the Schemes, through the exchange
SO-57(b) platform will be required to provide demat account details in the application
form.
Registrar & Transfer Agent:
KFin Technologies Limited
Registered Office:
Karvy Selenium, Tower B, Plot Number 31 & 32, Financial District,
Gachibowli, Hyderabad - 500 034.
Contact Persons:
Mr. Babu PV
Tel No. : 040 3321 5237
Email Id : babu.pv@kfintech.com
Mr. 'P M Parameswaran'
Tel No. : 040 3321 5396
Email Id : parameswaran.p@kfintech.com
Website address: https://mfs.kfintech.com/mfs/
Page 44 of 60
Mirae Asset Gold and Silver Passive FoFBranches:
Applications can be submitted at collecting bankers and Investor Service
Centers of Mirae Asset Investment Managers (India) Pvt. Ltd and KFin
Technologies Limited. Details of which are furnished on back cover page of
this document.
Please refer the AMC website at the following link for the list of official
points of acceptance, collecting banker details etc.:
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-
disclosure/offer-documents-data
Website of the AMC:
Investor can also subscribe to the Units of the Scheme through the website of
the AMC i.e. https://www.miraeassetmf.co.in/investor-center/investor-
services
Stock Exchanges:
A Unit holder may purchase Units of the Scheme through the Stock Exchange
infrastructure. Investors can hold units only in dematerialized form.
MF Utility (MFU):
A unitholder may purchase units of the Plan(s) under the Scheme through
MFU.
All financial and non-financial transactions pertaining to Schemes of Mirae
Asset Mutual Fund can also be submitted through MFU either electronically
or physically through the authorized Points of Service (“POS”) of MFUI. The
list of POS of MFUI is published on the website of MFUI at
www.mfuindia.com and may be updated from time to time.
Investors to note that it is mandatory to mention the bank account numbers in
the applications/requests for redemption.
Please refer to the SAI and application form for the instructions.
The policy regarding reissue of All units can be reissued without any limit by the Scheme.
repurchased units, including the
maximum extent, the manner of
reissue, the entity (the scheme or
the AMC) involved in the same.
Restrictions, if any, on the right to RIGHT TO RESTRICT REDEMPTION AND / OR SUSPEND
freely retain or dispose of units REDEMPTION OF THE UNITS:
being offered.
The 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.
Page 45 of 60
Mirae Asset Gold and Silver Passive FoF2,00,000/- (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 (i.e. within 3-4 Business Days)
mentioned by the Fund in the scheme offering documents, for processing of
requests for Redemption may not be applicable.
Cut off timing for subscriptions/ Cut-off time is the time before which the Investor’s Application Form(s)
redemptions/ switches (complete in all respects) should reach the Official Points of Acceptance to
be entitled to the Applicable NAV of that Business Day.
This is the time before which
your application (complete in all An application will be considered accepted on a Business Day, subject to it
respects) should reach the being complete in all respects and received and time stamped upto the
official points of acceptance. relevant Cut-off time mentioned below, at any of the Official Points of
Acceptance of transactions. Where an application is received and the time
stamping is done after the relevant Cut-off time the request will be deemed
to have been received on the next Business Day.
Cut off timing for subscriptions/purchases/switch- ins:
i. In respect of valid applications received upto 3.00 p.m. at the Official
Point(s) of Acceptance and where the funds for the entire amount of
subscription / purchase/switch-ins as per the application are credited to
the bank account of the Scheme before the cut-off time i.e. available for
utilization before the cut-off time- the closing NAV of the day shall be
applicable.
ii. In respect of valid applications received after 3.00 p.m. at the Official
Point(s) of Acceptance and where the funds for the entire amount of
subscription / purchase as per the application are credited to the bank
account of the Scheme before the cut-off time 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.
iii. Irrespective of the time of receipt of applications at the Official Point(s)
of Acceptance, where the funds for the entire amount of
subscription/purchase/ switch-ins as per the application 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
Page 46 of 60
Mirae Asset Gold and Silver Passive FoFtime on any subsequent Business Day - the closing NAV of such
subsequent Business Day shall be applicable.
For Redemption/ Repurchases/Switch out:
i. In respect of valid application accepted at an Official Points of
Acceptance up to 3 p.m. on a Business Day by the Fund, the closing
NAV of that day will be applicable.
ii. In respect of valid application accepted at an Official Point of
Acceptance as listed in the SAI, after 3 p.m. on a Business Day by the
Fund, the closing NAV of the next Business Day will be applicable.
Minimum amount for Purchase: Rs. 5000/- and in multiples of Re. 1/- thereafter
purchase/redemption/switches Additional Purchase: Rs.1000/- and in multiples of Re.1/- thereafter.
Investments through SIP: Rs. 99/- and in multiples of Re.1/- thereafter.
Redemption: The minimum redemption amount shall be ‘any amount’ or
‘any number of units’ as requested by the investor at the time of redemption
request.
The Minimum Application and redemption amount mentioned above shall
not be applicable to the mandatory investments made in the Scheme pursuant
to the provisions of clause 6.10 of SEBI Master Circular dated June 27, 2024,
as amended from time to time.
Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted
by way of email and/or SMS within 5 working days of receipt of valid
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 (including transaction charges paid to the distributor)
and holding at the end of the month shall be sent to the Unit holders in whose
folio(s) transaction(s) have taken place during the month by email on or
before 12th of the succeeding month who have opted for e-CAS and on or
before 15th day of the succeeding month to investors who have opted for
delivery via physical mode.
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 who have
opted for e-CAS and on or before 21st day of the succeeding month to
investors who have opted for delivery via physical mode, 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
seven working days from record date.
Page 47 of 60
Mirae Asset Gold and Silver Passive FoFRedemption The redemption or repurchase proceeds shall be dispatched to the unitholders
within four working days from the date of redemption or repurchase.
For list of exceptional circumstances refer para 14.1.3 of SEBI Master
Circular for Mutual Funds dated June 27, 2024.
Bank Mandate It is mandatory for every applicant to provide the name of the bank, branch,
address, account type and number as per SEBI requirements and any
Application Form without these details will be treated as incomplete. Such
SO-61
incomplete applications will be rejected. The Registrar / AMC may ask the
investor to provide a blank cancelled cheque or its photocopy for the purpose
of verifying the bank account number.
Delay in payment of redemption / The Asset Management Company shall be liable to pay interest to the
repurchase proceeds/dividend unitholders at rate as specified vide clause 14.2 of SEBI Master Circular for
Mutual Funds dated June 27, 2024 by SEBI for the period of such delay.
Unclaimed Redemption and As per the Clause 14.3 of SEBI Master Circular dated June 27, 2024, the
Income unclaimed Redemption and dividend amounts shall be deployed by the Fund
Distribution cum Capital in call money market or money market instruments or in a separate plan of
Withdrawal Liquid scheme / Money Market Mutual Fund scheme floated by Mutual
Amount Funds specifically for deployment of the unclaimed amounts. The investment
management fee charged by the AMC for managing such unclaimed amounts
shall not exceed 50 basis points. The AMCs shall not be permitted to charge
any exit load in this plan.
Provided that such schemes where the unclaimed redemption and IDCW
amounts are deployed shall be only those Overnight scheme/ Liquid scheme
/ Money Market Mutual Fund schemes which are placed in A-1 cell
(Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of
SO-52
Potential Risk Class matrix.
The investors who claim these amounts during a period of three years from
the due date shall be paid at the prevailing NAV. After a period of three years,
this amount can be transferred to a pool account and the investors can claim
the said amounts at the NAV prevailing at the end of the third year. In terms
of the circular, the onus is on the AMC to make a continuous effort to remind
investors through letters to take their unclaimed amounts.
As per SEBI Letter dated January 22, 2025, unclaimed redemption and
dividend amounts are to be transferred by the Asset Management Company
(AMC) to the Unclaimed Dividend and Redemption Scheme (UDRS) after
a period of 90 days and no later than 105 days from the date of issuance of
the instruments. The AMC shall maintain separate schemes or plans for
unclaimed IDCW and redemption amounts pending for less than three years
and for more than three years. Upon completion of the initial three-year
period, such units shall be transferred to UDRS within 10 business days of
the subsequent month. Furthermore, income accrued on these unclaimed
amounts beyond three years will be transferred on a monthly basis (on or
before the 10th calendar day of the following month) to the Investor
Education and Protection Fund as specified by SEBI.
The website of Mirae Asset Mutual Fund also provides information on the
process of claiming the unclaimed amount and the necessary forms /
documents required for the same.
Page 48 of 60
Mirae Asset Gold and Silver Passive FoFThe details of such unclaimed amounts are also disclosed in the annual report
sent to the Unit Holders.
Important Note: All applicants must provide a bank name, bank account
number, branch address, and account type in the Application Form.
Disclosure w.r.t investment by • Payment for investment by any mode shall be accepted from the bank
minors account of the minor, parent or legal guardian of the minor, or from a joint
account of the minor with parent or legal guardian.
• Irrespective of the source of payment for subscription, all redemption
SO-37
proceeds shall be credited only in the verified account of the minor i.e. the
account the minor may hold with the parent/ legal guardian after
completing all KYC formalities.
• The AMC will send an intimation to Unit holders advising the minor (on
attaining majority) to submit an application form along with prescribed
documents to change the status of the account from ‘minor’ to ‘major’.
• All transactions / standing instructions / systematic transactions etc. will
be suspended i.e. the Folio will be frozen for operation by the guardian
from the date of beneficiary child completing 18 years of age, till the status
of the minor is changed to major. Upon the minor attaining the status of
major, the minor in whose name the investment was made, shall be
required to provide all the KYC details, updated bank account details
including cancelled original cheque leaf of the new bank account.
• No investments (lumpsum/SIP/ switch in/ STP in etc.) in the scheme
would be allowed once the minor attains majority i.e. 18 years of age.
Please refer SAI for details on Transmission of Units.
Investments in Scheme by AMC, Subject to the Regulations, the AMC and investment companies managed by
Sponsor & Associates the Sponsor(s), their associate companies and subsidiaries may invest either
directly or indirectly, in the Scheme during the NFO and/or on ongoing basis.
However, the AMC shall not charge any investment management fee on such
investment in the Scheme, in accordance with sub-regulation 3 of Regulation
24 of the Regulations and shall charge fees on such amounts in future only if
the SEBI Regulations so permit. The associates, the Sponsor, subsidiaries of
the Sponsor and/or the AMC may acquire a substantial portion of the
Scheme’s units and collectively constitute a major investment in the
Schemes. The AMC reserves the right to invest its own funds in the Scheme
as may be decided by the AMC from time to time and required by applicable
regulations and also in accordance with Clause 6.11 of SEBI Master Circular
dated June 27, 2024 regarding minimum number of investors in the Scheme.
In terms of SEBI notification dated August 5, 2021 and as per Regulation 25,
sub-regulation 16A of SEBI (Mutual Funds) Regulations, the asset
management company shall invest such amounts in such schemes of the
mutual fund, based on the risks associated with the schemes, as may be
specified by the Board from time to time
SO-26 III. Other Details
A. Details of Underlying Fund
1. MIRAE ASSET GOLD ETF
Page 49 of 60
Mirae Asset Gold and Silver Passive FoFDetails of Benchmark of underlying Fund:- Domestic Price of Physical Gold
About the Benchmark
The Trustees have adopted Domestic Price of gold (based on LBMA Gold daily spot fixing price) as the
benchmark index which is in accordance with Clause 3.2.5 of SEBI Master Circular dated June 27, 2024.
Investment Objective of underlying Fund:- To generate returns that are in line with the performance of
physical gold in domestic prices, subject to tracking error. The Scheme does not guarantee or assure any returns.
There is no assurance that the investment objective of the Scheme will be achieved.
Investment Strategy of underlying Fund:-
Investments made from the net assets of the Scheme would be in accordance with the investment objective of the
Scheme and the provisions of the SEBI (MF) Regulations. The AMC will strive to achieve the investment
objective by way of a judicious portfolio mix comprising Gold (includes physical Gold and other Gold related
instruments which may be permitted by Regulator from time to time) and instruments related to gold (including
derivatives as and when permitted by SEBI), Debt Securities and Money Market Instruments. Investments in
gold (includes physical Gold and other Gold related instruments which may be permitted by Regulator from time
to time) would be primarily assessed with regard to its fineness. The AMC will endeavour to address the key
risks associated with investments in Gold Bullion as under:
1. Quality and Purity Risk
• Physical Gold purchased by the Scheme will be of fineness (or purity) of 995 parts per 1,000 (99.9%) or
higher.
• Custodian will accept physical gold only if the gold is compliance with the Good Delivery norms as specified
by LBMA.
2. Passive Investments
The Scheme is a passively managed fund that shall be investing substantial portion of its assets in physical
gold and tracking its performance as close as possible to the price of gold. Therefore, irrespective of decline
/ rise in prices of physical gold, The Scheme shall remain invested in gold and being a passively managed
fund, no active calls based on outlook of gold prices will be taken by the Fund.
3. Custody risk
There is a risk that part or all of the physical gold belonging to the Scheme could be lost. damaged or stolen.
In order to ensure safety, the said gold will be stored with custodian in its vaults. Gold held by custodian is
also insured.
4. Tracking Error
Tracking error means the variance between daily returns of the underlying benchmark (gold in this case)
and the NAV of the Scheme for any given period. NAV of the Scheme is dependent on valuation of gold.
Gold has to be valued based on the formula prescribed by SEBI. NAV so computed may vary from the price
of Gold in the domestic market.
Tracking error could be the result of a variety of factors including but not limited to:
Delay in the purchase or sale of gold due to -
⚫
➢ Illiquidity of gold,
➢ Delay in realization of sale proceeds,
➢ Creating a lot size to buy the required amount of gold
The Scheme may buy or sell the gold at different points of time during the trading session at the then
⚫
prevailing prices which may not correspond to its closing prices.
The potential for trades to fail, which may result in the Scheme not having acquired gold at a price
⚫
necessary to track the benchmark price.
Page 50 of 60
Mirae Asset Gold and Silver Passive FoFThe holding of a cash position and accrued income prior to distribution of income and payment of
⚫
accrued expenses.
Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.
⚫
Execution of large buy / sell orders
⚫
Transaction cost (including taxes and insurance premium) and recurring expenses
⚫
Realization of Unit holders’ funds
⚫
Tracking error due to movement in prices of physical gold will impact the performance of the Scheme.
However, the Scheme will endeavor to keep tracking error as low as possible by:
Use of gold related derivative instruments, as and when allowed by SEBI Regulations
⚫
Rebalancing of the portfolio.
⚫
Setting off of incremental subscriptions against redemptions.
⚫
The tracking error i.e. the annualised standard deviation of the difference in daily returns between physical
gold and the NAV of Gold ETF based on past one year rolling over data (For ETFs in existence for a period
of less than one year, annualized standard deviation shall be calculated based on available data) shall not
exceed 2%. In case of unavoidable circumstances in the nature of force majeure, which are beyond the
control of the AMC, the tracking error may exceed 2% and the same shall be brought to the notice of
Trustees with corrective actions taken by the AMC, if any. The same shall be disclosed on a daily basis on
the websites of AMC and AMFI.
Along with the disclosure of tracking error, Gold ETF schemes shall also disclose the tracking difference
i.e. the difference of returns between physical gold and the Gold ETF, on the website of the AMC on
monthly basis for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units.
Numerical illustration on Exchange Traded Commodity Derivatives (ETCDs):
I. Commodity Futures trade
Trade date 20-Dec
Expiry 05-Feb
Current market price/ 10gms 39,000
Lot size in gms 1,000
Lot value / contract value 39,00,000
Margin 5%
Margin Value 1,95,000
Trade / position Buy Commodity
Quantity 1 lot
Buy price per 10 gms 39,000
Sell trade date 25-Jan
Sell price per 10gms 39,500
Gain/Loss per 10gms 500
Gain/ Loss per Lot or contract value 50,000
II. Commodity Options Trade
Page 51 of 60
Mirae Asset Gold and Silver Passive FoFTrade date 20-Dec
Contract Expiry 29-Jan
Corresponding futures contract 05-Feb
Current market price/ 10gms 39,000
Strike price 39,000
Call Options premium per 10gms 410
Trade / position Buy strike 39000 CE
Quantity 1Kg
Buy price per 10gms 410
Sell trade date 25-Jan
Futures price on 25-Jan 39500
39000 strike CE price on 25-Jan 550
Gain/Loss per 10gms 140
Gain/Loss per contract value / Lot 14000
TER of underlying fund as on May 31, 2025: - 0.31%
Asset Under Management of the underlying fund as on May 31, 2025: - Rs 767.15 Cr.
Year wise performance as on May 31, 2025: - The performance of MIRAE ASSET GOLD ETF
Mirae Asset Gold ETF Scheme Benchmark*
1 Year 30.45% 31.78%
Since Inception 24.64% 25.84%
(Annualized)
*Domestic Price of Physical Gold
Note- Returns (%) for less than 1 year calculated on simple annualized basis, others are CAGR- Compounded
Annualized Growth returns.
Top 10 Holding of the underlying fund as on May 31, 2025:-
Holdings of Mirae Asset Gold ETF % Weightage
Gold 97.77%
TREPS/ Net Receivables 2.23%
2. MIRAE ASSET SILVER ETF
Details of Benchmark of underlying Fund:- Domestic Price of Physical Silver
About the Benchmark
The Trustees have adopted Domestic Price of Physical Silver (based on London Bullion Market association
(LBMA) Silver daily spot fixing price.) as the benchmark index which is in accordance with Clause 3.3.7 of SEBI
Master Circular dated June 27, 2024.
Investment Objective of underlying Fund:- To generate returns that are in line with the performance of physical
silver in domestic prices, subject to tracking error. The Scheme does not guarantee or assure any returns. There is
no assurance or guarantee that the investment objective of the scheme would be achieved.
Page 52 of 60
Mirae Asset Gold and Silver Passive FoFInvestment Strategy of underlying Fund:-
Investments made from the net assets of the Scheme would be in accordance with the investment objective of the
Scheme and the provisions of the SEBI (MF) Regulations. The AMC will strive to achieve the investment
objective by way of a judicious portfolio mix comprising Silver (includes physical Silver and other Silver related
instruments which may be permitted by Regulator from time to time) and instruments related to silver (including
derivatives as and when permitted by SEBI), Debt Securities and Money Market Instruments. Investments in
silver (includes physical Silver and other Silver related instruments which may be permitted by Regulator from
time to time) would be primarily assessed with regard to its fineness. The AMC will endeavour to address the
key risks associated with investments in Silver Bullion as under:
1. Quality and Purity Risk:
• Physical Silver purchased by the Scheme will be of fineness (or purity) of 999 parts per 1,000
(99.9%) or higher.
• Custodian will accept physical silver only if the silver is compliance with the Good Delivery
norms as specified by LBMA.
2. Passive Investments
The Scheme is a passively managed fund that shall be investing substantial portion of its assets in
physical silver and tracking its performance as close as possible to the price of silver. Therefore,
irrespective of decline / rise in prices of physical silver, The Scheme shall remain invested in silver and
being a passively managed fund, no active calls based on outlook of silver prices will be taken by the
Fund.
3. Custody risk
There is a risk that part or all of the physical silver belonging to the Scheme could be lost. damaged or
stolen. In order to ensure safety, the said silver will be stored with custodian in its vaults. Silver held by
custodian is also insured.
4. Tracking Error
Tracking error means the variance between daily returns of the underlying benchmark (silver in this
case) and the NAV of the Scheme for any given period. NAV of the Scheme is dependent on valuation
of silver. Silver has to be valued based on the formula prescribed by SEBI. NAV so computed may vary
from the price of Silver in the domestic market.
Tracking error could be the result of a variety of factors including but not limited to:
Delay in the purchase or sale of silver due to -
⚫
➢ Illiquidity of silver,
➢ Delay in realization of sale proceeds,
➢ Creating a lot size to buy the required amount of silver
The Scheme may buy or sell the silver at different points of time during the trading session at the
⚫
then prevailing prices which may not correspond to its closing prices.
The potential for trades to fail, which may result in the Scheme not having acquired silver at a price
⚫
necessary to track the benchmark price.
The holding of a cash position and accrued income prior to distribution of income and payment of
⚫
accrued expenses.
Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.
⚫
Execution of large buy / sell orders
⚫
Transaction cost (including taxes and insurance premium) and recurring expenses
⚫
Realization of Unit holders’ funds
⚫
Page 53 of 60
Mirae Asset Gold and Silver Passive FoFTracking error due to movement in prices of physical silver will impact the performance of the Scheme.
However, the Scheme will endeavour to keep tracking error as low as possible by:
Use of silver related derivative instruments, as and when allowed by SEBI Regulations
⚫
Rebalancing of the portfolio.
⚫
Setting off of incremental subscriptions against redemptions.
⚫
The tracking error i.e. the annualised standard deviation of the difference in daily returns between
physical silver and the NAV of Silver ETF based on past one year rolling over data (For ETFs in
existence for a period of less than one year, annualized standard deviation shall be calculated based on
available data) shall not exceed 2%. In case of unavoidable circumstances in the nature of force majeure,
which are beyond the control of the AMC, the tracking error may exceed 2% and the same shall be
brought to the notice of Trustees with corrective actions taken by the AMC, if any. The same shall be
disclosed on a daily basis on the websites of AMC and AMFI.
Along with the disclosure of tracking error, Silver ETF schemes shall also disclose the tracking
difference i.e. the difference of returns between physical silver and the Silver ETF, on the website of the
AMC on monthly basis for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units.
Numerical illustration on Exchange Traded Commodity Derivatives (ETCDs):
I. Commodity Futures trade
Trade date 20-Dec
Expiry 05-Feb
Current market price/ 10gms 39,000
Lot size in gms 1,000
Lot value / contract value 39,00,000
Margin 5%
Margin Value 1,95,000
Trade / position Buy Commodity
Quantity 1 lot
Buy price per 10 gms 39,000
Sell trade date 25-Jan
Sell price per 10gms 39,500
Gain/Loss per 10gms 500
Gain/ Loss per Lot or contract value 50,000
II. Commodity Options Trade
Trade date 20-Dec
Contract Expiry 29-Jan
Corresponding futures contract 05-Feb
Current market price/ 10gms 39,000
Strike price 39,000
Call Options premium per 10gms 410
Page 54 of 60
Mirae Asset Gold and Silver Passive FoFTrade / position Buy strike 39000 CE
Quantity 1Kg
Buy price per 10gms 410
Sell trade date 25-Jan
Futures price on 25-Jan 39500
39000 strike CE price on 25-Jan 550
Gain/Loss per 10gms 140
Gain/Loss per contract value / Lot 14000
TER of underlying fund as on May 31, 2025: - 0.34%
Asset Under Management of the underlying fund as on May 31, 2025: - Rs. 95.04 Cr
Year wise performance as on May 31, 2025: - The performance of Mirae Asset Silver ETF
Mirae Asset Silver ETF Scheme Benchmark*
1 Year 4.77% 5.34%
Since Inception 14.07% 15.23%
(Annualized)
*Domestic Price of Physical Silver
Note- Returns (%) for less than 1 year calculated on simple annualized basis, others are CAGR- Compounded
Annualized Growth returns.
Top 10 Holding of the underlying fund as on May 31, 2025:-
Holdings of Mirae Asset Silver ETF % Weightage
Silver 97.49%
TREPS/ Net Receivables 2.51%
B. Periodic Disclosures
Half yearly Disclosures: Financial Results
The AMC/Mutual Fund shall within one month from the close of each half year, that is on March 31st and on
September 30th, host a soft copy of its unaudited financial results on their website
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/financials. The half-yearly unaudited financial
results shall contain details as specified in Twelfth Schedule of the SEBI (Mutual Funds) Regulations, 1996 and
such other details as are necessary for the purpose of providing a true and fair view of the operations of Mirae
Asset Mutual Fund.
The AMC/Mutual Fund shall publish an advertisement disclosing the hosting of unaudited financial results on
their website www.miraeassetmf.co.in in at least one English daily newspaper having nationwide circulation and
in a newspaper having wide circulation published in the language of the region where the Head Office of the
Mutual Fund is situated.
The mutual fund shall publish an advertisement in the all India edition of at least two daily newspapers, one each
in English and Hindi, disclosing the hosting of the half-yearly statement of the Scheme portfolio on its website
and on the website of Association of Mutual Funds in India (AMFI). The AMC will provide a physical copy of
the statement of its Scheme portfolio, without charging any cost, on specific request received from a unitholder.
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Mirae Asset Gold and Silver Passive FoFAnnual Report
Pursuant to Regulation 56 of SEBI (Mutual Funds) Regulations, 1996 read with Clause 5.4 of SEBI Master
Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated June 27, 2024, the scheme wise annual report or
abridged summary thereof will be hosted on the website of the Mirae Asset Mutual Fund viz.
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/financials and on the website of AMFI, not later
than four months after the close of each financial year (31st March). The AMCs shall display the link prominently
on the website of the Mirae Asset Mutual Fund viz. https://miraeassetmf.co.in and make the physical copies
available to the unitholders, at their registered offices at all times. Unit holders whose e-mail addresses are not
registered will have to specifically ‘opt in’ to receive physical copy of scheme wise annual report or abridged
summary thereof. The unit holders may request for a physical copy of scheme annual reports at a price and the
text of the relevant scheme by writing to the Mirae Asset Investment Managers (India) Pvt Ltd. / Investor Service
Centre / Registrar & Transfer Agents. The Mutual Fund / AMC shall provide a physical copy of abridged report
of the annual report, without charging any cost, on specific request received from a unit holder. An advertisement
shall be published every year disclosing the hosting of the scheme wise annual report on website of Mirae Asset
Mutual Fund and on the website of AMFI and the modes such as SMS, telephone, email or written request (letter)
through which a unitholder can submit a request for a physical or electronic copy of the scheme wise annual
report or abridged summary thereof. Such advertisement shall be published in the all India edition of at least two
daily newspapers, one each in English and Hindi.
Monthly/Half Yearly Portfolio Disclosures:
The Mutual Fund/ AMC will disclose portfolio (along with ISIN) of the Scheme in the prescribed format, as on
the last day of the month / half-year i.e. March 31 and September 30, on its website viz.
https://www.miraeassetmf.co.in/downloads/portfolio and on the website of Association of Mutual Funds in India
(AMFI) viz. www.amfiindia.com within 10 days from the close of each month/ half year respectively. In case of
unitholders whose e-mail addresses are registered, the Mutual Fund/ AMC will send via email both the monthly
and half yearly statement of scheme portfolio within 10 days from the close of each month/ half year respectively.
Mutual Fund / AMC will publish an advertisement every half year in the all India edition of at least two daily
newspapers, one each in English and Hindi, disclosing the hosting of the half-yearly statement of the Scheme
portfolio on its website and on the website of Association of Mutual Funds in India (AMFI). Mutual Fund / AMC
will provide a physical copy of the statement of its Scheme portfolio, without charging any cost, on specific
request received from a unitholder.
Monthly Average Asset under Management (Monthly AAUM) Disclosure
The Mutual Fund shall disclose the Monthly AAUM under different categories Schemes as specified by SEBI in
the prescribed format on a monthly basis on its website viz. https://www.miraeassetmf.co.in/downloads/statutory-
disclosure/other-disclosure and forward to AMFI within 7 working days from the end of the month.
Scheme Summary Document
The AMC has provided on its website a standalone scheme document for all the Schemes which contains all the
details of the Scheme viz. Scheme features, Fund Manager details, investment details, investment objective,
expense ratios, portfolio details, etc. Scheme summary document is uploaded on the websites of AMC viz.
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure, AMFI and stock exchanges in
3 data formats i.e. PDF, Spreadsheet and a machine readable format (either JSON or XML). The document shall
be updated by the AMCs on a monthly basis or on changes in any of the specified fields, whichever is earlier.
Product Labeling and Risk-o-meter:
SO-38
The Risk-o-meter shall have following six levels of risk:
1. Low Risk
2. Low to Moderate Risk
3. Moderate Risk
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Mirae Asset Gold and Silver Passive FoF4. Moderately High Risk
5. High Risk and
6. Very High Risk
The evaluation of risk levels of a scheme shall be done in accordance with clause 17.4 of SEBI Master Circular
dated June 27, 2024.
Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail
or SMS to unitholders. The risk-o-meter shall be evaluated on a monthly basis and the risk-o-meter along with
portfolio disclosure shall be disclosed on the AMC website viz.
https://www.miraeassetmf.co.in/downloads/portfolio as well as AMFI website within 10 days from the close of
each month.
The AMC shall disclose the risk level of schemes as on March 31 of every year, along with number of times the
risk level has changed over the year, on its website viz. https://www.miraeassetmf.co.in/downloads/statutory-
disclosure/other-disclosure and AMFI website.
Further, in accordance with clause 5.16 of SEBI Master Circular dated June 27, 2024, the AMC shall disclose:
a. risk-o-meter of the scheme wherever the performance of the scheme is disclosed;
b. risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that of the
benchmark is disclosed.
c. scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark while disclosing portfolio of the
scheme.
C. Transparency/NAV Disclosure
The AMC will calculate and disclose the first NAV under the Scheme not later than 5 Business Days from the
SO-41
date of allotment of units under the NFO Period. Subsequently, the NAV will be calculated and disclosed on
every Business Day. The AMC shall update the NAVs on the website of the Mutual Fund
https://www.miraeassetmf.co.in/ and on the website of Association of Mutual Funds in India - AMFI
(www.amfiindia.com) by 10.00 a.m. of the following business day.
Mutual Fund / AMC will provide facility of sending latest available NAVs to unitholders through SMS, upon
receiving a specific request in this regard. NAV of the Units of the Scheme (including options thereunder)
calculated in the manner provided in this SID or as may be prescribed by the Regulations from time to time.
The NAV will be computed upto 3 decimal places.
In case of any delay, the reasons for such delay would be explained to AMFI and SEBI by the next day. If the
NAVs are not available before commencement of business hours on the following day due to any reason, the
Fund shall issue a press release providing reasons and explaining when the Fund would be able to publish the
NAVs.
D. Transaction charges and stamp duty-
SEBI with the intent to enable investment by people with small saving potential and to increase reach of Mutual
Fund products in urban areas and in smaller towns, wherein the role of the distributor is vital, has allowed AMCs
under clause 10.5. of SEBI Master Circular dated June 27, 2024 to deduct transaction charges for subscription of
Rs. 10,000/- and above. The said transaction charges will be paid to the distributors of the Mutual Fund products
(based on the type of product).
In accordance with the said circular, AMC / Mutual Fund will deduct the transaction charges from the subscription
amount and pay to the distributors (based on the type of product and those who have opted to receive the
transaction charges) as shown in the table below. Thereafter, the balance of the subscription amount shall be
invested.
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Mirae Asset Gold and Silver Passive FoF(i) Transaction charges shall be deducted for Applications for purchase/ subscription received by distributor/ agent
as under:
Investor Type Transaction Charges
First Time Mutual Transaction charge of Rs.150/- for subscription of Rs.10,000 and above will be deducted
Fund Investor from the subscription amount and paid to the distributor/agent of the first time investor.
The balance of the subscription amount shall be invested.
Investor other than Transaction charge of Rs. 100/- per subscription of Rs, 10,000 and above will be deducted
First Time Mutual from the subscription amount and paid to the distributor/ agent of the investor. The
Fund Investor balance of the subscription amount shall be invested.
(ii) Transaction charges shall not be deducted for:
• Purchases /subscriptions for an amount less than Rs. 10,000/-; and
• Transactions other than purchases/ subscriptions relating to new inflows such as Switches, etc.
• Any purchase/subscription made directly with the Fund (i.e. not through any distributor/ agent).
• Transactions carried out through the stock exchange platforms.
Applicability of Stamp Duty:
Pursuant to Notification No. S. O. 1226 (E) and G.S.R 226(E) dated March 30, 2020 issued by Department of
Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated
February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the
Finance Act, 2019, a stamp duty @ 0.005% of the transaction value shall be levied on applicable mutual fund
transactions.
Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including
dividend reinvestment) to the unitholders would be reduced to that extent
For details refer in Statement of Additional Information.
E. Associate Transactions
Please refer to Statement of Additional Information (SAI)
F. Taxation
Rates of tax and tax deducted at source (TDS) under the Act for Capital Gains from transfer of units of
non-Equity Oriented Fund (other than Debt and Money Market Mutual Funds):
Type of Capital Gain Income Tax Rates TDS Rates
Resident/ PIO/ NRI/ FII Resident NRI/OCBs/ FII &
Other non FII non- others
residents
+ Short Term Capital Gain Normal rates of tax 30% Nil 30% for Non-resident
(redemption before completing applicable to the assessee other than corporates
three years of holding for sale 40% (till 31 March
prior to 23 July 2024 and one/ 2024)/ 35% (from 1
two years of holding for sale on April 2024) for non-
or after 23 July 2024) residents corporates
++ Long Term Capital Gain For sale made prior to 23 For sale made Nil 10%/ 12.5%
(redemption after completing July 2024 - 20%# prior to 23
three years of holding for sale For sale made on or after July 2024 –
prior to 23 July 2024 and one/ 23 July 2024 – 12.5%* 10%*
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Mirae Asset Gold and Silver Passive FoFtwo years of holding for sale on For sale made
or after 23 July 2024) on or after 23
July 2024 –
10%*
#with indexation benefit (only where the Investments were made on or before 1st April, 2023 and sale prior to 23
July 2024)
*without indexation benefit
+ Units acquired post 1 April 2023 and sold prior to 31 March 2025 would be considered as units sold of a
Specified Mutual Fund (SMF) as mentioned below and hence, any gains arising on transfer of such units would
be deemed to be short-term capital gains. However, with respect to units acquired prior to 1 April 2023, gains
arising on transfer of such units would not be considered as units sold of a Specified Mutual Fund (SMF) as
mentioned below and would continue to be governed by the normal provisions (i.e., long-term or short-term,
depending upon period of holding) as mentioned in the table above.
++ As per the amended Finance Bill 2023, a Specified Mutual Fund (SMF) acquired on or after April 1, 2023,
shall be deemed to be short-term capital asset and hence, the gains arising on such transfer will be regarded as
short-term capital gains (STCG) irrespective of period of holding. SMF is a Mutual Fund holding less than 35%
of its total investment in equity shares of domestic companies. Accordingly, such Mutual Funds holding less than
35% of its total investment in equity shares as well as Fund of Funds shall fall within the ambit of SMF and the
gains arising on its transfer will be regarded as STCG and would be taxable at the rate of 15% (where transfer
takes place before 23 July 2024) or 20% (where transfer takes place on or after 23 July 2024) (plus applicable
surcharge and cess) and no indexation benefit will be available on transfer of such investments. However, effective
01 April 2025, the definition of ‘Specified Mutual Fund’ has been proposed to be amended as under:
• A mutual fund wherein more than 65% of total proceeds are invested in the debt and money market
instruments; or
• Fund which invests 65% or more of its total proceeds in units of a fund referred in clause (a) above, calculated
basis the annual average of the daily closing figures
As a result of the proposed amendment, mutual Funds investing in gold/ commodities, Equity Oriented Fund of
Funds, Offshore Mutual Funds and certain other Mutual Funds (except Debt and Money Market Mutual Funds as
mentioned above) which were earlier covered under the definition of Special Mutual Fund will now get excluded
from the definition. Thus, for such mutual funds units sold on or after 1 April 2025, the provisions of specified
mutual funds would not apply. However, capital gains on sale of Debt and Money Market Mutual Funds would
continue to be deemed to be short-term capital gains.
For further details on taxation please refer to the clauses on Taxation in SAI.
G. Rights of Unitholders
Please refer to SAI for details.
H. List of official points of acceptance
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-documents-data
I. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations For Which
SO-48
Action May Have Been Taken Or Is In The Process Of Being Taken By Any Regulatory Authority
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-documents-data
Notwithstanding anything contained in this SID, the provisions of the SEBI (Mutual Funds), Regulations,
SO-63
1996 and the guidelines thereunder shall be applicable.
Page 59 of 60
Mirae Asset Gold and Silver Passive FoFTHE TERMS OF THE SCHEME WERE APPROVED BY THE DIRECTORS OF MIRAE ASSET
TRUSTEE COMPANY PRIVATE LIMITED IN IS BOARD MEETING HELD ON FEBRUARY 28, 2025.
For and on behalf of the Board of Directors of
Mirae Asset Investment Managers (India) Private Limited
(Asset Management Company for Mirae Asset Mutual Fund)
Sd/-
Rimmi Jain
Head- Compliance, Legal and Company Secretary
Place: Mumbai
Date: XX/XX/XXXX
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Mirae Asset Gold and Silver Passive FoF