Debt mutual funds came in the news in the beginning of the 2023-24 financial year following a key amendment in the Finance Bill 2023. As per this amendment, with effect from 1st April 1, profits made on debt mutual fund investments will be taxed as short-term capital gains if these funds invest no more than 35% in equities.
Basically, what this means is that debt mutual funds will now be taxed as per the income tax rates applicable for an individual’s income.
Analysts see the move aimed at high net-worth individuals (HNIs), who would use debt funds as tax-saving instruments.
So what are debt funds? In this article, we will explore that and also see how you can get the best out of debt funds following the new rules. But do keep in mind, talking to an authorised financial advisor always makes sense.
What is a debt fund?
A debt fund is a mutual fund that pools ed from various investors and collectively invested in in fixed income instruments, such as corporate and government bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation.Debt funds also have a low-cost structure and offer relatively steady returns and high liquidity; this is why they are commonly known as income funds. Plus, as stated earlier, they are reasonable safe and are ideal for individuals with a low-risk tolerance.
The interest rate and maturity date of debt mutual funds are predetermined, providing investors with knowledge of the maturity amount at the time of investment.
Debt fund features
Now let us look at the broad debt fund features, as listed below:The risk involved in debt funds is low.
We mentioned this earlier: debt funds are low-risk investments as they are relatively unaffected by stock market volatility, and fluctuations in the interest rate are minimal and not as drastic as in stock markets. Additionally, debt funds invest in fixed-income securities, which allows investors to know both the maturity date and interest rate of their investments.Duration of the debt funds
All debt funds have a specific duration, during which period the funds invested are blocked. This period varies – from a day for overnight funds to 10 years for gilt funds. During this period, the invested amounts accumulate interest. The principal and the accumulated interest are repaid to the investor at time of maturity.Capital appreciation is low
If substantial appreciation in investment is the aim, debt funds may not be the best bet; capital appreciation is low here. But what investors can look forward to are a fixed source of income and returns in the form of interest payments. When investing in debt, the issuer company repays the borrowed loan amount, while the interest portion is generated through reinvestment of the maturity amount from the gains in revenue. The main aim of this type of investment is to provide a safe and stable return.Credit quality is rated
Investors are known to check credit ratings assigned to various debt instruments / fixed-income securities such as commercial papers, debentures, bonds, or corporate deposits when investing in debt funds, as these funds invest in these debt instruments. The ratings are assigned by rating agencies such as ICRA, FITCH, CRISIL etc.How do debt mutual funds work?
Being mutual funds, debt fund investments are managed by fund managers; it is they who are responsible for ensuring the fund’s quality through their investment strategy.They may invest in debt securities with a high credit rating as they are less volatile, but may also take a calculated risk to maximize returns by investing a portion of the investment amounts in securities that are not rated as high but offer higher returns.
They may also invest in short-term securities when interest rates are expected to rise in the near-term and long-term securities when rates are expected to fall in the long run. This is done to hedge the portfolio against interest risk and to ensure a balanced portfolio with good returns.
Also read: 5 Key Parameters For Debt Fund Investment
Types of Debt Funds
Debt funds can be categorised based on their duration and investment avenues, as listed below:Some of the debt fund investments are:
- Short-term funds Short-term debt mutual funds have a maturity period of one to three years. These are ideal for investors with typically a moderate to low-risk appetite, and who want better returns than what a fixed deposit would fetch over a short period. These debt mutual funds invest in debt market instruments and government securities, and give good returns when the interest rate is high.
- Ultra-short-term funds The ultra-short debt funds invest for short periods – of durations that are less than a year; typically, the maturity is in three months or six months. These funds invest in short-term securities and money markets.
- Liquid debt funds Liquid debt funds are those debt funds which have a maturity of 91 days. It is suitable for those who want to earn extra interest on money lying idle in their savings accounts; not only are the returns stable, they are also higher than that from the savings account. Also, debt funds get converted into cash easily since their maturity period is short. Liquid funds invest in CDs, treasury bills etc.
- Dynamic bond funds The maturity period of dynamic bond funds is between three to five years. Since the duration is longer, the risk element is also slightly more, which makes them more suitable for investors with moderate risk appetite. These funds invest in money market instruments and all class debts with long and short maturity. Debt fund managers keep changing the portfolio according to the fluctuations in the interest rate. Read more about bond funds here.
- Money market fund The maturity of the money market funds is one year. These funds are invested in various money market instruments. The risk involved is significantly lower, which appeals to risk-averse investors.
- Income funds The average maturity period of the income funds is five to six years. The investments of these funds are in debt securities with varying maturity periods of longer durations. Strategic investments are made depending on the interest rates offered. They are considered to be more stable than dynamic bond funds because most of the investments of these funds are in corporate bonds, debentures and government securities. Investors willing to take a slightly higher risk than other debt funds and looking for a longer tenure can consider investing here.
- Fixed maturity plans As the name suggests, these plans have fixed maturity periods and are also called close-ended debt funds. Unlike open-ended debt funds, investors cannot continuously subscribe to the units of this debt fund because of their fixed maturity periods. These investments have a lock-in period of 30 days to five years. This lock-in period is determined at the time of investment. The funds are invested in fixed-income securities like government and corporate bonds with a similar duration as that of the fixed maturity plan. The interest paid on these funds is determined beforehand and is not affected by market fluctuations. Although there is no guarantee of high returns, they are considered better than other fixed income earning instruments like fixed deposits.
- Gilt funds In India, gilt funds are debt funds that invest around 80% to 85% of the funds in government securities issued by the state and central governments. Since these securities are backed by the government, the funds are viewed as carrying low default risk and are rated high. On the flip side, the government may change the interest rate from time to time which exposes the funds to an interest rate risk. (You can find out more details about interest rate risk in the FAQs below). If you are looking for long-term investments with lower default rates, you can consider investing in gilt funds.
- Credit opportunity funds Credit opportunity funds invest in debt instruments with lower credit rating as they aim for maximizing returns. As a result, these funds carry a slightly higher credit risk. Lower rated instruments generally offer higher returns to compensate for the higher risk that investors will be taking. These debt funds are also categorised as accrual funds as these investments are held until maturity and undertake more credit risk instead of interest risk to get higher returns.
- Corporate bond fund These are funds invest 80% of their corpus in high-quality corporate bonds. The risk involved is on the lower side, and the returns are generally optimum, as the investments are only in high-quality corporate bonds that have high credibility.
- Floater fund A majority of the fund is invested in floating rate instruments. Here the risk factor is low, but the interest rate is also less.
- Banking and PSU funds These funds invest 80% of the investible corpus in debt securities of banks and public sector undertakings (PSUs).
- Overnight funds These invest in debt securities for a day. They are considered to be one of the safer types of debt investment, but they do carry a nominal amount of interest rates risk and credit risk.
- Medium duration funds The tenure of these investments is between three to four years. They invest in debt securities and money market instruments.
- Medium to long duration funds The tenure of these funds is between four to seven years. They too invest in debt securities and money market instruments.
- Long-duration funds The tenure of these funds is more than seven years. Like the previous two types of funds, these also invest in debt securities and money market instruments.
Benefits of debt fund investments
Debt funds' investments have several benefits attached to them; a few are listed below:- Safe investment: Debt funds are suitable for investors who want to earn more than what is offered in fixed deposits but are unwilling to take the risk of investing in equities.
- Stable returns: Many investors are attracted to debt funds since the rate of interest offered, and the maturity amount is pre-determined. The cash flow is stable and not much affected by stock market fluctuations.
- Liquidity: Debt funds are highly liquid. The investor can withdraw their investments any time (on a working day) by selling their units. This comes in handy if there is the immediate need for cash. Plus, unlike a fixed deposit, there is no penalty for withdrawal before maturity.
- Diversification: These investments help diversify the investor's portfolio and offer stability. A person investing in equities can also invest in debt funds to balance the risk element.
- Flexibility: Investors can invest in debt funds according to their future requirements. This investment ranges can be from three months to 10 years. A good planned financial investment can help investors systematically reach their goals.
Taxation of debt mutual funds
Debt funds are only taxed at the time of redeeming them, unlike the interest earned from fixed deposits that are taxed every year. Earlier, the investors could avail tax benefits on their long-term capital gains (LTCG), including the indexation benefits, if the debt funds were held for more than three years. LTCG was taxed at a flat rate of 20% while short-term capital gains were taxed as per the income slab rates of the investor. Read more about how to calculate your tax liability in debt mutual funds with the indexation benefit here.However, as mentioned in the beginning, the Finance Bill 2023 has ensured that the LTCG benefits are no longer available for investments in debt mutual funds. The benefit has also been revoked for other long-term investments made in gold funds, international equity mutual funds, and some hybrid mutual funds. (Do note that long-term investments made before March 31, 2023, can still enjoy the tax benefits).
Henceforth, all capital gains from investments in debt funds made after 1st April 01, 2023 will be taxed as per the investor's income slab rate. However, TDS (Tax Deducted at Source) is not deducted from these investments.
Who are debt funds best suited for?
Risk-averse investors who want stable returns can consider debt funds. It has been seen that when such investors do invest in these funds, they usually do so for a short to medium timeframe.At the same time, these funds are also ideal for those wanting higher returns than savings accounts or fixed deposits; debt funds can ensure additional incomes and also safeguard their future.
That apart, investors wanting to diversify their portfolio can also look at debt funds.
However, it is not only experienced investors that debt funds are suitable for; novice investors, who would want to safeguard their capital and also earn from their investments, can look towards debt funds.
Also Read: What Are Short/Medium-Term Debt Mutual Funds?
How to Invest in Debt Funds?
There are many ways by which an investor can invest in debt funds. You can choose the option most convenient to you and follow the steps mentioned below to start your investment journey in debt funds today.- Mutual fund investment platform Debt funds can be bought online through the mutual fund investment platform. The process involved is quick, peerless and without any hassles. All the mutual fund investments of the investor can be made here. The investor needs to create an account.
- Open the account.
- Choose from the various plans available.
- After this, choose the type of payment. This can be lumpsum or SIP (Systematic Investment Plan).
- The amount has to be decided by the investor and entered.
- KYC (Know Your Customer) needs to be done. PAN, ID proof, address proof, and Aadhaar number must be provided.
- Bank details, like the account number, bank name and branch, bank IFSC and account holder's name, must be entered.
- Lastly, transfer the amount that is required for the debt fund investment.
- Through demat account Investing in debt mutual funds can be done through a demat accounts. If the investor wants to invest independently but doesn’t have a demat account, he or she needs to open a demat account.
- Through asset management company (AMC) Investing in debt funds can be done directly by approaching an AMC, either online or offline.
- Open an account with an AMC. This can be done by visiting their website.
- Personal details need to be provided like name, age, profession, residential address, contact number etc.
- Enter bank details asked for (account number, bank name and branch, bank IFSC, and account holder's name).
- KYC needs to be done, so provide the relevant details (PAN, ID proof, address proof, and Aadhaar number).
- Once all this is done, transfer the amount needed for the debt fund investment.
- Through a mutual fund agent The process involved is simple: call the mutual fund agent or distributor, hand over all the required documents along with a cancelled cheque and the duly filled-in investment application form, and the agent does the rest.
Once the account is created, the following steps need to be followed to invest in debt securities:
To invest, log in to the demat account and choose the debt mutual fund which meets your requirements. Click on it and make the required payment.
For investing online, follow these steps:
However, this way of investing can be time-consuming and costlier.
Also Read: What is a Demat Account?
In Summary
Debt mutual funds can help you diversify your portfolio and help you enjoy the benefits of stable returns with low risk.However, it is advisable to conduct your own research and assess the risks, the credit rating of the debt instruments that the fund invests in, the expected returns, the tenure of the fund, and the tax on the returns. Also, pay close attention to the fees charged.
FAQs – Frequently Asked Questions
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What is the difference between debt funds and fixed deposits ?
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What is the difference between debt funds and equity funds ?
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What sort of risks are involved in debt funds ?
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How much return can debt funds give ?
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What things need to be considered before investing in debt funds ?
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What are accrual debt funds ?
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What are infrastructure debt funds ?
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What is credit-risk debt funds ?
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What are the types of debt funds ?
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.
Third party websites
This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).
USE of APP
In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.
Postings and monitoring
The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.
Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.
We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.
If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com
Use of Cookies
You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.
Facilities Changes and Discontinuation
The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.
ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.
Compliance with the Law
You agree that you will not:
- Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
- Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
- Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
- Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
- You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.
Restrictions on Commercial Use or Resale
Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.
No Endorsements
All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.
Promotional Offers
You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.
Charges for use of Website
There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).
No Endorsement
You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.
In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.
Electronic Communications
These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.
Assignment
You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.
Legal Disclaimers
The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.
The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.
Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.
No Solicitation
No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.
The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.
Statutory Disclosure
ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF. Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.
Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.
Force Majeure
The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.
Indemnification
You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.
No Waiver
The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.
Exclusive Agreement
You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.
Termination
Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.
Governing Law and Jurisdiction
The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.
These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.
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