The asset allocation under the Scheme, under normal circumstances, is as follows:

Investments	Minimum	Maximum	Risk Profile
Equity and Equity related instruments of Large cap companies	35 %	65 %	Med – High
Equity and Equity related instruments of Mid cap companies	35 %	65 %	Med – High
Equity and Equity related instruments of other than above	0	30	Med – High
Units of liquid/debt schemes, debt, money market instruments, G-Secs, cash and cash at call, etc.	0	30	Low – Med
Units issued by REITs and InvITs	0	10	Med – High

The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments as per investment objectives of the Scheme and as per the SEBI Regulations. The portfolio may hold cash depending on the market condition. Exposure by the Scheme in derivative instruments shall not exceed 50% of the total Net Assets of Scheme. The Fund shall not write options or purchase instruments with embedded written options. The Scheme will not participate in stock lending more than 20% of total Net Assets of the Scheme and would limit its exposure with regard to stock lending for a single intermediary to the extent of 5% of the total net assets at the time of lending.

The Scheme may invest in units of REITs/InvITs to the extent mentioned in asset allocation and in line with, SEBI (Mutual Funds) (Amendment) Regulations, 2017.

The cumulative gross exposure through equity, debt, REITs and InvITs and derivative positions should not exceed 100% of the net assets of the scheme.

The Scheme shall not invest in Credit Default Swaps (CDS). The Scheme will not invest in foreign securities, securitized debt, corporate debt repo and corporate reverse repo. The Scheme shall not undertake short selling.

The Scheme shall invest in equity and equity related instruments, debt, money market instruments REITs and InvITs as per the investment objective of the scheme. While it is the intention of the Scheme to maintain the maximum exposure guidelines provided in the table above, there may be instances when these percentages may be exceeded. Typically, this may occur while the Scheme is new and the corpus is small thereby causing diversification issues.

The Scheme may review the above pattern of investments based on views on Indian equities and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. Subject to SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations, legislative amendments and political and economic factors. These proportions may vary depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and for defensive considerations only. The exposure to large cap and mid cap stocks which are classified as such by Securities and Exchange Board of India (SEBI) or Association of Mutual Funds in India (AMFI) from time to time, in terms of SEBI Circular dated October 6, 2017. This list would be uploaded on AMFI website and updated every six months; accordingly, the fund manager will rebalance the portfolio of the Scheme within the stipulated period (at present 1 month).

In addition to above, in case of deviation, if any, from the asset allocation pattern, the AMC shall rebalance the portfolio within a period of 30 calendar days. Where the portfolio is not rebalanced within 30 days, justification for the same shall be placed before the investment committee and reasons for the same shall be recorded in writing. The investment committee shall then decide on the course of action.

The investment objective is to generate returns by investing in a combined portfolio of equity and equity related instruments including derivatives, debt instruments, money market instruments, REITs and InvITs.

Equity Investment: The Fund shall follow an active investment style using bottom-up stock picking. The Fund managers shall identify and invest in shares of business run by high quality management & having sustainable and scalable business models. They shall invest in shares of high quality businesses having sustainable and scalable business models thus using QGLP (Quality, Growth, Longevity & Price) as the key evaluation parameters. The businesses should have strong earnings growth prospects and be available at reasonable valuations.

The fund portfolio shall comprise of high conviction stock ideas from across market-capitalization levels/sectors. The portfolio stocks may be potentially concentrated in a few market capitalization levels/sectors which are expected to do well and have lower downside risk.

Debt and Money Market: The Fund shall invest in Debt Instruments including Government Securities, Corporate Debt, Other debt instruments and Money Market Instruments with average maturity less than equal to 12 months to protect the portfolio downside during market downturn.

Investments in Derivative Instruments

The Scheme may invest in various derivative instruments which are permissible under the applicable Regulations and shall also be subject to the investment objective and strategy of the Scheme and the internal limits if any, as laid down from time to time. These include but are not limited to futures (both stock and index) and options (stock and index).

Derivatives are financial contracts of pre-determined fixed duration, like stock futures/options and index futures and options, whose values are derived from the value of an underlying primary financial instrument such as interest rates, exchange rates, commodities and equities.

Derivatives can be either exchange traded or can be over the counter (OTC). Exchanges traded derivatives are listed and traded on stock exchanges whereas OTC derivative transactions are generally structured between two counterparties.

The risks associated with derivatives are similar to those associated with equity investments. The additional risks could be on account of

Exchange traded derivative contracts in stocks and indices in India are currently cash settled at the time of maturity.

The Scheme will comply with all the applicable circulars issued by SEBI as regard to derivatives.