Official point of acceptance of transaction (OPAT)

the ofcial point of acceptance of transaction (OPAT) of SBIMF

CONTENTS

Page No.

2 - 4

Scheme Name

Minimum Amount (Rs.)

INFORMATION COMMON TO ALL DEBT/LIQUID SCHEMES

Cheque / D.D. payable to

5 & 6 SCHEME SPECIFIC RISK FACTORS

7

RISK CONTROL

7 - 10 INVESTMENT STRATEGY & COMPARISON WITH THE EXISTING SCHEMES

11

AUM & FOLIO

12

SBI MAGNUM INSTACASH FUND

5000

SBI Magnum Instacash Fund

SBI Magnum Instacash Fund - Liquid Floater (For SMICF-Liquid Floater)

13

SBI PREMIER LIQUID FUND

50000

SBI Premier Liquid Fund

13 -14 SBI MAGNUM INCOME FUND

5000

SBI Magnum Income Fund

14

SBI MAGNUM GILT FUND

5000

SBI Magnum Gilt Fund- LTP

5000

SBI Magnum Gilt Fund - STP

15

SBI MAGNUM MONTHLY INCOME PLAN

5000

SBI Magnum Monthly Income Plan

15 - 16 SBI MAGNUM CHILDREN'S BENEFIT PLAN

5000

SBI Magnum Children's Benefit Plan

16- 17 SBI REGULAR SAVINGS FUND

5000

SBI Regular Savings Fund

17 - 18 SBI DYNAMIC BOND FUND

5000

SBI Dynamic Bond Fund

18 - 19 SBI MAGNUM MONTHLY INCOME PLAN -

5000

FLOATER

SBI Magnum Monthly Income Plan - Floater

19

SBI ULTRA SHORT TERM DEBT FUND

5000

SBI Ultra Short Term Debt Fund

20

SBI SHORT TERM DEBT FUND

5000

SBI Short Short Term Debt Fund

20 - 21 SBI EDGE FUND

5000

SBI Edge Fund

21

SBI TREASURY ADVANTAGE FUND

5000

SBI Treasury Advantage Fund

22

SBI BENCHMARK GSEC FUND

5000

SBI Benchmark Gsec Fund

22 - 23 SBI CORPORATE BOND FUND

5000

SBI Corporate Bond Fund

23

SBI INFLATION INDEXED BOND FUND

5000

SBI Inflation Indexed Bond Fund

24

SBI SAVINGS FUND

5000

SBI Savings Fund

25

SBI DYNAMIC ASSET ALLOCATION FUND

5000

SBI Dynamic Asset Allocation Fund

26 - 33 GENERAL INFORMATION AND GUIDELINES (NOTES)

34 - 45 APPLICATION FORMS

46 - 53 ANNEXURE I - DECLARATION OF ULTIMATE BENEFICIAL OWNERSHIP [UBO] & FATCA

54

ANNEXURE II - ADDITIONAL KYC-FATCA FORM FOR INDIVIDUALS

56

ANNEXURE III - ADDITIONAL KYC-FATCA FORM FOR POWER OF ATTORNEY [POA] HOLDER(S)

58

SIP ECS/DIRECT DEBT FACILITY FORM

60

TRIGGER APPLICATION FORM

62

TRANSACTION SLIP

1

INVESTMENT MANAGER : SBI FUNDS MANAGEMENT PRIVATE LIMITED (A Joint Venture between SBI & AMUNDI)

INFORMATION COMMON TO ALL DEBT & LIQUID SCHEMES

Name of Trustees Company: SBI Mutual Fund Trustee Company Private Limited Dividend Policy: The Trustee reserves the right to declare dividends under the dividend option of the Scheme depending on the net distributable surplus available under the Scheme. The procedure and manner of payment of dividend shall be in line with SEBI circular / guidelines no. SEBI / IMD / CIR No. 1 / 64057 / 06 dated April 04, 2006 and SEBI / IMD / CIR No. 3 / 65370 / 06 dated April 21, 2006 as amended from time to time. Applicable NAV : For Equity & Debt schemes For sale of Magnums/Units : For subscription of below Rs. 2 lakh - In respect of valid applications received upto 3 p.m. by the Mutual Fund at any of the OPAT alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund at any of the OPAT alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable. For subscription of Rs. 2 lakh & above: In respect of purchase of units of the scheme, the closing NAV of the day on which the funds are available for utilization shall be applicable, provided the funds are realised up to 3.00 p.m. on a business day, subject to the transaction being time stamped appropriately. Note In case where more than one application is received for purchase/subscription/switch-in in a debt scheme (irrespective of the plan/option/sub-option) of the Fund for an aggregate investment amount equal to or more than Rs.2 lakh on any business day, then such applications shall be aggregated at Permanent Account Number (PAN) level of the first holder. Such aggregation shall be done irrespective of the number of folios under which the investor is investing and irrespective of source of funds, mode, location and time of application and payment.

ii) Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank account of the respective switch-in schemes before the cutoff time.

iii) The funds are available for utilization before the cut-off time, by the respective switchin schemes

For Repurchase including Switchout of Magnums/Units :

For Equity & Debt schemes: In respect of valid applications received upto 3 p.m. by the Mutual Fund at any of the OPAT, same day's closing NAV shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund at any of the OPAT, the closing NAV of the next business day shall be applicable.

For liquid schemes: In respect of valid applications received upto 3 p.m. by the Mutual Fund at any of the OPAT, the closing NAV of the day immediately preceding the next business day shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund at any of the OPAT, the closing NAV of the next business day shall be applicable.

Despatch of Repurchase request : Within 10 working days of the receipt of the redemption request at the authorized centers of SBI Mutual Fund.

Entry Load : In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.

Daily Net Asset Value (NAV) Publication: The NAV for debt scheme will be declared on all business days and NAV for liquid scheme will be declared on all calender days and will be published in 2 newspapers. NAV will be uploaded on and . by 9.00 pm

Recurring expenses :

Accordingly, the applicable NAV for such investments shall be the day on which the clear funds are available for utilization before the cut off time. In case the funds are received on separate days and are available for utilization on different business days before the cut off time, the applicable NAV shall be of the Business day/s on which the cleared funds are available for utilization for the respective application amount. For Liquid schemes For Sale of units i) Where the application is received upto 2.00 p.m. on a day and funds for the entire

amount of subscription/purchase as per the application are credited to the bank account of the respective liquid schemes before the cut-off time i.e. available for utilization before the cut-off time ? the closing NAV of the day immediately preceding the day of receipt of application shall be applicable; ii) Where the application is received after 2.00 p.m. on a day and funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the respective liquid schemes on the same day i.e. available for utilization on the same day? the closing NAV of the day immediately preceding the next business day shall be applicable; iii) Irrespective of the time of receipt of application, where the funds for the entire amount of subscription/purchase as per the application are not credited to the bank account for the respective liquid schemes before the cut-off time i.e. not available for utilization before the cut-off time ? the closing NAV of the day immediately preceding the day on which the funds are available for utilization shall be applicable. For allotment of units in respect of Switch ? in to Liquid Schemes from other schemes: It is necessary that: i) Application for switch-in is received before the applicable cut-off time.

For SBI EDGE Fund: SBI EDGE Fund invests in following categories - Equity, Debt & Money market instruments, Equity ETF and Gold ETF. Category wise expenses charged to the scheme shall be as follows: Equity ? 2.50%, Debt & Money market instruments ? 2.25%, Equity ETF & Gold ETF ? 1.50% (including expenses of the underlying scheme). Total overall expenses of the scheme shall be capped at 2.25%. No management fee shall be charged on the investments made in Equity ETF & Gold ETF. Investment in the various categories will follow the slab-wise limits as applicable for the respective category under regulation 52 of SEBI (Mutual Fund) Regulation 1996.

For other funds: The AMC has estimated that upto 2.25% (plus expenses allowed under regulation 52 (6A) (C) of the daily net assets will be charged to the schemes). The maximum annual recurring expenses that can be charged to the Scheme, excluding issue or redemption expenses, whether initially borne by the mutual fund or by the asset management company, but including the investment management and advisory fee shall be within the limits stated in Regulations 52 read with SEBI circular no. CIR/IMD/DF/21/2012 dated September 13, 2012. The AMC may charge the investment and advisory fees within the limits of total expenses prescribed under Regulation 52 of the SEBI (Mutual Funds) Regulations.

These estimates have been made in good faith as per the information available to the Investment Manager based on past experience and are subject to change inter-se. Types of expenses charged shall be as per the SEBI (MF) Regulations. However, as per regulation 52 of SEBI (MF) Regulations, following maximum limits of recurring expenses are applicable to the scheme:

Slab Rates

As a % of daily net assets as per Regulation 52 (6) (c)

On the first Rs.100 Crores

2.25%

On the next Rs.300 Crores

2.00%

On the next Rs.300 Crores

1.75%

On the balance of the assets

1.50%

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Key Information Memorandum

The schemes (including SBI EDGE Fund) may charge additional expenses incurred towards different heads mentioned under regulations (2) and (4), not exceeding 0.20% of the daily net assets.

In In addition to expenses as permissible under Regulation 52 (6), the AMC may charge the following to the concerned scheme (including SBI EDGE Fund) of the Fund under Regulation 52 (6A):

The service tax on investment management and advisory fees would be charged in addition to above limit.

Brokerage and transaction costs which are incurred for the purpose of execution of trade and is included in the cost of investment, not exceeding 0.12 per cent in case of cash market transactions and 0.05 percent for derivative market trades. Further, In terms of SEBI circular CIR/IMD/DF/24/2012 dated November 19, 2012, It is clarified that the brokerage and transaction cost incurred for the purpose of execution of trade may be capitalized to the extent of 12bps and 5bps for cash market transactions and derivatives transactions respectively. Any payment towards brokerage and transaction cost, over and above the said 12 bps and 5bps 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. Service tax on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under regulation 52 of the Regulations. Any expenditure in excess of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the AMC or by the trustee or sponsors.

In terms of Regulation 52 (6A) (b), expenses not exceeding of 0.30 per cent of daily net assets will be charged, if the new inflows from such cities as specified from time to time are at least ?

(i) 30 percent of gross new inflows in the scheme, or;

(ii) 15 percent of the average assets under management (year to date) of the scheme, whichever is higher:

Provided that if inflows from such cities is less than the higher of sub-clause (i) or subclause (ii), such expenses on daily net assets of the scheme shall be charged on proportionate basis:

Provided further that expenses charged under this clause shall be utilised for distribution expenses incurred for bringing inflows from such cities:

Provided further that amount incurred as expense on account of inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period

of one year from the date of investment.

Direct Plan Expenses: Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc, and no commission shall be paid from Direct plans as compared to Regular plans. Both the plans viz. Direct & Regular shall have common portfolio.

Investor Education and Awareness Expenses: For investor education and awareness initiative, the AMC or the Schemes of the Fund will annually set apart at least 0.02 percent of daily net asset of the Schemes of the Fund within the maximum limit of the total expense ratio as per SEBI Regulation.

The Mutual Fund would update the current expense ratios on its website within two working days mentioning the effective date of the change.

Any expenditure in excess of the limits specified in the SEBI Regulations shall be borne by the AMC.

Tax treatment for the Investors :As per the taxation laws in force as at the date of the Document, and as per the provisions contained in the Finance Act, 2014 there are certain tax benefits that are available to the investors and the mutual fund. The same are stated hereinunder:-

It may however be noted that the tax benefits described in this document are as available under the present taxation laws and are available subject to fulfillment of stipulated conditions. The information given is included only for general purpose, regarding the law and practice currently in force in India and the Investors should be aware that the relevant fiscal rules or their interpretation may change. In view of the individual nature of tax implication, each investor is advised to consult his/her own professional tax advisor to understand the tax implications in respect of his investment decision.

FOR UNIT HOLDERS:

1. Tax on income in respect of units : As per the provisions of Section 10(35) of the Act, income received in respect of units of a mutual fund specified under Section 10(23D) of the Act is exempt from income tax in the hands of the recipient unit holders.

2. Capital Gains : As per section 2(29A) read with section 2(42A) of the Act, units of the scheme held as a capital asset, for a period of more than 12 months in case of an equity fund & for a period of more than 36 months in case of a non-equity fund, immediately preceding the date of transfer, will be treated as long-term capital assets for the computation of capital gains; in all other cases, they would be treated as shortterm capital assets.

Tax Rates under the Income Tax Act for Capital Gains

Tax Rates* under the Act

Resident Individual / HUF / NRI's

Short Term

Units of a non equity oriented fund

Taxable at normal rates of tax applicable to the assessee

Units of an equity oriented fund

15% on redemption of units where STT is payable on redemption (u/s 111A)

Long Term Capital Gain

Units of a non equity oriented fund Units of an equity oriented fund

20% with indexation (u/s 112) Exemption in case of redemption of units where STT is payable on redemption [u/s 10(38)]

* Plus Applicable surcharge and education cess as per Income Tax Act.

3. Capital Losses: The capital losses resulting from the sale of units would be available for setting off against capital gains which would reduce the tax liability of the unit holder to that extent. However the losses on transfer of long term capital assets shall be carried forward separately for a period of eight assessment years to be set off against long term capital gains only.

Unabsorbed short term capital losses shall be carried forward and set off against the income under the head `Capital Gain' (whether short term or long term) in any of the subsequent eight assessment years.

However, no set-off or carry forward can be claimed in respect of capital loss arising on sale of a long term capital asset to which section 10(38) of the Act applies.

4. Dividend Stripping: As per section 94 (7) of the Act, as in computing the income of an assessee, loss arising on sale of units, which have been bought within 3 months prior to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of the unit holders to receive the income) and sold within 9 months of the record date, shall be ignored to the extent of income on such units (such income being tax exempt).

5. Bonus Stripping: As per section 94(8) of the Act, the loss arising on sale of original units (wholly or partly), which were bought within a period of 3 months prior to the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of bonus units to the unit holders) and sold within 9 months of the record date, shall be ignored for the purpose of computation of income chargeable to tax. However, such loss shall be considered as the cost of acquisition of the `bonus shares' of the unit holders.

6. Exemption under Section 54EC: The long term capital gain (other than units exempt from long term capital gain tax under section 10(38) of the Act) would not be subject to tax in terms of Section 54EC of the Act, if the entire capital gain realized in respect of such units (other than of equity oriented mutual fund) is invested within six months from the date of transfer in the redeemable bonds issued by the specified undertakings.

3

7. Investments by charitable and religious trusts : Units of a Mutual fund Scheme referred to in section 10(23D) constitutes an eligible avenue for investment by charitable or religious trusts per rule 17C of the Income Tax Rules, 1962, read with section 11(5)(xii) of the Act.

8. Wealth Tax: Units in a scheme a Mutual Fund are not regarded as an `asset' within the meaning of section 2(ea) of the Wealth Tax Act, 1957 and are, therefore, not liable to wealth - tax.

9. Gift Tax : The Gift Tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units purchased under a plan, would therefore, be exempt from gift tax. Where, however, a gift of units in a mutual fund scheme exceeding Rs. 50,000/ - is made on after 01.10.09, the value is to be included as income in the hands of donee (recipient of the gift) under section 2(24)(xiii) read with section 56(2)(vii) subject to exceptions. This is applicable in case of individuals and HUFs only.

Note: For detailed disclosure of tax treatment of SBI Dynamic Asset Allocation Fund, please refer to SID of the Scheme.

FOR THE FUND:

1. Registered with SEBI : SBI Mutual Fund is registered with SEBI and is as such eligible for benefits under section 10(23D) of the Act. Accordingly its entire income is exempt from tax.

2. Dividend Distribution Tax:

Equity Funds: Nil

Debt Funds:

To resident individual/HUF/NRI ? 25%

To others - 30%

Liquid Funds:

To resident individual/HUF/NRI ? 25%.

To others - 30%

(plus applicable surcharge & cess)

3. No TDS on receipt of income: The Fund will receive all its income without deduction of tax as per provisions of section 196 (iv) of the Income tax Act, 1961.

4. Service tax: AMC / Mutual Funds are covered under the category of "Business Auxilliary Services" and are liable for paying service tax as service recipients on services provided by distributors of mutual fund /agents. The rate of service tax is 12.36% (inclusive of education cess of 3%)

Unit holders' Information

Pursuant to Regulation 36 of the SEBI Regulation, the following shall be applicable with respect to account statement:

The asset management company shall ensure that consolidated account statement for each calendar month is issued, on or before tenth day of succeeding month, detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds, to all the investors in whose folios transaction has taken place during that month:

Provided that the asset management company shall ensure that a consolidated account statement every half yearly (September/ March) is issued, on or before tenth day of succeeding month, detailing holding at the end of the six month, across all schemes of

all mutual funds, to all such investors in whose folios no transaction has taken place during that period:

Provided further that the asset management company shall identify common investor across fund houses by their permanent account number for the purposes of sending consolidated account statement.

Before the expiry of one month from the close of each half-year i.e. on 31st March and on 30th Sept., the fund shall publish the scheme portfolio in the prescribed formats in one national English daily newspaper and in a newspaper in the language of the region where the head office of the fund is situated. These shall also be displayed on the website of the mutual fund and AMFI.

Further, before expiry of one month from the close of each half year i.e. on March 31 or September 30, the Fund shall host a soft copy of half ? yearly unaudited financial results on the website of the Fund i.e. and that of AMFI amfiindia. com. A notice advertisement communicating the investors that the financial results shall be hosted on the website shall be published in one national English daily newspaper and in a newspaper in the language of the region where the Head Office of the fund is situated.

MONTHLY DISCLOSURE OF SCHEMES' PORTFOLIO STATEMENT

The fund shall disclose the scheme's portfolio in the prescribed format as on the last day of the month for all the Schemes of SBI Mutual Fund on or before 10th day of the succeeding month.

ANNUAL REPORT

Scheme wise Annual Report or an abridged summary thereof shall be mailed to all unitholders within four months from the date of closure of the relevant accounts year i.e. 31st March every year.

FOR INVESTOR GRIEVANCE PLEASE CONTACT

Name & Address of Registrar: Computer Age Management Services Pvt. Ltd.,

(SEBI Registration No. : INR000002813) Rayala Towers, 158, Anna Salai Chennai ? 600 002 Tel: 044 ? 30407236 Fax: 044 ? 30407101 Email: enq_L@ Website:

SBI MUTUAL FUND

Mr. C A Santosh (Head ? Customer Service) SBI Funds Management Pvt. Ltd. 9th Floor, Crescenzo, C-38 & 39, G Block, Bandra Kurla Complex, Bandra (East), Mumbai ? 400 051

Tel: 022- 61793511 Email: customer.delight@

Website:

FOR FURTHER DETAILS ON THE SCHEMES, INVESTORS ARE ADVISED TO REFER TO

THE SCHEME INFORMATION DOCUMENT

Date : April 30, 2015

4

Key Information Memorandum

SCHEME SPECIFIC RISK FACTORS

Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on risk factors before investment. Scheme specific risk factors are summarized below:

SBI MAGNUM INSTACASH FUND

SBI Magnum InstaCash Fund invests in debt instruments (including Securitized debt), Government Securities and money market instruments (such as repos, reverse repos and any alternative to the call money market as may be directed by the RBI). Trading volumes and settlement periods inherently restricts the liquidity of the scheme's investments.

SBI PREMIER LIQUID FUND

SBI Premier Liquid Fund invests in debt instruments (including Securitized debt), Government Securities and money market instruments (such as repos, reverse repos and any alternative to the call money market as may be directed by the RBI). Trading volumes and settlement periods inherently restricts the liquidity of the scheme's investments.

SBI MAGNUM INCOME FUND

SBI Magnum Income Fund will be investing in debt instruments (including securitized debt), Government Securities and money market instruments (such as term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI). The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

SBI MAGNUM GILT FUND

a. SBI Magnum Gilt Fund is prone to interest rate risks like any other debt instruments. Changes in interest rates will affect the scheme's Net Asset Value as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise.

b. SBI Magnum Gilt Fund will be investing in Government Securities only with the exception of investments in call money market, term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI.

SBI MAGNUM MONTHLY INCOME PLAN (An open ended debt scheme.

Monthly Income is not assured and is subject to availability of distributable surplus)

a. SBI Magnum Monthly Income Plan will be investing in debt instruments (including securitized debt), Government Securities and money market instruments (such as term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI) as also equity & equity related instruments. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

b. The Mutual Fund is not assuring that it will make monthly or quarterly or annual dividend distributions. All dividend distributions are subject to the availability of distributable surplus.

SBI MAGNUM CHILDREN'S BENEFIT PLAN

a. The Scheme has two options for premature repurchases. Premature repurchase in cases of donor investing through parents where the lock-in facility has been exercised, will be permitted only on a joint request from both the donor & the parent/legal guardian. Repurchase without the lock in will be permitted on a request from parent/legal guardian. The other terms and conditions for repurchases are same under both options as detailed in the section on redemption and repurchases.

a. SBI Magnum Children's Benefit Plan will be investing in debt instruments (including securitized debt), Government Securities and money market instruments (such term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI) as also equity & equity related instruments. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

SBI REGULAR SAVINGS FUND

SBI Regular Savings Fund will be investing in debt instruments (including Securitized debt), Government Securities and money market instruments (such as term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI) as also equity & equity related instruments. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement In view of the same; the Trustees have the right in their sole discretion to limit redemptions (including suspending redemptions) under certain circumstances periods. 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.

SBI DYNAMIC BOND FUND

SBI Dynamic Bond Fund would be investing debt Instruments (including Securitized debt), Government Securities and Corporate Debt including Money Market Instruments. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

SBI MAGNUM MONTHLY INCOME PLAN - FLOATER (An open ended

debt scheme. Monthly Income is not assured and is subject to availability of distributable surplus)

a. MMIP - Floater would be investing in debt and money market instruments (such as call money market, term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI) as also in equity & equity related instruments. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption requests, or of a restructuring of the scheme's investment portfolio, these

5

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. b. Different types of securities in which the scheme would invest as given in the SID carry different levels of risk. Accordingly the scheme's risk may increase or decrease depending upon the investment pattern. For e.g. corporate bonds carry a higher amount of risk than Government Securities. Further even among corporate bonds, bonds, which are AAA rated, are comparatively less risk than bonds, which are AA rated.

SBI ULTRA SHORT TERM DEBT FUND

SBI Ultra Short Debt Fund will be investing in debt instruments, Government Securities, securitized debt, debt derivatives and money market instruments. Trading volumes and settlement periods inherently restrict the liquidity of the scheme's investments. In the event of a restructuring of the scheme's investment portfolio, these periods may become significant.

SBI SHORT TERM DEBT FUND

SBI Short Term Debt Fund will be investing in debt instruments, Government Securities, securitized debt, debt derivatives and money market instruments. Trading volumes and settlement periods inherently restrict the liquidity of the scheme's investments. In the event of a restructuring of the scheme's investment portfolio, these periods may become significant.

SBI EDGE FUND

SBI EDGE Fund would be investing in equity & equity related instruments, gold ETF, debt and money market instruments such as CBLO or as defined by SEBI regulations, term/notice money market, repos, reverse repos and any alternative to the call money market as may be directed by the RBI). The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

SBI TREASURY ADVANTAGE FUND

The scheme carries risks associated with investing in debt securities, money market instruments, securitized debt, derivatives, Foreign Securities, short selling and securities lending.

SBI BENCHMARK GSEC FUND

The Scheme carries risks associated with investing in only government securities. The performance of the Scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems, etc.

SBI CORPORATE BOND FUND

The scheme carries risks associated with investing in corporate debt securities, money market instruments, securitized debt, derivatives and securities lending.

SBI INFLATION INDEXED BOND FUND

The scheme carries risks associated with investing in inflation indexed securities, debt & money market instruments, securitized debt and derivatives.

SBI SAVINGS FUND

The scheme carries risks associated with investing in floating & fixed rate debt securities, money market instruments, securitized debt, derivatives and foreign securities.

SBI DYNAMIC ASSET ALLOCATION FUND

SBI Dynamic Asset Allocation Fund will be investing in Equity and equity related securities including derivatives, foreign securities, debt, money market instruments /Units of debt & liquid mutual funds. The liquidity of the scheme's investments is inherently restricted by trading volumes and settlement periods. 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.

For detailed risk factors, investors are requested to refer Scheme Information Document of the respective schemes.

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Key Information Memorandum

RISK CONTROL

Risk Management is a separate division within the organization headed by the Chief Risk Officer, who reports to the CEO. The risk management team provides the risk tools, aggregation and analysis of risk information and independent inputs and analyses to the CEO. The Board of SBI Funds Management (P) Ltd. has constituted a Risk Management Committee of the Board comprising three directors including the Managing Director and two independent directors. Broadly the role of the Committee is as follows: Review the effectiveness of overall risk management framework in meeting sound corporate governance principles Review on a regular basis the risk management policies ; Review on a regular basis the risk management process; Evaluate, on a regular basis, the effectiveness and prudence of senior management in managing the operations and the risks to which the company is exposed; Review risk reporting on significant risks, including the amount, nature, characteristics, concentration and quality of the assets Review exception reporting In addition, an Executive Committee on Risk comprising the CEO, Deputy CEO and function heads, is in place for risk reporting and governance. In addition to regulatory limits and SID limits, internal limits are defined as per the framework given in the Investment Policy and judiciously monitored. Any significant deviations are immediately flagged off to the Investment team for corrective action and are reported to the RMCB. Risk indicators on portfolio risk are computed and are monitored on a regular basis. As stipulated by SEBI, an independent review of the risk management systems is conducted by the concurrent auditors, to check on the adequacy of risk management systems. The observations of the auditors are placed before the Board of Directors of the AMC as well as Trustee Company.

INVESTMENT STRATEGY & COMPARISON WITH THE EXISTING SCHEMES

SBI MAGNUM INSTACASH FUND This is a liquid category scheme. The investment strategy would be oriented towards providing high degree of liquidity while seeking to maintain stable returns. The scheme would invest in debt and money market instruments having a residual maturity not exceeding 91 days. SBI MAGNUM INSTACASH FUND - LIQUID FLOATER Fund will invest their entire corpus in debt (Corporate debentures & bonds, PSU/FI/Govt. guaranteed bonds), Govt. securities, and money market instruments (commercial paper, certificates of deposit, T-bills, bills rediscounting, repos, short-term bank deposits etc). Fund will try to mitigate interest rate risk and generate opportunities for regular income through a portfolio investing predominantly in floating rate securities and money market instruments. The scheme would invest in debt instruments having a residual maturity not exceeding 91 days. Investments under the fund in floating rate securities and money market instruments would constitute at least 65% of the total investments. SBI PREMIER LIQUID FUND The investment strategy is to invest the monies in Cash and alternate to Call Money Market instrument, Corporate debenture and Bonds /PSU, FI Government guaranteed Bonds, Government Securities including Securitized Debt, International bonds and Derivative instruments to provide attractive returns to the Magnum/Unit holders either through periodic dividends or through capital appreciation through an actively managed portfolio of debt and money market instrument. The scheme would invest in debt and money market instruments having a residual maturity not exceeding 91 days. SBI MAGNUM INCOME FUND The objective of the scheme is to provide the investors an opportunity to earn, in accordance with their requirements, through capital gains or through regular dividends, returns that would be higher than the returns offered by comparable investment avenues through investment in debt & money market securities. Accordingly, based on a continuous evaluation of macro-economic factors, market dynamics and debt-issuer specific factors, investments are carried out under this scheme. SBI MAGNUM GILT FUND To provide the investors with returns generated through investments in government securities issued by the Central Government and / or a State Government. A portfolio invested in securities issued by Government of India (G-Secs) or the state government securities is normally associated with an investment strategy in the debt markets that is free of credit risk (i.e. the risk of default by the issuer). The scheme may also invest in the term / notice money market (or in any alternative investment to the call market as may be directed by RBI), repos and reverse repos in order to meet the liquidity requirements of the scheme or on defensive considerations. Income may be generated through the receipt of the coupon payments, the amortisation of the discount on debt instruments or the purchase and sale of securities in the underlying portfolio. To ensure total safety of the Magnumholder's Funds, the scheme will not invest in any other securities such as shares or corporate debentures. The Fund will seek to underwrite issuance of Government Securities if and to the extent permitted by SEBI / RBI and subject to the prevailing rules and regulations specified in this respect and may also participate in their auction from time to time. The scheme offers investors two separate investment plans (i.e. Short-Term Plan and Long-Term Plan) representing investments made and held in two separate investment portfolios. The portfolios of the two Plans may differ in the allocation to a particular asset class and in the average portfolio-maturity. Under the Short-Term

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