SCHEME INFORMATION DOCUMENT

Motilal Oswal MOSt Focused 25 Fund

(An open ended equity scheme)

This product is suitable for investors who are seeking*

• return by investing in upto 25 companies with long term sustainable competitive
advantage and growth potential
• investment in Equity and equity related instruments subject to overall limit of 25
companies
• High risk (BROWN)
*Investors should consult their financial advisers if in doubt about whether the product is
suitable for them.

Note: Risk is represented as:

(BLUE) investors (YELLOW) investors (BROWN) investors
understand that their understand that their understand that their
principal will be at low principal will be at medium principal will be at
risk risk high risk

Continuous Offer of Units at NAV based prices

Name of Mutual Fund Motilal Oswal Mutual Fund

Name of Asset Management Company Motilal Oswal Asset Management Company
(AMC) Limited
Name of Trustee Company Motilal Oswal Trustee Company Limited
Address Palm Spring Centre, 2nd Floor, Palm Court
Complex, New Link Road, Malad(W), Mumbai
– 400064
Website [Link]/assetmanagement
[Link]

The particulars of the Scheme have been prepared in accordance with the Securities
and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after 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 (SID).

The 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

1
further changes to this SID 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 Motilal Oswal Mutual Fund, Tax and Legal issues and general information on
[Link]/assetmanagement and [Link]

SAI is incorporated by reference (is legally a part of the SID). For a free copy of the
current SAI, please contact your nearest Investor Service Centre or log on to our
website.

The SID should be read in conjunction with the SAI and not in isolation.

This SID is dated January 27, 2014.

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TABLE OF CONTENTS PAGE NO
Highlights / Summary of the Scheme 4
I. Introduction
A. Risk Factors 7
B. Requirement of Minimum Investors in the Scheme 10
C. Special Considerations 10
D. Definitions 12
E. Due Diligence by the Asset Management Company 16
II. Information about the Scheme
A. Type of the Scheme 17
B. Investment Objective 17
C. Asset Allocation 17
D. Investment by the Scheme 18
E. Investment Strategy 23
F. Fundamental Attributes 26
G. Benchmark Index 26
H. Fund Manager 27
I. Investment Restrictions 28
J. Scheme Performance 30
III. Units and Offer
A. New Fund Offer (NFO) 30
B. Ongoing Offer Details 38
C. Periodic Disclosures 50
D. Computation of NAV 52
IV. Fees and Expenses
A. New Fund Offer (NFO) Expenses 52
B. Annual Scheme Recurring Expenses 53
C. Load Structure 55
D. Waiver of Load 56
E. Transaction charge 56
V. Rights of Unitholders 57
VI. Penalties, Pending Litigation or Proceedings, Findings of Inspections 57
or Investigations for which action may have been taken or is in the Process
of being taken by any Regulatory Authority

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HIGHLIGHTS/SUMMARY OF THE SCHEME

Name of the Scheme Motilal Oswal MOSt Focused 25 Fund

Type of the Scheme An open ended equity scheme

Investment Objective The investment objective of the Scheme is to achieve long term
capital appreciation by investing in upto 25 companies with long
term sustainable competitive advantage and growth potential.

However, there can be no assurance or guarantee that the

investment objective of the Scheme would be achieved.
Investment Pattern Indicative allocations Risk Profile
Instruments (% of total assets)
Minimum Maximum High/Medium/
Low
Equity and equity related
instruments* selected from
Top 100 listed companies 65 100 High
by market capitalization
Equity and equity related
instruments* of the next 50
0 25 High
companies by market
capitalization
Debt, Money Market
Instruments, G-Sec, Bonds,
0 10 Low
Cash and Cash
Equivalents, etc.
*subject to overall limit of 25 companies

Liquidity The Scheme is open for Subscription and Redemption of Units on

every Business Day on an ongoing basis. As per SEBI Regulations,
the Mutual Fund shall despatch redemption proceeds within 10
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 10 Business Days of the date of
receipt of a valid redemption request.
Benchmark CNX Nifty Index
Transparency/NAV The AMC will calculate and disclose the NAV of the Scheme on all
Disclosure business days. The NAV of the Scheme shall be published at least
in two daily newspapers. The AMC will update the NAVs on its
website [Link]/assetmanagement and
[Link] and also on AMFI website
[Link] before 9.00 p.m. on every business day. If the
NAV is not available before the 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
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 would be able to publish the NAV.

The AMC shall disclose the Portfolio of the Scheme within one
month from the close of each half year (i.e. 31st March and 30th
September) either by sending a complete statement to all the
Unitholders or by publishing the same by way of advertisement in
one national 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. The portfolio
statement will also be displayed on the website of the AMC and
AMFI.

Further, the AMC shall also disclose the portfolio of the Scheme as
on the last day of the month on AMC’s website
([Link] and
[Link]/assetmanagement) on or before the tenth
day of the succeeding month. The Investors will be able to view and
download this monthly portfolio from the AMC’s website.

The AMC shall also make available the Annual Report of the
Scheme within four months of the end of the financial year.

Loads Entry Load: Nil

Exit Load: Nil

For details on load structure, please refer to Section on Load

Structure in this Document.

Plans The Scheme has two Plans:

(i) Regular Plan and
(ii) Direct Plan

Each Plan offers the following Options:

(a) Growth Option
(b) Dividend Option (with Payout and Re-investment facility)

Direct Plan is only for investors who purchase /subscribe Units in a

Scheme directly with the Fund and is not routed through an AMFI
Registration Number (ARN) Holder
Default Plan/Option Investors subscribing Units under Direct Plan of a Scheme should
indicate “Direct Plan” against the Scheme name in the application
form. Investors should also mention “Direct” in the ARN column of
the application form. However, in case Distributor code is
mentioned in the application form but “Direct Plan” is mentioned
against the Scheme name, then the Distributor code will be ignored
and the application will be processed under Direct Plan. Further,
where application is received without mentioning Distributor code
or where “Direct” is mentioned in the ARN Column, then the
application will be processed under Direct Plan.
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 If the investor does not clearly specify the choice of option at the
time of investing, it will be deemed that the investor has opted for
Growth option and in case he does not specify payout/re-investment
under Dividend option, it will be deemed to be dividend re-
investment.
Options (Under each Dividend (Payout and Reinvestment) and Growth
plan)
Dividend Option-
Under this Option, the Trustee reserves the right to declare dividend
under the Scheme depending on the net distributable surplus
available under the Option. It should, however, be noted that actual
declaration of dividends and the frequency of distribution will
depend, inter-alia, on the availability of distributable surplus and
will be entirely at the discretion of the Trustees or any Committee
authorised by them.

Growth Option-
All Income earned and realized profit in respect of a unit issued
under that will continue to remain invested until repurchase and
shall be deemed to have remained invested in the option itself which
will be reflected in the NAV.

The AMC reserves the right to introduce further Plans / Options as

and when deemed fit.
Minimum Minimum Application Amount:
Application Amount Rs. 5,000/- and in multiples of Re. 1/- thereafter.
(On an ongoing
basis) Additional Application Amount:
Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Systematic Investment Plan (SIP):

Minimum installment amount - Rs. 1,000/-
(weekly/fortnightly/monthly frequency) and Rs. 2,000/- (quarterly
frequency) and in multiples of Re. 1/- thereafter. The dates for the
Auto Debit Facility shall be on the 1st, 7th, 14th, 21st and 28th of
every month. In case, the date fixed happens to be a holiday / non-
business day, the same shall be affected on the next business day.
No Post Dated cheques would be accepted for SIP.
Minimum Minimum of Rs. 1,000 and in multiples of Re. 1/- thereafter or total
Redemption Amount investment amount, whichever is lower.

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I. INTRODUCTION

A. 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 may go up or down depending on various
factors and forces affecting the capital market/debt market.
• Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme.
• The name of the Scheme does not in any manner indicate either the quality of the Scheme
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. 100,000 made by it towards setting up the
Fund.
• The present Scheme is not a guaranteed or assured return Scheme.

Scheme Specific Risk Factors

The Scheme is subject to the principal risks described below. Some or all of these risks may
adversely affect Scheme’s NAV, yield, return and/or its ability to meet its objectives.

• Market Risk
The Scheme’s NAV will react to stock market movements .The Investor may lose money
over short or long period due to fluctuation in Scheme’s NAV in response to factors such
as performance of companies whose stock comprises the underlying portfolio, economic
and political developments, changes in interest rates, inflation and other monetary factors
and movement in prices of underlining investments.

• Risks associated with investing in Equities

Equity and Equity related instruments on account of its volatile nature are subject to price
fluctuations on daily basis. The volatility in the value of the equity and equity related
instruments is due to various micro and macro economic factors affecting the securities
markets. This may have adverse impact on individual securities /sector and consequently
on the NAV of Scheme. The inability of the Scheme to make intended securities
purchases due to settlement problems could cause the Scheme to miss certain investment
opportunities as in certain cases, settlement periods may be extended significantly by
unforeseen circumstances. Similarly, the inability to sell securities held in the schemes
portfolio may result, at times, in potential losses to the scheme, should there be a
subsequently decline in the value of the securities held in the schemes portfolio. Trading
volumes, settlement periods and transfer procedures may restrict the liquidity of the
investments. This may impact the ability of the unit holders to redeem their units. In view
of this, the Trustee has the right, in its sole discretion to limit redemptions (including
suspending redemptions) under certain circumstances. The Scheme may find itself
invested in unlisted securities due to external events or corporate actions. This may
increase the risk of the portfolio as these unlisted securities are inherently illiquid in

7
 nature and carry larger liquidity risk as compared to the listed securities or those that offer
other exit options to the investors. Investments in equity and equity related securities
involve high degree of risks and investors should not invest in the Scheme unless they can
afford to take the risk of losing their investment.

• Right to Limit Redemptions

The Trustee, in the general interest of the unit holders of the Scheme offered under this
SID 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.

• Asset Class Risk

The returns from the types of securities in which the Scheme invests may under perform
from the various general securities markets or different asset classes. Different types of
securities tend to go through cycles of out-performance and under-performance in
comparison with the general securities markets.

• Interest Rate Risk

Changes in interest rates will affect the Scheme’s Net Asset Value. The prices of
securities usually increase as interest rates decline and usually decrease as interest rates
rise. The extent of fall or rise in the prices is guided by duration, which is a function of
the existing coupon, days to maturity and increase or decrease in the level of interest rate.
The new level of interest rate is determined by the rate at which the government raises
new money and/or the price levels at which the market is already dealing in existing
securities. Prices of long-term securities generally fluctuate more in response to interest
rate changes than short-term securities. The price risk is low in the case of the floating
rate or inflation-linked bonds. The price risk does not exist if the investment is made
under a repo agreement. Debt markets, especially in developing markets like India, can be
volatile leading to the possibility of price movements up or down in fixed income
securities and thereby to possible movements in the NAV.

• 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). Even where no default occurs, the
prices of security may go down because the credit rating of an issuer goes down. It must
be, however, noted that where the Scheme has invested in Government securities, there is
no risk to that extent.

• Liquidity or Marketability Risk

This refers to the ease at which a security can be sold at or near its true value. The
primary measure of liquidity risk is the spread between the bid price and the offer price
quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market.
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 period may be extended significantly by
unforeseen circumstances leading to delays in receipt of proceeds from sale of securities.
As liquidity of the investments made by the Scheme could, at times, be restricted by
trading volumes and settlement periods, the time taken by the Fund for redemption of

8
 units may be significant in the event of an inordinately large number of redemption
requests or restructuring of the Scheme.

• Risks associated with Investing in Derivatives

Derivative products are leveraged instruments and can provide disproportionate gains as
well as disproportionate losses to the investor. Execution of such strategies depends upon
the ability of the fund manager to identify such opportunities. Identification and execution
of the strategies to be pursued by the fund manager involve uncertainty and decision of
the fund manager may not always be profitable. No assurance can be given that the fund
manager will be able to identify or execute such strategies.

Derivative products are specialized instruments that require investment techniques and
risk analysis different from those associated with stocks. The use of a derivative requires
an understanding not only of the underlying instrument but of the derivative itself.
Derivatives require the maintenance of adequate controls to monitor the transactions
entered into, the ability to assess the risk that a derivative adds to the portfolio and the
ability to forecast price or interest rate movements correctly. There is a possibility that a
loss may be sustained by the portfolio as a result of the failure of another party (usually
referred to as the “counterparty”) to comply with the terms of the derivatives contract.
Other risks in using derivatives include the risk of mis-pricing or improper valuation of
derivatives and the inability of derivatives to correlate perfectly with underlying assets,
rates and indices, illiquidity risk whereby the Scheme may not be able to sell or purchase
derivative quickly enough at a fair price. The risks associated with the use of derivatives
are different from or possibly greater than, the risks associated with investing directly in
securities and other traditional investments.

• Risks associated with Stock Lending

Stock Lending is a lending of securities through an SEBI approved intermediary to a
borrower under an agreement for a specified period with the condition that the borrower
will return equivalent securities of the same type or class at the end of the specified period
along with the corporate benefits accruing on the securities borrowed.

In case the Scheme undertakes stock lending as prescribed in the Regulations, it may, at
times be exposed to counter party risk and other risks associated with the securities
lending. Unitholders of the Scheme should note that there are risks inherent to securities
lending, including the risk of failure of the other party, in this case the approved
intermediary, to comply with the terms of the agreement entered into between the lender
of securities i.e. the Scheme and the approved intermediary. Such failure can result in the
possible loss of rights to the collateral put up by the borrower of the securities, the
inability of the approved intermediary to return the securities deposited by the lender and
the possible loss of any corporate benefits accruing to the lender from the securities lent.
The Fund may not be able to sell such lent securities and this can lead to temporary
illiquidity.

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B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

The Scheme/Plan shall have a minimum of 20 investors and no single investor shall
account for more than 25% of the corpus of the Scheme/Plan(s). However, if such limit is
breached during the NFO of the Scheme, the Fund will endeavor to ensure that within a
period of three months or the end of the succeeding calendar quarter from the close of the
NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions.
In case the Scheme / Plan(s) does not have a minimum of 20 investors in the stipulated
period, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would
become applicable automatically without any reference from SEBI and accordingly the
Scheme / Plan(s) shall be wound up and the units would be redeemed at applicable NAV.
The two conditions mentioned above shall also be complied within each subsequent
calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach
of the 25% limit by any investor over the quarter, a rebalancing period of one month
would be allowed and thereafter the investor who is in breach of the rule shall be given 15
days notice to redeem his exposure over the 25 % limit. Failure on the part of the said
investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would
lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on
the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by
SEBI from time to time in this regard.

C. SPECIAL CONSIDERATIONS

• Prospective investors should study this SID and SAI carefully in its entirety and should
not construe the contents hereof as advise relating to legal, taxation, financial,
investment or any other matters and are advised to consult their legal, tax, financial and
other professional advisors to determine possible legal, tax, financial or other
considerations of subscribing to or redeeming units, before making a decision to
invest/redeem/hold units.
• Neither this SID, SAI nor the units have been registered in any jurisdiction. The
distribution of this SID or SAI in certain jurisdictions may be restricted or totally
prohibited to registration requirements and accordingly, any person who comes into
possession of this SID or SAI is required to inform themselves about and to observe any
such restrictions and/ or legal compliance requirements.
• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any
advertisement or to give any information or to make any representations, either oral or
written, other than that contained in this SID or SAI or as provided by the AMC in
connection with this offering. Prospective Investors are advised not to rely upon any
information or representation not incorporated in the SID or SAI or as provided by the
AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.
• The tax benefits described in this SID and SAI are as available under the present
taxation laws and are available subject to relevant conditions. The information given is
included only for general purpose and is based on advise received by the AMC
regarding the law and practice currently in force in India as on the date of this SID and
the Unitholders should be aware that the relevant fiscal rules or their interpretation may
change. As is the case with any investment, there can be no guarantee that the tax
position or the proposed tax position prevailing at the time of an investment in the
Scheme will endure indefinitely. In view of the individual nature of tax consequences,
each Unitholder is advised to consult his / her own professional tax advisor.
10
• The Mutual Fund may disclose details of the investor’s account and transactions there
under to those intermediaries whose stamp appears on the application form or who have
been designated as such by the investor. In addition, the Mutual Fund may disclose such
details to the bankers, as may be necessary for the purpose of effecting payments to the
investor. The Fund may also disclose such details to regulatory and statutory
authorities/bodies as may be required or necessary.
• Pursuant to the provisions of Prevention of Money Laundering Act, 2002 (PMLA), if
after due diligence, the AMC believes that any transaction is suspicious in nature as
regards money laundering, the AMC shall have absolute discretion to report such
suspicious transactions to FIU-IND (Financial Intelligence Unit – India) or such other
authorities as prescribed under the rules/guidelines issued thereunder by SEBI and/or
RBI and take any other actions as may be required for the purposes of fulfilling its
obligations under PMLA and rules/guidelines issued thereunder by SEBI and/or RBI
without obtaining the prior approval of the investor/Unitholder/ any other person.
• Investors applying for subscription of Units offered under the respective Series directly
with the Fund (i.e. not routed through any distributor/agent) hereinafter referred to as
'Direct Plan' will be subject to a lower expense ratio excluding distribution expenses,
commission, etc and no commission for distribution of Units will be paid / charged
under Direct Plan and therefore, shall not in any manner be construed as an investment
advice offered by the Mutual Fund/AMC. The subscription of Units through Direct Plan
is a facility offered to the investor only to execute his/her/ their transactions at a lower
expense ratio. Before making an investment decision, Investors are advised to consult
their own investment and other professional advisors.

Disclaimer:

“Motilal Oswal Value Index (MOVI) is not sponsored, endorsed, sold or promoted by India
Services & Products Limited (IISL). MOVI has been exclusively customized for Motilal
Oswal Asset Management Company Ltd.(MOAMC) and has been developed and is being
maintained as per the specifications and requirements of MOAMC. IISL does not make any
representation or warranty, express or implied regarding the advisability of investing in the
Product linked to MOVI and availing the services generally or particularly or the ability of
MOVI to track general stock market performance in India. IISL has no obligation or liability
in connection with the administration, marketing or trading of the Product based on MOVI.

IISL does not guarantee the accuracy and/or the completeness of MOVI or any data included
therein and they shall have no liability for any errors, omissions, or interruptions therein. IISL
does not make any warranty, express or implied, as to the results to be obtained by MOAMC,
owners of the Product, or any other persons or entities from the use of MOVI or any data
included therein. IISL make no express or implied warranties and expressly disclaim all
warranties of merchantability or fitness for a particular purpose or use with respect to MOVI
or any data included therein. Without limiting any of the foregoing, in no event shall IISL
have any liability for any special, punitive, indirect or consequential damages (including lost
profits), even if notified of the possibility of such damages.

IISL has taken due care and caution in calculation, development, compilation, maintenance
and dissemination of MOVI as per the requirements, specifications and instructions of the
MOAMC. Information has been obtained by IISL from sources which it considers reliable.”
However, IISL does not guarantee the accuracy, adequacy or completeness of information
11
and is not responsible for any errors or omissions or for the results obtained from the use of
such information. IISL is also not responsible for any errors in transmission.”

D. DEFINITIONS

In this SID, the following words and expressions shall have the meaning specified below,
unless the context otherwise requires:

Applicable NAV Unless stated otherwise in this document, ‘Applicable NAV’ is

the Net Asset Value at the close of a Business/Working Day on
which the purchase or redemption is sought by an investor and
determined by the Fund.
Asset Management Motilal Oswal Asset Management Company Limited, a
Company / AMC / Company incorporated under the provisions of the Companies
Investment Manager Act, 1956, and approved by SEBI to act as the Asset
Management Company for the Schemes of Motilal Oswal
Mutual Fund.
Business Day / Working Any day other than:
Day (a) Saturday and Sunday
(b) a day on which capital/debt markets/money markets in
Mumbai are closed or are unable to trade for any reason
(c) a day on which the Banks in Mumbai are closed or RBI is
closed
(d) a day on which both the Bombay Stock Exchange Ltd. and
National Stock Exchange of India Ltd. are closed
(e) a day which is public/Bank holiday at a collection centre/
investor service centre/official point of acceptance where the
application is received
(f) a day on which sale and repurchase of units is suspended by
the Trustee/AMC
(g) a day on which normal business could not be transacted due
to storms, floods, bandhs, strikes or such other event as the AMC
may specify from time to time.

However, the AMC reserves the right to declare any day as the
Business / Working Day or otherwise at any or all collection
centres / investor service centre / official point of acceptance.
Cash Management Bills Cash Management Bills or CMB are short term discounted
(CMBs) papers issued by the Reserve Bank of India on behalf of the
Government of India, these papers are same as treasury bills.
The CMBs are issued for maturities less than 91 days.

Ref: RBI notification; RBI/2009-10/139 having reference

number DBOD. [Link].36/12.02.001/2009-10 dated
September 01, 2009
Custodian A person who has been granted a certificate of registration to
carry on the business of custodian of securities by SEBI under
the SEBI (Custodian of Securities) Regulations, 1996 which for
the time being is Citibank N.A.
12
Cut-Off time Cut off timing in relation to subscription and redemption of
Units means the outer limits of timings on a particular Business
Day which are relevant for determination of Applicable NAV
that is to be applied for the transaction.
Depository As defined in the Depositories Act, 1996 and includes National
Securities Depository Ltd (NSDL) and Central Depository
Services Ltd (CDSL).
Depository Participant Means a person registered as such under sub section (1A) of
section 12 of the Securities and Exchange Board of India Act,
1992.
Distributor Such persons/firms/ companies/ corporate who fulfil the criteria
laid down by SEBI/AMFI from time to time and empanelled by
the AMC to distribute/sell/market the Schemes of the Fund.
Dividend Income distributed by the Mutual Fund on the Units.
Entry Load Load on Sale/Switch-in of Units.
Exit Load Load on repurchase / redemption/Switch-out of Units.
FII Foreign Institutional Investors (FII) means an institution
established and incorporated outside India, and registered with
SEBI under SEBI (Foreign Institutional Investors) Regulations,
1995, as amended from time to time.
Gilts or Government Means securities created and issued by the Central Government
Securities’ and/or State Government (including treasury bill) or
Government Securities as defined in The Government Securities
Act, 2006 as amended from time to time.
Investment Investment Management Agreement dated May 21, 2009, as
Management amended from time to time, entered into between Motilal Oswal
Agreement / IMA Trustee Company Ltd. and Motilal Oswal Asset Management
Company Ltd.
Load In case of subscription, the amount paid by the prospective
investors on purchase of a unit (Entry Load) in addition to the
Applicable NAV and in case of redemption, the amount
deducted from the Applicable NAV on the redemption of unit
(Exit Load).

Presently, entry load cannot be charged by Mutual Fund scheme.

Money market Includes commercial papers, commercial bills, treasury bills,
instruments Government securities having an unexpired maturity upto one
year, Collaterised Borrowing & Lending Obligation (CBLO),
certificate of deposit, usance bills and any other like instruments
as specified by the SEBI / RBI from time to time.
Mutual Fund Motilal Oswal Mutual Fund, a trust set up under the provisions
of Indian Trust Act, 1882 and registered with SEBI vide
Registration no. MF/063/09/04.
Net Asset Value / NAV Net Asset Value per unit of the Scheme calculated in the manner
described in this SID or as may be prescribed by the SEBI
Regulations from time to time.
New Fund Offer / NFO Offer for purchase of units of the Scheme during the New Fund
Offer Period as describe hereinafter.
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NRI or Non Resident A person resident outside India who is a citizen of India or is a
Indian person of Indian origin as per the meaning assigned to the term
under the Foreign Exchange Management (Investment in Firm or
Proprietary Concern in India) Regulations, 2000.
Qualified Foreign A person resident in a country that is compliant with Financial
Investor (QFI) Action Task Force (FATF) standards and that is a signatory to
International organization of Securities Commission's
(IOSCO’s) Multilateral Memorandum of Understanding,

Provided that such person is not resident in India,

Provided further that such person is not registered with SEBI as

Foreign Institutional Investor or Sub-account.

Explanation- For the purposes of this clause:

(1) the term "Person" shall carry the same meaning under
Section 2(31) of the Income Tax Act, 1961
(2) the phrase “resident in India” shall carry the same meaning
as in the Income Tax Act, 1961
(3) “resident” in a country, other than India, shall mean resident
as per the direct tax laws of that country.
Person of Indian Origin A citizen of any country other than Bangladesh or Pakistan, if (a)
he at any time held an Indian passport; or (b) he or either of his
parents or any of his grandparents was a citizen of India by
virtue of Constitution of India or the Citizenship Act, 1955 (57
of 1955); or (c) the person is a spouse of an Indian citizen or
person referred to in sub-clause (a) or (b).
RBI The Reserve Bank of India established under The Reserve Bank
of India Act, 1934.
Redemption/Repurchase Redemption of units of the Scheme as permitted.
Registrar and Transfer Karvy Computershare Pvt. Ltd., registered under the SEBI
Agent (Registrar to an Issue and Share Transfer Agents) Regulations,
1993,
Repo or Reverse Repo Sale/Purchase of Government Securities with simultaneous
agreement to repurchase/resell them at a later date.
Scheme Motilal Oswal MOSt Focused 25 Fund
Scheme Information This document issued by Motilal Oswal Mutual Fund for
Document (SID) offering units of the Scheme.
SEBI Securities and Exchange Board of India, established under
Securities and Exchange Board of India Act, 1992 as amended
from time to time.
SEBI Regulations SEBI (Mutual Funds) Regulations, 1996 as amended from time
to time.
Sponsor Motilal Oswal Securities Ltd.
Statement of Additional The document issued by Motilal Oswal Mutual Fund containing
Information (SAI) details of Motilal Oswal Mutual Fund, its constitution and
certain tax, legal and general information. SAI is legally a part of
the SID.

14
 Switch Redemption of a unit in any scheme (including the plans /
options therein) of the Mutual Fund against purchase of a unit in
another scheme (including plans/options therein) of the Mutual
Fund, subject to completion of lock-in period, if any, of the units
of the scheme(s) from where the units are being switched.
Systematic Investment Facility given to the Unit holders to invest specified sums in the
Plan or SIP Scheme on periodic basis by giving a single instruction.
Systematic Transfer Facility given to the Unit holders to transfer sums on periodic
Plan or STP basis from one scheme to another schemes launched by the
Mutual Fund from time to time by giving a single instruction.
Systematic Withdrawal Facility given to the Unit holders to withdraw amounts from the
Plan or SWP Scheme on periodic basis by giving a single instruction.
Trustee Motilal Oswal Trustee Company Ltd., a Company incorporated
under the Companies Act, 1956 and approved by SEBI to act as
Trustee of the Schemes of Motilal Oswal Mutual Fund.
Unit The interest of Unitholder which consists of each unit
representing one undivided share in the assets of the Scheme.

Unitholder / Investor A person holding unit(s) in the Scheme of Motilal Oswal Mutual
Fund offered under this SID.

Interpretation:
For all purposes of this SID, except as otherwise expressly provided or unless the context
otherwise requires:
(a) Words denoting any gender shall include all genders.
(b) Words used in singular would include plural form and vice-versa.
(c) A reference to a thing includes a part of that thing.
(d) Any reference to any statute or statutory provision shall be construed as including a
reference to any statutory modifications or re-enactment from time to time.
(e) Clause headings are for ease of reference only and shall not affect the construction or
interpretation of this Document.
(f) Words and expressions used herein but not defined shall have the meaning specified in the
Companies Act, 1956, Securities Contract (Regulations) Act, 1956, SEBI Act, 1992, SEBI
(Mutual Funds) Regulations, 1996, Depositories Act, 1996, Reeserve Bank of India Act,
1932, The Government Securities Act, 2006, Information Security Act, 2000 and the Rules,
Income Tax Act 1961, Contract Act 1872, Prevention of Money Laundering Act, 2002,
Foreign Exchange Management Act & Regulations and the Rules, Regulations and
Guidelines issued thereunder from time to time.

15
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

It is confirmed that:

(i) The Scheme Information Document forwarded 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 proposed 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.

For Motilal Oswal Asset Management Company Limited

(Asset Management Company for Motilal Oswal Mutual Fund)

Sd/-

Sarika Shah
Compliance Officer

Place: Mumbai
Date: January 27, 2014

16
II. INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

An Open-ended equity scheme

B. INVESTMENT OBJECTIVE

The investment objective of the Scheme is to achieve long term capital appreciation by
investing in upto 25 companies with long term sustainable competitive advantage and growth
potential.

C. ASSET ALLOCATION

The asset allocation pattern of the Scheme would be as follows:

Indicative allocations Risk Profile
Instruments (% of total assets)
Minimum Maximum High/Medium/Low
Equity and equity related instruments*
selected from Top 100 listed companies 65 100 High
by market capitalization
Equity and equity related instruments*
of the next 50 companies by market 0 25 High
capitalization
Debt, Money Market Instruments, G-
Sec, Bonds, Cash and Cash Equivalents, 0 10 Low
etc.
*subject to overall limit of 25 companies

Money Market Instruments include CMBs, T-Bills, and Government securities with an
unexpired maturity upto one year, CBLOs & Repo/ Reverse Repo.

The scheme shall invest in equity and equity related instruments as per the investment
objective of the scheme. While it is the intention of the Scheme to maintain the maximum
exposure guidelines provided in the table above, there may be instances when these
percentages may be exceeded. Typically, this may occur while the Scheme is new and the
corpus is small thereby causing diversification issues.

Exposure by the Scheme in derivative instruments shall not exceed 50% of the total Net
Assets of Scheme. The Scheme will not participate in stock lending more than 20% of total
Net Assets of the Scheme and would limit its exposure with regard to stock lending for a
single intermediary to the extent of 5% of the total net assets at the time of lending.

The scheme will not invest in Securitised debt and foreign securities.

The cumulative gross exposure through equity, debt and derivative positions should not
exceed 100% of the net assets of the scheme.

17
The Scheme may review the above pattern of investments based on views on Indian equities
and asset liability management needs. However, at all times the portfolio will adhere to the
overall investment objectives of the Scheme. Subject to the Regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market conditions,
market opportunities, applicable regulations, legislative amendments and political and
economic factors. It must be clearly understood that the percentages stated above are only
indicative and not absolute. These proportions can vary depending upon the perception of the
fund manager; the intention being at all times to seek to protect the interests of the Unit
holders. Such changes in the investment pattern will be for short term and for defensive
considerations only.

CHANGES IN INVESTMENT PATTERN

The asset allocation indicated above may change from time to time keeping in view the
market conditions, legislative and regulative amendments and political and economic factors,
subject to Regulations. It must be clearly understood that the percentages stated above are
purely indicative and can change substantially depending on the perception of the Investment
Manager with the sole intention of protecting the interests of the Unitholders. The Fund shall
seek Unitholders approval if necessary and in accordance with the Regulations, if there is any
change in the Fundamental attributes, pursuant to the change in Investment Pattern. While it
is the intention of the Scheme to maintain the maximum exposure guidelines provided in the
table above there might be instances when these percentages may be exceeded. In case of
deviation, if any, from the asset allocation pattern, the AMC will endeavour to rebalance
within a period of 30 days.

Explanation:
a. 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.

b. In case the maturity of the security falls on a non-business day then settlement of
securities will take place on the next business day.

The Scheme will retain the flexibility to invest in the entire range of securities as per
investment objectives of the Scheme and as per the SEBI Regulations.

D. INVESTMENT BY THE SCHEME

The corpus of the Scheme will be invested primarily in equity and Equity Related Securities.
The Scheme may invest its corpus in debt and Money Market Instruments.

Subject to the Regulations and other prevailing Laws as applicable, the corpus of the Scheme
can be invested in any (but not exclusively) of the following Securities:

• Equity and Equity Related Securities.

• Debt Securities and Money Market Instruments (including reverse repos and CBLOs).
• Derivatives as may be permitted by SEBI / RBI.

18
• Any other instruments as may be permitted by RBI / SEBI regulatory authorities under
prevailing Laws from time to time.

The investment restrictions and the limits are specified in the Schedule VII of SEBI
Regulations which are mentioned in the section ‘Investment Restrictions’.

The Securities mentioned above could be listed, unlisted, privately placed, secured,
unsecured, rated or unrated and of any maturity. The Securities may be acquired through
initial public offerings, secondary market operations, and private placement, rights offers or
negotiated transactions. The scheme may invest the funds of the scheme in short term
deposits of scheduled commercial banks as permitted under extant regulations as per SEBI
Circular No. SEBI/IMD/CIR No.9/20306/03 dated November 12, 2003, SEBI Circular No.
SEBI/IMD/Cir No.1/91171/07 dated April 16, 2007 and Clause 8 of Seventh Schedule of
Mutual Funds Regulations, 1996. As per the stated Regulations, Mutual Funds shall not park
more than 15% of their net assets in short term deposits of all scheduled commercial banks
put together. This limit however may be raised to 20% with prior approval of the Trustees.
Also, parking of funds in short term deposits of associate and sponsor scheduled commercial
banks together shall not exceed 20% of the total deployment by the Mutual Fund in short
term deposits.

Investments in Derivative Instruments

The Scheme may invest in derivative products from time to time, for portfolio rebalancing
and hedging purposes. The Scheme may enter into forward contracts, future contracts or buy
or sell options or any other derivative instruments that are permissible or may be permissible
in future under applicable regulations and such investments shall be in accordance with the
investment objective of the Scheme.

Exposure by the Scheme in derivative instruments shall not exceed 50% of the total Net
Assets of Scheme.

(a) Limit for investment in Derivative instruments

In accordance with SEBI circulars nos. SEBI/DNPD/Cir-29/2005 dated September 14, 2005,
SEBI/DNPD/Cir-30/2006 dated January 20, 2006, SEBI/DNPD/Cir-31/2006 dated
September 22, 2006 and SEBI/CIR/IMD/DF/11/2010 dated August 18, 2010, the following
conditions shall apply to the Scheme’s participation in the Derivatives market. The
investment restrictions applicable to the Scheme’s participation in the Derivatives market will
be as prescribed or varied by SEBI from time to time.

i. Position limit for the Mutual Fund in index options contracts

a. The Mutual Fund’s position limit in all index options contracts on a particular underlying
index shall be Rs. 500 crore or 15% of the total open interest of the market in index options,
whichever is higher, per Stock Exchange.

b. This limit would be applicable on open positions in all options contracts on a particular
underlying index.

19
ii. Position limit for the Mutual Fund in index futures contracts
a. The Mutual Fund’s position limit in all index futures contracts on a particular underlying
index shall be Rs. 500 crore or 15% of the total open interest of the market in index futures,
whichever is higher, per stock Exchange.

b. This limit would be applicable on open positions in all futures contracts on a particular
underlying index.

iii. Additional position limit for hedging for the Mutual Fund:
In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take
exposure in equity index Derivatives subject to the following limits:
a. Short positions in index Derivatives (short futures, short calls and long puts) shall not
exceed (in notional value) the Fund’s holding of stocks.

b. Long positions in index Derivatives (long futures, long calls and short puts) shall not
exceed (in notional value) the Mutual Fund’s holding of cash, Government Securities, T-Bills
and similar instruments.

iv. Position limit for the Mutual Fund for stock based Derivative contracts
The position limit for the Fund in a Derivative contract on a particular underlying stock, i.e.
stock option contracts and stock futures contracts shall be as follows:
a. For stocks having applicable market-wise position limit (“MWPL”) of Rs. 500 crores or
more, the combined futures and options position limit shall be 20% of applicable MWPL or
Rs. 300 crores, whichever is lower and within which stock futures position cannot exceed
10% of applicable MWPL or Rs. 150 crores, whichever is lower.

b. For stocks having applicable MWPL less than Rs. 500 crores, the combined futures and
options position limit would be 20% of applicable MWPL and futures position cannot exceed
20% of applicable MWPL or Rs. 50 crore which ever is lower.

v. Position limit for each scheme of the Mutual Fund

The scheme-wise position limit requirements shall be:

a. For stock option and stock futures contracts, the gross open position across all Derivative
contracts on a particular underlying stock of the Scheme shall not exceed the higher of :

1% of the free float market capitalisation (in terms of number of shares) or 5% of the open
interest in the Derivative contracts on a particular underlying stock (in terms of number of
contracts).
b. This position limits shall be applicable on the combined position in all Derivative contracts
on an underlying stock at a stock exchange.

c. For index based contracts, the Fund shall disclose the total open interest held by its
schemes or all schemes put together in a particular underlying index, if such open interest
equals to or exceeds 15% of the open interest of all Derivative contracts on that underlying
index.

20
Exposure Limits for all schemes
The cumulative gross exposure through equity, debt and Derivative positions shall not exceed
100% of the net assets of the Scheme. The Fund shall not write options or purchase
instruments with embedded written options. The total exposure related to option premium
paid must not exceed 25% of the net assets of the scheme. Cash or cash equivalents with
residual maturity of less than 91 days may be treated as not creating any exposure.
Exposure due to hedging positions may not be included in the above mentioned limits subject
to the following:

a. Hedging positions are the Derivative positions that reduce possible losses on an existing
position in Securities and till the existing position remains.

b. Hedging positions cannot be taken for existing Derivative positions. Exposure due to such
positions shall have to be added and treated under limits mentioned above.

c. Any Derivative instrument used to hedge has the same underlying security as the existing
position being hedged.

d. The quantity of underlying associated with the Derivative position taken for hedging
purposes does not exceed the quantity of the existing position against which hedge has
been taken.

However, exposure due to Derivative positions taken for hedging purposes in excess of the
underlying position against which the hedging position has been taken, shall be treated under
the limits mentioned above.

Definition of Exposure in case of Derivative Positions

Each position taken in Derivatives shall have an associated exposure as defined under.
Exposure is the maximum possible loss that may occur on a position. However, certain
Derivative positions may theoretically have unlimited possible loss. Exposure in Derivative
positions shall be computed as:

Examples of certain Derivative transactions

Please note that the following descriptions and examples included in this section are not
intended to be exhaustive and are included for illustrative purposes only.

Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of Contracts

Index Futures
A futures contract is an agreement between the buyer and the seller for the purchase and sale
of a particular asset at a specific price on a specific future date. The price at which the
underlying asset would change hands in the future is agreed upon at the time of entering into
the contract. The actual purchase or sale of the underlying asset involving payment of cash
and delivery of the instrument does not take place until the contracted date of delivery.
A futures contract involves an obligation on both the parties to fulfil the terms of the contract.

21
Stock index futures are instruments which are designed to provide exposure to the movement
of a particular equity market index.

The BSE and the NSE have started trading in index futures of 1, 2 and 3 month maturities.
The pricing of an index future is the function of the underlying index and interest rates.

• Investment in stock index futures can give exposure to the index without directly buying
the Stocks.
• The Scheme can sell futures to hedge against market movements effectively without the
stock it holds.

Illustration
1 month nifty future price on day 1: 5675.
Assume Scheme buys 200 futures contracts at this level of 5675.
Each lot has a nominal value equivalent to 50 units of the underlying index

Scenario 1 On the date of settlement, the future price = closing spot price of the index = 5685
The profits for the Scheme as a result of this transaction = (5685-5675)* 200 lots * 50 = Rs
100,000

Scenario 2 On the date of settlement, the future price = closing spot price of the index = 5670
The loss for the Scheme as a result of this transaction = (5670-5675)* 200 lots * 50 = (Rs
50,000)

As illustrated by the above scenarios, in simple terms (not taking in to account any margin
that may be payable to the Scheme’s counterparty as a result of entering in to the futures
transaction) the net impact for the Scheme will be a function of the closing spot price of the
underlying index on the date of settlement relative to the original purchase price at the outset.

Illustration
Assume the Scheme buys a 1 month call option on Company ‘X’ at a strike of Rs. 290, and
the current market price is Rs.291.

Assume the Scheme will have to pay a premium of say Rs. 5 to buy this call.
If the stock price goes below Rs. 290 during the tenure of the call, the Scheme avoids the loss
it would have incurred had it bought the stock instead of the call option. However, the
Scheme gives up the premium of Rs. 25 that has to be paid in order to protect the Scheme
from this probable downside.

If the stock goes above Rs. 290, the Scheme is able to exercise its right and own Company
‘X’ at a cost price of Rs. 290, thereby participating in the upside of the stock.

Buying a put option

Buying a put option on a stock originally held by the buyer gives him / her the right, but not
the obligation, to sell the underlying stock at the designated strike price. Here the downside
risks are limited to the premium paid to purchase the option including SEBI Circular dated
November 16, 2007.

22
Illustration
Assume the Scheme owns Company ‘X’ and also buys a three-month put option on Company
‘X’ at a strike of Rs. 290, and the current market price being say Rs.291.

Assume the Scheme will have to pay a premium of say Rs. 2 to buy this put.
If the stock price goes below Rs. 290 during the tenure of the put, the Scheme can still
exercise the put and sell the stock at Rs. 290, avoiding therefore any downside on the stock
below Rs. 290. However, the Scheme gives up the fixed premium of Rs. 2 that has to be paid
in order to protect the Scheme from this probable downside.

If the stock goes above Rs. 290, say to Rs. 320, it will not exercise its option. The Scheme
will participate in the upside of the stock, since it can now sell the stock at the prevailing
market price of Rs. 320.

E. INVESTMENT STRATEGY

The primary investment objective of the Scheme is to generate returns by investing in a

portfolio of primarily in equity and equity related instruments, money market instruments,
cash and cash equivalents. The Fund may also enter into “Stock Lending” or such other
transactions, in accordance with the Regulations, as may be allowed to Mutual Funds from
time to time.

The scheme shall follow an active investment style and it will seek to invest in companies
with strong competitive position, good industry prospects, good business prospects along
with quality management that may help them to achieve good growth over medium to long
term.

While making investment decisions, besides other factors, the impact of the prevailing
economic environment over the medium to long term prospects of the companies will also be
taken into consideration.

The AMC will endeavour to meet the investment objective of the Scheme while maintaining
a balance between safety, liquidity and return on investments.

Risk Control
Risk is an inherent part of the investment function. Effective Risk management is critical to
fund management for achieving financial soundness. Investment by the Scheme would be
made as per the investment objective of the Scheme and in accordance with SEBI
Regulations. AMC has adequate safeguards to manage risk in the portfolio construction
process. Risk control would involve managing risk in order to keep in line with the
investment objective of the Scheme. The risk control process would include identifying the
risk and taking proper measures for the same. The system has incorporated all the investment
restrictions as per the SEBI guidelines and enables identifying and measuring the risk through
various risk management tools like various portfolio analytics, risk ratios, average duration
and analyses the same and acts in a preventive manner.

23
Stock Lending
Stock Lending is lending of securities through an approved intermediary to a borrower under
an agreement for a specified period with the condition that the borrower will return
equivalent securities of the same type or class at the end of the specified period along with
the corporate benefits accruing on the securities borrowed.

The Scheme may lend securities from its portfolio in accordance with the Regulations and the
applicable SEBI circulars MFD/CIR/01/ 047/99 dated February 10, 1999 and,
MRD/DoP/SE/Dep/Cir- 14 /2007 dated December 20, 2007, SEBI / IMD / CIR No 14 /
187175/ 2009 dated December 15, 2009 and SEBI (Mutual Funds) Regulations, 1996. The
AMC/Fund shall also adhere to guidelines issued under Securities Lending Scheme, 1997.
Securities’ lending shall enable the Scheme to earn income that may partially offset its
expenses and thereby reduce the effect these expenses have on the Scheme’s ability to
provide investment returns that correspond generally to the performance of its Basket. The
Scheme will pay reasonable administrative and custodial fees in connection with the lending
of securities. The Scheme will be exposed to the risk of loss should a borrower default on its
obligation to return the borrowed securities. The Scheme share of income from the lending
collateral will be included in the Scheme’s gross income. The Fund will comply with the
conditions for securities lending specified by SEBI Regulations and circulars. The Scheme
will not lend more than 20% of its corpus and will not exceed more than 5% through a single
intermediary.

Investment by AMC in the Scheme

AMC may invest in the Scheme during the New Fund Offer or on an ongoing basis in
accordance with the SEBI Regulations. The AMC shall not charge investment management
fees on investment by the AMC in the Scheme.

Investment of Subscription Money

The Mutual Fund / AMC shall commence investment out of the NFO proceeds received in
accordance with the investment objectives of the Scheme only on or after the closure of the
NFO period.

Differentiation of Motilal Oswal MOSt Focused 25 Fund with other existing Scheme of
Motilal Oswal Mutual Fund

Motilal Oswal Motilal Oswal MOSt Focused 25 Fund is an open ended equity scheme with
an objective to achieve long term capital appreciation by investing in upto 25 companies with
long term sustainable competitive advantage and growth potential.

The scheme proposes to invest 65 to 100% in Equity and equity related instruments selected
from Top 100 listed companies by size of market capitalization, balance upto 25% in Equity
and equity related instruments of the next 50 Companies by market capitalization and balance
up to 10% in Debt & Money Market Instruments, G-Secs, and Bonds. The following table
shows the differentiation of the Scheme with the existing Schemes of Motilal Oswal Mutual
Fund:

24
Name of the Investment Objective Asset Allocation Product
Scheme Differentiation
Motilal The Scheme seeks The Scheme would MOSt Shares M50 is
Oswal MOSt investment return that invest at least 95% in an open ended
Shares M50 corresponds (before the securities exchange traded fund
ETF (MOSt fees and expenses) constituting MOSt 50 which invests in
Shares M50) generally to the Basket and the balance securities constituting
performance of the in debt and money MOSt 50 Basket.
MOSt 50 Basket market instruments and
(Underlying Basket), cash at call.
subject to tracking
error.

Motilal The Scheme seeks The Scheme would MOSt Shares

Oswal MOSt investment return that invest at least 95% in Midcap100 is an open
Shares corresponds (before the securities ended Index exchange
Midcap 100 fees and expenses) to constituting CNX traded fund which
ETF (MOSt the performance of Midcap Index and the invests in securities
Shares CNX Midcap Index balance in debt and constituting CNX
Midcap100) (Underlying Index), money market Midcap Index in the
subject to tracking instruments and cash at same proportion as in
error. call. the Index.

Motilal The Scheme seeks The Scheme would The Scheme will
Oswal MOSt investment return that invest at least 95% in invest in the securities
Shares corresponds (before the securities which are constituents
NASDAQ- fees and expenses) constituting NASDAQ- of NASDAQ-100
100 ETF generally to the 100 Index and the Index in the same
(MOSt performance of the balance in Overseas proportion as in the
Shares NASDAQ-100 Index, Debt and Money Index.
NASDAQ subject to tracking market instruments and
100) error. cash at call, mutual
fund schemes or
exchange traded funds
based on NASDAQ-
100 Index.
Motilal The primary The Scheme would The Scheme is an open
Oswal MOSt investment objective of invest at least 90% in ended gilt scheme
10 Year Giltthe Scheme is to the 10 Year Benchmark which seeks to
Fund generate credit risk- Government Securities generate credit risk-
free returns by and the balance in free returns by
investing in a portfolio Other Government investing in a portfolio
of securities issued by Securities (7 to 12 of securities issued by
the Central years), for e.g. T-Bills, the Central
Government and State Cash Management Government and State
Government. Bills, CBLO & Repo. Government.
Motilal The investment The Scheme would The Scheme is an
Oswal MOSt objective of the invest at least 95% in Open ended Exchange
Shares Gold Scheme is to provide the Gold Bullion and Traded Fund that
25
 ETF (MOSt return by investing in the balance in provides returns by
Gold Shares) Gold Bullion. The Government Securities, investing in Gold
performance of the Money Market Bullion.
fund will be Instruments and cash at
benchmarked to the call.
Spot Gold Price.
However, the
performance of scheme
may differ from that of
the underlying index
due to tracking error.

F. FUNDAMENTAL ATTRIBUTES

Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of
the SEBI (MF) Regulations:

(i) Type of a Scheme: An open ended equity scheme.

(ii) Investment Objective:

o Investment Objective: Please refer to section ‘Investment Objective’.

o Investment pattern - Please refer to section ‘Asset Allocation’.

(iii) Terms of Issue: Provisions with respect to listing, repurchase, redemption, fees and
expenses are mentioned in the SID.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, 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:

• 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 30 days to exit at the prevailing Net
Asset Value without any exit load.

G. BENCHMARK INDEX

The performance of the Scheme will be benchmarked against CNX Nifty.

The Trustee reserves the right to change the benchmark for evaluation of performance of the
Scheme from time to time in conformity with investment objective of the Scheme and
appropriateness of the benchmark subject to SEBI Regulations and other prevailing
guidelines, if any.

26
H. FUND MANAGER

For Equity Component of the Scheme

Name of the Fund Mr. Taher Badshah

Manager
Age 44
Designation Senior Vice President, Senior Fund Manager & Co-Head of
Equities
Qualification BE (Electronics) and MMS (Finance) from the University of
Mumbai.
Years of Experience Mr. Taher Badshah has over 18 years of experience in the fund
management and investment research.

• Motilal Oswal Asset Management Company Ltd. from June

2010 onwards
• Kotak Investment Advisors Ltd.- Investment Advisor from
September 2007 to May 2010
• Prudential ICICI Asset Management Company Ltd.- Senior
Fund Manager-PMS from September 2005 to August 2007
• Alliance Capital Asset Management Pvt. Ltd.- Sr. Research
Analyst from January 2005 to August 2005
• Kotak Institutional Equities Ltd.- Sr. Research Analyst from
November 2001 to December 2004
• Dresdner Kleinwort Wasserstein- Research Analyst from
November 2000 to July 2001

Mr. Taher Badshah is also fund manager of the Scheme, Motilal

Oswal MOSt Focused 25 Fund.

For Debt Component of the Scheme

Name of the Fund Mr. Abhiroop Mukherjee

Manager
Age 31
Designation Senior Manager- Fixed Income
Qualification [Link] (Honours), PGDM (Finance)
Years of Experience Mr. Abhiroop Mukherjee has over 7 years of experience in the
Fixed Income Securities trading and fund management.

• Motilal Oswal Asset Management Company Ltd. - Senior

Manager- Fixed Income from May 2011 onwards
• PNB Gilts Ltd. - Assistant Vice President - Fixed Income from
April 2007 to May 2011

Mr. Abhiroop Mukherjee is fund manager of the Schemes, Motilal

Oswal MOSt 10 year Gilt Fund and Motilal Oswal MOSt Ultra
Shot Term Bond Fund.
27
I. INVESTMENT RESTRICTIONS

All the investments by the Scheme and the Fund shall always be within the investment
restrictions as specified in Schedule VII of SEBI Mutual Fund Regulations as amended from
time to time. Pursuant to the SEBI Regulations, the following are some of the investment and
other limitations as presently applicable to the Scheme.

1. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all
cases of purchases, take delivery of relevant securities and in all cases of sale, deliver
the securities:

Provided that a Mutual Fund may engage in short selling of securities in accordance
with the framework relating to short selling and securities lending and borrowing
specified by the SEBI,

Provided further that a Mutual Fund may enter into derivatives transactions in a
recognized stock exchange, subject to the framework specified by the SEBI,

Provided further that sale of Government security already contracted for purchase shall
be permitted in accordance with the guidelines issued by the Reserve Bank of India in
this regard.

2. The Mutual Fund 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.
3. The Mutual Fund under all its schemes shall not own more than ten per cent of any
company’s paid up capital carrying voting rights.
4. Transfers of investments from one scheme to another scheme in the same Mutual Fund
shall be allowed only if,
(a) 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;]
(b) the securities so transferred shall be in conformity with the investment objective of
the scheme to which such transfer has been made.
5. The Scheme may invest in another scheme under the same asset management company
or any other Mutual Fund without charging any fees, 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.
6. Pending deployment of funds of a Scheme in terms of investment objectives of the
Scheme, the Mutual Fund may invest the funds of the scheme in short-term deposits of
scheduled commercial banks, subject to such Guidelines as may be specified by SEBI.
7. 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

28
 (c) the listed securities of group companies of the sponsor which is in excess of 25 per
cent of the net assets.
8. The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or
equity related instruments of any company :
Provided that, the limit of 10 per cent shall not be applicable for investments in case of
index fund or sector or industry specific scheme.
9. The Scheme shall not invest more than 5% of its NAV in the unlisted equity shares or
equity related instruments in case of open ended scheme and 10% of its NAV in case of
close ended scheme.
10. The Mutual Fund may borrow to meet liquidity needs, for the purpose of repurchase,
redemption of units or payment of interest or dividend to the Unitholders and such
borrowings shall not exceed 20% of the net asset of the Scheme and duration of the
borrowing shall not exceed 6 months. The Mutual Fund may borrow from permissible
entities at prevailing market rates and may offer the assets of the Mutual Fund as
collateral for such borrowing.
11. No term loans will be advanced by the Scheme.
12. The Scheme shall not invest more than 15% of its NAV in debt instruments issued by a
single issuer, which are rated not below the investment grade by a credit rating agency
authorized to carry out such activity under the Act. Such investment limit may be
extended to 20% of the NAV of the Scheme with the prior approval of Board of
Directors of Trustees Company and AMC, till the time the Regulations require such
approvals. Provided further that investment within such limit can be made in mortgaged
backed securitized debt which are rated not below investment grade by a rating agency
registered with the Board. However such limit shall not be applicable to investments in
government securities and money market instruments. Provided further that Debentures,
irrespective of any residual maturity period (above or below one year), shall attract the
investment restrictions as applicable for debt instruments as specified under Clause 1
and 1 A of Seventh Schedule to the SEBI (Mutual Funds) Regulations, 1996.
13. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments
issued by a single issuer and the total investments in such instruments shall not exceed
25% of the NAV of the Scheme. All such investments shall be made with the prior
approval of the Board Directors of Trustees Company and AMC, till the time the
Regulations require such approvals.
14. The Scheme shall not invest more than 30% of its net assets in money market
instruments of an issuer. Provided that such limit shall not be applicable for investments
in Government securities, treasury bills and collateralized borrowing and lending
obligations.
15. The Scheme shall not make any investment in any fund of funds Scheme.
16. The Scheme will comply with any other Regulations applicable to the investments of
Mutual Funds from time to time.

All investment restrictions shall be applicable at the time of making investments. The AMC
may alter these limitations/objectives from time to time to the extent the SEBI Regulations
change so as to permit Scheme to make its investments in the full spectrum of permitted
investments to achieve its investment objective. The Trustees may from time to time alter
these restrictions in conformity with the SEBI Regulations.

29
J. SCHEME PERFORMANCE

This Scheme has not completed one year. Hence, performance of the Scheme has not been
provided.

III. UNITS AND OFFER

This section provides details you need to know for investing in the Scheme.

A. NEW FUND OFFER (NFO)

The Scheme is open for on-going subscription. Therefore the section ‘NEW FUND
OFFER’ is not relevant except for the details as under:

Plans / Options The Scheme offers two Plans: Regular Plan

and Direct Plan

Regular Plan is for Investors who

purchase/subscribe units in a Scheme through
any Distributor (AMFI Registered
Distributor/ARN Holder).

Direct Plan is for investors who purchase

/subscribe units in a Scheme directly with the
Fund and is not routed through a Distributor
(AMFI Registered Distributor/ARN Holder).
Direct Plan will have a lower expense ratio
excluding distribution expenses, commission
for distribution of Units etc.

There will be no separate portfolio for Direct

Plan and Regular Plan. Further, both the
options i.e. Growth and Dividend will have
common portfolio under the Scheme.

Each Plan offers the following Options:

(a) Growth Option
(b) Dividend Option (with Payout and Re-
investment facility)

(a) Growth Option:

Under this Option, dividend will not be
declared. Income/profits received/earned on
the Scheme’s corpus would be accumulated by
the Fund as capital accretion & will remain
invested in the Scheme and will be reflected in
the Net Asset Value (NAV) of Units under this
Option.

30
 (b) Dividend Option:
Under this option, dividends will be declared
(subject to deduction of tax at source and
statutory levies, if any) at periodic intervals at
the discretion of the Trustees, subject to
availability of distributable surplus. On
payment of dividend, the NAV of the Units
under dividend option will fall to the extent of
the dividend payout and applicable statutory
levies, if any. All the dividend payments shall
be in accordance and compliance with SEBI
Regulations, as applicable from time to time.
Following facilities are available under this
Option:

(i) Dividend Payout facility

Under this option, Dividends, if declared, will
be paid (subject to deduction of dividend
distribution tax and statutory levy, if any) to
those Unitholders, whose names appear in the
register of Unitholders on the record date.

If dividend payable under the dividend payout

option is equal to or less than Rs. 500/-, then it
would be compulsorily re-invested in the
option of the Scheme.

(ii) Dividend Reinvestment facility:

Unitholders opting for dividend option may
choose to reinvest the dividends to be received
by them. Under this facility the dividend due
and payable to the Unit holders will be
compulsorily and without any further act by
the Unit holders, reinvested in the dividend
option at a price based on the prevailing Net
Asset Value per Unit on the record date. The
Units for the purpose of re-investment will be
created and credited to the Unitholder’s
account at the applicable NAV announced
immediately following the record date. There
shall, however, be no entry load and exit load
on the dividends so reinvested.

The AMC reserves the right to

introduce/discontinue further Plans / Options
as and when deemed fit.
Default Plan / Option Investors subscribing Units under Direct Plan
of a Scheme should indicate “Direct Plan”
against the Scheme name in the application
31
 form. Investors should also mention “Direct”
in the ARN column of the application form.
However, in case Distributor code is
mentioned in the application form but “Direct
Plan” is mentioned against the Scheme name,
then the Distributor code will be ignored and
the application will be processed under Direct
Plan. Further, where application is received
without mentioning Distributor code or where
“Direct” is mentioned in the ARN Column,
then the application will be processed under
Direct Plan.

If the investor does not clearly specify the

choice of option at the time of investing, it will
be deemed that the investor has opted for
Growth option and in case he does not specify
payout/re-investment under Dividend option, it
will be deemed to be dividend re-investment.

Dividend Policy The Trustees may declare dividend subject to

the availability of distributable surplus
calculated in accordance with SEBI (Mutual
Funds) Regulations, 1996. The actual
declaration of dividend and the frequency of
distribution will be entirely at the discretion of
the Trustees. There is no assurance or
guarantee to Unit holders as to the rate of
dividend distribution nor that the dividends
will be declared regularly, though it is the
intention of the Mutual Fund to make regular
dividend distribution under the Dividend Plan.
The dividend would be paid to the Unitholders
whose names appear in the Register of
Unitholders as on the record date.

Dividend Distribution Procedure

In accordance with SEBI Regulations, the
procedure for Dividend distribution would be
as under:

Quantum of dividend and the record date will

be fixed by the Trustee in their meeting.
Dividend so decided shall be paid, subject to
availability of distributable surplus. Within
one calendar day of decision by the Trustee,
the AMC shall issue notice to the public
communicating the decision about the
dividend including the record date, in one
32
 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.

Record date shall be the date, which will be

considered for the purpose of determining the
eligibility of investors whose names appear on
the register of Unitholders for receiving
dividends. The Record Date will be 5 calendar
days from the date of issue of notice. The
notice will, in font size 10, bold, categorically
state that pursuant to payment of dividend, the
NAV of the Scheme would fall to the extent of
payout and statutory levy (if applicable). The
NAV will be adjusted to the extent of dividend
distribution and statutory levy, if any, at the
close of business hours on record date. Before
the issue of such notice, no communication
indicating the probable date of dividend
declaration in any manner whatsoever will be
issued by Mutual Fund.
Mode of Payment of Dividends The dividend proceeds will be paid by way of
cheque, Dividend Warrants / Direct Credit /
National Electronic Fund Transfer (NEFT) /
Real Time Gross Settlement (RTGS) /
National Electronic Clearing System (NECS)
or any other manner to the unitholder's bank
account as recorded in the Registrar &
Transfer Agent's records. The AMC, at its
discretion at a later date, may choose to alter
or add other modes of payment.

In case of Units under the Dividend Option

held in dematerialised mode, the Dividend
Payout will be credited to the bank account of
the investor, as per the bank account details
recorded with the DP.

All the dividend payments shall be in

accordance and compliance with SEBI
regulations, as amended from time to time.
Dematerialization The Units of the Scheme will also be available
in the Dematerialized (electronic) mode, if so
selected by the Investor in the Application
Form.
i. The Units of the Growth Option and
Dividend sub-options, issued under the
Scheme, will be distinct from each other
33
 and would have different ISINs.
ii. The Investor under the Scheme will be
required to have a beneficiary account
with a Depository Participant of NSDL /
CDSL and will be required to indicate in
the application the DP’s name, DP ID
Number and beneficiary account number
of the applicant with the Depositary
Participant or such details requested in the
Application Form / Transaction Form.
iii. For Investors proposing to hold Units in
dematerialized mode, applications without
relevant details of his / her / its Depository
account are liable to be rejected.
iv. If KYC details of the investor including
IPV is not updated with DP, the Units will
be allotted in non-demat mode subject to
compliance with necessary KYC
provisions.

Rematerialization Rematerialization of Units will be in

accordance with the provisions of SEBI
(Depositories & Participants) Regulations,
1996 as may be amended from time to time.

The process for rematerialisation is as follows:

i. The investor will submit a remat request
to his/her DP for rematerialisation of
holdings in his/her account.
ii. If there is sufficient balance in the
investor's account, the DP will generate a
Rematerialisation Request Number (RRN)
and the same is entered in the space
provided for the purpose in the
rematerialisation request form.
iii. The DP will then dispatch the request
form to the AMC/ R&T agent.
iv. The AMC/ R&T agent accepts the request
for rematerialisation prints and dispatches
the account statement to the investor and
sends electronic confirmation to the DP.
v. The DP will inform the investor about the
changes in the investor account following
the acceptance of the request.
Allotment All Applicants whose cheques/payments
towards purchase of Units have been realised
will receive a full and firm allotment of Units,
provided that the applications are complete in
all respects and are found to be in order. All
34
 allotments will be provisional (for application
for purchase of units for an amount of less
than Rs. 2 lakhs), subject to realisation of
payment instrument and subject to the AMC
having been reasonably satisfied about receipt
of clear funds. Further, for purchase of Units
for an amount equal to or more than Rs. 2
lakhs, units shall be allotted only on realisation
of funds as per provision specified under “Cut
off timing for subscriptions/purchases
including Switch-ins” in this SID. Any
redemption or switch out transaction in the
interim is liable to be rejected at the sole
discretion of the AMC. Subject to the SEBI
Regulations, the AMC / Trustee may reject
any application received in case the
application is found invalid/incomplete or for
any other reason in their sole discretion. The
Mutual Fund reserves the right to recover from
an investor any loss caused to the Scheme on
account of dishonour of cheques issued by
him/her/it for purchase of Units. Normally, no
unit certificates will be issued. However, if an
applicant so desires, the AMC shall issue the
unit certificates to the applicant within 5
business days of the receipt of request for the
certificate. Unit certificate if issued must be
duly discharged by the Unit holder(s) and
surrendered alongwith the request for
Redemption / Switch or any other transaction
of Units covered therein.
Refund Not Applicable.

Who can invest This is an indicative list and you are requested
to consult your financial advisor. The
This is an indicative list and you are following are eligible to subscribe to the units
requested to consult your financial of the Scheme:
advisor to ascertain whether the scheme 1. Resident adult individuals, either singly or
is suitable to your risk profile. jointly (not exceeding three) or on anyone
or Survivor basis.
2. Qualified Foreign Investor (QFI)
3. Minors through Parents/Lawful Guardian.
4. Hindu Undivided Family (HUF) through
its Karta.
5. Partnership Firms in the name of any one
of the partner.
6. Proprietorship in the name of the sole
proprietor.
7. Companies, Body Corporate, Societies,
35
 (including registered co-operative
societies), Association of Persons, Body
of Individuals, Clubs and Public Sector
Undertakings registered in India if
authorized and permitted to invest under
applicable laws and regulations.
8. Banks (including co-operative Banks and
Regional Rural Banks), Financial
Institutions.
9. Mutual Fund schemes registered with
SEBI.
10. Non-Resident Indians (NRIs) / Persons of
Indian Origin (PIOs) residing abroad on
repatriation basis and on non-repatriation
basis.
11. Foreign Institutional Investors (FII)
registered with SEBI on repatriation basis
(subject to RBI approval).
12. Charitable or Religious Trusts, Wakf
Boards or endowments of private trusts
(subject to receipt of necessary approvals
as “Public securities” as required) and
private trusts authorized to invest in units
of Mutual Fund schemes under their trust
deeds.
13. Army, Air Force, Navy, Para-military
funds and other eligible institutions.
14. Scientific and Industrial Research
Organizations.
15. Multilateral Funding Agencies or Bodies
Corporate incorporated outside India with
the permission of Government of India
and the Reserve Bank of India.
16. Overseas Financial Organizations which
have entered into an arrangement for
investment in India, inter-alia with a
Mutual Fund registered with SEBI and
which arrangement is approved by
Government of India.
17. Provident / Pension / Gratuity /
Superannuation and such other retirement
and employee benefit and other similar
funds as and when permitted to invest.
18. Other Associations, Institutions, Bodies
etc. authorized to invest in the units of
Mutual Fund.
19. Trustees, AMC, Sponsor or their
associates may subscribe to the units of
the Scheme.
36
 20. Such other categories of investors
permitted by the Mutual Fund from time
to time, in conformity with the SEBI
Regulations.
Not Applicable.
How to Apply Please refer to the SAI and Application form
for the instructions.
Listing Motilal Oswal MOSt Focused 25 Fund is an
open ended equity scheme under which sale
and repurchase will be made on a continuous
basis and therefore listing on stock exchanges
is not envisaged. 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 the Trustee
considers it necessary in the interest of
Unitholders of the Fund.

Special Products / facilities available Not Applicable.

during the NFO

The policy regarding reissue of Units once redeemed/repurchased will not be

repurchased units, including the re-issued.
maximum extent, the manner of
reissue, the entity (the scheme or the
AMC) involved in the same.

37
B. ONGOING OFFER DETAILS

Ongoing Offer Period The Units of the Scheme(s) will be available for subscription /
This is the date from which redemption at applicable NAV based prices, subject to
the scheme will reopen for prevalent load provisions, if any.
subscriptions/redemptions
after the closure of the NFO
period.

Ongoing price for Ongoing price for subscription (purchase) by investors will be
subscription the applicable NAV of the plan selected. Purchase Price =
(purchase)/switch-in (from Applicable NAV.
other schemes/plans of the
Mutual Fund) by investors In accordance with the requirements specified by the SEBI
circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30,
This is the price you need to 2009 no entry load will be charged for purchase / additional
pay for purchase/switch-in. purchase/ switch-in accepted for the scheme with effect from
August 01, 2009. Similarly, no entry load will be charged with
respect to applications for registrations under Systematic
Investment Plans. The upfront commission on investment
made by the investor, if any, shall be paid to the ARN Holder
directly by the investor, based on the investor’s assessment of
various factors including service rendered by the ARN Holder.
Pursuant to SEBI circular No. SEBI/IMD/CIR No.
14/120784/08 dated March 18, 2008, with effect from April 1,
2008, no entry load or exit load shall be charged in respect of
bonus units and of units allotted on reinvestment.
Ongoing price for At the applicable NAV subject to prevailing exit load, if any.
redemption (sale) /switch
outs (to other schemes/plans The Fund will ensure that the Redemption Price is not lower
of the Mutual Fund) by than 93% of the NAV and the Purchase Price is not higher than
investors 107% of the NAV, provided that the difference between the
Redemption Price and Purchase Price of the Units shall not
This is the price you will exceed the permissible limit of 7% of the Purchase Price, as
receive for provided for under the current Regulations.
redemptions/switch outs.

Cut off timing for Cut-off time is the time before which the Investor’s
subscriptions/ redemptions/ Application Form(s) (complete in all respects) should reach the
switches 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 An application will be considered accepted on a Business Day,
all respects) should reach the subject to it being complete in all respects and received and
official points of acceptance. time stamped upto the 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
38
have been received on the next Business Day.

Cut off timing for subscriptions / purchases / switch- ins for

an amount less than Rs. 2,00,000 (Rs. Two lakh only)

For Purchases including switch-ins:

i. In respect of valid applications received by 3.00 p.m. by
the Fund along with a local cheque or a demand draft
payable at par at the Official Point(s) of Acceptance where
the application is received, the closing NAV of the day on
which application is received shall be applicable.
ii. In respect of valid applications received after 3.00 p.m. by
the Fund along with a local cheque or a demand draft
payable at par at the Official Point(s) of Acceptance where
the application is received, the closing NAV of the
following Business Day shall be applicable.
iii. In respect of valid applications with an outstation cheques
or demand drafts not payable at par at the Official Points
of Acceptance where the application is received, the
closing NAV of day on which the cheque or demand draft
is credited shall be applicable.

Cut off timing for subscriptions / purchases / switch- ins

amount equal to or greater than Rs. 2,00,000 (Rs. Two lakh
only)

i. In respect of valid applications received for an amount

equal to or more than Rs. 2 lakh 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 for an amount
equal to or more than Rs. 2 lakh 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 for an
amount equal to or more than Rs. 2 lakh 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
39
 i.e. available for utilization before the cut-off time on any
subsequent Business Day - the closing NAV of such
subsequent Business Day shall be applicable.

It is clarified that all multiple applications for investment at the

Unit holders’ PAN and holding pattern level in a Scheme
(irrespective of amount or the plan/option/sub-option) received
on the same Business Day, will be aggregated to ascertain
whether the total amount equals to Rs. 2 lakh or more and to
determine the applicable Net Asset Value. Transactions in the
name of minor received through guardian will not be
aggregated with the transaction in the name of same guardian.
The criteria for aggregation of multiple transactions shall be as
decided by the AMC at its sole discretion from time to time.

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.

Where can the applications The applications for purchase/redemption/switches of units

for purchase/redemption directly with the Fund would be submitted at the any of the
switches be submitted? ISCs / Official Points of Acceptance including AMC’s
Corporate office.
Minimum amount for Rs. 5,000/- and in multiples of Re.1/- thereafter.
purchase//switches into the
Scheme Minimum additional amount will be Rs.1, 000/- and in
multiples of Re 1/-thereafter.

AMC may revise the minimum/maximum amounts and the

methodology for new/additional subscriptions, as and when
necessary. Such change may be brought about after taking into
account the cost structure for a transaction/account and /or
Market practices and/or the interest of existing Unit holders.
Further, such changes shall only be applicable to transactions
from the date of such a change, on a prospective basis.

Minimum Redemption Minimum of Rs. 1,000 and in multiples of Re. 1/- thereafter or
Amount total investment amount, whichever is lower.
Minimum balance to be Nil
maintained and
consequences of non
maintenance.

40
Special Products available I. Systematic Investment Plan (SIP)
Minimum installment amount - Rs. 1,000/-
(weekly/fortnightly/monthly) and Rs. 2,000/- (quarterly) and in
multiples of Re. 1/- thereafter with minimum of 6 installments
for weekly/fortnightly/monthly frequency and minimum 3
installments for quarterly frequency

The dates for Auto Debit Facility shall be on the 1st, 7th, 14th,
21th or 28th of every month. In case, the date fixed happens to
be a holiday / non-business day, the same shall be affected on
the next business day. No Post Dated cheques would be
accepted for SIP.

II. Systematic Transfer Plan (STP)

During Continuous Offer, a Unit holder may enroll for

Systematic Transfer Plan (STP) and choose to Switch from this
Scheme to another Option or Scheme (other than Exchange
Traded Funds) of the Mutual Fund, which is available for
investment at that time.

This facility enables Unit holders to transfer fixed amount

periodically from their Unit holdings in the Scheme
(Transferor Scheme) to the other schemes (Transferee Scheme)
of the Mutual Fund Scheme) to the other schemes (Transferee
Scheme) of the Mutual Fund .

The terms and conditions for investing in STP are as follows :

Minimum amount per STP Rs. 1,000/- and multiple of

installment under Monthly Re. 1/- thereafter.
STP
Minimum amount per STP Rs. 2,000/- and multiple of
installment under Quarterly Re. 1/- thereafter.
STP
No. of STP Instalments Six installment for Monthly
a) Minimum STP and Three installment
for Quarterly STP
b) Maximum No Limit
Period of STP investment Six Months for Monthly
a) Minimum STP and Three months for
Quarterly STP

b) Maximum No maximum Period

Periodicity Monthly/Quarterly

Dates available for STP 1st, 7th, 14th, 21st and 28th of
Facility every month/ quarter.
41
 Applicable NAV and Cut-off Applicable NAV and cut-
time off time as prescribed
under the Regulation shall
be applicable.

III. Systematic Withdrawal Plan (SWP):

Investors can use the SWP facility for regular inflows.
Withdrawals can be made by informing the AMC or Registrar
of the specified withdrawal dates and minimum amount as per
the table below. The amount will be converted into units at the
applicable repurchase price on that date and will be subtracted
from the units with the unit holder. The AMC may close a unit
holder’s account if the balance falls below the specified
minimum amount for the scheme. Unit holders may change the
amount indicated in the SWP, subject to the minimum amount
specified. The SWP may be terminated on written notice from
the unit holder and it will terminate automatically when all the
units of the unit holder are liquidated or withdrawn from the
account.

The features of Systematic Withdrawal Plan (SWP) are as

under:

Minimum amount per SWP Rs. 1,000/- and multiple of

installment under Monthly Re. 1 thereafter.
SWP
Minimum amount per SWP Rs. 2,000/- and multiple of
installment under Quarterly Re. 1 thereafter.
SWP
No. of SWP Installment Six installment for Monthly
a) Minimum SWP and Three installment
for Quarterly SWP
b) Maximum No Limit
Period of SWP investment Six Months for Monthly
a) Minimum SWP and Three months for
Quarterly SWP

b) Maximum No maximum Period

Periodicity Monthly/Quarterly

Dates available for SWP 1st, 7th, 14th, 21st and 28th of
Facility every month/ quarter.
Applicable NAV and Cut-off Applicable NAV and cut-off
time time as prescribed under the
Regulation shall be
applicable.
Introduction of Motilal Motilal Oswal Value Index (MOVI) Pack Plan is a Systematic
Oswal Value Index (MOVI) Transfer Plan (STP) from select debt/liquid scheme into select
42
Pack Plan equity scheme that enables allocation between debt and equity
asset classes. It allows Unit holders holding units in non-demat
form to take advantage of fluctuations in equity market
valuations and not just market levels based on MOVI. Under
this facility, Investors may opt to transfer amounts from
Motilal Oswal MOSt Ultra Short Term Bond Fund (referred to
as Transferor Scheme) to Motilal Oswal MOSt Focused 25
Fund (referred to as Transferee Scheme) with allocations based
on MOVI levels. The transfers will be enabled in the reverse as
well.

The Salient features of the Plan are as under:

1. Motilal Oswal Value Index (MOVI) helps gauge equity

market. The Index is calculated taking into account Price to
Earnings, Price to Book and Dividend Yield of the CNX
Nifty Index.

A low MOVI level indicates that the market valuation

appears to be cheap and one may allocate a higher
percentage of their investments to Equity as an asset
class. A high MOVI level indicates that the market
valuation appears to be expensive and that one may reduce
their equity allocation.

2. India Index Services & Products Ltd. (IISL) is the

calculating agent of NIFTY MOVI. IISL shall calculate,
compile, maintain and provide NIFTY MOVI values to
Motilal Oswal Asset Management Company Ltd. NIFTY
MOVI values will be published on the MOAMC website
on a daily basis.

3. Transfer: This transfer is made from the Transferor Scheme

to the Transferee Scheme, on the date of allocation based
on NIFTY MOVI levels.

Reverse Transfer: This transfer is made from the

Transferee Scheme to the Transferor Scheme, when
appreciation in the market value of the Transferee Scheme
results in a breach of the prescribed allocation level as
determined by NIFTY MOVI.

4. This Plan presently offers two enrolment options:

a. One Time Investment
b. Systematic Transfer Plan (STP) with a minimum of 6
installments.

43
5. Minimum amount under this Plan is as follows:
Options Minimum Amount of Transfer (Rs.)
One Time Rs. 5000/- and in multiples of Re. 1/-
Investment thereafter
STP Rs. 1000/- and in multiples of Re. 1/ thereafter

6. The date of allocation will be the 15th of every month. In

case the date of allocation falls on a Non-Business Day or
falls during a book closure period, the immediate following
Business Day will be considered as the date of allocation.

Note: Under ‘One Time Investment’ enrolment option, in

addition to the 15th of every month, allocation will occur on
the business day succeeding the date of enrolment into the
MOVI Pack Plan.

Under ‘STP’ enrolment option, if the Unit holder has an

existing Systematic Investment Plan (SIP) in the Transferor
scheme where the date of SIP falls on a date later than or
on 15th of every month, then allocation for that amount will
occur on 15th of the subsequent month.

7. On the date of allocation, the prescribed percentage of the

amount will be transferred in the Transferee Scheme at the
closing NAV of the same day i.e. date of allocation.

8. The AMC will require 7 calendar days from the date of

submission of valid enrolment forms to register the
Investor under this Plan. Therefore, in the intervening
period i.e. date of submission of enrolment form and date
of registration, if the date of allocation is crossed, then the
same will be considered at the next date of allocation.

9. The amount transferred under this Plan from the Transferor

Scheme to Transferee Scheme shall be effective by
redeeming units of Transferor Scheme at applicable NAV,
(subject to the applicable exit load, if any) and subscribing
to the units of the Transferee Scheme at applicable NAV
on the date of allocation.

10. Unit holders can discontinue the Plan at any time by

providing a written request which shall be made effective
within 7 calendar days of the date of receipt of the said
request.

11. This Plan will be automatically terminated if all units are

liquidated or withdrawn or pledged or upon receipt of
intimation of death of the unit holder.

44
 12. Unit holders should note that investor details and mode of
holding (single, joint, anyone or survivor) in the Transferee
Scheme will be as per the existing folio number of the
Transferor Scheme. Units will be allotted under the same
folio number.

13. Any change in methodology of MOVI would only be

carried out by obtaining prior consent of the Board of
Trustees of Motilal Oswal Trustee Company Limited, the
Trustees to Motilal Oswal Mutual Fund.

14. Given the two way movement of investments between

funds, liquidity at times may be restricted by trading
volumes, settlement periods, and inordinately large number
of redemption requests or restructuring of the Scheme. This
may impact the performance of the underlying scheme.

15. Investors may approach/consult their tax consultants in

regard to the treatment of the transfer of units from the tax
point of view.

16. Investors are required to refer to the terms and conditions

mentioned in the enrolment form.

17. The Trustee/AMC reserves the right to change/modify the

terms and conditions of the MOVI Pack Plan or withdraw
this facility.

This facility will also be available for transfer into any other
equity scheme of Motilal Oswal Mutual Fund that may be
launched in future.

Accounts Statements For Regular Transactions during continuous offer:

An Account Statement will be despatched to each Unitholder
stating the number of Units held, etc. within a maximum of
five business days from the date of Allotment or as prescribed
under SEBI regulations. Also, an Account Statement reflecting
the net balance and value of units shall be despatched to the
unit holders who have not transacted during the last six months
prior to the date of generation of account statement, along with
the Annual Report.

After every subscription transaction a fresh Account statement

Transaction confirmation Slip will be dispatched, reflecting the
updated holding of the unit holder, subject to realisation of the
payment. Mutual Fund will despatch Account Statement within
five working days from the date of receipt of the application
form/transaction slip at the Designated Investor Service Centre
or within maximum time period prescribed by SEBI.
45
For the purpose of sending CAS, common investors across
mutual funds shall be identified by their Permanent Account
Number (PAN). The CAS shall not be sent to the Unit holders
for the folio(s) not updated with PAN details. For folios
without a valid PAN, the AMC may send account statements
on a monthly basis. The Unit holders are therefore requested to
ensure that the folio(s) are updated with their PAN.

However, the Fund reserves right to provide the account

statement/transaction confirmation slip to investor through an
alternative mechanism as may be decided by the Fund from
time to time.

The alternative mechanism may include electronic means of

communication such as e-mail etc. The alternative mechanism
to provide the account statement /transaction confirmation slip
will be provided only to those investors who have specifically
opted for the alternative mechanism.

For SIP transactions:

Account Statement for SIP will be despatched once every
quarter ending March, June, September and December within
10 working days of the end of the respective quarter.

A soft copy of the Account Statement shall be mailed to the

investors under SIP to their e-mail address on a monthly basis,
if so mandated.

However, the first Account Statement under SIP shall be

issued within 10 working days of the initial
investment/transfer.

In case of specific request received from investors, Mutual

Funds shall provide the account statement (SIP) to the
investors within 5 working days from the receipt of such
request without any charges.

Annual Account Statement:

The Mutual Funds shall provide the Account Statement to the
Unitholders who have not transacted during the last six months
prior to the date of generation of account statements. The
Account Statement shall reflect the latest closing balance and
value of the Units prior to the date of generation of the account
statement, The account statements in such cases may be
generated and issued along with the Portfolio Statement or
Annual Report of the Scheme. Alternately, soft copy of the
account statements shall be mailed to the investors’ e-mail
address, instead of physical statement, if so mandated.
46
 Note: If the investor(s) has/have provided his/their email
address in the application form or any subsequent
communication in any of the folio belonging to the investor(s),
Mutual Fund / Asset Management Company reserves the right
to use Electronic Mail (email) as a default mode to send
various communication which include account statements for
transactions done by the investor(s).
Accounts Statements For Units held in non demat mode
An allotment confirmation specifying the number of Units
allotted will be sent to the applicant’s registered e-mail address
and/or mobile number by way of e-mail and/or SMS within
five Business Days from the date of closure of the NFO Period.

Thereafter, Consolidated Account Statement (CAS) will be

sent for each calendar month to Unitholder(s) in whose folio(s)
transaction(s) has/have taken place during the month, on or
before 10th day of the succeeding month.

A Consolidated Account Statement (CAS) shall contain details

of all the transactions (including purchase, redemption, switch,
dividend payout, dividend reinvestment, systematic investment
plan, systematic withdrawal plan, systematic transfer plan and
bonus transactions) during the month and holding at the end of
the month across all schemes of all mutual funds including
transaction charges paid to the distributor.

For the purpose of sending CAS, common investor across

mutual funds shall be identified by their Permanent Account
Number (PAN). In case the folio has more than one registered
holder, the first named Unit holder will receive CAS/account
statements.

Further, the CAS holding across all schemes of all mutual

funds at the end of every six months (i.e. September/ March),
shall be sent by mail/e-mail on or before 10th day of
succeeding month, to all such Unit holders in whose folios no
transaction has taken place during that period. The half yearly
consolidated account statement will be sent by e-mail to the
Unit holders whose e-mail address is available, unless a
specific request is made to receive in physical. In case of
specific request received from investors, Mutual Funds shall
provide the account statement to the investors within 5
business days from the receipt of such request without any
charges.

The AMC shall send first account statement for a new folio
separately with all details registered in the folio by way of a
physical account statement and/or an e-mail to the investor’s
47
registered address / e-mail address not later than five business
days from the date of closure of the initial subscription list.

The account statements shall be non-transferable.

For Units held in Demat mode

Unitholder who has opted to hold Units in demat mode will
receive a the holding/transaction statements directly from
his/her depository participant at such a frequency as may be
defined in the Depositories Act, 1996 or regulations made
there under or on specific request.

The Units allotted will be credited to the DP account of the

Unit holder as per the details provided in the application form.

All Units will rank pari passu, among Units within the same
plan/option in the Scheme concerned as to assets, earnings and
the receipt of dividend distributions, if any, as may be declared
by the Trustee.

For SIP transactions:

Account Statement for SIP will be despatched once every
quarter ending March, June, September and December within
10 working days of the end of the respective quarter.

A soft copy of the Account Statement shall be mailed to the

investors under SIP to their e-mail address on a monthly basis,
if so mandated.

However, the first Account Statement under SIP shall be

issued within 10 working days of the initial
investment/transfer.

In case of specific request received from investors, Mutual

Funds shall provide the account statement (SIP) to the
investors within 5 working days from the receipt of such
request without any charges.

Note: If the investor(s) has/have provided his/their email

address in the application form or any subsequent
communication in any of the folio belonging to the investor(s),
Mutual Fund / Asset Management Company reserves the right
to use Electronic Mail (email) as a default mode to send
various communication which include account statements for
transactions done by the investor(s). The investor shall from
time to time intimate the Mutual Fund / its Registrar and
Transfer Agents about any changes in the email address.

48
Dividend The dividend warrants shall be dispatched to the Unitholders
within 30 days of the date of declaration of the dividend.

Redemption The redemption or repurchase proceeds shall be dispatched to

the Unitholders within 10 working days from the date of
redemption or repurchase.

Delay in payment of The AMC shall be liable to pay interest to the Unitholders at
redemption / repurchase such rate as may be specified by SEBI for the period of such
proceeds delay (presently @ 15% per annum).

Bank Account Details As per SEBI requirements, it is mandatory for an investor to

provide his/her bank account number in the Application Form.
The Bank Account details as mentioned with the Depository
should be mentioned. If depository account details furnished in
the application form are invalid or not confirmed in the
depository system, the application may be rejected. The
Application Form without the Bank account details would be
treated as incomplete and rejected.

Notwithstanding any of the above conditions, any application

may be accepted or rejected at the sole and absolute discretion
of the Trustee.

Right to limit Redemptions The Trustee, in the general interest of the Unitholders of the
Scheme offered under this SID 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.

Suspension of Sale of Units In case of breach of limits of overseas investments as per

applicable regulations, the Fund would suspend sale of units
until such time the assets under management in the Scheme
decreases from the threshold limit as mentioned in the
Regulations.

Restrictions, if any, on the Units of the Scheme which are issued in demat (electronic)
right to freely retain or form will be transferred and transmitted in accordance with the
dispose of Units being provisions of SEBI (Depositories and Participants)
offered. Regulations, as may be amended from time to time.

Right to Limit Fresh Subscription

The Trustees reserves the right at its sole discretion to
withdraw / suspend the allotment / Subscription of Units in the
Scheme temporarily or indefinitely, at the time of NFO or
otherwise, if it is viewed that increasing the size of such
Scheme may prove detrimental to the Unit holders of such
Scheme. An order to Purchase the Units is not binding on and
may be rejected by the Trustees or the AMC unless it has been
49
 confirmed in writing by the AMC and/or payment has been
received.

Units which are not in demat are not transferable

The Units of the Scheme which are not in demat form are not
transferable. In view of the same, additions/deletion of names
in case of Units held in other than demat mode will not be
allowed under any folio of the Scheme. The above provisions
in respect of deletion of names will not be applicable in case of
death of Unit holder (in respect of joint holdings) as this is
treated as transmission of Units and not transfer.

C. PERIODIC DISCLOSURES

Net Asset Value The AMC shall declare the NAV of the Scheme on every
business day on AMFI’s website [Link] by
This is the value per unit of the 9.00 p.m. and also on our website
scheme on a particular day. You [Link]/assetmanagement and
can ascertain the value of your [Link]. If the NAV is not available before
investments by multiplying the the commencement of Business Hours on the following
NAV with your unit balance. 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 NAV.

Investors can also call the office of the AMC to obtain the
NAV of the Scheme.

Half yearly Disclosures: The Mutual Fund shall disclose the portfolio of the
Portfolio / Financial Results Scheme as on the last day of the month on AMC’s website
([Link] and
This is a list of securities where [Link]/assetmanagement) on or before
the corpus of the scheme is the tenth day of the succeeding month. The Investors will
currently invested. The market be able to view and download this monthly portfolio from
value of these investments is the AMC’s website.
also stated in portfolio
disclosures. The Mutual Fund shall publish a complete statement of
the Scheme portfolio within one month from the close of
each half year (i.e. 31st March and 30th September), by
way of an advertisement at least, in one national English
daily and one regional newspaper in the language of the
region where the head office of the Mutual Fund is
located. The Mutual Fund may opt to send the portfolio to
all Unit holders in lieu of the advertisement (if
applicable). The Portfolio Statement will also be
displayed on the website of the AMC/Mutual Fund and
AMFI.

Further, the Mutual Fund shall within one month from the
close of each half year, that is on 31st March and on 30th
50
 September, host a soft copy of its unaudited financial
results on its website. The mutual fund shall publish an
advertisement disclosing the hosting of such financial
results on their website, in atleast 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.

Annual Report The Scheme wise Annual Report or an abridged summary

thereof shall be mailed/e-mailed to all the Unitholders of
the Scheme, not later than four months from the date of
closure of relevant financial year i.e. March 31 each year.

The scheme wise Annual Report or an abridged summary

thereof shall be sent (i) by e-mail to the Unitholders
whose e-mail address is available with the Fund and (ii) in
physical copy to the Unitholders whose e-mail address is
not available with the Fund and/or those Unitholders who
have opted/requested for the same.

Further, the annual report will be available for inspection

at the registered office of the AMC and copy shall be
made available on specific request. Also, the Scheme wise
annual report and an abridged summary thereof shall be
displayed on our website
[Link]/assetmanagement and
[Link] and AMFI’s website
[Link] and the link of the same will be
displayed prominently on the website of the Fund.

Associate Transactions Please refer to Statement of Additional Information (SAI).

Taxation For details on taxation, please refer to the clause on

Taxation in the Scheme Additional Information (SAI).
The information is provided for
general information only.
However, in view of the
individual nature of the
implications, each investor is
advised to consult his or her own
tax advisors/authorised dealers
with respect to the specific
amount of tax and other
implications arising out of his or
her participation in the schemes.

51
 Investor services Mr. Sudhindra Desai
Motilal Oswal Asset Management Co. Ltd.
Motilal Oswal Tower, Jn. of Gokhale Road & Sayani
Road, Prabhadevi, Mumbai – 400025
Tel No.: 022 -39804120
Email.: mfservice@[Link]

Investors are advised to contact any of the ISC or the

AMC by calling the toll free no. of the AMC at 1800-200-
6626. Investors can also visit our website
[Link]/assetmanagement and
[Link] for complete details.

D. COMPUTATION OF NAV

The Net Asset Value (NAV) per unit under the Scheme will be computed by dividing the net
assets of the Scheme by the number of units outstanding on the valuation day. The Mutual
Fund will value its investments according to the valuation norms, as specified in Schedule
VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to
time.

The Net Asset Value (NAV) of the units under the Scheme shall be calculated as follows:

NAV (Rs.) = Market or Fair Value of Scheme’s investments + Receivables + Accrued

Income + Other Assets - Accrued Expenses- Payables- Other Liabilities
_____________________________________________________________
No. of Units outstanding under Scheme on the Valuation Day

The NAV will be calculated up to four decimals.

The AMC will calculate and disclose the first NAV of the Scheme within a period of 5
business days from the date of allotment. Subsequently, the NAV shall be calculated and
announced on each working day. The computation of NAV shall be in conformity with SEBI
Regulations and guidelines as prescribed from time to time.

IV. FEES AND EXPENSES

This section outlines the expenses that will be charged to the Scheme.

A. NEW FUND OFFER (NFO) EXPENSES

These expenses are 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.

The entire NFO expenses will be borne by the AMC.

52
B. ANNUAL SCHEME RECURRING EXPENSES

The total expenses of the scheme as per Regulation 52(6) schemes shall not exceed 2.50 per
cent of the daily net assets of the scheme as stated below and are subject to inter-se change
and may increase/decrease as per actuals, and/or any change in the Regulations:

Expense Head % of daily Net Assets

Investment Management and Advisory Fees
Trustee fee
Audit fees
Custodian fees
RTA Fees
Marketing & Selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and dividend redemption
Upto 2.50%
cheques and warrants
Costs of statutory Advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps
for cash and derivative market trades resp.
Service tax on expenses other than investment and advisory fees
Service tax on brokerage and transaction cost
Other Expenses
Maximum total expense ratio (TER) permissible under
Regulation 52 (6) (c) (i) and (6) (a) Upto 2.50%

Additional expenses under regulation 52 (6A) (c) Upto 0.20%

Additional expenses for gross new inflows from specified cities
Upto 0.30%

Service Tax:

1. The scheme may charge service tax on investment and advisory fees to the scheme in
addition to the maximum limit of TER as prescribed in regulation 52 of the
Regulations.

2. Service tax on other than investment and advisory fees, if any, shall be borne by the
scheme within the maximum limit of TER as per regulation 52 of the Regulations.

3. Service tax on exit load, if any, shall be paid out of the exit load proceeds and exit
load net of service tax, if any, shall be credited to the scheme.

53
 4. Service tax on brokerage and transaction cost paid for asset purchases, if any, shall be
within the limit prescribed under regulation 52 of the Regulations.

Note: Atleast 0.70% of TER is charged towards distribution/commission under Regular Plan.
The TER of Direct plan will be lowered to the extent of above mentioned
distribution/commission which is charged in Regular plan.

In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations
1996 or the Total Recurring Expenses (Total Expense Limit) as specified above, the
following costs or expenses may be charged to the scheme:

Additional TER can be charged up to 30 basis points on daily net assets of the scheme as per
regulation 52 of SEBI (Mutual Funds) Regulations, 1996 (hereinafter referred to as
Regulations), if the new inflows from beyond top 15 cities are at least (a) 30% of gross new
inflows in the scheme or (b) 15% of the average assets under management (year to date) of
the scheme, whichever is higher Provided that expenses charged under this clause shall be
utilised for distribution expenses incurred for bringing inflows from such cities

In case inflows from beyond top 15 cities is less than the higher of (a) or (b) above,
additional TER on daily net assets of the scheme shall be charged as follows:

Daily net assets X 30 basis points X New inflows from beyond top 15 cities
365* X Higher of (a) or (b) above

* 366, wherever applicable.

The top 15 cities shall mean top 15 cities based on Association of Mutual Funds in
India (AMFI) data on ‘AUM by Geography – Consolidated Data for Mutual Fund
Industry’ as at the end of the previous financial year.

The additional TER on account of inflows from beyond top 15 cities so charged shall be
clawed back in case the same is redeemed within a period of 1 year from the date of
investment.

1. Mutual funds/AMCs shall make complete disclosures in the half yearly report of
Trustees to SEBI regarding the efforts undertaken by them to increase geographical
penetration of mutual funds and the details of opening of new branches, especially at
locations beyond top 15 cities.

The current expense ratios will be updated on the Fund’s website, [Link]
within two working days mentioning the effective date of the change.

Investors applying for subscription of Units offered under the respective Series directly with
the Fund (i.e. not routed through any distributor/agent) hereinafter referred to as 'Direct Plan'
will be subject to a lower expense ratio excluding distribution expenses, commission, etc and
no commission for distribution of Units will be paid / charged under Direct Plan and
therefore, shall not in any manner be construed as an investment advice offered by the Mutual
Fund/AMC. The subscription of Units through Direct Plan is a facility offered to the investor
54
only to execute his/her/ their transactions at a lower expense ratio. Before making an
investment decision, Investors are advised to consult their own investment and other
professional advisors.

C. LOAD STRUCTURE

Load is an amount which is paid by the investor to subscribe to the units or 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
[Link]/assetmanagement and [Link] or may call at toll free
no. 1800-200-6626 or your distributor.

Type of Load Load chargeable (as %age of NAV)

Entry NIL
Exit NIL

Please Note that:

1. Exit load charged to the investors will be credited back to the scheme net of service tax.
2. No Load shall be imposed for switching between Options within the Scheme.
3. Bonus Units and Units issued on reinvestment of dividends shall not be subject to entry
and exit load.
4. The Redemption Price however, will not be lower than 93% of the NAV, and the Sale
Price will not be higher than 107% of the NAV, provided that the difference between the
Redemption Price and Sale price at any point in time shall not exceed the permitted limit
as prescribed by SEBI from time to time which is presently 7% calculated on the Sale
Price.
5. For any change in load structure AMC will issue an addendum and display it on the
website/Investor Service Centres.

The investor is requested to check the prevailing load structure of the Scheme before
investing.

Changing the Load Structure:

Under the Scheme, the AMC reserves the right to modify/alter the load structure if it so
deems fit in the interest of smooth and efficient functioning of the scheme, subject to
maximum limits as prescribed under the SEBI Regulations. The changed load structure shall
be applicable on prospective basis. The load may also be changed from time to time and in
case of exit/redemption, load may be linked to the period of holding.

For any change in the load structure, the AMC would undertake the following steps:

1. The addendum detailing the changes will be attached to SID and Key Information
Memorandum (KIM). The addendum will be circulated to all the distributors so that the
same can be attached to all SID and KIM already in stock.
2. Arrangements shall be made to display the changes/modifications in the SID in the form
of a notice in all Investor Service Centres and distributors/brokers offices.
3. The introduction of the exit load/CDSC along with the details shall be stamped in the
acknowledgement slip issued to the investors on submission of the application form and
55
 may also be disclosed in the statement of accounts issued after the introduction of such
load/CDSC.
4. A public notice may 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.
5. The Fund shall display the addendum on its website
([Link]/assetmanagement and [Link]).
6. Any other measure that the Mutual Fund shall consider necessary.

D. Waiver of Load
As per SEBI Regulations, no entry load shall be charged for existing/prospective investors of
the Scheme.

E. Transaction charge
In terms of SEBI circular no. IMD/ DF/ 13/ 2011 dated August 22, 2011, a transaction
charge, as follows, is payable to distributors who have opted to receive transaction charge:

[Link] existing investor in a Mutual Fund: Rs.100/- per subscription of Rs.10,000/- and
above;
[Link] first time investor in Mutual Funds: Rs.150/- per subscription of Rs.10,000/- and
above.
However, there will be no transaction charge on:
[Link] of less than Rs. 10,000/-; or
[Link] other than purchases / subscriptions relating to new inflows; or
[Link] subscription (subscription not routed through distributor); or
[Link] routed through distributor who has chosen to ‘Opt-out’ of charging of
transaction charge.

The transaction charge, if any, will be deducted by AMC from subscription amount and shall
be paid to distributor. The balance subscription amount, after deducting applicable
transaction charges, will be invested.

In partial modification to SEBI circular no. Cir/ IMD/ DF/13/ 2011 dated August 22, 2011,
distributors shall have also the option to either opt in or opt out of levying transaction charge
based on type of the product.

It is clarified that upfront commission to distributor will continue to be paid by the investor
directly to distributor by a separate cheque.

56
Calculation of transaction charge and balance subscription amount in case of subscription
routed through distributor is explained as follows:
(In INR)
Subscription For existing investors in a Mutual For first time investor in Mutual
Amount (A) Fund Funds
Transaction Balance Transaction Balance
charge (B) Subscription charge (C) Subscription
Amount (A-B) Amount (A-C)

10,000 100 9,900 150 9,850

9,999 Nil 9,999 Nil 9,999

10,00,000 100 9,99,900 150 9,99,850

Note: Balance subscription amount will be invested and units will be allotted at Rs.10/- per
unit for the balance subscription amount.

V. RIGHTS OF UNITHOLDERS
Please refer to SAI for details.

V. 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

This section contains the details of penalties, pending litigation, and action taken by SEBI
and other regulatory and Govt. Agencies.

1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be
limited to the jurisdiction of the country where the principal activities (in terms of income
/ revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is
situated. Further, only top 10 monetary penalties during the last three years shall be
disclosed.

Not Applicable

2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action
taken during the last three years or pending with any financial regulatory body or
governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of
Trustees /Trustee Company; for irregularities or for violations in the financial services
sector, or for defaults with respect to share holders or debenture holders and depositors, or
for economic offences, or for violation of securities law. Details of settlement, if any,
arrived at with the aforesaid authorities during the last three years shall also be disclosed.

a. During the period May 2010 to October 2013, the NSE has levied penalties/fines on
Motilal Oswal Securities Ltd. (MOSL), aggregating to Rs 315,25,089/- on account
of various reasons viz: non-submission of UCC details, delayed reporting of
57
 computer to computer link data, short collection of margins & violation of market
wide position limit in F&O segment, observations made during the course of
inspections.

b. During the period May 2010 to October 2013, the BSE has levied penalties/fines
aggregating to Rs. 7,55,242 on account of various reasons viz: non-submission of
UCC details, settlement of transactions through delivery versus payment,
observations made during the course of inspections, etc.

c. During the period June 2009 to October 2013, the CDSL has levied penalties/fines
aggregating to Rs. 13439 on account of reasons viz: non-collection of proof of
identity of clients, deviation in following of transmission procedure etc; whereas
penalty of Rs. 28,530 were levied by NSDL during the course of MOSL operations.

3. Details of all enforcement actions taken by SEBI in the last three years and/ or
pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations
framed there under including debarment and/ or suspension and/ or cancellation and/
or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which
the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/
or any of the directors and/ or key personnel (especially the fund managers) of the
AMC and Trustee Company were/ are a party. The details of the violation shall also
be disclosed.

a. In 2002 SEBI has investigated MOSL in the case of Amaraja Batteries Limited and
the enquiry officer had warned the company to be cautious in future. Subsequently,
SEBI’s Chairman, in his final order, has agreed to the observations of enquiry
officer.

b. During the period from 1999 to 2001, SEBI has investigated MOSL for dealing in
shares of M/s Cyberspace Limited. MOSL had purchased and sold shares on behalf
of their clients during the investigation period. Scrutiny of the ledger accounts
revealed that MOSL had not taken any upfront payment from the clients before the
clients had started to deal with MOSL. Hence because of MOSL’s failure to
exercise due diligence, skill and care while dealing on behalf of their clients, it has
been warned by SEBI to be careful in future.

c. SEBI has served a Show Cause Notice dated January 19, 2005, on MOSL, under
Section 6 (1) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and
Imposing Penalty) Regulations, 2002, (“Enquiry Notice”), to enquire into dealings
by clients of MOSL during May 2004. The Notice alleges that the sale of shares by
MOSL on behalf of its clients depressed share prices, and consequently, the Enquiry
Notice required MOSL to show cause as to why action should not be taken for
alleged violation of various SEBI regulations governing stock brokers and
regulations prohibiting price manipulation, ‘Know Your Client’ norms and certain
SEBI circulars. SEBI has also served a notice dated November 17, 2006, on
MOSL, under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing
Penalties by Adjudicating Officer), Rules, 1995, (“Adjudication Notice”), with
allegations primarily relating to the same facts covered in the Enquiry Notice and
alleged violation of SEBI circulars in relation to trading by MOSL, requiring MOSL
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 to show cause as to why proceedings to impose monetary penalties should not be
initiated. MOSL had tendered a detailed factual response dated February 28, 2005
and had also responded to the Adjudication Notice placing reliance on the response
to the Enquiry Notice. SEBI vide its order dated March 28, 2008 has disposed off all
proceedings against MOSL in the said matter and no penalty has been levied in this
regard.

d. SEBI had passed a general ad interim ex-parte order dated April 27, 2006 in
connection with 21 IPOs and had directed some depository participants, including
MOSL, not to open fresh demat accounts pending investigations. The said ad
interim ex-parte order was treated as a show cause notice by SEBI. Upon MOSL
showing cause and making representations, SEBI after hearing all relevant facts,
passed another interim order dated August 31, 2006 removing the restriction on
MOSL in relation to opening of fresh demat accounts. An enquiry officer appointed
by SEBI had served a notice dated February 9, 2007, on MOSL under Regulation 6
of the SEBI (Procedure for Holding Enquiry and Imposing Penalties), Regulations,
2002, (“DP Enquiry Notice”), in connection with the MOSL’s depository participant
operations in relation to some of the 21 IPOs referred to in the ad interim ex-parte
order dated April 27, 2006. The DP Enquiry Notice required MOSL to show cause
as to why action ought not to be taken for (i) allegedly aiding and abetting various
allottees who opened fictitious demat accounts, and, (ii) alleged breach of “Know
Your Client” norms, and a consequent breach of securities laws including the SEBI
DIP Guidelines. MOSL responded to the DP Enquiry notice vide their letter dated
April 3, 2007, wherein it, (i) demonstrated in detail as to how it has complied with
applicable SEBI Guidelines, instructions and directions, both in letter and in spirit;
and, (ii) presented detailed findings of an independent auditor empanelled with
SEBI. Subsequently, SEBI vide their letter dated November 3, 2009 has forwarded
the Enquiry Report dated October 23, 2009 and has asked MOSL to file its reply or
apply for consent order. Accordingly, MOSL has expressed its intention to apply for
Consent Terms vide letter dated November 26, 2009.

The high powered advisory committee of SEBI recommended the case for
settlement on payment of Rs. 5,00,000/- towards settlement charges. MOSL paid the
above amount and accordingly SEBI has disposed off the pending inquiring
proceedings against MOSL.

e. SEBI had pursuant to its investigations in the scrips Pyramid Saimira Theatre Ltd.
had restrained Mr. Shailesh Jayantilal Shah, Mr. Rajesh Jayantilal Shah and Ms.
Ritaben Rohitkumar Shah from buying, selling or dealing in the securities market.
SEBI had observed that MOSL and some other brokers have executed trades on
behalf of above three clients after debarment order and SEBI through its notice has
called upon to show cause as to why further action under SEBI (Intermediaries)
Regulations, 2008 should not be taken against MOSL for alleged violation of the
provisions of Regulation 27 (xv) and 27 (xvii) r/w Regulations 26 (xv) of the Broker
Regulations and clauses A (1), A (2) and A (5) of the Code of Conduct for Brokers
as specified in Schedule II under Regulation 7 of the Broker Regulations. MOSL
has explained to SEBI the reasons for such occurrence and requested SEBI to drop
further proceedings in the matter. The order of SEBI is awaited in this regard.

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 f. SEBI had pursuant to its investigation in the Initial Public Offering (IPO) of
Vaswani Industries Ltd. (VIL) had observed that there were large scale of bids
withdrawals and cheques were not banked along with bids applications or cheques
returned or payment were stopped in the RII and NII categories. SEBI, for the
purpose of further analysis has shortlisted Motilal Oswal Securities Limited
(“MOSL”) along with other sub-syndicate members and called upon to show cause
as to why action should not be taken under Regulation 25 and 27 of SEBI
(Intermediaries) Regulation, 2008. The said Show Cause Notice has been issued
alleging that MOSL have violated the provisions of Section 12 A (a), (b) and (c) of
the Securities and Exchange Board of India Act, 1992, Regulation 3 (b) and (d), 4
(1), 4 (2) (a) and (b) of the Securities and Exchange Board of India (Prohibition of
Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations,
2003 and Clause 6 (a) of Schedule XI of the Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2009. MOSL has
replied to the above said show cause notice and awaiting for the communication
from SEBI in the matter.

g. SEBI had pursuant to its inspection during the Inspection of Broking and Operation
conducted for the period from January 01, 2008 to October 31, 2009, has advised to
be careful in future and improve compliance standard in the Investor Grievance
Handling, RMS Policy and in better control over issue /use of receipt books

h. During the SEBI Inspection of DP Broking Conducted for the Year 2010-2011,
2011-2012, SEBI has advised not to repeat the irregularities mentioned in the
Inspection Report in Future and to ensure strict compliance of the provision of SEBI
Act, Rules and Regulation.

4. Any pending material civil or criminal litigation incidental to the business of the Mutual
Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee
Company and/ or any of the directors and/ or key personnel are a party should also be
disclosed separately.

None

5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/or
the Board of Trustees/Trustee Company which SEBI has specifically advised to be
disclosed in the SID, or which has been notified by any other regulatory agency, shall be
disclosed.

None

The Scheme under this Scheme Information Document was approved by the Trustees at
their meeting held on October 19, 2012. The Trustees have ensured that the Scheme is a
new product offered by Motilal Oswal Mutual Fund and is not a minor modification of
its existing Scheme/Fund/Product.

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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.

For Motilal Oswal Asset Management Company Limited

(Asset Management Company for Motilal Oswal Mutual Fund)

S/d

Aashish Somaiya
Managing Director & Chief Executive Officer

Place: Mumbai
Date: January 27, 2014

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