INTRODUCTION TO MUTUAL FUNDS - Standard Chartered

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I INTRODUCTION TO MUTUAL FUNDS What is a Mutual Fund? A Mutual Fund (also known as a Unit Trust) is made up of money or funds pooled from multiple investors to purchase securities. Investors own units (or shares) which represent a part of the Mutual Fund's portfolio holdings. Mutual Funds invest in stocks, bonds or other securities according to each Fund's objective.

Who Manages the Mutual Fund?

The Mutual Fund is managed by a group of professional Fund Managers guided by an investment philosophy laid out in the Fund prospectus (A document detailing the investment objectives and strategies of a particular Fund as well as the Fund's past performance, managers and financial information). The Fund Manager makes decisions on what and when to buy and sell assets.

WHY INVEST IN MUTUAL FUNDS?

Professionally Managed

While diversification is important in your investments, individual investors sometimes face the challenge of high minimum investment amounts when trying to do so across multiple asset classes. Buying units in a Mutual Fund is an easy way to diversify your investments across various asset classes, geographies and strategies. This way you will not have `all your eggs in one basket'.

Affordability

Mutual Funds invest money pooled together from multiple investors. This allows to achieve diversification with lower investment amounts. With very small amounts, you can buy into a very large Mutual Fund.

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Liquidity

Most Mutual Funds offer daily subscriptions and redemptions, thereby providing easy access to your invested funds.

Wide Range of Solutions

Different investors have different goals. Mutual Funds offer a wide array of strategies that can cater to different investors allowing them to achieve their personal financial goals.

TYPES OF MUTUAL FUNDS

Fixed Income (Bond) Funds A Fixed Income Fund invests primarily in debt instruments such as government bonds or corporate bonds that aim to provide a regular rate of return. Fixed income Funds generally pay a return on a fixed schedule, though the amount of the payments may vary. Investors may consider this type of Fund due to their potential for income generation and capital preservation. Equity Fund An Equity Fund is one that invests primarily in stocks. The objective of an Equity Fund is generally to seek long-term capital appreciation. This type of Funds may focus on certain sectors of the market or may have a specific investment style, such as investing in value or growth stocks. Balanced / Multi-Asset Funds A Multi-Asset Fund generally invests in a mix of Equity and Fixed Income securities. These Funds can offer investors instant diversification across asset classes and a balanced approach to investing. Alternative Funds Alternative Funds offers greater portfolio diversification using sophisticated investment instruments. As these strategies are complex in nature, they are not available to our Retail and Priority customers.

Risks

Knowing the investment risks associated with each investment is important. Before you invest in a Mutual Fund, you will receive a Factsheet and Prospectus which details the risks involved. Some examples (non-exhaustive) are:

? Investment Risk ? As with any investment, your investment value and dividends may go up or down.

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? Foreign Exchange Risk ? You should be aware that your investments can be negatively affected by foreign exchange risk if you hold unit trusts/ Funds that invest in assets denominated in foreign currencies.

Please speak with your Relationship Manager for more information.

INVESTING IN MUTUAL FUNDS THROUGH THE SC MOBILE PLATFORM

Frequently Asked Questions

? How do I start investing in Mutual Funds? To proceed with a Mutual Fund transaction, we require additional information on your financial and investment profile (income, risk appetite, dependents, loans, knowledge, previous experience with Funds etc.) This is referred to as Client Investment Profile (CIP). You can complete your CIP through the SC Mobile or Online Banking platforms:

To do this, Login to SC Mobile > go to menu > click on >"Investing" > select > "Investment Profile" > "Create a new Risk Profile" > complete the questionnaire and submit.

You will then be able to invest through SC Mobile.

? How much do I need to invest in Mutual Funds? The minimum investment amount varies. The lump sum investment will require a minimum investment amount of $1,000. If you wish to invest through a Wealth Builder plan in a consistent manner, you can start with as little as $100 every month.

? How do I choose the right Mutual Fund? Please refer to our suite of Fund offerings: under `Search Fund' or `Top Mutual Fund Picks' on Mobile Mutual Fund landing page via SC Mobile. Invest in Mutual Funds that are suitable to you based on your risk tolerance, investment objective, experience or knowledge. The Client Investment Profile (CIP) helps you to identify these. You should also take the time to read the Factsheet and Prospectus of each Fund. For example, the Fund Factsheet will give you information on Fund objective, risk assessment, historical performances etc.

? Do Mutual Funds pay out dividends to provide me with regular income? Yes. Some Funds have share classes that pay out or distribute regular dividends also known as Income Funds (the dividends are paid into customer's settlement account at on a periodic basis which could be monthly or quarterly) while the Accumulation Share class also known as Growth Fund provides dividend re-invest option (dividends earned are automatically reinvested back into the Fund). The Fund share class is determined by the investment manager and can be reviewed in the Fund Factsheet.

? Where can I access Top Mutual Fund Picks? You can access Top Mutual Fund Picks on Mobile Mutual Funds landing page via SC Mobile App anytime. Top Mutual Fund picks are reviewed and updated on a regular basis.

? What are the Charges applicable? A sales commission is charged for each investment type. Lumpsum subscription fee is 3% (one-off charge) while for the Wealth Builder, the set-up fee is an amount equivalent to one month contribution (one-off charge). Please look out for our promotional rates that may vary from time to time.

? What are the benefits of investing on the SC Mobile platform? The SC Mobile Platform allows placement of instructions to subscribe for or redeem investments in Mutual Funds. It makes it

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easy to invest frequently and access details of existing portfolio without any paperwork. Clients can access informative details of various Funds and view Fund performance comparison as provided by Morningstar (an investment research company).

? What is an Investment Profile? An Investment Profile captures the overall attitude towards investment risks as an investor. The investment profile also provides your risk ratings within the range of 1 to 6, with 1 being risk averse and 6 being very aggressive. We need you to maintain a valid profile to subscribe to Mutual Funds. You may review and update your Investment Profile as it changes through the Online Banking and SC Mobile platforms.

? What is the normal dealing time? While you can place investment orders through the SC Mobile platform at any time, please note that the Bank will process the orders on business days only. We will process orders placed before 3pm; otherwise, it would be processed on the next business day. Please note that if we cannot debit your subscription amount on the transaction date, for example, due to insufficient funds, the subscription will be rejected.

? When will my account be debited after I submit an order? The Bank will only proceed to debit your account for an order after the information provided satisfies all necessary requirements and upon receipt of cleared funds. Your order will be processed, and your account will be debited within 3 business days.

? What type of settlement account can I use for Mutual Fund subscription? You can use any of your domiciliary accounts maintained with the Bank to settle your Mutual Fund subscription. For `settlement' please select your preferred account from the drop-down list found on the subscription page.

? Can I cancel/amend my orders? There is no cancellation or amendment of orders on the SC Mobile platform. Once a subscription order has already been processed, the order will reflect as `complete' and you can view under `My Holdings' on the platform. `Cancellations' will be treated as a redemption. Should you have any query in relation to your order, please speak with your Relationship Manager.

? What are the charges imposed for my cancellation request? We do not impose any fee for cancellation but any difference in the market price incurred between your purchase price and selling price will be borne by you (if applicable).

? How quickly can I get proceeds after I redeem a Fund? Proceeds from sale will be credited within 5 business days after execution.

? What is Net Assets Value (NAV)? It is the price or value of one unit of a Fund.

? Where can I view profits or losses of my portfolio? You can view such information under `My Holdings' page.

? Where can I view the status of my orders ? You can view status of your orders on `My Orders' page with all pending orders reflected under `Order Status'.

Please refer to the various status descriptions you may see under `My Orders'

In progress ? This means your order has been received by the Bank and is pending update in trade status. Settled ? This means your order is successfully accepted by the Bank Rejected ? Order has been rejected. Cancelled ? Order has been cancelled.

? Will I receive any notification after my orders are executed? You will receive the confirmation page after trade submission. Subsequently, you will also receive a confirmation notice when your order is settled. Please ensure that you provide your updated mailing address to ensure that you receive all trade notifications.

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? Will the funds information (Factsheets, Prospectus, Product Highlight Sheet) be provided upon orders execution? No, you can download from the individual `Fund Information' page and keep a copy for your reference

? Will I receive any statements? You will receive monthly consolidated statements which set out your investment holdings with the Bank.

? Can the Call Centre advise me on what Fund is suitable for me? The Call Centre is only able to assist you with questions on the use of the SC Mobile App. They are not able (or permitted) to advise you on the suitability of a Fund.

? I do not currently hold an account with Standard Chartered Bank. Can I still invest? You will need to open a domiciliary account, obtain access to Online Banking and complete your Investment Profile online.

? Can joint account holders invest on the SC Mobile platform? For First-time investors, joint account holders (with either to sign mandate instruction) will be required to use paper application to create a Joint investment account. Thereafter, they can invest on the platform for subsequent transactions.

? Must I have sufficient funds in my investment account prior to placing a subscription Order? You need to have sufficient funds before you can place a subscription order. Please note that investment subscriptions via cash deposits are limited to USD 10,000 (or equivalent in foreign currency) per day. Any transaction exceeding this daily amount will be wholly rejected/reversed (this may result in losses), and any charges incurred may not be refunded.

? What should I do if the SC Mobile platform is down? Please visit the platform later. If you need to place an order urgently, you may speak with your Relationship Manager. For further information please send an email to us at clientcare.ng@ For further enquiries please contact our 24-hour Contact Centre at +234 1 2368657, +234 1 2704611-4. Toll Free number 0800 123 5000. You may also email us at clientcare.ng@.

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