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Risk Factors
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Statutory details :
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Daiwa Mutual Fund has been established as a trust sponsored by Daiwa Asset Management Co. Ltd. (liability restricted to Rs. 1 lakh)
with Daiwa Trustee Company (India) Private Limited (Trustee under the Indian Trusts Act, 1882) as the Trustee and with Daiwa Asset
Management (India) Private Limited as the Investment Manager.
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Risk Factors :
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All mutual funds and securities investments are subject to market risks, and there can be no assurance that the objectives
of the schemes will be achieved and the NAVs of the schemes may go up or down depending upon the factors and forces
affecting the securities market.
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 rates of the securities in which the schemes
invest fluctuate, the value of your investment in the scheme(s) may go up or down. Investors in the schemes are not being
offered any guaranteed or assured returns. Dividend is not guaranteed or assured and will be declared subject to availability
and adequacy of distributable surplus. Past performance
of the Sponsor and its affiliates do not indicate the future performance of the Mutual Fund or any of its schemes.The names of the schemes do not in any manner indicate either the quality of the schemes, their future prospects or returns.
The Sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of Rs.1,00,000/-
made by it towards setting up the Mutual Fund. Please refer to the respective Scheme Information Document (SID) for details on scheme specific
risk factors.
Copies of the SID, Statement of Additional Information (SAI) and Key Information Memorandum along with application forms can be
obtained from any of our offices / website (www.daiwafunds.in)
/ Investor Service Centres / Distributors.
Please read the SAI / SID(s) carefully in their entirety before investing and retain the SAI / SID(s) for future references.
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Daiwa Liquid Fund (an open ended liquid scheme)
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Scheme objectives :
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Daiwa Liquid Fund seeks to generate reasonable returns commensurate with low risk and high liquidity, from a portfolio
constituted of money market instruments and short term debt instruments with a residual maturity of up to 91 days.
However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme
does not assure or guarantee any returns.
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Asset allocation :
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Money Market instruments with maturity of upto 91 days: 80 to 100%; Debt securities* with maturity# of upto 91 days: 0 to 20%.
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# Explanation :
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- In case of securities where the principal is to be repaid in a single payout, the maturity of the securities shall mean residual maturity. In case the principal is to be repaid in more than one payout, then the maturity of the securities shall be calculated on the basis of weighted average maturity of security.
- In case of securities with put and call options (daily or otherwise) the residual maturity of the securities shall not be greater than 91 days.
- In case the maturity of a security falls on a non-business day then settlement of securities will take place on the next business day.
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*Investments in asset backed securities (securitized debt) will not exceed 10% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt.
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If the Scheme decides to invest in Foreign Securities in accordance with SEBI Regulations, it is the intention of the fund manager that such investments will not normally exceed 20% of the net assets of the Scheme
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Daiwa Industry Leaders Fund (an open ended equity scheme)
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Scheme Objectives :
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The Scheme seeks to generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities of companies identified as industry leaders. However, there can be no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.
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Asset allocation :
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Equity and equity related securities of companies identified as industry leaders$ - 65% to 100%; Debt* and money market instruments – upto 35%.
$ Industry leader is defined as a company which, in the opinion of the fund manager, has:
- attained a major market share in India and possesses the potential to maintain or increase its market share in one or more products or services within its principal sector**; or
- been among the companies registering the highest growth rates in sales in the sector** over the last three years; or
- been among the most profitable company in the sector** over the last three years.
** as per the industry classification of the Association of Mutual Funds in India.
*Investment in asset backed securities (securitized debt) will not exceed 10% of the net assets. The Scheme will not invest in foreign securitized debt.
Investments in foreign securities will not exceed 20% and investment in derivatives will not exceed 35% of the net assets of the Scheme.
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Daiwa Treasury Advantage Fund (an open ended income scheme)
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Scheme Objectives :
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The scheme seeks to generate regular income through a judicious mix of portfolio comprising, predominantly of money market instruments and short term debt securities with a residual maturity of up to three years. However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not assure or guarantee any returns.
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Asset allocation :
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Money market instruments with residual maturity of upto 1 year: 60 to 100%; Debt securities including corporate debt, securitised debt* and government securities with residual maturity of upto 3 years: 0 to 40%.
* Investments in securitised debt will not exceed 20% of the net assets of the scheme. The scheme will not invest in foreign securitised debt.
If the scheme decides to invest in foreign securities in accordance with SEBI Regulations, it is the intention of the fund manager that such investments will not normally exceed 20% of the net assets of the scheme.
Investment in debt derivatives instruments will be up to 50% of the net assets of the scheme for the purpose of hedging and portfolio rebalancing.
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Daiwa Government Securities Fund - Short Term Plan (an open ended gilt scheme)
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Scheme classification and investment objectives:
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Daiwa Government Securities Fund - Short Term Plan (an open ended gilt scheme) seeks to generate income and capital appreciation by
investing predominantly in sovereign securities issued by the Central Government (including Treasury Bills) and/or by State
Governments with maximum average portfolio maturity of less than three years. However, there is no assurance that the
investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.
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Asset allocation :
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Dated securities* issued by Central and State Governments: 65 to 100%; Money Market Instruments: 0 to 35%.
* including oil bonds, food bonds, fertilizer bonds, etc. and other such instruments as specified by RBI from time to time.
Investments in the above securities with residual maturity not exceeding 3 years shall not be less than 80% of the net assets of the Scheme and not more than 20% of the net assets of the Scheme shall be invested in securities with residual maturity not exceeding 5 years.
The Scheme shall not invest in asset-backed securities (securitized debt).
Investment in debt derivatives instruments will be up to 50% of the net assets of the Scheme for the purpose of hedging and portfolio rebalancing.
Investment in securities under the Scheme which includes debt securities, money market instruments and the gross investment in derivatives will not exceed 100% of the net assets under the Scheme.
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