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Example
For the Burton Carey Growth Fund, you have selected the ‘Lower of Amount/Units’ option as
the Minimum Holdings Indicator for redemption, switch and transfer transactions. You have
also specified the Minimum Holdings Amount value as 1200 USD, and the Minimum Holdings
Units value as 1000 units.
The minimum holdings validation is required to be enforced for CIFs, and not for individual
unit holders.
To arrive at the minimum holdings value against which the validation would be made, the
redeemable value of 1000 units is computed, at the redemption price. If the redemption price
is 0.8, the redeemable value = 1000 * 0.8 = 800 USD.
The redeemable value obtained (800 USD) is compared with the Minimum Holdings Amount
specified (1200 USD). Since the Minimum Holdings Indicator chosen is ‘Lower of Amount/
Units’, the minimum holdings value to be validated against, is 800 USD. Therefore, the
redeemable value of total number of units held by all unit holders under a CIF, in the Burton
Carey Fund must equal or exceed 800 USD, for redemption, switch or transfer transaction
involving a CIF.
If the Minimum Holdings Indicator were selected as ‘Higher of Amount/Units’, the higher value
(1200 USD) would be considered as the minimum holdings value against which the validation
would be made. Therefore, the redeemable value of total number of units held by all unit
holders under a CIF, in the Burton Carey Fund would have to equal or exceed 1200 USD, for
a redemption, switch or transfer transaction involving a CIF.
Min Holdings Threshold limit
Numeric
Specify the percentage value to be applied on minimum balance amount or units setup here.
Min Lock-in Period for Gain (Days)
Numeric, Optional
Specify the minimum lock-in period applicable for the fund. During subscription transaction,
the lock-in period specified at the transaction level should be equal ot or greater than the
minimum period indicated here.
Max Lock-in Period for Gain (Days)
Numeric, Optional
Specify the maximum lock-in period beyond which if the subscription is redeemed gains would
be passed over to the Unitholder and so IOF and IRRF taxes will be applicable. This should
be greater than or equal to the Min Lock-in Period.
Note
When a transaction is redeemed within the Lock-In period, redemption happens at the lowest applicable NAV as on date of Subscription or on the date of Redemption.
Default Lock-in Period for Gain (Days)
Numeric, Optional
Specify the default lock-in period within which if the subscription is redeemed no gains would
be passed over to the Unitholder and so IOF and IRRF taxes will not be applicable.
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