O F F E R D O C U M E N T

BOB MUTUAL FUND

(Sponsor: Bank of Baroda)

Investment Manager: BOB Asset Management Company Ltd.

Maneckji Wadia Building, 2nd Floor

Nanik Motwane Marg, Opp. University of Mumbai

Fort, Mumbai – 400 023.

BOB GROWTH FUND BOB BALANCE FUND

OPEN ENDED GROWTH SCHEME OPEN ENDED BALANCE SCHEME

BOB INCOME FUND

OPEN ENDED INCOME SCHEME

SPONSOR	TRUST	ASSET MANAGEMENT COMPANY
BANK OF BARODA	BOB MUTUAL FUND	BOB ASSET MANAGEMENT COMPANY LTD.
H.O. Mandvi BARODA	2nd Floor, Maneckji Wadia Bldg., Nanik Motwane Marg, Opp. University of Mumbai, Fort, Mumbai - 400 023.	2nd Floor, Maneckji Wadia Bldg., Nanik Motwane Marg, Opp. University of Mumbai, Fort, Mumbai - 400 023. Tel: 267 0112 Fax: 267 0203 E-mail: bobamc@vsnl.com

Issue of Units of Rs. 10/- per Unit for cash during the Initial Offer and at NAV based prices subsequently

Initial	Offer	opens	on	__________
Initial	Offer	closes	on	__________

The Offer Document sets forth concisely information about the Schemes that a prospective investor ought to know before investing. The Offer Document should be read in its entirety before making an application for respective Schemes and should be retained for future reference.

DISCLAIMER CLAUSE

The Schemes particulars have been prepared in accordance with Securities And Exchange Board of India (SEBI) (Mutual Funds) Regulations 1996, as amended till date and filed with SEBI and the Units being offered for public subscription have not been approved or disapproved by SEBI nor has SEBI certified the accuracy or adequacy of the Offer Document.

NOTE: The Offer Document will remain effective till a “material change” (other than a change in Fundamental Attributes and within the purview of the Offer Document) occurs and thereafter the changes shall be filed with SEBI and circulated to Unitholders along with yearly reports.

BOB MUTUAL FUND
INDEX
Sr. No.	TABLE OF CONTENTS	PAGE
1.	RISK FACTORS	2
2.	DEFINITIONS	5
3.	EXPENSES	6
4.	CONDENSED FINANCIAL INFORMATION	7
5.	CONSTITUTION OF THE MUTUAL FUND	9
6.	INVESTMENT OBJECTIVES AND POLICY	14
7.	MANAGEMENT OF THE FUND	22
8.	UNITS AND OFFER	25
9.	SALE OF UNITS	28
10.	DIVIDENDS AND DISTRIBUTION	30
11.	INTER SCHEME TRANSFERS	31
12.	ASSOCIATE TRANSACTIONS	31
13.	BORROWINGS BY THE MUTUAL FUND	32
14.	STOCK LENDING BY THE MUTUAL FUND	32
15.	NET ASSET VALUE (NAV) AND VALUATION OF ASSETS OF THE SCHEMES	33
16.	REPURCHASE / REDEMPTION OF UNITS	35
17.	ACCOUNTING POLICIES AND STANDARDS	37
18.	TAX BENEFITS	38
19.	INVESTORS RIGHTS AND SERVICES	40
20.	INVESTOR GRIEVANCES REDRESSAL MECHANISM	41
21.	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	41
22.	MISCELLANEOUS PROVISIONS AND OTHER INFORMATION	43
23.	DUE DILIGENCE CERTIFICATE	44

1. RISK FACTORS

These risk factors may be peculiar to the Mutual Fund as well as those attendant with specific policies and objectives of the Schemes.

Standard Risk Factors

i. Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Mutual Fund will be achieved.

ii. As with any investments in securities, the Net Asset Value (NAV) of the units of the Schemes can go up as well as down depending on the factors and forces affecting securities markets.

iii. Past performance of the Sponsor/the Asset Management Company/Mutual Fund does not indicate the future performance of the Schemes of the Mutual Fund.

iv. The names of the respective Schemes do not in any manner indicate either the quality of the Schemes, or their future prospects and returns.

Note:

i. Investors in the Schemes are not being offered a guarantee or assured rate of return.

ii. Prospective investors should review the Offer Document carefully and in its entirety and consult their legal, tax and financial advisers to determine possible legal, tax, financial or other consequences of subscribing, purchasing or holding Units before making an application for Units.

iii. Any information or representation concerning BOB Mutual Fund or the Schemes which is inconsistent with what has been set out herein is unauthorised.

iv. Any change made in the Offer Document is subject to SEBI approval or approval of Unitholders as may be necessary under the SEBI Regulations.

BOB GROWTH FUND

(Open Ended Growth Scheme)

Highlights

· BOB Growth Fund is an open-ended growth Scheme from BOB Mutual Fund (BOBMF)

· BOB Mutual Fund is sponsored by Bank of Baroda, one of the largest public sector banks of the country. BOB Asset Management Company Limited (BOBAMC) is the Investment Manager to the Scheme. BOB Mutual Fund has launched four schemes and has a wide investor base

· Scheme targeted for long term capital appreciation through a well researched portfolio comprising of equity, equity related instruments and money market instruments

· Transparency of operations i.e. daily determination of NAV, sale price, redemption price and full disclosure of investment portfolio periodically

· Tax benefits under Section 112 of the Income Tax Act, 1961.

· Choice of Growth Plan, Dividend Plan and Dividend Re-investment Plan

· Facility of Systematic investment and withdrawal available

· Dividend/Income distribution is totally free of tax under the existing section 10(33) of the Income Tax Act, 1961

· Assured allotment to all applicants

Scheme Specific Risk Factors

i. All financial investments carry market and other risks and there is no assurance that the objectives of the Scheme will be achieved.

ii. The Sponsor is not responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 10 lacs made by it towards the corpus of the Fund.

iii. The liquidity of the Scheme’s investments may be restricted by trading volumes, settlement periods and transfer procedures. In the event of inordinately large number of redemption requests or of a restructuring of the Scheme’s portfolio, the time taken by the BOBMF for redemption of BOB Growth Fund units may be adversely affected. Please see “Right to Limit Redemptions” of BOB Growth Fund as mentioned in clause 16(iv) herein below.

iv. Subject to the availability and permissibility, the funds of the Scheme may be deployed for derivative transactions, which may entail risks which could limit any potential gain by increase or decrease in value of the position hedged. Further, exposure to derivatives in excess of hedging requirements could lead to losses.

v. The Scheme may also invest in overseas financial assets as and when permitted by the concerned regulatory authorities in India. To the extent that the assets of the Scheme will be invested in securities dominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investments.

BOB BALANCE FUND

(Open Ended Balance Scheme)

Highlights

· BOB Balance Fund is an open-ended balanced Scheme from BOB Mutual Fund (BOBMF)

· BOB Mutual Fund is sponsored by Bank of Baroda, one of the largest public sector banks of the country. BOB Asset Management Company Limited (BOBAMC) is the Investment Manager to the Scheme. BOB Mutual Fund has launched four schemes and has a wide investor base

· Scheme targeted for long term capital appreciation along with stability through a well balanced portfolio comprising of equity, equity related instruments, highly rated debt portfolio and money market instruments

· Transparency of operations i.e. daily determination of NAV, sale price, redemption price and full disclosure of investment portfolio periodically

· Tax benefits under Section 112 of the Income Tax Act, 1961.

· Choice of Growth Plan, Dividend Plan and Dividend Re-investment Plan

· Facility of Systematic investment and withdrawal available

· Dividend/Income distribution is totally free of tax under the existing section 10(33) of the Income Tax Act, 1961

· Assured allotment to all applicants

Scheme Specific Risk Factors

i. All financial investments carry market and other risks and there is no assurance that the objectives of the Scheme will be achieved.

ii. The Sponsor is not responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 10 lacs made by it towards the corpus of the Fund.

iii. The liquidity of the Scheme’s investments may be restricted by trading volumes, settlement periods and transfer procedures. In the event of inordinately large number of redemption requests or of a restructuring of the Scheme’s portfolio, the time taken by the BOBMF for redemption of BOB Balance units may be adversely affected. Please see “Right to Limit Redemptions” of BOB Balance as appearing in clause 16(iv) herein below.

iv. Subject to the availability and permissibility, the funds of the Scheme may be deployed for derivative transactions, which may entail risks which could limit any potential gain by increase or decrease in value of the position hedged. Further, exposure to derivatives in excess of hedging requirements could lead to losses.

v. The Scheme may also invest in overseas financial assets as and when permitted by the concerned regulatory authorities in India. To the extent that the assets of the Scheme will be invested in securities dominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the applicable restrictions on investments.

BOB INCOME FUND

(Open Ended Income Scheme)

Highlights

· BOB Income Fund is an open-ended income scheme from BOB Mutual Fund (BOBMF)

· BOB Mutual Fund is sponsored by Bank of Baroda, one of the largest public sector banks of the country. BOB Asset Management Company Limited (BOBAMC) is the Investment Manager to the Scheme. BOB Mutual Fund has launched four schemes and has a wide investor base

· Scheme targeted for generating regular income by investing in a portfolio of good quality fixed income securities.

· Transparency of operations i.e. daily determination of NAV, sale price, redemption price and full disclosure of investment portfolio periodically

· Choice of Growth Plan, Dividend Plan and Dividend re-investment plan

· Facility of Systematic investment and withdrawal available

· Dividend/Income distribution is totally free of tax under the existing section 10(33) of the Income Tax Act, 1961

· Assured allotment to all applicants

Scheme Specific Risk Factors

i. All financial investments carry market and other risks and there is no assurance that the objectives of the Scheme will be achieved.

ii. The Sponsor is not responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 10 lacs made by it towards the corpus of the Fund.

iii. The liquidity of the Scheme’s investments may be restricted by trading volumes, settlement periods and transfer procedures. In the event of inordinately large number of redemption requests or of a restructuring of the Scheme’s portfolio, the time taken by BOBMF for redemption of BOB Income Fund units may be adversely affected. Please see “right to limit redemptions” of BOB Income Fund.

iv. Price-Risk or Interest-Rate risk: Fixed income securities such as bonds, debentures and money market instruments run price-risk or interest rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates.

v. Credit Risk: In simple terms this risk means that the issuer of a debenture/bond or a money market instrument may default on interest payment or even in paying back the principal amount on maturity. Even where no default occurs, the price of a 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 credit risk to that.

vi. Subject to the availability and permissibility, the funds of the Scheme may be deployed for derivative transactions, which may entail risks which could limit any potential gain by increase or decrease in value of the position hedged. Further, exposure to derivatives in excess of hedging requirements could lead to losses.

vii. The Scheme may also invest in overseas financial assets as and when permitted by the concerned regulatory authorities in India. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

2. DEFINITIONS

BOBAMC or Investment Manager or Asset Management Company (AMC)	BOB Asset Management Company Limited
Custodian	Deutsche Bank
Mutual Fund or BOBMF	BOB Mutual Fund, constituted under Trust Deed and sponsored by Bank of Baroda
NAV	The Net Asset Value of the Schemes calculated and published in the manner provided in this Offer Document
Offer Document	This Offer Document through which Units of BOB Growth Fund, BOB Balance Fund and BOB Income Fund are being offered for subscription
Registrar and Transfer Agents (R&T Agent) and Registrars to the Schemes.	Karvy Consultants Ltd
Schemes	BOB Growth Fund, BOB Balance Fund, BOB Income Fund are collectively referred to as “the Schemes” and individually, where as the context so permits, as “the Scheme”.
SEBI	Securities and Exchange Board of India constituted under the Securities and Exchange Board of India Act, 1992, as amended from time to time
SEBI Regulations or Regulations	Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time including all SEBI notifications and circulars issued by SEBI from time to time relating to Mutual Funds
Sponsor	Bank of Baroda
Trustees or Board of Trustees	The Board of Trustees of BOB Mutual Fund
Trust Deed	The Trust Deed dated 30th October, 1992
Units	The Units which are offered for subscription under this Offer Document
Unitholder	A person holding Units of the Schemes
Working Day	A working day is any day other than a Saturday, a Sunday or a day on which banks in Mumbai are closed for normal banking operations

3. EXPENSES

(a) Unitholder Transaction Expenses or Load

i) Maximum Sales Load imposed on purchases 7% (as percentage of NAV)

ii) Maximum Redemption/Repurchase Load 7% (as percentage of NAV)

Note:

1) The difference between the repurchase price and the sale price of the Units shall not exceed 7% calculated on the Sale Price.

2) The actual sale/redemption load to be charged will be at such rates as may be decided by the Trustees from time to time, subject to maximum limits stated above.

b) Initial Issue Expenses

BOB