Monthly Income Plan - IDBI Mutual

SCHEME INFORMATION DOCUMENT

IDBI MONTHLY INCOME PLAN

(An open ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus)

This product is suitable for investors who are seeking*:

Medium term regular income and capital appreciation

Investments in fixed income securities (debt and money market) as well as equity and equity related instruments.

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

Continuous offer for Units at NAV related prices

Name of Mutual Fund

: IDBI Mutual Fund

Name of Asset Management Company : IDBI Asset Management Limited

(CIN:U65100MH2010PLC199319)

Name of Trustee Company

: IDBI MF Trustee Company Limited

(CIN: U65991MH2010PLC199326)

Addresses - Registered Office : IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai 400005

Corporate Office : 5th Floor, Mafatlal Centre, Nariman Point, Mumbai- 400021

Website

: idbimutual.co.in

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (hereinafter referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document (SID) sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of IDBI Mutual Fund, Tax and Legal issues and general information on idbimutual.co.in. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.

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

This Scheme Information Document is dated June 29, 2017

Interpretation For all purposes of the SID, except as otherwise expressly provided or unless the context otherwise requires: ? All references to the masculine shall include the feminine and all references, to the singular shall include

the plural and vice-versa. ? All references to "Rs" refer to Indian Rupees. A "crore" means "ten million" and a "lakh" means a "hundred

thousand". ? All references to timings relate to Indian Standard Time (IST). ? References to a day are to a calendar day including non-Business Day unless otherwise specified.

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INDEX

HIGHLIGHTS OF THE SCHEME............................................................................................... 3 I. INTRODUCTION .................................................................................................................... 5 II. INFORMATION ABOUT THE SCHEME ...............................................................................19

A. TYPE OF THE SCHEME ............................................................................................................... 19 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?............................................ 19 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?............................................................ 19 D. WHERE WILL THE SCHEME INVEST? ..................................................................................... 21 E. WHAT ARE THE INVESTMENT STRATEGIES? ...................................................................... 29 F. FUNDAMENTAL ATTRIBUTES................................................................................................... 30 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?........................................ 31 H. WHO MANAGES THE SCHEME? ............................................................................................... 31 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ................................................................. 32 J. HOW HAS THE SCHEME PERFORMED? ................................................................................ 35 K. SCHEME RELATED DISCLOSURE........................................................................................... 36 III. UNITS AND OFFER ............................................................................................................38 A. NEW FUND OFFER (NFO) ........................................................................................................... 38 B. ONGOING OFFER DETAILS ........................................................................................................ 38 C. PERIODIC DISCLOSURES .......................................................................................................... 73 D. COMPUTATION OF NAV .............................................................................................................. 77 IV. FEES AND EXPENSES ......................................................................................................78 A. NEW FUND OFFER (NFO) EXPENSES..................................................................................... 78 B. ANNUAL SCHEME RECURRING EXPENSES ......................................................................... 78 C. LOAD STRUCTURE....................................................................................................................... 81 C. WAIVER OF LOAD FOR DIRECT APPLICATIONS.................................................................. 82 E. TRANSACTION CHARGES .......................................................................................................... 82 V. RIGHTS OF UNITHOLDERS ...............................................................................................83 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORIT ......................................83

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HIGHLIGHTS OF THE SCHEME

1. Name of the Scheme: IDBI Monthly Income Plan (IMIP)

2. Type of Scheme: An open ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus

3. Investment objective: The investment objective of the scheme would be to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of debt, equity and money market instruments.

4. Liquidity: The Scheme being offered is an open ended scheme and will offer units for sale/switchin and repurchase/switch-out at NAV related prices on all business days.

5. Options for investment ? The Scheme offers Regular Plan and Direct Plan for investment. Both Plans offer Growth Option, Growth option with Regular Cash Flow Plan and Dividend Option. Dividend Option offers facility for payout/reinvestment/sweep of dividend. The Dividend Option has two sub-options (frequency of dividend declaration) ? Monthly Dividend and Quarterly Dividend.

6. Benchmark: CRISIL MIP Blended Index

7. Transparency/NAV Disclosure ? NAV of the Scheme will be computed on all business days. The NAV, Sale Price and Repurchase Price will be published in two daily newspapers on all business days.

The AMC shall update the NAVs on the website of IDBI Mutual Fund (idbimutual.co.in) and on the website of Association of Mutual Funds in India - hereinafter referred to as AMFI () by 9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI in writing. If the NAVs are not available before commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAVs.

The Mutual Fund will disclose the portfolio of the Scheme (along with ISIN) as on the last day of the month in the format prescribed by SEBI in its website on or before the tenth day of the succeeding month in a user-friendly and downloadable format. As presently required by the SEBI (MF) Regulations, a complete statement of the Scheme portfolio would be published by the Mutual Fund as an advertisement in one English daily Newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated within one month from the close of each half year (i.e. March 31 & September 30). The Mutual Fund shall send a complete statement of scheme portfolio to all unit holders before the expiry of one month from the closure of each half Year (i.e. March 31 and September 30), if such statement is not published by way of advertisement. The Portfolio Statement will also be made available on the website of the Mutual Fund and AMFI.

8. Loads Entry Load ? Not applicable

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. The upfront commission, if any, to the distributor on the investment made by the investor will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor

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Exit Load Exit load ? 1% for exit up to 12 months from the date of allotment The exit load will be applicable for both normal transactions and SIP transactions (to each installment). In case of SIP, the date of allotment for each installment for subscription will be reckoned for charging exit load on redemption. SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. The upfront commission, if any, to the distributor on the investment made by the investor will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. For further details on load structure refer to the section 'Load Structure' in the document. 9. Minimum Application Amount ? Single Investment ? Minimum Rs. 5000 and in multiples of Re. 1 thereafter. ? Additional purchase ? Minimum Rs. 1000 and in multiples of Re. 1 thereafter ? Systematic Investment Plan (SIP)

o Monthly option - Rs. 500 per month for a period of 12 months or Rs. 1000 per month for a period of 6 months.

o Quarterly option - Rs. 1500 per quarter for a period of 4 quarters Investments above the minimum amount mentioned, shall be made in multiples of Re. 1 for all SIP irrespective of frequency of SIP or the Option. The minimum application amounts listed above does not apply in case of Dividend Reinvestment/Transfers.

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I. RISK FACTORS

I. INTRODUCTION

A. Standard Risk Factors

1. Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

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

3. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme.

4. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns.

5. The Sponsor is not responsible for any loss or shortfall resulting from the operations of the scheme beyond the initial contribution of Rs. 10 lakhs made by it towards setting up the Fund and/or such other accretions / additions to the same made from time to time.

6. The present scheme is not a guaranteed or assured return scheme.

B. Scheme Specific Risk Factors

1. The Trustees, AMC, Fund, their directors or their employees shall not be liable for any tax consequences that may arise in the event that the scheme is wound up for the reasons and in the manner provided under the Scheme Information Document & Statement of Additional Information.

2. IDBI Monthly Income Plan (An open ended Income Scheme in which Monthly Income is not assured and is subject to availability of distributable surplus) will seek to invest in credit instruments, Government Securities, securitized debt, debt derivatives, equity and equity related instruments and money market instruments. Trading volumes and settlement periods may inherently restrict the liquidity of the scheme's investments. In the event of an inordinately large number of redemption requests, or of a restructuring of the scheme's investment portfolio, these periods may become significant. In view of the same, the Trustees have the right in their sole discretion to limit redemptions (including suspending redemptions) under certain circumstances.

3. The Mutual Fund is not assuring any dividend nor is it assuring that it will make any dividend distributions. All dividend distributions are subject to the availability of distributable surplus and would depend on the performance of the scheme and will be at the discretion of the AMCand Trustee Company.

4. Redemption by the unit holders due to change in the fundamental attributes of the scheme or due to any other reasons may entail tax consequences. The Trustees, AMC, their directors or their employees shall not be liable for any tax consequences that may arise.

5. The tax benefits described in the SID are as available under the present taxation laws and are available subject to relevant condition. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India and the Investors and Unit Holders should be aware that the relevant fiscal rules or their interpretation may change. As in the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of the investment in the Scheme(s) will endure indefinitely. In view of the individual nature of tax consequences, each Investor / Unit holder is advised to consult his/her/its own professional tax advisor.

6. Different types of securities in which the Scheme/Plans would invest as given in the SID carry different levels of risk. Accordingly the Scheme's/Plan's risk may increase or decrease depending upon the investment pattern. For e.g. corporate bonds carry a higher amount of risk than Government

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Securities. Further even among corporate bonds, bonds, which are AAA rated, are comparatively less risk than bonds, which are AA rated.

7. Risks associated with investments in bonds

i. Credit risk: This risk arises due to any uncertainty in counterparty's ability or willingness to meet its contractual obligations. This risk pertains to the risk of default of payment of principal and interest. Government Securities have zero credit risk while other debt instruments are rated according to the issuer's ability to meet the obligations.

The AMC seek to manage credit risk by restricting investments only to investment grade securities. Regular review of the issuer profile to monitor and evaluate the credit quality of the issuer will be carried out.

ii. Interest Rate risk: This risk is associated with movements in interest rate, which depend on various factors such as government borrowing, inflation, economic performance etc. The values of investments will appreciate/depreciate if the interest rates fall/rise.

Interest rate risk mitigation will be through active duration management at the portfolio level through regular monitoring of the interest rate environment in the economy.

iii. Liquidity risk: The liquidity of a bond may change depending on market conditions leading to changes in the liquidity premium linked to the price of the bond. At the time of selling the security, the security can become illiquid leading to loss in the value of the portfolio.

The AMC will endeavour to mitigate liquidity risk by mapping investor profile and potential redemption expectations into the portfolio construction to allow the scheme to liquidate assets without significantly impacting portfolio returns.

iv. Reinvestment risk: This risk arises from uncertainty in the rate at which cash flows from an investment may be reinvested. This is because the bond will pay coupons, which will have to be reinvested. The rate at which the coupons will be reinvested will depend upon prevailing market rates at the time the coupons are received.

The AMC will endeavor to manage this risk by diversifying investments in instruments with appropriate maturity baskets.

8. Risks associated with investment in equity and equity related instruments Investments in equity and equity related instruments like stocks, convertibles, warrants, derivatives etc carry both systematic (macro-economic) and company-specific risks. These instruments are exposed to and can be impacted by adverse changes in interest rates, currency rates, inflation, liquidity (trading volumes and settlement) as well as company specific risks like corporate governance issues, changes in technology, financial distress etc.

Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. Investments in equity shares and equity related instruments involve a degree of risk and investors should not invest in the Scheme(s) unless they can afford to take the risks.

Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of security.

To mitigate risks associated with investments in equity and equity related instruments the AMC will ensure that the portfolio is adequately diversified. The investment universe of the Scheme is

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