Investor Charter

Publisher
Investor Charter

Investor Charter

KHILARI CAPITAL – Investor Charter is designed to provide investors with a clear understanding of their rights, responsibilities, available information, service expectations and grievance-redressal options while dealing with mutual fund distribution-related services.

The purpose of this Investor Charter is to promote transparency, investor awareness, fair dealing and responsible mutual fund distribution practices.

Investors should understand that mutual fund investments are market-linked and carry investment risks. A distributor can provide information and distribution-related assistance, but cannot guarantee investment returns.

Purpose of the Investor Charter

This Investor Charter aims to help investors understand:

  • The nature of mutual fund distribution services.
  • Important investor rights.
  • Important investor responsibilities.
  • KYC and onboarding requirements.
  • Risk and cost disclosures.
  • Transaction-related precautions.
  • Privacy and confidentiality principles.
  • Fraud-prevention measures.
  • Grievance-redressal mechanisms.

The Charter is intended to improve investor awareness and encourage informed participation in the mutual fund industry.

About KHILARI CAPITAL

KHILARI CAPITAL provides mutual fund distribution-related services as an AMFI-registered Mutual Fund Distributor.

The role of a mutual fund distributor is different from that of a SEBI-registered Investment Adviser. Investors should understand the nature and scope of the service being provided and the applicable remuneration structure.

KHILARI CAPITAL aims to provide investors with transparent information and distribution-related assistance while following applicable regulatory and industry requirements.

Nature of Services

Mutual fund distribution-related services may include:

  • Providing general information about mutual fund schemes.
  • Assisting with mutual fund application and transaction processes.
  • Assisting investors with applicable onboarding and KYC processes.
  • Providing transaction-related assistance.
  • Assisting with service requests.
  • Providing information regarding available mutual fund products.
  • Supporting investors with general operational queries.

The availability and scope of services may depend on applicable regulatory requirements, AMC procedures, platform capabilities and the nature of the investor relationship.

Investor-First Approach

Investor interest is an important principle in responsible mutual fund distribution.

Information provided to investors should be fair, clear and not misleading. Material risks and relevant information should not be intentionally concealed.

Investors should be given adequate opportunity to understand the product and make their own informed decisions.

Investor Rights

Investors in mutual funds have important rights relating to information, fair treatment, transaction transparency, privacy and grievance redressal.

These rights should be understood together with the applicable scheme documents, regulatory requirements and terms governing the relevant investment.

Right to Fair and Equitable Treatment

Investors should be treated fairly, professionally and without discrimination in accordance with applicable rules and service processes.

Investors should not be subjected to misleading statements, false promises or unreasonable pressure to invest.

Right to Information

Investors should have access to relevant information about mutual fund schemes and transactions as provided through applicable official channels.

Important information may include:

  • Scheme investment objective.
  • Asset allocation.
  • Risk factors.
  • Riskometer.
  • Applicable expenses.
  • Scheme-related documents.
  • Portfolio information.
  • Transaction information.
  • Applicable terms and conditions.

Right to Understand Risks

Investors have the right to receive relevant risk information associated with a mutual fund scheme.

Investors should understand that mutual fund investments are subject to market fluctuations and that the value of investments can rise or fall.

Investors should consider their own financial circumstances and risk profile before investing.

Right to Cost and Commission Disclosure

Investors should be able to understand relevant costs, expenses and distributor remuneration associated with the investment and distribution arrangement, where applicable.

For Regular Plans, distributor remuneration may be payable according to applicable arrangements.

Investors should ask questions if they do not understand the difference between Regular and Direct Plans or the applicable remuneration structure.

Right to Privacy and Confidentiality

Investor personal and financial information should be handled responsibly and protected through appropriate safeguards, subject to applicable law and legitimate regulatory or operational requirements.

Information may be shared with authorised entities such as AMCs, RTAs, KYC Registration Agencies, transaction platforms, banks, regulators or other permitted service providers when necessary for lawful processing, compliance or investor servicing.

Right to Raise a Grievance

Investors have the right to raise complaints or service-related concerns regarding their mutual fund transactions or distribution-related services.

Investors should first approach the relevant service provider, AMC, RTA or intermediary through the applicable official grievance channel.

If the issue is not resolved, investors may use the applicable escalation and regulatory grievance mechanisms available at that time.

Investor Responsibilities

Investor protection also depends on investors taking reasonable precautions and providing accurate information.

Investors should:

  • Provide correct information.
  • Complete applicable KYC requirements.
  • Read scheme-related documents.
  • Understand investment risks.
  • Verify transaction details.
  • Protect confidential credentials.
  • Keep contact details updated.
  • Review bank account information.
  • Review nomination details where applicable.
  • Report unauthorized transactions promptly.

Provide Accurate Information

Investors should provide accurate, complete and current information during onboarding and transaction processing.

Incorrect information can result in delays, failed transactions, communication problems or additional verification requirements.

Complete KYC Requirements

Investors should complete applicable KYC requirements and provide valid supporting information or documents.

KYC information may need to be updated or revalidated from time to time in accordance with applicable requirements.

Read Scheme-Related Documents

Investors should carefully read the relevant scheme-related documents before investing.

These may include the Scheme Information Document, Key Information Memorandum, Statement of Additional Information, applicable addenda and other official disclosures.

Investors should pay particular attention to the scheme's investment objective, asset allocation, risks, expenses and other material terms.

Understand Investment Risks

Every mutual fund investment involves risk.

The level and type of risk can vary significantly between equity, debt, hybrid, solution-oriented, index and other mutual fund categories.

Investors should select investments only after understanding the risks relevant to their circumstances.

Verify Transactions

Investors should carefully verify transaction details before providing final authorization.

Important details may include:

  • Investor name.
  • Folio number.
  • Scheme name.
  • Plan.
  • Option.
  • Amount.
  • Transaction type.
  • Bank account.
  • Nominee information where applicable.

Protect Security Credentials

Investors should never disclose confidential authentication information.

  • OTP.
  • UPI PIN.
  • Internet banking password.
  • ATM/debit card PIN.
  • Transaction password.
  • Other authentication credentials.

KHILARI CAPITAL does not require investors to disclose such confidential credentials for routine mutual fund distribution assistance.

Keep Investor Details Updated

Investors should keep their registered information updated, including:

  • Mobile number.
  • Email address.
  • Residential address.
  • Bank account.
  • Tax residency information where applicable.
  • Nominee details where applicable.

Nomination

Investors should understand applicable nomination provisions and keep nominee information updated where required.

Investors should review nomination details periodically and make changes through the prescribed process when necessary.

Bank Account Details

Investors should ensure that their registered bank account information is accurate.

Changes to bank details should be completed through the prescribed AMC, RTA or transaction-platform process.

Investors should be cautious of anyone asking for banking credentials, OTPs or PINs.

Investor Communication

Investors should regularly review official communications relating to their mutual fund investments.

Such communications may include:

  • Account statements.
  • Transaction confirmations.
  • Portfolio statements.
  • Service-request updates.
  • KYC notifications.
  • Important scheme communications.
  • Regulatory or investor communications.

Mutual Fund Investment Risks

Mutual funds invest in market-linked securities and therefore carry investment risks.

Depending on the scheme, risks may include:

  • Market risk.
  • Equity risk.
  • Interest-rate risk.
  • Credit risk.
  • Liquidity risk.
  • Concentration risk.
  • Reinvestment risk.
  • Currency risk where applicable.
  • Tracking error for index-oriented schemes.
  • Other scheme-specific risks.

No Guaranteed Returns

Mutual fund investments do not guarantee a particular rate of return unless specifically permitted and structured under applicable regulations.

Investors should be cautious of statements promising assured, fixed or guaranteed returns from ordinary market-linked mutual fund investments.

Past Performance

Past performance should not be treated as a guarantee of future results.

A scheme that has performed well historically may perform differently in future market conditions.

Investment decisions should therefore not be based solely on historical returns.

Riskometer

The Riskometer provides an indication of the broad risk level of a mutual fund scheme.

Investors should review the latest Riskometer and compare it with their own risk profile before investing.

The Riskometer is not a guarantee against loss and does not predict future returns.

Scheme-Related Documents

Investors should refer to the latest official scheme-related documents before making investment decisions.

Document Purpose
Scheme Information Document Provides detailed information about the mutual fund scheme
Key Information Memorandum Provides key scheme information in a concise format
Statement of Additional Information Provides information relating to the mutual fund and its operations
Factsheet Provides periodic scheme and portfolio information
Portfolio Disclosure Provides information about scheme investments
Addenda Communicates applicable changes and updates

Regular and Direct Plans

Mutual fund schemes may offer Regular and Direct Plans, subject to the applicable scheme structure.

A Regular Plan is generally distributed through an intermediary, while a Direct Plan is purchased without a distributor.

Investors should understand differences in expenses, distributor remuneration and services before making their decision.

Investors should not select a plan solely on the basis of a general statement that one plan is always better than the other. The nature of services and the investor's requirements should also be considered.

Commission Disclosure

Mutual fund distribution may involve commission or other remuneration payable to the distributor according to applicable arrangements.

Investors should be provided with applicable commission-related information and disclosures as required under the prevailing regulatory and industry framework.

Distributor remuneration should not be represented as an additional return earned by the investor.

Conflict of Interest

A conflict of interest may arise where a distributor's commercial interests could potentially influence a transaction or product selection.

Relevant material conflicts should be appropriately disclosed where required.

Investors should feel free to ask questions regarding affiliations, remuneration and the availability of alternative products.

Client Onboarding and KYC

Investors should complete all applicable onboarding and KYC requirements before or in connection with mutual fund transactions.

The onboarding process may involve:

  • Identity verification.
  • PAN verification.
  • Address information.
  • Mobile and email verification.
  • Bank account verification.
  • FATCA/CRS information where applicable.
  • Nomination information.
  • Beneficial ownership information for eligible non-individual investors.

Transaction Process

Investors should understand that transactions are subject to applicable cut-off timings, payment realization, KYC status, scheme requirements, transaction-platform processes and other applicable conditions.

Submission of an application or transaction request does not necessarily guarantee acceptance or successful completion.

Investors should retain transaction acknowledgements and confirmations for their records.

Fraud Prevention and Investor Security

Investors should remain alert to fraudulent calls, messages, emails, websites and social-media communications that falsely claim to represent mutual fund distributors, AMCs or regulatory authorities.

Investors should:

  • Use official websites and communication channels.
  • Verify the identity of the person contacting them.
  • Never share OTPs.
  • Never share UPI PINs.
  • Never share passwords.
  • Verify payment details.
  • Be cautious of guaranteed-return promises.
  • Be cautious of urgent investment-pressure tactics.
  • Report suspicious activity immediately.

Unauthorized Transactions

If an investor notices an unauthorized transaction or suspicious change in account information, the investor should immediately contact the relevant AMC, RTA, intermediary or transaction platform through its official channel.

Investors should preserve relevant transaction references, screenshots, emails, messages and other evidence that may assist with investigation.

Grievance Redressal Mechanism

KHILARI CAPITAL encourages investors to raise service-related concerns promptly so that they can be reviewed and addressed through the appropriate channel.

The grievance process may generally involve the following levels:

  1. Contact the relevant intermediary, AMC or RTA.
  2. Escalate the complaint through the applicable higher-level grievance channel if unresolved.
  3. Use the applicable regulatory grievance-redressal mechanism where appropriate.

First Level: Contact the Relevant AMC/RTA/Distributor

Investors should first contact the relevant mutual fund distributor, AMC or RTA regarding a transaction or service issue.

The complaint should contain sufficient information to identify the investor and transaction.

Investors should retain the complaint reference number and related correspondence.

Second Level: Escalation

If the complaint is not resolved satisfactorily through the initial channel, investors may escalate it through the applicable escalation mechanism of the relevant AMC, RTA or intermediary.

The escalation should include the original complaint reference and relevant supporting information.

Third Level: Regulatory Grievance Mechanism

Where applicable, investors may use the grievance-redressal mechanisms provided by the relevant regulatory or industry authorities.

Investors should use the latest official grievance mechanism and follow the current procedures applicable at the time of filing the complaint.

Information to Include in a Complaint

A complaint should preferably include:

  • Investor name.
  • Folio or account reference where applicable.
  • Transaction reference.
  • Date of transaction.
  • Nature of the complaint.
  • Relevant communication.
  • Supporting documents.
  • Expected resolution.

Investors should avoid unnecessarily sharing confidential passwords, OTPs, UPI PINs or other authentication credentials in a complaint.

Complaint Handling

Complaints should be acknowledged and handled through the applicable service and regulatory processes.

Resolution timelines can depend on the nature of the complaint, the responsible entity, supporting documentation and applicable regulatory requirements.

Investors should retain all complaint references until the matter is resolved.

Records and Documentation

Appropriate records relating to investor onboarding, KYC, transactions, communications, service requests and complaints may be maintained in accordance with applicable requirements.

Investors are also encouraged to maintain copies of important documents and transaction confirmations.

Service Standards

KHILARI CAPITAL aims to provide mutual fund distribution-related services in a professional, transparent and responsible manner.

Service standards include:

  • Clear communication.
  • Reasonable assistance with applicable processes.
  • Transparent disclosure of relevant information.
  • Respect for investor confidentiality.
  • Prompt attention to service-related concerns.
  • Appropriate escalation of unresolved issues.

Service timelines may depend on the AMC, RTA, transaction platform, banking system, regulatory requirements and other external processes.

Investor Checklist

Check Investor Action
KYC Keep KYC information accurate and updated
Risk Understand the scheme's risks and Riskometer
Documents Read relevant scheme-related documents
Costs Understand applicable expenses and remuneration
Transaction Verify scheme, amount and transaction details
Bank Keep bank account information accurate
Nomination Review nomination details where applicable
Security Never share OTP, password or UPI PIN
Communication Monitor official investor communications
Complaint Raise grievances promptly through official channels

Frequently Asked Questions

What is an Investor Charter?

An Investor Charter is an investor-awareness document that explains important investor rights, responsibilities, service principles, risks, disclosures and grievance-redressal mechanisms.

Why is an Investor Charter important?

It helps investors understand what they can expect from a financial intermediary and what responsibilities they have while investing.

What are the main rights of a mutual fund investor?

Important rights include access to relevant information, fair treatment, risk and cost disclosures, privacy and confidentiality, and access to applicable grievance-redressal mechanisms.

What are the main responsibilities of an investor?

Investors should provide accurate information, complete KYC requirements, read scheme-related documents, understand risks, verify transactions, protect security credentials and keep account information updated.

Does KHILARI CAPITAL guarantee mutual fund returns?

No. Mutual fund investments are market-linked and returns are not guaranteed.

Can I complain if I have a problem with my mutual fund transaction?

Yes. Investors can raise complaints through the relevant distributor, AMC, RTA or applicable grievance-redressal mechanism.

What should I do if I receive a suspicious investment call?

Do not share OTPs, passwords, UPI PINs or other confidential information. Verify the communication through an official channel before taking any action.

Should I read the scheme documents before investing?

Yes. Investors should carefully read the latest relevant scheme-related documents and understand the investment objective, risks, costs and applicable terms.

What is the Riskometer?

The Riskometer indicates the broad level of risk associated with a mutual fund scheme. It should be considered along with the investor's own risk profile and financial circumstances.

What is the difference between a Regular Plan and Direct Plan?

Regular Plans involve distribution through an intermediary and applicable distributor remuneration, while Direct Plans are purchased without a distributor. Investors should understand the differences in costs and services before deciding.

Why is investor KYC important?

KYC helps establish and verify investor identity and supports regulatory compliance, transaction security and prevention of misuse of the financial system.

Should investors share OTP or UPI PIN with a distributor?

No. OTPs, UPI PINs, passwords and similar authentication credentials are confidential and should never be shared.

Can investor information be shared with other entities?

Investor information may be shared with authorised entities where required or permitted for transaction processing, regulatory compliance, investor servicing or other lawful purposes.

Does past performance guarantee future returns?

No. Past performance is not a guarantee or indication of future performance.

Can the information in this Investor Charter change?

Yes. Regulatory requirements, industry practices, service procedures and grievance mechanisms may change from time to time. Investors should refer to the latest applicable official information.

Quick Summary

An informed investor understands both their rights and responsibilities.

  • Understand the nature of the mutual fund distribution service.
  • Provide accurate KYC and investor information.
  • Read scheme-related documents before investing.
  • Understand the Riskometer and scheme-specific risks.
  • Do not rely solely on past performance.
  • Understand applicable costs and distributor remuneration.
  • Verify every transaction before authorization.
  • Keep bank and contact details updated.
  • Review nomination details where applicable.
  • Never share OTPs, passwords or UPI PINs.
  • Be cautious of guaranteed-return promises and suspicious communications.
  • Keep transaction confirmations and important records.
  • Raise complaints promptly through official channels.
  • Understand that mutual fund returns are market-linked and not guaranteed.

Investor awareness is the first step toward responsible investing. Understand the product, understand the risks, verify your transactions and make informed decisions.

Important Disclaimer

Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.

The information contained in this Investor Charter is provided for general investor education and awareness purposes. It should not be construed as investment advice, financial advice, tax advice, legal advice, a guarantee of returns, an offer, solicitation or recommendation to buy or sell any mutual fund or other financial product.

KHILARI CAPITAL is an AMFI-registered Mutual Fund Distributor. Mutual Fund Distributor services and SEBI-registered Investment Adviser services are distinct. This Investor Charter should not be interpreted as representing KHILARI CAPITAL as a SEBI-registered Investment Adviser unless separately and expressly stated under the applicable regulatory framework.

All mutual fund investments are subject to market risks and the value of investments may fluctuate. There can be no assurance that the investment objective of any mutual fund scheme will be achieved.

Past performance is not indicative of future performance. Investors should consider their financial goals, investment horizon, risk profile, liquidity requirements and other relevant circumstances before investing.

Regulatory requirements, KYC procedures, taxation, transaction processes, grievance mechanisms and other applicable rules may change from time to time. Investors should refer to the latest official information, scheme-related documents and applicable regulatory requirements.

Information relating to investor rights, responsibilities, grievance mechanisms and service standards is subject to applicable laws, regulations, AMFI requirements, AMC procedures and other prevailing requirements. In case of any inconsistency, the applicable law, regulation or official scheme-related document shall prevail.

Investors should use only authorised communication channels and should never disclose OTPs, passwords, UPI PINs, card PINs or other confidential authentication credentials to any person.

KHILARI CAPITAL – AMFI-registered Mutual Fund Distributor

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