Read Smart Wealth Investment Terms and Conditions

The following are the important disclosures, terms and conditions and the modus operandi for usage of this SmartWealth App

I/We understand in the SmartWealth app, HDFC Bank is only showcasing financial products, that is Mutual Funds, Insurance and sovereign bonds products. I/We confirm that all decisions to buy, sell or deal in any of the said financial products are solely mine / ours, and I/we shall not hold HDFC Bank responsible for any losses arising from my / our decisions taken to buy, sell or deal in any of the said financial products.

I / We also understand that for products other than Mutual Fund, Insurance & Sovereign Bonds, HDFC Bank may refer me/us to subsidiary of HDFC Bank – HDFC Securities Ltd as per my/our request and instructions placed through the app.

I/We understand HDFC Bank is acting as

Distributors of Mutual Fund Products under AMFI Mutual Fund Guidelines and is registered with AMFI having registration number ARN 0005
Corporate agents for insurance products under IRDA regulations and is registered with IRDA having registration no. HCG 933982
Distributors of Sovereign Bonds-RBI & Gold Bonds

I/We understand that the Mutual Fund related information published in the App is available in the public domain. This information along with information from Mutual Fund AMCs needs to be considered as reference material and will only be a guidance tool for me/us to make any decision to buy, sell, hold or deal in units of Mutual Funds.

I / We also understand and consent to being redirected to third party service providers, for the purpose of opening a savings bank account, SEBI KYC, etc., which may or may not be a subsidiary, affiliates, associate of HDFC Bank, Reasonable care, diligence and intimation will be provided wherever necessary on the redirection to 3rd party websites.

I/ We also hereby consent for providing my account related details to such entities which include the Asset Management Companies (AMCs), Registrar and Transfer Agent(s), Subsidiaries / Affiliates of HDFC Bank, Insurance companies etc wherever required basis the selection of the scheme / product by me/ us in the SmartWealth app.

Risk Profiler

According to the SEBI mutual fund regulation, it is imperative on the part of the mutual fund distributor to ascertain the investment profile of the client, in the SmartWealth app transactions can be executed by the client only upon successful completion of the risk profiler. There are currently two methods available for the client for up-dation of the investment profile.

Directly choose the profile basis the name and description of the profile
Ascertain the same through a structured set of questionnaire.

I/ We also consent for storing the investment profile collected from the App in the records of the bank and use the same for shortlisting and suggestions of the Mutual Fund schemes for me / us for such period as may be required under the applicable laws and SEBI regulations. Such shortlisted and suggested Mutual Fund schemes are non-binding and can be overridden by me / us.

I/We also consent and understand that inspite of the risk and suitability profiler, the risk and suitability outcome is just an indicative method and not a fool proof method for ascertaining the risk bearing capacity and suitability and will not hold the HDFC Bank responsible for any adverse outcomes of any decisions taken by me/ us to buy, sell and/ or deal in any of the said financial products.

For the purpose of referrals, I/We agree, understand and consent that information, including but not limited to the investment profile may be shared with the subsidiaries/ affiliates of the bank and also 3rd party service providers wherever deemed necessary. However, it is further agreed that such subsidiaries/ affiliates of the bank and/or 3rd party service providers may in its sole discretion decide to rely on such information shared. However, HDFC Bank shall have no liability irrespective whether such 3rd party service providers rely on such information shared by HDFC Bank.

User Data

I / We hereby consent that HDFC Bank can collect the app related data at individual client for analytics purpose such as UI / UX, workflow analysis, journey analytics, future app enhancement purposes etc.

I / We hereby also consent for taking my / our data from the other banking products for analysis and providing suggestions which will be beneficial to us.

I/ we understand and agree that the HDFC Bank shall be entitled to share the relevant data collected from me/ us with its affiliates/group entities for the purpose of these T&Cs and for compliance with the applicable laws and further gives its consent for any such future usage by the HDFC Banks’s affiliates/group entities in the event I/ we become the client of such affiliates/group entities.

Alerts / Notifications

I / We understand and consent that HDFC Bank through this app would send alerts / notifications which will be of interest to me / us. This information is provided on a best effort basis based on the known information to HDFC Bank. While I / we are free to rely on the above-mentioned data, I / we will perform our own analysis and judgement before taking any action on the same. However, HDFC Bank shall have no liability if I / We rely on such information. I /we understand that I / we may opt out from receiving such alerts / notifications upon request.

Additionally, I / we also understand and consent that these sets of data are provided on best effort basis and no way HDFC Bank will be liable for errors in the collated data and non-availability of any relevant information on a timely basis.

Milestone / Goal Calculators.

This is not a mandatory tool. The milestone planning section in the app is an indicative way to tag and track the fund requirements for the same and there is no guarantee that the goal will be achieved in the specific time period or the returns appearing in the milestone/ goal calculator will be achieved. The milestone planning calculators will suggest products / services only limited to the products in the bank viz., Mutual Funds, Deposits (FD / RD), GOI bonds, Sovereign gold bonds and Insurance products. This milestone/ goal calculator should NOT be considered or viewed as financial planning tools or investment advice, and it can be overridden by me/us. Decision to buy/ sell/hold shall be solely my/ our decision and not by means of milestone/ goal calculator.

I/We also consent and agree that HDFC Bank will not be liable / held responsible for either following or deviating from the Milestone indicators and parameters.

Statement of account

I/We agree and acknowledge that the Asset Management Company (Mutual Fund) shall regularly send to me/us (only to first holder) communications like Account Statements, fund updates etc. In addition to the same on a best effort basis the HDFC Bank will provide the holding details on the App, however if there are any differences between the Asset Management Company (Mutual Fund) and the details displayed / provided in the App, then the details available with AMC (Mutual Fund) through the statement should only be relied up on.

HDFC Bank may, basis your instructions and consent, give instruction to other service provider to furnish information to the HDFC Bank, to enable the HDFC Bank to consolidate all the reports pertaining to your investments and furnishing such consolidated report to you, to show absolute, actual /XIRR returns basis purchase price and current market prices of Mutual Funds, without incorporating any recommendations. The HDFC Bank is only compiling and consolidating the reports without undertaking any independent verification of the information provided by the service provider.

Charges and fee

All sales and purchases and all other acts done by HDFC Bank for me/us pursuant to these terms and conditions shall be at my/our risk and cost and in consideration thereof. I/We agree and understand that there are specific charges/ fees levied by the mutual fund Companies / Insurance companies depending upon the scheme which I am investing. This may be vary from time to time depending on the size of the fund. I would visit www.hdfcbank.com in case if I need to understand any commission paid / payable details to HDFC Bank.

The charges/fees shall be paid by me/us to HDFC Bank on my/our giving instructions to HDFC Bank. All fees, charges and reimbursement of expenditure shall be paid or made in full by me/us without any counter claim, set off or withholding. All our liabilities and obligations hereunder to HDFC Bank shall be joint or several.

I/We agree to pay charges for Standing Instruction (SI) failure due to insufficient funds in my/our account. Since the bank account is with HDFC Bank, in case Standing Instructions get dishonoured due to insufficient funds, then HDFC Bank will charge as per its rates in case of such dishonour of such Standing Instructions.

Third Party Risk

HDFC Bank shall not be liable for any loss or damage caused by reason of failure or delay of mutual fund to deliver any units purchased even though payment has been made for the same or failure or delay in making payment in respect of any mutual fund units sold though they may have been delivered and we shall save HDFC Bank harmless and free from any claim in respect thereof. HDFC Bank shall also not be liable for any delay, failure or refusal of the mutual fund/any company/corporation or other body in registering or transferring units to my/our names of for any interest, dividend or other loss caused to me/us arising therefrom.

Limitation of Liability of HDFC Bank

HDFC Bank shall not in the absence of gross negligence on HDFC Bank's part, be liable to me/us for any (i) act or omission of the HDFC Bank acting as my / our agent (ii) act, omission or delay by the mutual fund or for any claims which I/We may suffer or incur as a result of or in course or discharge by HDFC Bank of its nominees, agents, officers or sub custodian of HDFC Bank's duties.

Without prejudice to what is stated above, HDFC Bank shall not be held liable for of by reason of any loss or damage or failure to comply or delay in complying with its obligations under these terms and conditions which is caused directly or indirectly by any event or circumstances beyond HDFC Bank's reasonable control. These include system failures, network errors, delay or loss of data due to the above and in circumstances of acts of God, floods, epidemics, quarantine, riot or civil commotion and war.

I/We further agree to indemnify HDFC Bank (AMFI Registered Mutual Funds Distributor) for any loss that may arise as a result of system failure, accident or any of the reasons mentioned above.

HDFC Bank shall not be liable for and I/We shall indemnify HDFC Bank for any Losses, damages, expenses, costs, liabilities and claims of whatsoever nature caused by fraudulent or unauthorised use of my/our signatures and /or unauthorised use of my /our Telephone Personal Identification Number.

HDFC Bank will not be liable for any error or inaccuracies for any of the publicly available information that may be provided to me/us by HDFC Bank.

HDFC Bank shall be under no duty to verify compliance with any restrictions on my/our investments.

HDFC Bank will not be liable for any loss, damage, cost, charges or expenses directly or indirectly caused by reasons of any defects or imperfections or mechanical or other failure with relation to computer, cable, telex, telephone or postal system.

In providing services to me/ us HDFC Bank will use all due care, diligence and skill. Notwithstanding anything stated in these T&Cs, neither HDFC Bank nor any of its affiliates, directors/employees/officials shall be liable for any investment made by me/ us and it will be my/ our responsibility to make an independent assessment.

Notwithstanding anything stated in the terms and conditions, neither HDFC Bank nor any of its Affiliates, directors/employees/officials shall be liable for any representation made under this terms and conditions and it will be the Client's responsibility to make an independent assessment.

HDFC Bank will not be liable for any loss, damage, cost, charges or expenses directly or indirectly caused by reason of any defects or mechanical or other failure with relation to computer, cable, telex, telephone, satellite, postal system or any other medium or mode of communication. In the event of equipment breakdowns beyond its control, HDFC Bank shall take reasonable steps to minimize service interruptions but shall have no liability with respect thereto.

HDFC Bank shall not be liable for loss or damage caused by or resulting from any circumstances beyond its control, including but not limited to fire, flood, explosion, war, theft, accident, nationalization, expropriation, currency restrictions, measures taken by any government or agency of any country, state or territory in the world, actions taken by any regulatory authority regulating asset managers, amendments to applicable laws, industrial action or labour disturbances of any nature amongst employees of HDFC Bank or of its agents or of any third parties, boycotts, power failures or breakdowns in communication links or equipment (including but not limited to loss of electronic data), international conflicts, violent or armed actions, acts of terrorism, insurrection, revolution, nuclear fusion, fission or radiation, or failure or disruption of any relevant stock exchange, clearing house, clearing or settlement systems or market (“Force Majeure Event”).

HDFC Bank shall not be liable for loss or damage caused by, which I/ we may suffer by reason of any depletion in the value of the assets invested through this platform, which may result by reason of fluctuation in asset value, or by reason of non-performance or under-performance of the securities/funds or any other market conditions.

Powers of the Bank

I/We hereby authorise HDFC Bank to exercise the following powers on my/our behalf at such time in such manner as it may in its discretion think fit for the purpose of performing its powers, duties and responsibilities set out hereunder.
I/We hereby authorise HDFC Bank for the purpose of buying and selling of mutual funds, to debit and/or credit my bank account.
Appoint on my/our behalf any agents /nominees/sub-custodian or any other service provider for the purposes of services being provided hereunder.

Role of the Bank

I/We expressly agree and acknowledge that any information contained in HDFC Bank's Brochures or other materials or otherwise communicated by HDFC Bank shall not be constructed by me/us as investment advice and that all decisions to purchase or sell units made by me/us shall be on the basis of my/our own personal judgment arrived at after due consideration. I/We understand and agree that HDFC Bank does not in any manner:

Provide any buy /sell/ hold or other recommendations; or
Guarantee payments or returns on any units; or guarantee of liquidity of any units; or
Make any offer to buy back any units; or guarantee the redemption or repayment of any units on maturity; or
Guarantee the payments of interest or dividend; or
Promise, indicate or guarantee any returns; or guarantee any good delivery.
If notwithstanding anything stated herein HDFC Bank or any employee of HDFC Bank gives any advice or representation to me/us, HDFC Bank shall have no liability for any such advice or representation made, as it will be my/our responsibility to make an independent assessment.

I /we understand that any sum invested through this platform is not a deposit with HDFC Bank and is not bank insured. The same is not endorsed or guaranteed and does not constitute obligations of HDFC Bank or any of the subsidiaries associated or affiliated companies whose role in only as described in these terms and conditions. The units/ financial products purchased are subject to investment risks, including the possible loss of principal amount invested. The value of my units/securities will fluctuate. If I/We redeem my units/shares, I/We may receive more or less than I/we paid depending upon market value of the securities in the fund or trust at the time of redemption. Past results are not a guarantee to future performance. Yield or performance fluctuates and reflects past results. Yield or funds past performance should not be considered as an indication or guarantee of future yields or results.

Correspondence

Any notice or other correspondence addressed by HDFC Bank to me/us may be addressed to the first holder above at the address given by me/us above or to such address as HDFC Bank may be aware. If according to me/us there is any discrepancy in the particulars or details of any transaction or account of statement then i/we shall be obliged to intimate the same to HDFC Bank in writing in 10 days of the first holder receiving notice thereof, failing which such transaction, statement or account (as the case may be) shall be deemed to be correct and accepted by me/us and I/We shall not be entitled to question the correctness or accuracy thereof.

Authority to HDFC Bank

I/we authorise HDFC Bank to do, perform or execute upon my/our express instructions and at my/our risk and cost, all or any of the following acts, deeds, matters and things: To subscribe to the units of the mutual fund & securities on my /our behalf and to pay to the units/securities so purchased, on my/our instructions.

To receive the account statement pertaining to the above units/securities and to acknowledge receipt of the same.
To redeem /sell the units/securities held by me/us (whether solely or jointly with others) and to receive the payment of the redemption/sale price and acknowledge receipt of the same, based on my/our instructions.
To sign all such writings and do all such acts as may be required for redeeming any units/securities.
To collect, receive and give good effectual receipts and discharges for any sum including dividend, interest or income arising from the units/securities and to sign and endorse dividend and interest warrants.
To collect and deposit monies in an account opened in my/our name with HDFC Bank and to make such debits in the said account as may be necessary.
To give instructions and orders to brokers and agents including instructions and orders of sale, purchase, transfer, splitting and consolidation of securities and to pay remuneration, brokerage, commissions and other sums to such brokers and agents.
To correspond with and give notice to the mutual fund and corresponding asset management company on my/our behalf.

To instruct the mutual fund and/or the corresponding asset management company to make note of instructions with regards to nomination /changes in investment plan/any other changes."

Holding Pattern and Customer details

The holding pattern of the customer would be based on the bank account holding pattern. Also, there would be no change allowed in the holding pattern once the SmartWealth Account it is activated even if there is a change in the holding pattern in the bank account.

The other requisite data (which is not part of the form) required to be reported to AMC / RTA will be extracted from HDFC Bank account details maintained for the First holder.

Termination

HDFC Bank or myself/ourselves may terminate the aforesaid services by giving 30 days prior notice in writing to the other party provided that I/we shall not be relieved of my/our obligations hereunder notwithstanding such termination incurred prior to the date on which such termination shall become effective.

Death or Disability

In case of death or permanent disability - matter to be dealt with in terms of guidelines provided by respective mutual funds and AMCs and third party service providers.

Governing Law and Jurisdiction Clause

All disputes and differences arising out of, under or in connection with these terms and conditions or anything done hereunder shall be within the exclusive jurisdiction only to the courts of Mumbai. Further these terms and conditions are subject to and shall be construed in accordance with the laws prevalent in India.

Limitation of Liability

In providing services to the Client, HDFC Bank will exercise reasonable business judgment and will use all due care, diligence and skill.

The Client understands and agrees that HDFC Bank shall be entitled to share the relevant data collected from the Client with its affiliates/group entities for the purpose of this Agreement and for compliance with the Regulations and further gives its consent for any such future usage by HDFC Bank’s affiliates/group entities in the event the Client becomes the client of such affiliates/group entities.

Conflicts of Interest

Client understands that that HDFC Bank serves other Clients across various services and will continue to do so. Client also understands that HDFC Bank may service or take action in performing their duties to other clients, or for their own accounts, that differ from what is offered to or acts taken for the Client.

The Client agrees and understands that HDFC Bank as well as its directors, employees, the Affiliates as well as the directors and employees of the Affiliates may have investments in various

Securities/instruments/products from time to time and the conflicts of interest would be inherent. It is intended for such conflicts to be managed primarily by complying with the applicable laws, acting in good faith to develop equitable resolutions of known conflicts based on internal conflict resolution policies and developing policies to reduce the possibilities of such conflict. While HDFC Bank may try to avoid conflict of interest as far as possible, and when it cannot be avoided, they shall ensure that appropriate disclosures are made, and that Client are treated fairly.

HDFC Bank shall endeavour that these conflicts do not work to the detriment or the interests of the Client.

HDFC Asset Management Company is an associate company of HDFC Bank and details of the commissions paid by HDFC Asset Management Company to HDFC Bank in last financial years are available at www.amfiindia.com

Risks of Mutual funds & Other related products

Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on risk factors before investment. Scheme specific risk factors are summarized below:

Risk associated with investment in fixed income securities: Investment in Debt and money market instruments is subject to credit risk, counter party risk, interest rate risk, reinvestment risk, liquidity or marketability risk etc.
Risk associated with derivatives: Since investments would be made in derivatives such as interest rate futures and/ or swaps, the risks associated with such derivatives would be applicable.
Market trading risk: Investments in the scheme may be subject to the following market trading risks: Absence of a prior active market, lack of market liquidity, Units of the scheme may trade at prices other than NAV, Regulatory Risk, Right to Limit Redemptions, Redemption Risk, Asset Class Risk, Units to be held only through demat accounts.
Tracking Error Risk: The Fund Manager may not be able to invest the entire corpus exactly in the same proportion as in the underlying index due to certain factors such as the fees and expenses of the respective scheme, corporate actions, cash balance, changes to the underlying index and regulatory policies which may affect AMC’s ability to achieve close correlation with the underlying index of the scheme. The scheme’s returns may therefore deviate from those of its underlying index. “Tracking Error” is defined as the standard deviation of the difference between daily returns of the underlying index and the NAV of the respective scheme. It will be the endeavour of the fund manager to keep the tracking error as low as possible. Under normal circumstances, such tracking error is not expected to exceed 2% per annum. However, in case of events like, reconstitution/ addition/ deletion of securities in the underlying index etc. or in abnormal market circumstances, the tracking error may exceed the above limits. There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the Index.
Passive Investments: As the scheme proposes to invest not less than 95% of the net assets in the securities of the underlying Index, the scheme will not be actively managed. The Scheme may be affected by a general decline in the Indian markets relating to its Underlying Index. The Scheme invests in the securities included in its underlying index regardless of their investment merit. The AMC does not attempt to individually select securities or to take defensive positions in declining markets.
Mutual funds would be investing in equities, money market instruments (money market instruments include commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time) and units of liquid mutual fund. The liquidity of the scheme’s investments is inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption requests, or of a restructuring of the scheme’s investment portfolio, these periods may become significant. In view of the same, the Trustees may limit redemptions (including suspending redemptions) under certain circumstances as specified under Scheme Information Document.
Risks pertaining to transaction in units through Stock Exchange Mechanism: Absence of Prior Active Market, Trading in Units may be Halted, Lack of Market Liquidity, Units of the Schemes May Trade at Prices Other than NAV, Regulatory Risk, Reinvestment Risk, Risk of Substantial Redemptions etc.
Risks associated with Securities Lending: Securities Lending is a lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. There are risks inherent in securities lending, including the risk of failure of the other party, in which case the securities might go in for auction. In the event of exceptional circumstances resulting in non-availability of securities in auction, such transactions would be financially closed-out at appropriate rates as per exchange regulations. Besides, there will also be temporary illiquidity of the securities that are lent out and the Scheme(s) will not be able to sell such lent-out securities until they are returned.
There are risks associated with Investment in Equities and equity related instruments like volatility, inability of the Scheme to make intended securities purchases and sale. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the scheme and there are also price fluctuations risks
Risks associated with investment in units of mutual fund: Investment in Mutual Fund Units involves investment risks, including but not limited to risks such as liquidity risk, volatility risk, default risk including the possible loss of principal.
Liquidity risk – The liquidity of the scheme’s investments is inherently restricted by trading volumes and settlement periods. In the event of an inordinately large number of redemption requests, or of a restructuring of the scheme’s investment portfolio, these periods may become significant. In view of the same, the Trustees may limit redemptions (including suspending redemptions) under certain circumstances as specified under Scheme Information Document.
Volatility risks: There is the risk of volatility in markets due to external factors like liquidity flows, changes in the business environment, economic policy etc. The scheme will manage volatility risk through diversification across companies and sectors within PSUs.
Default risk - Credit risk is risk resulting from uncertainty in counterparty’s ability or willingness to meet its contractual obligations. This risk pertains to the risk of default of payment of principal and interest. Government Securities have zero credit risk while other debt instruments are rated according to the issuer’s ability to meet the obligations.
Mutual Funds invest in capital markets. Kindly refer to the risks disclosed in the offer document of the respective mutual funds in relation to investment in capital markets.

Risk Factor in respect of investment in TREPs

Interest rate risk: This risk arises from uncertainty in the rate at which cash flows from the securities may be reinvested. While the rate of interest for TREPs remains closely correlated to the repo rate, it also may vary based on inter-bank lending demand & supply. Hence, there remains a risk of rate at which TREPs will get re-invested.

Settlement risk: Since the settlement for TREPs happens through CCIL, the risk of default from counterparty is limited. However, in case a clearing member fails to honour their settlement obligations, the “Default Waterfall” mechanism is used to make complete the settlement process. As per the waterfall mechanism, 1st step. the defaulter’s margins and the defaulter’s contribution to the default fund have been appropriated; 2nd step: CCIL’s contribution is used to meet the losses; 3rd step: Post utilization of CCIL’s contribution if there is a residual loss, it is appropriated from the default fund contributions of the non-defaulting members. Hence, the scheme is subject to the risk of loss to the extent of initial margin and default fund contribution being invoked in the event of failure of any settlement obligations.

Risks of Fixed Income Instruments / Fixed Deposits

Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks that investors need to be aware of. Diversification can be a good way to minimize many of the risks inherent in fixed income investing. In the world of fixed income, diversification takes on many forms, including diversification across bond type, bond issuer (such as the federal or a state government, or a corporation); duration (short-, intermediate-, and long-term bonds); credit quality and yield (high-quality bonds are relatively safer but pay lower rates, while less credit-worthy issuers will pay higher rates for greater risk); and tax treatment (most municipal bonds, for instance, offer investors tax-free income). Bond funds can also provide professional diversification at a lower initial investment. But the securities held in bond funds are all still subject to several risks, which can affect the health of a fund.

Interest rate risk

If interest rates rise, bond prices usually decline. That's because new bonds are likely to be issued with higher yields as interest rates increase, making the old or outstanding bonds less attractive.

If interest rates decline, however, bond prices usually increase, which means an investor can sometimes sell a bond for more than face value, since other investors are willing to pay a premium for a bond with a higher interest payment, also known as a coupon.

If you decide to sell a bond before its maturity, the price you receive could result in a loss or gain depending on the current interest rate environment. The longer a bond's maturity—or the longer the average duration for a bond fund—the greater the impact a change in interest rates can have on its price. In addition, zero‐coupon bonds, or those bonds with lower coupon (or interest) rates are more sensitive to changes in interest rates and the prices of these types of bonds (or bond funds or ETFs that hold these bonds) tend to fluctuate more than higher‐coupon bonds in response to rising and falling rates.

Credit risk / Default Risk

Bonds carry the risk of default, which means that the issuer may be unable or unwilling to make further income and/or principal payments. In addition, bonds carry the risk of being downgraded by the rating agencies which could have implications on price. Bonds are typically classified as investment grade quality (from medium to the highest credit quality) or non-investment grade (commonly referred to as high-yield bonds). Credit risk is a greater concern for high‐yield or non-investment grade bonds and bond funds that invest primarily in lower‐quality bonds. Some bond funds may invest in both investment grade quality and high‐yield bonds.

Inflation risk

Inflation risk is a particular concern for investors who are planning to live off their bond income, though it's a factor everyone should consider. The risk is that inflation will rise, thereby lowering the purchasing power of your income.

Call risk

A callable bond has a provision that allows the issuer to call, or repay, the bond early. If interest rates drop low enough, the bond's issuer can save money by repaying its callable bonds and issuing new bonds at lower interest rates. If this happens, the bondholder's interest payments cease and they receive their principal early. If the bond holder, then reinvests the principal in a bond of similar characteristics (such as credit rating), they will likely have to accept a lower interest payment (or coupon rate), one that is more consistent with prevailing interest rates. Therefore, the investor's total return will be lower, and the related interest payment stream will be lower—a more serious risk to investors dependent on that income.

Liquidity risk

Liquidity risk is the risk that you might not be able to buy or sell investments quickly for a price that is close to the true underlying value of the asset. When a bond is said to be liquid, there's generally an active market of investors buying and selling that type of bond. Treasury bonds and larger issues by well-known corporations are generally very liquid. But not all bonds are liquid; some trade very infrequently, which can present a problem if you try to sell before maturity—the fewer people there are interested in buying the bond you want to sell, the more likely it is you'll have to sell for a lower price, possibly incurring a loss on your investment. Liquidity risk can be greater for bonds that have lower credit ratings (or were recently downgraded), or bonds that were part of a small issue or sold by an infrequent issuer.

Reports Sectiony

Please note that this report, prepared specifically at your request, is for information purposes only and is not an official confirmation of any transaction. Asset / product allocation displayed in the report is based on standard tabulated profiler with a fixed percentage allocation to each asset category. This may vary from your actual asset allocation requirement. These are standard adopted procedures for each asset category. Please use this only for the purpose of guidance. This Report is compiled based on the Data received from various agencies like AMCs (Mutual Funds) and their RTAs (Registrars), Insurance companies, portfolio managers, private equity funds.

Equity / Debt Brokers and based on Equity price & NAV data from various sources. The information herein is believed to be reliable and has been obtained from sources believed to be reliable and while effort was made to ensure accuracy of information indicated in this report, we cannot confirm full accuracy. Please refer to the actual statements issued by the respective fund house / product manufacturer for accuracy. In addition to this, the held-away transactions captured / executed by you through any external party / agency / agent etc. are included only for the purpose of consolidation, based on inputs received from you in this regard. Information on assets/debts in Non-HDFC BANK portfolio is based on data shared voluntarily by you on as is basis and is included in the report without any verification. The annualized return is calculated over the entire investment period considering all cash flows (for current active holdings) and is computed using the Extended Internal Rate of Return (XIRR) method. It is calculated on the market value as on the date preceding the statement date, which might be different than the Market Value shown in the report.

HDFC Bank neither guarantees nor makes any representations or warranties, express or implied, with respect to the fairness, correctness, accuracy, adequacy, reasonableness, viability for any particular purpose or completeness of the information contained in the report. Further, HDFC Bank disclaims all liability in relation to use of data or information used in this report which is sourced from third parties. Except where expressly stated otherwise, this report contains information on investments in third party mutual funds/insurance/Equities /investment funds and other alternate products, which may / may not be distributed by the HDFC Bank. HDFC Bank is not responsible for accuracy of this report as there is dependency on the data input and correct mapping of the data to you. HDFC Bank will not be liable for any transaction action taken by you based on this report. Neither HDFC Bank nor any of its employees shall be liable for any direct, indirect, special, incidental, consequential, punitive, or exemplary damages, including loss of profits arising in any way from the information contained in this report. It advised that Exit loads applicability is referred before taking any decision and that Exit load (if any) levied by the fund house would be recovered from redemption proceeds. HDFC Bank is not liable for any holdings not reflecting or wrongly reflecting in this report. HDFC Bank has compiled this report on best effort basis & report is not to be used for tax filing and related activities and you should refer actual transaction statements issued by fund house/product manufacturer and consult tax practitioner.

All the bank Accounts linked to your Customer ID submitted / informed by you to your Relationship Manager / the person servicing you from the bank are reflected in the report in the form of Cash/Debt. Investment in FDs are displayed at the investment amount. The MF NFO transactions executed by you will be part of the holdings on the basis of receipt of NFO feed from respective AMCs/ RTA executed through HDFC Bank. The Direct equity portfolio reflects the equity holdings in the demat account held with HDFC Bank and are updated for providing the valuation of the equity portfolio. The cost price (as last available NSDL Price only for equity) for equities / Insurance (unit linked schemes) is not the actual value/ fair market value and is not to be used for return/gain calculation. Accrued interest on the Bonds is calculated on face value based on data received from vendor and is just for representation purpose. Market value for unlisted securities is not updated as the same is not available. For unlisted/not frequently traded securities, last traded price may not represent actual valuation and / or current market price, the stock / security prices are also dependent on the liquidity of that particular stock and such information may not be in public domain and HDFC Bank may be relying on information provided by the AMCs or other third party service provider. Private Equity and portfolio management investments are updated as part of the equity holdings and are shown at the last available valuation/ cost price. HDFC Bank shall not be liable for the correctness or accuracy of any such information.

All returns are calculated on the net amount received by you post deduction of statutory levies and taxes if any. Rates mentioned for the Term Deposits with HDFC Bank is the applicable interest rate of the deposit(s). For Standalone Term Deposits i.e (Deposits held with Corporate), in case of partial withdrawal, interest paid/accrued will get adjusted at the next transaction/month end/maturity whichever is earlier. Transmission-In cases have been treated as Purchase Transactions, & Transmission-Out cases have been treated as Redemptions / Sales Transactions. Amount related figures are rounded off up to 2 decimal places in the report. In case the NAV for scheme / funds is not received from the RTA, the last available NAV or the face value of the respective scheme / fund is reflected.

The referred information is based on the end of the day balance in the respective accounts held with HDFC Bank on the date of generation of this report. The prices, value, income and appreciation of the investments mentioned in this report are captured on the basis of data received from different sources and are subject to change. Note that the data used for this classification is obtained from a variety of sources and may not be current (see 'As of Date/NAV Date/Valuation Date' shown in the details section for the date the portfolio holdings reported by the fund). Mutual funds, close ended funds and the investment options of underlying annuities change their portfolio holdings on a regular basis (often daily). Accordingly, any analysis that includes mutual funds, close ended funds and the investment options of underlying annuities may not accurately reflect the current composition of these funds. In case of any change, please contact your relationship manager.

HDFC Bank acts merely as a distributor of mutual fund and insurance products and is not a custodian or advisor in respect of investments mentioned in the report. HDFC Bank shall not be liable for any delay in receipt of this report. Please notify us immediately and in any case within two weeks of the report date if you notice any error or discrepancy in the report. This report is for your exclusive and confidential use only. Any distribution, use or reproduction of this report without the prior written permission of HDFC Bank, is unauthorized and strictly prohibited. If you have received this report in error (or are not the intended recipient) please notify HDFC Bank immediately and destroy this report.

Provision of Services being Non-Exclusive

Save as otherwise specifically provided in this Agreement or any Applicable Laws or regulations, nothing contained in this Agreement shall prevent HDFC Bank from:
Acting as advisers / distributors of financial products to any other person or entity or to do any other business which it can legally perform
Buying, holding, selling and/or dealing in shares or other Securities, in its independent capacity, in its own account, any of the affiliate’s account and/or affiliates or its client’s account.
As stated above, the services provided by HDFC Bank to the Client hereunder are not to be deemed exclusive and HDFC Bank shall be free to render similar services to others and retain for its own use and benefit all fees or other moneys payable thereby and HDFC Bank shall not be under any duty to disclose to the Client any fact or things which comes to the notice of HDFC Bank or any servant or agent of the Investment Advisor in the course of HDFC Bank rendering similar services to others or in the course of its business in any other capacity or in any manner whatsoever otherwise than in the course of carrying out its business hereunder.

Declaration,

I/We have read and understood the Terms and Conditions (a copy of which is in my/our possession) applicable to SmartWealth Account. I/We agree to abide by the same. I/We declare that the particulars given above are true to the best of my/our knowledge as on the date of making such applications. I/we undertake to inform, in writing, of any change in the particulars furnished above. I/We further agree that any false/misleading information given by me/us or suppression of any material fact will render my/our account liable for termination. I/we declare that all the details in my /our relationship record are true and correct and any instruction given to you to transact business on my/our behalf shall in due conformity with the applicable laws as may for the time being in force. Any tax implication arising out of any transactions entered in to pursuant to these terms and conditions would be as per the provisions of Income Tax Act, 1961, or any modification or re-enactment thereof. I/We agree and declare that any and all tax liability will be my/our sole responsibility. I/We shall execute and deliver to the bank, from time to time such other documents as may be specified by the bank for compliance or updating of records if any. I/we have read and understand the terms and conditions applicable to the bank's SmartWealth Account and agree to be bound by the said terms and conditions and including those excluding /limiting your liability. I / we agree that the Bank A/c linked to the SmartWealth Account will not be closed till the time all my investment holdings are either redeemed or transferred to physical form method. I/We undertake to make the applicants to the investments aware of provisions of the terms and conditions and the same will be binding on the applicants by use of the facility provided herein. I/We jointly and severally bound by the terms and conditions of the Bank's SmartWealth Account. I/We agree to pay the quarterly maintenance charges if applicable for SmartWealth Account.

Electronic / Authentication related disclosures

HDFC Bank has adopted the mode of authentication of the Customer by means of verification of the Mobile Phone Number/Email ID and/or through verification of debit card PIN allotted by HDFC Bank to the Customer or through any other mode of verification as may be stipulated at the discretion of HDFC Bank. The unauthorized access and/or use of aforementioned modes of authentication can raise a risk to the security of the Account/s of the Customer.

Hence, to avoid any legal risks related with use of modes of verification the Customer(s) shall ensure maintenance of complete confidentiality, secrecy and protection of the authentication parameters such as Mobile device, OTPs, PINs, debit card PIN, etc. allotted to the Customer(s) or any other mode of verification as may be stipulated at the discretion of HDFC Bank.

The Customer shall not disclose the Mobile Phone Number and/or debit card PIN to any other person and shall not respond to any unauthorized SMS/ email/ phone call wherein such details have been asked for. HDFC Bank shall, in no manner whatsoever, be held responsible or liable, if the Customer incurs any loss as a result of the Mobile Phone Number and/or debit card PIN and/or any other mode of verification as prescribed by HDFC Bank from time to time being disclosed/ shared by the Customer with any unauthorized persons or in any other manner whereby the security of any of the modes of verification is compromised.

Therefore, the Customer is solely responsible to maintain the secrecy and confidentiality of the Mobile Phone Number and/or debit card PIN and/or any other mode of verification as prescribed by HDFC Bank from time to time without any liability of HDFC Bank in this regard.

HDFC Bank shall endeavour to provide to the Customer through the Facility, such services as HDFC Bank may decide from time to time. HDFC Bank reserves the right to decide what services may be offered to a Customer on each Account and such offers may differ from Customer to Customer. HDFC Bank may also vary the services offered through the Facility at its sole discretion.

The instructions of the Customer shall be put into effect after authentication as above of the Customer by means of verification of the Mobile Phone Number and/or through verification of debit card PIN allotted by HDFC Bank to the Customer(s) or through any other mode of verification as may be stipulated at the discretion of HDFC Bank. The Customer(s) understand that since the transactions are instantaneous in nature, the reversal of the same is not feasible. The Customer(s) understand that no stop payment requests submitted by the Customers would be accepted by HDFC Bank. HDFC Bank shall endeavour to carry out the instructions of the Customer(s) promptly, provided that HDFC Bank, shall not be responsible for the delay in carrying out such instructions due to any reason whatsoever, including, but not limited to, failure of operational system or any requirement of law or HDFC Bank’s internal policies.

APP related authority

The Customer irrevocably and unconditionally authorises HDFC Bank to access all his Account/s for effecting banking or other transactions through the Facility and to share the Account information with any third parties for the purpose of accepting/ executing such requests of the Customers.

RECORDS

All records of HDFC Bank generated by the transactions arising out of use of the Facility, including the time of the transaction recorded shall be conclusive proof of the genuineness and accuracy of the transactions.

INSTRUCTIONS

All instructions for availing the services under the Facility shall be provided through the Mobile Phone Number in the manner indicated by HDFC Bank. The Customer is also responsible for the accuracy and authenticity of the instructions provided to HDFC Bank and the same shall be considered to be sufficient for availing of the services under the Facility. The Alerts would be sent on the Mobile Phone Number, last registered with HDFC Bank. Alerts will not be offered for two Mobile Phone Numbers for the same Account or Account/s under the same multiple user-id. The same Mobile Phone Number cannot be registered for availing the Facility in relation to different Account/s under different Infinity user-id. Keywords for various information requests shall be as may be provided for, from time to time, including on the application forms, or as available at HDFC Bank.

Where HDFC Bank considers the instructions to be inconsistent or contradictory it may seek clarification from the Customer before acting on any instruction of the Customer or act upon any such instruction as it may deem fit. HDFC Bank shall have the right to suspend the services under the Facility if HDFC Bank has reason to believe that the Customer's instructions may lead to direct or indirect loss or may require an indemnity from the Customer before continuing to operate the Facility.

The Customer accepts that all information /instructions will be transmitted to and /or stored at various locations and be accessed by personnel of HDFC Bank (and its Affiliates).

ACCURACY OF INFORMATION

The Customer undertakes to provide accurate and complete information wherever required and shall be solely responsible for the correctness and completeness of information provided by him to HDFC Bank at all times, including, but not limited to, for the purposes of availing of the Facility. HDFC Bank shall not be liable for consequences arising out of erroneous information supplied by the Customer. If the Customer suspects that there is an error in the information supplied by Bank to him, he shall advise HDFC Bank as soon as possible. HDFC Bank will endeavour to correct the error wherever possible on a best effort basis. While HDFC Bank and its Affiliates will take all reasonable steps to ensure the accuracy of the information supplied to the Customer, HDFC Bank and its Affiliates shall not be liable for any inadvertent error, which results in the providing of inaccurate information.

DISCLAIMER OF LIABILITY

HDFC Bank shall not be responsible for any failure on the part of the Customer to utilise the Facility due to the Customer not being within the geographical range within which the Facility is offered and which forms part of the roaming network of such cellular service provider, providing services to the Customer availing such roaming facility from the respective cellular service provider. If the Customer has reason to believe that the Mobile Phone Number is / has been allotted to another person and / or there has been an unauthorised transaction in the Account and / or his mobile phone handset is lost, he shall immediately inform HDFC Bank of the same.

The Customer agrees that HDFC Bank shall not be liable if:

a) the Customer has breached any of the terms and conditions, contained herein or

b) the Customer has contributed to, or the loss is a result of failure on part of the Customer to advise HDFC Bank within a reasonable time about unauthorised access of or erroneous transactions in the Account by use of the Facility; or

c) as a result of failure on part of the Customer to advise HDFC Bank of a change in or termination of the Customer's Mobile Phone Numbers.

d) there has been an unauthorized transaction in the Account as a result of any person having control or custody of telecommunications instrument (such as the mobile handset) so that such instrument may be used to give telecommunications instruction without authorization or any other issue/default/error/technological problem in the telecommunication instrument (such as the mobile handset) or duplication of mobile number / SIM of the Customer such as but not limited to SIM card cloning, virus in handset etc.

HDFC Bank shall endeavour to provide the Facility on a best effort basis and the Customer shall not hold HDFC Bank liable for nonavailability of the Facility or non-performance by service providers, if any, engaged by HDFC Bank or any loss or damage caused to the Customer as a result of use of the Facility (including relying on the Alerts for the Customer's commercial, investment or business purposes) for causes which are not attributable to HDFC Bank. HDFC Bank shall not be liable in any manner to the Customer in connection with the use of the Facility.

The Customer accepts that each Alert may contain certain Account information relating to the Customer. The Customer authorises HDFC Bank to send Account related information, though not specifically requested, if HDFC Bank deems that the same is relevant.

HDFC Bank shall not be held responsible for the confidentiality, secrecy and security of the personal or Account information being sent through the Facility to the extent external medium is used (like telephone network). The Customer agrees that the access to the Facility shall be only through the Mobile Phone Number and any transaction which originates from the same, whether initiated by the Customer or not, shall be deemed to have originated from the Customer.

Under no circumstance, HDFC Bank shall be held liable if the Facility is not available for reasons including but not limited to natural calamities, legal restraints, faults in the telecommunication network or network failure, or any other reason beyond the control of HDFC Bank. HDFC Bank shall not be liable under any circumstances for any damages whatsoever whether such damages are direct, indirect, incidental consequential and irrespective of whether any claim is based on loss of revenue, interruption of business or any loss of any character or nature whatsoever and whether sustained by the Customer or by any other person. Illegal or improper use of the Facility shall render the Customer liable for payment of financial charges as decided by HDFC Bank or will result in suspension of the Facility for the Customer.

HDFC Bank is in no way liable for any error or omission in the services provided by any cellular or any third-party service provider (whether appointed by HDFC Bank in that behalf or otherwise) to the Customer, which may affect the Facility.

HDFC Bank, does not warrant the confidentiality or security of the messages whether personal or otherwise transmitted through the Facility to the extent external medium (like telephone network) is used. HDFC Bank makes no warranty or representation of any kind in relation to the system and the network or their function or performance or for any loss or damage whenever and howsoever suffered or incurred by the Customer or by any person resulting from or in connection with the Facility. Without limitation to the other provisions of this terms and conditions, HDFC Bank, its employees, agent or contractors, shall not be liable for and in respect of any loss or damage whether direct, indirect or consequential, including but not limited to loss of revenue, profit, business, contracts, anticipated savings or goodwill, loss of use or value of any equipment including software, whether foreseeable or not, suffered by the Customer or any person howsoever arising from or relating to any delay, interruption, suspension, resolution or error of HDFC Bank in receiving and processing the request and in formulating and returning responses or any failure, delay, interruption, suspension, restriction, or error in transmission of any information or message to and from the telecommunication equipment of the Customer and the network of any cellular service provider and HDFC Bank's system or any breakdown, interruption, suspension or failure of the telecommunication equipment of the Customer, HDFC Bank's system or the network of any cellular service provider and/or any third party who provides such services as is necessary to provide the Facility beyond control of HDFC Bank.

Notwithstanding anything in the contrary provided in this terms and conditions, HDFC Bank shall not be involved in or in any way liable to the Customer for any dispute between the Customer and a cellular service provider or any third-party service provider (whether appointed by HDFC Bank for such purpose or otherwise).

The Customer agrees that HDFC Bank and / or its Affiliates may hold and process his personal information concerning his Account/s on computer or otherwise in connection with the Facility as well as for analysis, credit scoring and marketing. The Customer also agrees HDFC Bank may disclose, in strict confidence, to other institutions, such information as may be reasonably necessary for reasons inclusive of but not limited to the participation in any telecommunication or electronic clearing network, in compliance with legal directive, for credit rating by recognized credit scoring agencies, and for fraud prevention.

The Customer shall not interfere with or misuse in any manner whatsoever the Facility and in the event of any damage due to improper or fraudulent use by the Customer, the Customer shall be liable for damages to HDFC Bank.

The Customer agrees that HDFC Bank shall not be responsible or liable for any processing or misuse of data on any third party page including any social media platforms and the Customer will be sharing the data on such third party page at his/ her own risk. The Customer agrees that such third party pages may have their own terms and conditions and any data shared on these third party pages shall be governed by their respective terms and conditions.

DigiPassbook Terms and Conditions

I/ We acknowledge that if I/ we choose the ‘DigiPassbook’ feature/ option by clicking on the same on the SmartWealth App or through such other means, the following terms and conditions shall additionally be applicable:

1) The following capitalized terms shall have the meanings assigned to them as under:

“Account Aggregator(s)” shall mean a company that has obtained a certificate of registration in accordance with the RBI NBFC-AA Master Directions.

“Data” shall collectively refer to the following data/ information in relation to the me/ customer itself and/or any other persons:

a) all personal data, sensitive personal data or information, transactional data, Derivative Data, any other information, etc.;

b) any Financial Information;

c) expenses, spends, investments, assets, net worth, fixed deposits, shares, securities, mutual fund holdings, insurance, loans, credit cards, provident fund details, pension details;

d) know your customer (KYC)/anti money laundering (AML) data, transaction history, bank account details, bank account statements, account balance, statements of investments, etc. and

e) any information obtained/received by HDFC Bank from any other source.

“Derivative Data” shall mean any credit scores, credit information, behavioural projections, profiling, analytical results, reports (prepared by HDFC Bank internally or other persons) including through any algorithms, analytics, software, automations, profiling etc., and whether such derivative is from the information collected from me/us or in combination with any other information sourced from any other person database or source whether by HDFC Bank or other persons. The process of arriving at and generation of such Derivative Data involving or through any of the above sub-processes/methods, shall be referred to as “Derivation”.

“Financial Information” shall mean ‘financial information’ as defined in the RBI NBFC- AA Master Directions, as modified, amended and restated, from time to time.

“RBI NBFC-AA Master Directions” shall mean the master direction issued by the Reserve Bank of India (RBI) titled Master Direction- Non-Banking Financial Company - Account Aggregator (Reserve Bank) Directions, 2016, as modified, amended and restated, from time to time.

2) I / We hereby consent to and authorise HDFC Bank and its service providers, to process, use, store, retain and/or share with the Account Aggregators and/or HDFC Bank’s service providers and/or to collect from the Account Aggregators and/or any other databases, sources, persons/entities, the Data or any part thereof, for any of the following purposes:

i) categorization, consolidation, re-organization, re-arranging, classifying, labelling, and/or displaying the Data (collectively “Categorization”) including presenting my income, expenses, assets, spends and investments including in the form of pie charts, headings and/or categories on the SmartWealth App;

ii)making available the ‘DigiPassbook’ on the SmartWealth App including displaying a consolidated view of the bank account statements and total net-worth of me/us and any other persons on the SmartWealth App;

iii) deploying any analytics, automated processing, algorithms, robotics, profiling, encryptions, coding, anonymizations, etc., for any of the aforesaid; and

iv) for Derivation and sharing any Derivative Data (between HDFC Bank and its service providers) in connection with the aforesaid purposes.

3) I/We hereby agree that any Categorization as provided above are not being provided on a real time basis and are subject to a time lag and HDFC Bank is in no manner warrantying the accuracy, reliability, quality and/or correctness of any Categorization displayed to me/ us.

4) I/We hereby agree that the Categorization is shown to me/us only as indicative information solely for the convenience of me/us and the I/we shall not base any of their decisions on this.

5)I/We hereby agree that HDFC Bank is not providing any investment, financial planning, wealth management, referral, or any other advice to me/ us by providing the Categorization.

6)I/We hereby agree that HDFC Bank makes no warranty of the Categorization including whether the Categorization will meet the requirements for me/us, and I/we agree that I/we shall rely on the Categorization shown on the App at our own risk and shall not hold HDFC Bank liable for any loss and/or damages incurred by me/us for relying on such Categorization.

7) For the aforesaid consents, authorizations and purposes covered above, it shall be deemed that I/we have furnished all the Data separately under these terms.

8) I/We hereby agree that HDFC Bank shall at its sole discretion rely on the consents as above for processing the Data on a daily/ recurring basis, without requirement of any further act or deed of me/us and/or any further authorization of or intimation to me/us.

9) I/We hereby acknowledge that I/we can revoke this consent, wholly or partially, and that the revocation of the consent may result in restricted functionality or diminished services. Upon revocation of this consent, HDFC Bank will promptly cease the processing of the Data for Categorization.

10) The consents given or denied under these terms and conditions do not limit any other consents obtained or given.

SmartWealth Terms & Conditions