Home FAQ 16409

STATEMENT OF UNDERSTANDING FOR INVESTMENT IN OPEN END MUTUAL FUND

I fully acknowledge the following risks associated with my Non-SIP investment in the open-end Mutual Fund managed by IDLC Asset Management Ltd.:

  1. No Fixed Return:
    Mutual Fund is not a guaranteed or assured return scheme and the past performance of the Sponsor and their affiliates or the Asset Manager does not guarantee the future performance of the Fund.
  2. NAV / Buy Price / Sell Price Fluctuation:
    Due to the fluctuations of the price of the securities in which the Mutual Fund invests, the value of NAV/Buy Price/Sell Price of the units of the Fund may go up or down.
  3. Market Liquidity:
    While securities those are listed on the stock exchange(s) carry lower liquidity risk, the ability to sell these investments made from the Mutual Fund is limited by the overall trading volume on the Stock exchange(s).
  4. Maximum Period for Redemption Processing:
    If the redemption request on a particular day exceeds 1% of the outstanding units, the Asset Manager may differ the redemption request for a maximum period of seven (07) working days due to portfolio rebalancing.
  5. Government Policy:
    Government policy and tax laws may change in any fiscal year, affecting the return on investments of the fund, which may eventually affect the NAV and return of the Units.
  6. Tax Rebate Facility:
    As per 6th Schedule Part 3 para 2 (7) (kha) of Income Tax Act, 2023, investment made in a fiscal year with Unit Certificate issued by any financial institution or ICB or Asset Manager or Fund Manager is eligible for tax rebate. This is subject to change as per prevailing tax structure.

I am also aware of the following Operational process / policy related with buy / sell of units of the Mutual Fund:

  1. Exit Load:
    Exit load will be applicable on the surrender amount if full/partial fund is withdrawn within a certain period from the account opening date.
  2. Dividend Adjustment & Disbursement:
    If the trustee declares dividend for a particular year, then NAV of the Mutual Fund will be adjusted accordingly. The Asset Manager will dispatch the Dividend within 45 days from the declaration of dividend.
  3. Trading Suspension Period:
    Buy/sell of units will be suspended (a) on the record date of the fund and (b) during the book closure/annual audit period (usually first two/three weeks of July each year) of the Mutual Fund.
  4. Sell Price:
    If any surrender request is submitted in any day through Surrender Form / Digital Platform, then that day's prevailing sell price will be applicable for calculating the surrender amount, irrespective of transferring the units from the investor’s BO account to the Mutual Fund’s BO accounts.

TERMS & CONDITIONS FOR INVESTMENT IN IDLC MUTUAL FUND

  1. Minimum amount for IDLC SIP:
    For Individual Investor: BDT 5,000 or any multiple of BDT 1,000 for above BDT 5,000.
    For Institutional Investor: BDT 10,000 or any multiple of BDT 1,000 for above BDT 10,000.
    The maximum amount of individual SIP installment is BDT 10,00,000 per registration.
  2. Minimum tenure for IDLC SIP:
    The minimum SIP tenure for IDLC Balanced Fund, IDLC Growth Fund, and IDLC Asset Management Shariah Fund is 5 years and IDLC Income Fund is 3 years.
  3. Minimum purchase for IDLC Non-SIP Investment:
    • 500 (five hundred) Units for the individual investors
    • 5,000 (five thousand) Units for the institutional investors
  4. After maturity, the investor may:
    • Continue the SIP installment amount for another tenure.
    • Keep the matured amount as Non-SIP investment.
    • Transfer the matured amount to his/her designated bank account.
    In that case, the investor has to submit another “Auto Debit Instruction Form” having validity for another period.
  5. Application for purchase of Units should be accompanied by an account payee cheque/pay order/bank draft/BEFTN/RTGS/IBFT/DDI or any other process as approved by the regulatory authority in favor of the Fund.
  6. After clearance/encashment of cheque/pay order/bank draft/BEFTN/RTGS/IBFT/DDI or any other process as approved by the regulatory authority, the applicant will be issued with a “confirmation of Unit Allocation” against every purchase of Units he/she/institutional investor applies for.
  7. There will be no minimum lot size of units under SIP account. Any remaining fraction amount will be converted when it sums up to one unit.
  8. SIP Installment amount will be debited on the 1st/12th of each month. If 1st/12th of any month is a weekend / holiday, then SIP installment amount will be debited on the next working day. Insurance premium (if any) will be collected in the same procedure as SIP installment.
  9. In case of return of a SIP installment by the investor’s bank after allocation of units, the investor has to either -
    • Submit a cheque of the same amount within 05 (five) working days after getting notification from IDLC AML or
    • Surrender units of the Mutual Fund equivalent to the reversed amount at prevailing surrender price.
  10. The default of 03 (three) consecutive SIP installment will result in discontinuation of SIP account. The default of 02 (two) consecutive insurance premiums will result in discontinuation of insurance coverage (if any).
  11. Request for change in bank account information or SIP discontinuation request should be submitted to the Asset Manager at least 07 (seven) working days before the next SIP installment date.
  12. The application may be made by an individual (both resident and non-resident), other eligible investors (both local and foreign), a trust or a society (registered in or outside Bangladesh) and not by a minor or person of unsound mind.
  13. The units of the Mutual Fund may be bought & surrendered through IDLC Asset Management Limited (IDLC AML) and or any authorized selling agents appointed by IDLC AML form time to time and any other procedure approved by the Asset Manager.
  14. After clearance of monthly SIP installments through DDI (Direct Debit Instruction), the units will be allocated in favor of the principal applicant against every purchase with a denomination of the number of units proportionate to the prevailing Purchase Price of the week. The units will be credited to the investor’s BO Account in demat form through the Custodian. After clearance/pulling of DDI (Direct Debit Instruction), the units will be allocated in favour of the applicant against every purchase based on the prevailing Purchase Price of the week. The units will be credited to the investor’s BO Account.
  15. Joint application is acceptable by two persons for a single investment. Registration and Unit allocation will be in a favor of both applicants while dividend and other benefit (if any) will be addressed to the bank account as mentioned in the application form. In case of death of any of the joint investor, only the survivor shall be recognized for having any title of the units. On the death of both the joint investors, the Units will bestow upon the nominee as mentioned in the application.
  16. All payment receipts in connection with or arising out of transactions of the Units shall be in Bangladeshi Taka (BDT).
  17. Unit may be surrendered on all working days except Record Date and during the Book Closure Period of the Fund.
  18. Surrender of Units should be done by transferring units from the unit-holder’s BO account to Mutual Fund’s BO account. The DP40 report needs to be submitted to the asset manager for confirming the surrender of units.
  19. After verification of authenticity of surrender form (including DP40 Report), account payee cheque / BEFTN for surrender amount will be issued / made in favor of unit holder within maximum 05 (five) working days. In case of joint holding, account payee cheque / BEFTN will be issued / made as per the instruction in the application form.
  20. Partial surrender is allowed without any additional cost subject to minimum surrender quantity –
    • For SIP Investment – Individual investor: 100 Units
    • For SIP Investment – Institutional investor: 1,000 Units
    • For Non-SIP investment – Individual investor: 500 Units
    • For Non-SIP investment – Institutional investor: 5,000 Units
    Upon partial surrender, a new confirmation of unit allocation will be issued in favour of the investor representing the balance amount of holding units.
  21. Exit Load:
    Exit Load of IDLC Balanced Fund: 3% of the “Investor’s Sale Price” if units are being surrendered before 90 calendar days of the purchase date. For SIP Investment, tenure for implementing Exit Load will be calculated from 1st SIP Installment Date.

    Exit Load of IDLC Growth Fund: 3% of the “Investor’s Sale Price” if units are being surrendered before 90 calendar days of the purchase date. For SIP Investment, tenure for implementing Exit Load will be calculated from 1st SIP Installment Date.

    Exit Load of IDLC Asset Management Shariah Fund: 3% of the “Investor’s Sale Price” if units are being surrendered before 90 calendar days of the purchase date. For SIP Investment, tenure for implementing Exit Load will be calculated from 1st SIP Installment Date.

    Exit Load of IDLC Income Fund: IDLC Income Fund (IDLC SIP & Lump Sum):
    • 2.0% of the “Investor’s Sale Price” if units are being surrendered before 90 calendar days of purchasing units (from 90 days, no exit load for IDLC SIP investment).
    • 1.5% of the “Investor’s Sale Price” if units are being surrendered within 90 to less than 180 calendar days of purchasing units.
    • 1.0% of the “Investor’s Sale Price” if units are being surrendered within 180 to less than 360 calendar days of purchasing units.
  22. The Units may be transferred by the way of inheritance/gift and/or by the specific operation of the law. In case of transfer, the mutual fund may charge a nominal fee as decided by the Asset Manager from time to time except in the case of transfer by the way of inheritance.
  23. The Dividend may be delivered either in cash or by way of Units under Cumulative Investment Plan (CIP) as mentioned in the application form.
  24. In case of dishonor of SIP installment by the investor’s bank, Mutual Fund will pull the same amount on variable dates of the same month.
  25. If BO account is maintained with IDLC Securities Limited for investment in IDLC Mutual Fund then BO Account related fees will be deducted from the investor’s designated bank account on annual basis.
  26. For IDLC Asset Management Shariah Fund, the underlying Shariah Contract between the investors and IDLC Asset Management (IDLC AML) is Wakalah (Wakalah Bil Isithmar). As the Asset Manager, IDLC AML will manages the investment of IDLC Asset Management Shariah Fund on behalf of the investors as their “Wakil” (representative) against a fixed fee as per Bangladesh Securities & Exchange Commission (Mutual Fund) Rules, 2001.
  27. By choosing IDLC SIP investment, the investor authorizes the selected IDLC Mutual Fund to pull the mentioned amount from his / her bank account on monthly basis for the specific tenure through BEFTN Auto-Debit.

FUNDAMENTALS OF OPEN END MUTUAL FUNDS

I/We understand and am/are aware of the following basic points about mutual fund investment:

  • Mutual Fund is a long-term wealth accumulation tool.
  • The longer an investor keeps his/her investment in a mutual fund, the greater return / benefit he/she is expected to drive.
  • A mutual fund does not give return at fixed rate.
  • In short term, upward/downward movements of the Net Asset Value (NAV) of mutual fund is a natural phenomenon of investment.
  • By regulation, investments of mutual fund are done in diverse assets and thus investment risks are mitigated.

Minimum Investment Duration / Minimum Holding period for Tax Rebate:

As per 6th Schedule Part 3 Para 2 (7) ( Kha) of Income Tax Act, 2023, for getting tax rebate in a fiscal year any investor may invest maximum five lac taka with Unit certificate and Mutual Fund, ETF or Collective Investment Scheme Unit Certificate issued by any financial institution or ICB or Asset Manager or Fund Manager.

TERMS AND CONDITIONS OF INSURANCE COVERAGE

Age: Entry age-minimum 18 years to maximum 55 years (57 years for IDLC Income Fund); if the earlier date of birth passed 180-days from the date of enrolment than the next age shall be considered. Insurance cessation age is 60 years.
Insured: Only the primary accountholder will be cover in the case of a joint account.
Benefit: SIP Sum means Monthly SIP Size X SIP Tenure (in Months)
Coverage: Death due to any cause or Total Permanent Disability due to accident. The account holder shall remain under coverage on a monthly renewal basis. If the insured accountholder avails the maximum available benefit in one SIP Registration Number, he/she shall not be eligible for insurance benefit in another account as the maximum benefit limit has already been reached. The sum assured is considered as yearly coverage. Any claim amount shall be settled after deducting the remaining full year premium.
Non-Medical Limit: SIP Sum up to BDT 35 Lac and applicant aged 45 years or SIP Sum up to BDT 20 Lac and applicant aged 55 years. Proposed insureds whose SIP Sum is above the non-medical limit and refuses to conduct medical tests and examinations shall be covered only up to the non-medical limit.
Lapse/Termination of Coverage: In case the premium payment is discontinued in a month the coverage shall be terminated. The insurer reserves the right to terminate the insurance facility of the concerning SIP account holder on the ground of non-payment of insurance premium. If, however, the insurer receives all previous due premium collectively on the 2nd month but no further, it will re-instate the insurance facility for the specified SIP account holder.
COVID-19: There shall be a deferral period of 30 days from the date of enrolment. The insurance benefit shall not be applicable if death or infection due to COVID-19 occurs within the deferral period. If the answer from COVID-19 related question no. 02 is affirmative, the prospective customer needs to submit the diagnosis report of the "NEGATIVE" test result.
Medical Test & Examination Bills: Required all medical tests and examination bills shall be directly reimbursed to the client after receiving his/her insurance premium amount.
Alteration of Monthly SIP Size: The SIP accountholder is eligible to alter the monthly SIP size twice in a year. If the SIP Sum increases after the monthly SIP size is topped up or tenure is extended then accountholder needs to provide required medical [if above non-medical limit] underwriting evidence.
Others: Insurer / Underwriter will have the right to ask for any additional test or previous medical history to ascertain the risk profile of the Applicant. Upon examination of the PHS and / or Medical investigation reports, if the risk associated with any life increases, then a higher premium rate will be applicable in such cases based on the degree of increased mortality / morbidity risk as ascertained by the Insurance Company.
EXCLUSIONS
Any Death caused by or resulting, directly or indirectly, wholly or partly, from any of the following factors will not be covered by this insurance:
  • All the pre-existing disease-related death shall be rejected within the First 3 [Three] months of enrolment. This exclusion is exempted for the existing enrolled clients as per provision no. 14;
  • Any concealment of the prior medical illness as given in the form will be considered for exclusion. The proof will be given from the insurer if the concealment is established;
  • AIDS and HIV related diseases;
  • Voluntary abuse of Alcohol or Drugs or alcohol intoxication;
  • War, Riots, Civil commotion, Murder etc;
  • Self-inflicted Injury or Suicide or any attempted suicide;
  • Illegal act or criminal activity;
  • Driving a vehicle/vessel without a valid driving license;
  • Participation in competitions, races, contests, matches in land, air or sea; mountain climbing, potholing, paragliding, bungee jumping, parachuting or scuba diving;
  • Flying in an aircraft or device for aerial navigation except as a fare-paying passenger on a certified passenger aircraft provided by a commercial airline and operated by a properly certified pilot flying between duly established and maintained airports.
REQUIRED DOCUMENTS FOR CLAIM
For all Claims:
  • Forwarding letter as notification of death by IDLC AML
  • Insurance Enrolment Application Form by IDLC AML
  • Copy of deceased accountholder's NID
  • Copy of beneficiary's NID
  • Copy of legal guardian's NID [if required]
For Death due to accident:
  • Death Certificate from Hospital / Union Parishad / Pourashabha / City Corporation
  • F.I.R. lodged with the respective Police Station
  • Post mortem report or magistrate’s permission to conduct burial without post-mortem
  • Burial/Cremation certificate
For Death:
  • Death Certificate from Hospital / Union Parishad / Pourashabha / City Corporation
  • Burial/Cremation Certificate
  • Previous Medical Record, including but not limited to, prescription, investigation report, discharge paper [if required by Insurer]
For Total Permanent Disability due to Accident:
  • Permanent total disability / disablement related documents from hospital authority such as medication details, prescription details and, discharge certificate
  • Permanent total disability / disablement details certificate from Doctor mentioning full details of the accident and supporting medical evidence
  • Photo of disablement
For Death due to COVID-19:
  • COVID–19 positive diagnosis report
  • Death certificate from Hospital / Union Parishad / Pourashabha / City Corporation mentioning the cause of death as COVID–19
  • Burial/Cremation certificate
DECLARATION

I understand the importance of disclosing all material information and hereby declare and agreed that all answers given to all the questions are to the best of my knowledge and belief, complete and true and that I have not withheld any material facts and/or relevant information, and that I have read and understood the information given overleaf. I agree that this application shall be the basis of this insurance.

I further understand, am fully aware of, and do accept that I am not covered for death resulting directly or indirectly from [i] a pre-existing condition [sickness or injury] for which I have had consultation; or [ii] received prior treatment; or [iii] which would have caused a prudent person to seek medical advice during the first 3 [Three] months following the date of enrolment [applicable only to SIP accountholders who have opened a SIP account after July 01, 2021]. I also understand that failure to disclose facts that affect the assessment of risk by the insurance company would invalidate insurance claim.

I hereby authorize any doctor or other practitioner and any hospital or sanatorium to give the Guardian Life any information it requests about me with reference to any treatments, examinations, advice or hospitalization.

TERMS & CONDITIONS FOR PAYMENT THROUGH BEFTN AUTO-DEBIT

Transactions under the Authorization will be subject to the BEFTN operating rules of Bangladesh Bank. All the BEFTN guidelines from Bangladesh Bank will be imposed on executing the above instruction, as applicable from time to time. IDLC AML contains all the right to change / modify / amend the terms and conditions. The guidelines of Bangladesh Bank regarding BEFTN shall govern the following terms and conditions:

  1. EFTN Debit Facility for SIP Installment payment can be availed after the SIP account is accepted and is in force. Payments other than SIP Installment or arrears of the SIP Installment (due on the previous months) should be paid via cheque / bank draft / pay order / online transfer; it cannot be paid through BEFTN debit process.
  2. The Authorization Form must reach to IDLC AML at least 07 (seven) working days before the date on which it is to be activated. If the payment instruction date falls on a weekend or a public holiday, the same may be effective on the next working day.
  3. This instruction shall fully in force and result till otherwise suggested in writing by the account-holder and such endorsement should be communicated to and received by a minimum of 07 (seven) working days before the next SIP Installment payment is due. Any such amendment / cancellation will not release the investor from liability to the Bank arising on account of the bank having executed the instruction before receipt of such amendment / cancellation.
  4. Investor should ensure that sufficient fund is available in the bank account at the time of debit date and this authorization is not dishonored. Sometimes it is possible that due to some technical or other reason, SIP Installment is not debited on the debit date and is delayed for few days. Please ensure the availability of the fund for at least 05 (five) working days after debit date to avoid dishonors. IDLC AML will not be responsible for any dishonors raised by the bank and any dispute regarding same should be taken up with the bank only.
  5. In case this Authorization is dishonored by the bank, SIP Installment for the due date(s) of the dishonored BEFTN debit for the previous month has to be paid in Cheque / Pay Order / Demand Draft / Online Fund Transfer by the investor. Any issue regarding dishonor of the authorization is to be taken up with the bank only.
  6. Any queries, question, comments etc. with regards to IDLC Mutual Fund and payment amount will have to be raised to IDLC Asset Management Ltd. and payments to the bank with regard to settlement of amounts paid in this regard are committed and not deferrable for any reason whatsoever. The transaction appearing on the account statement will be the proof of payment.
  7. Under this instruction, the investor cannot dispute regarding the payment debited from his/her bank account to IDLC Mutual Fund. If any excess or less than the correct amount is debited, the investor will have to contact IDLC AML for clarification. Any type of refund from IDLC Mutual Fund on account of this instruction will be settled by IDLC Mutual Fund to its investor.
  8. No SIP Installment receipt will be issued by IDLC Asset Management Ltd. for BEFTN debit payments. A transaction statement against SIP payments, as applicable, may be obtained from IDLC AML’s Digital Platform.

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IDLC ASSET MANAGEMENT LIMITED

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