Abakkus Liquid Fund

SCHEME INFORMATION DOCUMENT (SID) SECTION 1 ABAKKUS LIQUID FUND SO. 01 An Open-Ended Liquid Scheme – A Relatively Low interest rate risk and moderate Credit Risk. This product is suitable for investors Scheme Risk-o-meter Benchmark Risk-o-meter who are seeking*: SO. 03 • Income over short term. • Investments in debt and money market Instruments with maturity upto 91 days. As per AMFI Tier I Benchmark- CRISIL Liquid Debt A-I TRI *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. “The above product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.” Offer for Units of Rs. 100/- each for cash during the New Fund Offer and Continuous Offer for Units at NAV based prices. New Fund Offer Opens on: [*] New Fund Offer Closes on: [*] Scheme re-opens on: [*] Potential Risk Class (PRC) Matrix – Class B-I Potential Risk Class Credit Risk Relatively Low Moderate Relatively High (Class A) (Class B) (Class C) Interest Rate Risk Relatively Low (Class I) Class B-I Moderate (Class II) Relatively High (Class III) B-I - A scheme with Relatively Low interest rate risk and moderate Credit Risk. Name of Mutual Fund Abakkus Mutual Fund Name of Asset Management Company Abakkus Investment Managers Private Limited (“AMC”) Name of Trustee Company: Abakkus Trustee Private Limited (“Trustee”) Address Abakkus Corporate Centre, 6th Floor, Param House, Shanti Nagar, Near Grand Hyatt, Off Santacruz Chembur Link Road, Santacruz East, Mumbai – 400055 Website https://www.abakkusmf.com The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996 (herein after referred to as SEBI (MF) Regulations), as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The 1units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres/Website/Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Abakkus Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on https://www.abakkusmf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website https://www.abakkusmf.com. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated October 01, 2025. 2Table of Contents Section I .................................................................................................................................................................. 1 Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME ................................................................................................... 4 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY .................................................................................. 14 Part II. INFORMATION ABOUT THE SCHEME .................................................................................................... 15 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?................................................................................. 15 B. WHERE WILL THE SCHEME INVEST? ............................................................................................................. 19 C. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................................ 20 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ...................................................................... 23 E. WHO MANAGES THE SCHEME? .................................................................................................................... 23 F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? .............................. 23 G. HOW HAS THE SCHEME PERFORMED? ........................................................................................................ 23 H. ADDITIONAL SCHEME RELATED DISCLOSURES ............................................................................................ 24 PART III- OTHER DETAILS ...................................................................................................................................... 24 A. COMPUTATION OF NAV ............................................................................................................................... 24 B. NEW FUND OFFER (NFO) EXPENSES ............................................................................................................. 26 C. ANNUAL SCHEME RECURRING EXPENSES .................................................................................................... 26 D. LOAD STRUCTURE ........................................................................................................................................ 30 Section II ............................................................................................................................................................... 31 I. Introduction ....................................................................................................................................................... 32 A. Definitions/interpretation ............................................................................................................................ 32 B. Risk factors ................................................................................................................................................... 32 C. Risk Mitigation Strategies ............................................................................................................................. 36 II. Information about the scheme: ........................................................................................................................ 38 A. Where will the scheme invest? .................................................................................................................... 38 B. What are the investment restrictions? ........................................................................................................ 47 C. Fundamental Attributes ............................................................................................................................... 50 D. Other Scheme Specific Disclosures: ............................................................................................................. 51 III. Other Details .................................................................................................................................................... 61 A.Periodic Disclosures ...................................................................................................................................... 61 B. Transparency/NAV Disclosure ...................................................................................................................... 65 C. Transaction charges and stamp duty ........................................................................................................... 66 D. Associate Transactions ................................................................................................................................. 66 E. Taxation ........................................................................................................................................................ 66 F. Rights of Unitholders .................................................................................................................................... 66 G. List of official points of acceptance: ............................................................................................................ 67 H. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations ............................ 67 3Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the scheme Abakkus Liquid Fund II. Category of the Scheme Liquid Fund III. Scheme type An Open-Ended Liquid Scheme – A Relatively Low interest rate risk and moderate Credit Risk. IV. Scheme code Will be provided at the time of final filing. SO. 05 V. Investment objective To generate optimal returns consistent with moderate levels of risk and high liquidity by investing in debt and money market instruments. “There is no assurance that the investment objective of the Scheme will be achieved.” SO. 04 VI. Liquidity/listing details The Scheme offered being an open-ended scheme, it will be open for sale and repurchase/redemption of units within 5 (five) Business Days from the date of the allotment under the NFO. The Scheme will offer Units for Sale / Switch-in and Redemption/Switch-out on every Business Day at NAV based prices. The scheme would not be listed on any of the stock exchanges. The AMC/Trustees, may at its discretion, can undertake listing on any of the stock exchange in future. VII. Benchmark (Total Return Name of Benchmark: Index) CRISIL Liquid Debt A-I TRI Justification for use of benchmark: The composition of the aforesaid benchmark is such that it is most suited for comparing performance of the scheme. The Trustee may change the benchmark if future if a benchmark better suited to the investment objective of the scheme is available. The benchmark has been selected from amongst those notified by AMFI as the first tier benchmark to be adopted by mutual funds and which are reflective of the category of the scheme. VIII. NAV disclosure The AMC will calculate and disclose the first NAV upto four decimal places of the scheme within a period of 5 (five) Business Days from the date of allotment. Subsequently, the AMC will calculate and disclose the NAVs upto four decimal places on all Business Days. The Net Asset Value of the scheme shall be calculated on daily basis and disclosed in the manner specified by SEBI. The AMC shall update the NAVs on its website https://www.abakkusmf.com/ and of the Association of Mutual Funds in India (“AMFI”) (www.amfiindia.com) before 11.00 P.M. every Business Day. SO .41 For further details refer Section II – ‘III. Other Details’ – ‘C. Transparency/NAV’. IX. Applicable timelines Timeline for Dispatch of Redemption proceeds: Under normal circumstances the AMC shall endeavour to dispatch the Redemption proceeds within 3 (three) Business Day from date of receipt of request from the Unit holder. 4In case of delay beyond 3 (three) business days, the AMC is liable to pay interest to the investors at the rate of 15% per annum (or such rate as may be specified by SEBI from time to time). For further details, investors are requested to refer to Statement of Additional Information (SAI). Timeline for Dispatch of Dividend: The Dividend warrants/cheque/demand draft shall be dispatched to the Unit holders within 7 (seven) Business days from the Record Date. In the event of failure of dispatch of Income Distribution cum Capital Withdrawal (IDCW) within the stipulated 7 (seven) Business Days period, the AMC shall be liable to pay interest @ 15 percent per annum to the Unit holders. However, in case of exceptional circumstances mentioned in para 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024, redemption or repurchase proceeds / Dividend will be transferred / despatched to investors within the timeframe prescribed for such exceptional circumstances. X. Plans and Options The Scheme has following Plans: 1. Regular Plan 2. Direct Plan Each of the Plans shall have two options: 1. Growth 2. Income Distribution cum capital withdrawal option (IDCW)- Reinvestment In case of valid application received without indicating any choice of Option, the following Default Option will be considered for allotment: i. Growth Option - where Growth or IDCW Option is not indicated; ii. Monthly IDCW Reinvestment Option in case Daily/ Weekly/ Monthly/Quarterly IDCW Option is not indicated. Option Default Frequency Record Date option/ Frequency Income Distribution Monthly cum capital withdrawal (IDCW) Daily Daily Every Day (Reinvestment) Weekly Weekly Every Monday (Reinvestment) Monthly Monthly 15th of the (Reinvestment) month Quarterly Quarterly 15th of the month (Reinvestment) after the quarter. Investors should indicate the Plan/Option for which the subscription is made by indicating the choice in the appropriate box provided for the purpose in the application form. 5The following criteria will be considered for Uniform disclosure on treatment of applications under Direct/Regular plans: Scenario Broker Code Plan mentioned Default Plan to be mentioned by by the investor captured the investor 1. Not mentioned Not mentioned Direct Plan 2. Not mentioned Direct Direct Plan 3. Not mentioned Regular Direct Plan 4. Mentioned Direct Direct Plan 5. Direct Not Mentioned Direct Plan 6. Direct Regular Direct Plan 7. Mentioned Regular Regular Plan 8. Mentioned Not Mentioned Regular Plan In cases of wrong/invalid/incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 (thirty) calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 (thirty) calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load. The amounts can be distributed under Income Distribution cum Capital Withdrawal (IDCW) option out of investors capital (Equalization Reserve), which is part of sale price that represents realized gains. However, investors are requested to note that amount (dividend) distribution under IDCW option is not guaranteed subject to approval of Trustees and availability of distributable surplus. A clear segregation between income distribution (appreciation on NAV) and capital distribution (Equalization Reserve) shall be suitably disclosed in the Consolidated Account Statement provided to the investors, whenever distributable surplus is distributed. The Plans and Options stated above will have a common portfolio but separate NAVs, as applicable, shall be applied among Plans and Options. For detailed disclosure on default plans and options, kindly refer SAI. XI. Load Structure Exit Load: 6Investment period i.e. number of days Exit load as a % of from the date of subscription NAV redemption proceeds 1 Day 0.0070% 2 Days 0.0065% 3 Days 0.0060% 4 Days 0.0055% 5 Days 0.0050% 6 Days 0.0045% 7 Days or more NIL Note: For the purpose of levying exit load, if subscription (application & Funds) is received within cut off time on a day, Day 1 shall be considered to be the same day, else the day after the date of allotment of units shall be considered as Day 1. No exit load shall be applicable on switches from Regular Plan to Direct Plan, and vice versa under the scheme. No load will be charged on units issued upon re-investment of amount of distribution under same IDCW option. Any Exit Load charged (net off GST, if any) shall be credited back to the Scheme. Any imposition or enhancement in the load shall be applicable on prospective investments only. The investor is requested to check the prevailing load structure of the Scheme prior to investing. The exit loads set forth above are subject to change at the discretion of the Trustees and such changes shall be implemented prospectively. For any change in load structure, the AMC will issue an addendum and display it on the website/Investor Service Centers (ISCs). Redemption of units would be done on First in First out Basis (FIFO). As per paragraph 10.4 of SEBI Master Circular on Mutual Funds dated June 27, 2024, no entry load will be charged by the scheme to the investor. Units issued on reinvestment of IDCW shall not be subject to Load. No load shall be levied on switches between plans/options and sub- options of the Scheme. XII. Minimum Application Lumpsum investment: Rs.1000/- and in multiples of Re. 1/- Amount/switch in thereafter. Systematic Investment Plan (SIP): Rs. 500/- and in multiples of Re. 1/- thereafter with a minimum of 6 instalments. XIII. Minimum Additional Rs. 100/- and in multiples of Re. 1/- thereafter. Purchase Amount XIV. Minimum Redemption/ Redemption- Rs. 100/- or 1 Unit or account balance whichever is switch out amount lower. Switch Out- Rs. 500/- and in multiples of Re. 1/- thereafter. 7In case the Investor specifies both the number of Units and amount, the number of Units shall be considered for Redemption. In case the Unit holder does not specify either the number or amount, the request will not be processed. The Switch must comply with the redemption rules of the Scheme and the issue rules of the other (receiving) scheme. The minimum amount of Redemption / Switch-out may be changed in future by the AMC / Trustee. There is no minimum balance requirement. SO. 36 XV. New Fund Offer Period NFO opens on: [*] NFO closes on: [*] As permitted by SEBI, NFO shall remain open for subscription for a minimum period of 3 (three) Business Days but not more than 15 (fifteen) calendar days. Any extension or change to the NFO dates will be subject to the requirement of NFO period not exceeding 15 calendar days. Any changes in dates of NFO will be published through notice on website of AMC i.e. https://www.abakkusmf.com/ and display of such notice on the notice board at each of the official point for acceptance of transactions for the Mutual Fund. SO. 34 Electronic Payments including RTGS, NEFT and cheques/transfer instructions will be accepted till [*]. XVI. New Fund Offer Price Rs. 100/- per unit XVII. Segregated portfolio/side The AMC has a written down policy on Creation of segregated pocketing disclosure portfolio which is approved by the Trustees. The AMC may create a segregated portfolio of debt and money market instruments in the scheme, in case of a credit event / actual default at issuer level and in order to deal with liquidity risk. For details, kindly refer SAI. SO. 53 XVIII. Swing pricing disclosure Pursuant to clause 4.10 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Scheme has enabled the provision for swing pricing. Kindly refer SAI for more details XIX. Stock lending/ Short The Scheme may engage in stock lending of securities in accordance selling to the framework specified by SEBI. For details, kindly refer SAI. XX. How to Apply and other Applications filled up and duly signed by all joint investors should be details. submitted along with the cheque/draft/other payment instrument or instruction to a designated ISC/Official Point of acceptance of AMC or the Registrar. SO. 35 Physical Transactions All cheques and bank drafts must be drawn in favour of "Abakkus Liquid Fund" and the name of the respective Plan should also be mentioned and crossed "A/c Payee only". The investor needs to submit to Registrar/AMC a blank cancelled cheque or its photocopy, self-attested PAN copy and Know Your 8Customer number, in-person verification, self-attested UIDAI copy, CKYC KRA-KYC form and other documents as asked by Registrar/AMC. Please refer to the SAI and Application form for the instructions. Online/Electronic Transactions Investors can undertake transactions via electronic mode through various online facilities offered by Abakkus AMC/other platforms specified by the AMC from time to time. During the New Fund Offers (NFO) period, investors applying under the Demat mode have the option to apply through Applications Supported by Blocked Amount (ASBA) facility. Investors will be required to submit ASBA form to the respective banks, which in turn will block the amount in their account as per authority contained in the ASBA form. ASBA applications can be submitted only at Self- Certified Syndicate Banks (SCSBs) at their designated branches. The list of SCSBs and their designated branches shall be displayed on the SEBI’s website www.sebi.gov.in. ASBA form should not be submitted at locations other than SCSB as it will not be processed. For details on the ASBA process please refer to the ASBA application form. Details in Section II. XXI. Where can applications The application forms/transactions slips for subscription/ for subscription/ redemption/switches can be submitted at the Official Points of redemption Acceptance whose addresses are available on the website of the AMC. These include: 1. AMC/RTA branches i.e. Investor Service Centres 2. RTA website for investor to transact 3. BSE StAR MF platform of the Stock Exchanges(s) 4. MF Central The above list is indicative. XXII. Investor services Contact details for general service requests: Website: https://www.abakkusmf.com/ e-mail: mf.investor.support@abakkusinvest.com or Toll Free No: 1800 267 1849 Investors may contact/visit any of the Investor Service Centres (ISCs) of the AMC. Complaints resolution should be addressed to Mr. Sanjay Joshi, who has been appointed as the Investor Relations Officer and can be contacted at: Tel No: +91 22 6884 6683 Email: iro@abakkusinvest.com Address: 6th Floor, Param House, Shanti Nagar, Near Grand Hyatt, Off Santacruz Chembur Link Road, Santacruz East, Mumbai - 400055 XXIII. Specific attribute of the Not Applicable. scheme 9XXIV. Special product/ facility Systematic Investment Plan (SIP) available during the NFO and on ongoing basis SIP is a facility enabling investors to save and invest in the Scheme at frequency/dates prescribed by the Mutual Fund, by submitting post- dated cheques / payment instructions. Particulars Frequency Details Frequency and Weekly Every Wednesday Transaction Dates Fortnightly Alternate Wednesday Monthly All Business Days Quarterly All Business Days Half Yearly All Business Days Unit holder can enroll for the SIP facility by submitting duly completed Enrolment Form at the Official Point(s) of Acceptance. If the SIP period is not specified by the unit holder then the SIP enrolment will be deemed to be for perpetuity and processed accordingly. Default option: Default date – 07th of every month/quarter/half yearly Default frequency – Monthly SIP through Electronic Clearing System (ECS)/Direct Debit Investors/Unit holders may also enroll for SIP facility through Electronic Clearing Service (Debit Clearing) of the RBI or for SIP Direct Debit Facility available with specified Banks/Branches. In order to enroll for SIP ECS Debit facility or Direct Debit Facility, an Investor must fill-up the Application Form for SIP ECS/ Direct Debit facility. In case of SIP with payment mode as ECS/Direct Debit, Investors shall be required to submit a cancelled cheque or a photocopy of a cheque of the bank account for which the ECS/debit mandate is provided. All SIP cheques/payment instructions from 2nd to the last should be of the same amount and same date (excluding first cheque). However, there should be a gap of 30 (thirty) days between first SIP Instalment and the second instalment in case of SIP started during ongoing offer. 10Investors will have the right to discontinue/cancel the SIP facility at any time by sending a written request to any of the Official Point(s) of Acceptance. SIPs shall be cancelled within 5 (five) business days of such request placed by the investor. On receipt of such request, the SIP facility will be terminated. It is clarified that if the Fund fails to get the proceeds from three Instalments out of a continuous series of Instalments submitted at the time of initiating a SIP, the SIP is deemed as discontinued. In case of auto cancellations, uniform timeline for treating a SIP as closed/cancelled shall be as specified by SEBI. Number of failed debit attempts prior to cancellations of SIP for weekly, fortnightly and monthly shall be 3 attempts and in case of bi- monthly or higher interval/frequency shall be 2 attempts. Units will be allotted at the Applicable NAV of the respective dates on which the investments are sought to be made. In case the date falls on a Holiday or falls during a Book Closure period, the immediate next Business Day will be considered for this purpose. An extension of an existing SIP will be treated as a new SIP on the date of such application, and all the above conditions need to be met with. The AMC reserves the right to change/modify Load structure and other terms and conditions under the SIP prospectively at a future date. Please refer to the SIP Enrolment Form for terms & conditions before enrolment. Systematic Transfer Plan (STP) STP is a facility given to the Unit holders to transfer sums on periodic basis from one scheme to another schemes launched by the Mutual Fund from time to time by giving a single instruction. Investors can opt for the Systematic Transfer Plan by investing a lump sum amount in one scheme of the fund and providing a standing instruction to transfer sums at regular intervals. Particulars Frequency Details Frequency and Weekly Every Wednesday Transaction Fortnightly Every Alternate Wednesday Dates Monthly 1,7,10,15,20,25 day of Month Systematic Withdrawal Plan (SWP) SWP is a facility enabling the unit holders to withdraw amount from the Scheme at a frequency prescribed by the Mutual Fund from time to time, by giving a single instruction to the Mutual Fund. There are two options available under SWP viz - Monthly option and Quarterly option, the details of which are given below: Frequency Date 11Monthly 5th of the Month Quarterly 5th of the Quarter Default Frequency: Monthly 5th of the month SIP Pause Facility: SIP Pause facility gives option to pause the SIP for a period ranging from 1month up to 3 months in a respective scheme. Thereafter, automatically the balance SIP instalments (as originally registered) will resume. ONLINE TRANSACTIONS THROUGH WEBSITE OF THE MUTUAL FUND Facility of online transactions is available on the official website of the Mutual Fund i.e. https://www.abakkusmf.com. Consequent to this, the website of Mutual Fund is declared to be an “OPAT” for applications for subscriptions, redemptions, switches and other facilities. The uniform cut-off time as prescribed by SEBI and as mentioned in the SID shall be applicable for applications received on the website. OFFICIAL POINT OF ACCEPTANCE FOR MFCENTRAL As per the SEBI Master Circular for Mutual Funds dated June 27, 2024, to comply with the requirements of RTA inter-operable Platform for enhancing investors’ experience in Mutual Fund transactions/service requests, the QRTA’s, KFin Technologies Limited (KFintech) and Computer Age Management Services Limited (CAMS) have jointly developed MFCentral, a digital platform for Mutual Fund investors. MFCentral is created with an intent to be a one stop portal/mobile app for all Mutual fund investments and service related needs that significantly reduces the need for submission of physical documents by enabling various digital/physical services to Mutual fund investors across fund houses subject to applicable T&Cs of the Platform. MFCentral will be enabling various features and services in a phased manner. STOCK EXCHANGE INFRASTRUCTURE FACILITY The investors can subscribe to/switch/redeem the units of the Scheme on platform of National Stock Exchange (“MFSS”, “NMFII”) and “BSEStAR MF” platform of BSE Ltd. For details kindly refer SAI. XXV. Weblink Visit https://www.abakkusmf.com/ for TER for last 6 months and Daily TER. Visit https://www.abakkusmf.com/for scheme factsheet. 1213DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations. (vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (viii) The Trustees have ensured that the Abakkus Liquid Fund approved by them is a new product offered by Abakkus Mutual Fund and is not a minor modification of any existing Fund. For Abakkus Investment Managers Private Limited Sd/- Date: October 01, 2025 Lijo Varghese Place: Mumbai Compliance Officer 14Part II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances the asset allocation pattern will be: SO. 13, Instruments Indicative allocations (% of total assets) Minimum Maximum Money Market & Debt Instruments (including Triparty Repo on 0% 100% government securities or T-Bills/Repo/Reverse Repo (including Corporate Bond Repo) with maturity up to 91 days Securitized debt cumulative allocation not to exceed 20% of the net assets of the scheme (excluding foreign securitized debt). Investments in Repo in Corporate debt and corporate reverse repo shall be within the limits prescribed as per SEBI circulars and Investment in Debt and Money Market instruments with residual maturity upto 91 days only. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. Cash Equivalent shall consist of Government Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91 days. SO.14 The portfolio of the Scheme will comply with the additional investment restrictions in accordance with SEBI Master Circular for Mutual Funds dated June 27, 2024. (i) The Scheme shall make investment in/purchase debt and money market securities with maturity of upto 91 days only. (ii) In case of securities with put and call options (daily or otherwise) the residual maturity shall not be greater than 91 days. (iii) In case of securities where the principal is to be repaid in a single payout, the maturity of the securities shall mean residual maturity. In case the principal is to be repaid in more than one payout then the maturity of the securities shall be calculated on the basis of weighted average maturity of the security. (iv) In case the maturity of the security falls on a Non Business Day, then settlement of securities will take place on the next Business Day Pursuant to SEBI Master Circular for Mutual Funds dated June 27, 2024 read with AMFI Best Practices Guidelines circular ref. no. 135/BP/93/2021-22 dated July 24, 2021, the Scheme shall hold- (i) at least 20% of its net assets in liquid assets; OR (ii) liquid assets basis Liquidity Ratio based on 30 - day Redemption at Risk (i.e. LR – RaR), whichever is higher. For this purpose, “liquid assets” shall include Cash, Government Securities, T-bills and Repo on Government Securities. For ensuring liquidity the scheme will undertake the investment in liquid assets as per SEBI (Mutual Funds) Regulations, 1996. In addition to the above, the Scheme shall also maintain the Liquidity ratio based on 30-day Conditional Redemption at Risk (LR-CRaR) in ‘eligible assets’ for LR-CRaR, in accordance with the guidelines / computation methodology (including definition of eligible assets for this purpose), as provided in the AMFI Best Practices Guidelines. The Scheme may invest in other scheme(s) under the same AMC or any other mutual fund without charging any fees, provided that aggregate inter-scheme investment made by all Schemes under the same AMC or in Schemes 15under the management of any other asset management shall not exceed 5% of the net asset value of the Mutual Fund. Further, the Scheme shall not invest in any fund of funds scheme. Investment in Fixed Income Derivatives shall be upto 50% of net assets. SO 20 The Scheme shall invest in repo in Corporate Bond repo upto 10% of the net assets of the scheme which has maturity upto 91 days. The scheme shall engage in securities lending subject a maximum of 20% and 5% for a single counter party. The Scheme shall invest in repo in Corporate debt securities (including listed AA and above rated corporate debt securities and Commercial Papers (CPs) and Certificate of Deposits (CDs)) upto 10% of the net assets of the scheme or as permitted by extant SEBI regulation. As per clause 12.24 of Master Circular, the cumulative gross exposure through debt, derivative positions (including fixed income derivatives), repo transactions and other permitted securities/assets and such other securities/assets as may be permitted by SEBI from time to time shall not exceed 100% of the net assets of the Scheme. As per the provisions of SEBI Master Circular for Mutual Funds dated June 27, 2024, the scheme will invest 25 bps of Assets Under Management (AUM) in the units of Corporate Debt Market Development Fund (CDMDF). Contribution made by scheme in CDMDF, including the appreciations on the same, if any, shall be locked-in till winding up of the scheme. Further, as per SEBI Master Circular for Mutual Funds dated June 27, 2024, the investment in units of CDMDF shall be excluded from base of net assets for calculation of asset allocation limits of mutual fund schemes in terms of Part IV of Chapter 2 on ‘Categorization and Rationalization of Mutual Fund Schemes’ of Master Circular for Mutual Funds dated June 27, 2024. The Scheme may undertake (i) repo/reverse repo transactions in Corporate Debt Securities; (ii) Credit Default Swaps, in accordance with guidelines issued by SEBI from time to time. In addition to the instruments stated in the table above, the Scheme may enter into repos/reverse repos as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Tri-party Repos on Government securities or treasury bills (TREPS) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements, subject to approval, if any. Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) SO. 19 Sr. Type of Instrument Percentage of Exposure Circular References No. 1. Securities Lending 1. Not more than 20% of the net Paragraph 12.11 of SEBI Master Circular assets of a Scheme can generally on Mutual Funds dated June 27, 2024 be deployed in Stock Lending. 2. Not more than 5% of the net assets of a Scheme can generally be deployed in Stock Lending to any single approved intermediary/ counterparty. 2. ReITS and InvITS The scheme will not invest in units Clause 13 of Seventh Schedule of the of REIT and InvIT. SEBI Mutual Fund Regulations, 1996 and Para 12.21 of the SEBI Master Circular dated June 27, 2024 3. Securitized debt Upto 20% of the net assets of the Para 12.15 of the SEBI Master Circular Scheme. dated June 27, 2024 164. Overseas/Foreign The scheme will not invest in Para 12.19 of SEBI Master Circular dated Securities Overseas securities. June 27, 2024 SO. 11, 15 & 16 5. AT1 and AT2 bonds The scheme will not invest in AT1 Para 12.2 of SEBI Master Circular dated and AT2 bonds. June 27, 2024 6. Investment in debt upto 10% of the debt portfolio of Para 12.3 of SEBI Master Circular dated instruments having the scheme June 27, 2024 structured obligations/ credit enhancements 7. Credit Default Swap Upto 10% of net assets of scheme. Para 12.28.1 of SEBI The total exposure related to SEBI/HO/IMD/PoD2/P/CIR/2024/125 premium paid for all derivative September 20, 2024. positions, including CDS, shall not exceed 20% of the net assets of the scheme 8. Equity derivatives for The scheme will not invest in Para 12.25.7 of SEBI Master Circular non-hedging purpose equity derivatives for non-hedging dated June 27, 2024 purpose. SO. 20 9. Repo in Corporate Debt 1. Gross Exposure upto 10% of Para 12.18 of SEBI Master Circular dated the net assets June 27, 2024 2. Cumulative gross exposure through repo transactions in corporate debt securities along with equity, debt and derivatives upto 100% of the net assets SO. 17 10. Units of mutual fund upto 5% of the net assets of the Clause 4 of Seventh Schedule of SEBI schemes of the AMC or scheme without charging any fees Mutual Fund Regulations in the Scheme of other mutual funds 11. Short Selling The Scheme shall not engage in Para 12.11 of SEBI Master Circular dated Short Selling of Securities. June 27, 2024 The Fund shall not park funds pending deployment in short term deposits of scheduled commercial bank. The Scheme will not invest/engage into the following instruments: Sr. No. Type of Instrument 1. ReITS and InvITS 2. Overseas/Foreign Securities 3. AT1 and AT2 bonds 4. Equity derivatives for non-hedging purpose 5. Short selling of Securities Deployment of funds collected during NFO period The AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. Basis root cause analysis, The Investment Committee may extend the timeline by 30 business days, while also making recommendations on how to ensure deployment within 30 business days going forward and monitoring the same. Trustees shall also need to monitor the deployment of funds collected in NFO and take steps, as may be 17required, to ensure that the funds are deployed within a reasonable timeframe. In case the funds are not deployed as per the asset allocation mentioned in the SID as per the aforesaid mandated plus extended timelines, AMC shall: i. not be permitted to receive fresh flows in the same scheme till the time the funds are deployed as per the asset allocation mentioned in the SID. ii. not be permitted to levy exit load, if any, on the investors exiting such scheme(s) after 60 business days of not complying with the asset allocation of the scheme. iii. inform all investors of the NFO, about the option of an exit from the concerned scheme without exit load, via email, SMS or other similar mode of communication. iv. report deviation, if any, to Trustees at each of the above stages. Changes in Investment Pattern: Portfolio Rebalancing: SO. 22, 23 & 24. Rebalancing due to Passive Breaches Pursuant to paragraph 2.9 of SEBI Master Circular on Mutual Funds dated June 27, 2024, in case of any deviation due to passive breaches, the asset allocation would be restored in line with the above-mentioned asset allocation pattern within 30 business days from the date of deviation. In case the asset allocation is not rebalanced within the above mandated timelines, justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before Investment Committee. The Investment Committee, if so desires, can extend the timelines up to sixty (60) business days from the date of completion of mandated rebalancing period. However, at all times the portfolio will adhere to the overall investment objective of the scheme. In case the scheme is not rebalanced within the afore mentioned mandate plus extended timelines: a. The AMC shall not be permitted to launch any new scheme till the time the portfolio is rebalanced. b. The AMC shall not levy any exit load, (if any), on the investor exiting the Scheme. In case the AUM of the deviated portfolio is more than 10% of the AUM of the main portfolio of the scheme. i. The AMC shall immediately communicate the same to the investors of the scheme after the expiry of the mandated rebalancing period (i.e. 30 Business Days) through SMS and email/letter including details of portfolio not rebalanced. ii. The AMC shall also immediately communicate to the investors through SMS and email/letter when the portfolio is rebalanced. iii. The AMC shall disclose scheme wise deviation of the portfolio (beyond aforesaid 10% limit) from the mandated asset allocation beyond 30 business days, on the AMC‘s website i.e. https://www.abakkusmf.com The AMC shall also disclose any deviation from the mandated asset allocation to investors along with periodic portfolio disclosures as specified by SEBI from the date of lapse of mandated plus extended rebalancing timelines. The above mentioned norms shall be applicable to main portfolio only and not to segregated portfolio(s), if any. Rebalancing due to Short term defensive consideration: Short-Term Defensive Considerations: 18Subject to SEBI (MF) Regulations, the asset allocation indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the Fund Manager, the intention being at all times to seek to protect the interests of the investors. As per clause 1.14.1.2.b of SEBI Master Circular for Mutual Funds dated June 27, 2024, as may be amended from time to time, such changes in the investment pattern will be for short term and for defensive consideration only. In the event of change in the asset allocation, the fund manager will carry out portfolio rebalancing within 30 calendar days from the date of such deviation or such other timeline as may be prescribed by SEBI from time to time. It may be noted that no prior intimation/indication would be given to investors when the composition/asset allocation pattern under the scheme undergo changes within the permitted band as indicated above and for defensive considerations owing to changes in factors such as market conditions, market opportunities, applicable regulations and political and economic factors. Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Scheme shall be effected only in accordance with the provisions of sub regulation (15A) of Regulation 18 of the Regulations. Rebalancing in case of involuntary corporate action In the event of involuntary corporate action the scheme shall dispose the security not forming part of the underlying index within a day from the date of allotment of Listing. In case of any breaches in asset allocation, the norms as specified in para 2.9 and 3.5.3.11 of SEBI Master circular on Mutual Funds dated June 27, 2024 shall be applicable. B. WHERE WILL THE SCHEME INVEST? The Scheme shall invest upto 100% of the total assets in debt and money market instruments having a residual maturity of upto 91 days. The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The corpus of the Scheme shall be invested in accordance with the investment objective in any (but not exclusively) of the following securities 1) Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). 2) Securities guaranteed by the Central, State and local Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). 3) Fixed Income Securities of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee 4) Debt securities issued by domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee. 5) Securities issued by banks (both public and private sector) including term deposit with the banks as permitted by SEBI/RBI from time to time, subject to approval from SEBI/RBI as required and development financial institutions. 6) Commercial usance Bills (Bills of exchange/promissory notes of public sector and private sector corporate entities) Rediscounting, usance bills and commercial bills. 7) Money market instruments, as permitted by SEBI/ RBI. 8) Corporate Bonds 9) Certificate of Deposits (CDs) 10) Commercial Paper (CPs) 11) The non-convertible part of convertible securities. 1912) Derivative instruments like Interest Rate Future, Interest Rate Swap, Forward Rate Agreement and such other derivative instruments permitted by SEBI. 13) Units of Mutual Fund Schemes. 14) Cash & cash equivalents. 15) Repo transactions in corporate debt securities. 16) Units of Corporate Debt Market Development Fund. 17) Any other domestic fixed income securities as permitted by SEBI/ RBI subject to requisite approvals from SEBI/RBI, if needed. The securities/instruments mentioned above could be listed or to be listed or unlisted, rated or unrated, secured or unsecured and of varying maturities, and other terms of issue. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement, rights offer or negotiated deals as per SEBI (MF) Regulations. The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by it as per guidelines/regulations applicable to such transactions. Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed, in lines with para 12.30 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. The Fund Manager reserves the right to invest in such securities as maybe permitted from time to time and which are in line with the investment objectives of the Scheme. Please refer Section II of the document for further details for each instrument. C. WHAT ARE THE INVESTMENT STRATEGIES? INVESTMENT STRATEGY: SO.27.Being an open-ended, actively managed debt scheme, the fund management team will endeavour to maintain a consistent performance in the scheme by maintaining a balance between safety, liquidity and profitability aspects of various investments. The fund manager will try to achieve an optimal risk return balance for management of the fixed income portfolios. The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc. While they cannot be done away with, they can be minimized by diversification and effective use of hedging techniques. The fund management team will take an active view of the interest rate movement by keeping a close watch on various parameters of the Indian economy, as well as developments in global markets. Investment views/decisions will be taken on the basis of the following parameters: i. Prevailing interest rate scenario ii. Quality of the security/instrument (including the financial health of the issuer) iii. Maturity profile of the instrument. iv. Liquidity of the security v. Growth prospects of the company/industry vi. Any other factors in the opinion of the fund management team For detailed derivative strategies, please refer to SAI. Debt Derivatives Strategy: Debt Derivatives In terms of Circular No. MFD.BC.191/07.01.279/1999-2000 and PD.BC.187/07.01.279/1999- 2000 dated November 1, 1999 and July 7, 1999 respectively issued by Reserve Bank of India permitting 20participation by Mutual Funds in Interest Rate Swaps and Forward Rate Agreements, the Fund will use derivative instruments for the purpose of hedging and portfolio balancing. The AMC would undertake the same for similar purposes only. Interest Rate Swaps (IRS) An IRS is an agreement between two parties to exchange stated interest obligations for an agreed period in respect of a notional principal amount. The most common form is a fixed to floating rate swap where one party receives a fixed (predetermined) rate of interest while the other receives a floating (variable) rate of interest. Forward Rate Agreement (FRA) An FRA is basically a forward starting IRS. It is an agreement between two parties to pay or receive the difference between an agreed fixed rate (the FRA rate) and the interest rate (reference rate) prevailing on a stipulated future date, based on a notional principal amount for an agreed period. The only cash flow is the difference between the FRA rate and the reference rate. As is the case with IRS, the notional amounts are not exchanged in FRAs. The Scheme will comply with provisions specified in Clause 12.25 of SEBI Master Circular dated June 27, 2024 related to overall exposure limits as stated below: I. Mutual Funds shall not write options or purchase instruments with embedded written options except for the covered call strategy. II. The total exposure related to option premium paid must not exceed 20% of the net assets of the scheme. III. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. b. Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limits mentioned in Paragraph above. c. Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. d. The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of the existing position against which hedge has been taken. Mutual Funds may enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes. The value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. In case of participation in IRS is through over the counter transactions, the counter party has to be an entity recognized as a market maker by RBI and exposure to a single counterparty scheme in such transactions should not exceed 10% of the net assets of the scheme. However, if mutual funds are transacting in IRS through an electronic trading platform offered by the Clearing Corporation of India Ltd (CCIL) and CCIL is the central counterparty for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not be applicable. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned above. Hedging of Interest Rate Risk To reduce interest rate risk in a debt portfolio, mutual funds may hedge the portfolio or part of the portfolio (including one or more securities) on weighted average modified duration basis by using Interest Rate Futures 21(IRFs). The maximum extent of short position that may be taken in IRFs to hedge interest rate risk of the portfolio or part of the portfolio, is as per the formula given below: (Portfolio Modified Duration * Market Value of the Portfolio) (Futures Modified Duration * Futures Price/PAR) In case the IRF used for hedging the interest rate risk has different underlying security(s) than the existing position being hedged, it would result in imperfect hedging. Imperfect hedging using IRFs may be considered to be exempted from the gross exposure, up to maximum of 20% of the net assets of the scheme, subject to the following: i. Exposure to IRFs is created only for hedging the interest rate risk based on the weighted average modified duration of the bond portfolio or part of the portfolio. Mutual Funds are permitted to resort to imperfect hedging, without it being considered under the gross exposure limits, if and only if, the correlation between the portfolio or part of the portfolio (excluding the hedged portions, if any) and the IRF is at least 0.9 at the time of initiation of hedge. In case of any subsequent deviation from the correlation criteria, the same may be rebalanced within 5 working days and if not rebalanced within the timeline, the derivative positions created for hedging shall be considered under the gross exposure computed in terms mentioned above. The correlation should be calculated for a period of last 90 days. Explanation: If the fund manager intends to do imperfect hedging up to 15% of the portfolio using IRFs on weighted average modified duration basis, either of the following conditions need to be complied with: (a) The correlation for past 90 days between the portfolio and the IRF is at least 0.9 or (b) The correlation for past 90 days between the part of the portfolio (excluding the hedged portions, if any) i.e. at least 15% of the net asset of the scheme (including one or more securities) and the IRF is at least 0.9. ii. At no point of time, the net modified duration of part of the portfolio being hedged should be negative. iii. The portion of imperfect hedging in excess of 20% of the net assets of the scheme should be considered as creating exposure and shall be included in the computation of gross exposure as mentioned above. The basic characteristics of the scheme should not be affected by hedging the portfolio or part of the portfolio (including one or more securities) based on the weighted average modified duration. Explanation: In case of long term bond fund, after hedging the portfolio based on the modified duration of the portfolio, the net modified duration should not be less than the minimum modified duration of the portfolio as required to consider the fund as a long term bond fund. The interest rate hedging of the portfolio should be in the interest of the investors. For detailed derivative strategies, please refer to SAI. Portfolio Turnover: The Scheme being an open-ended Scheme, it is expected that there would be a number of Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading opportunities may arise due to changes in system liquidity, interest rate policy announced by RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the fund manager these opportunities can be played out to enhance the total return of the portfolio, which will result in increase in portfolio turnover. There may be an increase in transaction cost such as brokerage paid, if trading is done frequently. However, the cost would be negligible as compared 22to the total expenses of the Scheme. The fund manager will endeavour to optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate with reasonable measure accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to portfolio turnover. Being a debt scheme portfolio turnover is not applicable. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The performance of the Scheme will be benchmarked with CRISIL Liquid Debt A-I TRI . Justification for use of benchmark: SO. 25 The composition of the aforesaid benchmark is such that it is most suited for comparing performance of the scheme. The Trustee may change the benchmark if future if a benchmark better suited to the investment objective of the scheme is available. The benchmark has been selected from amongst those notified by AMFI as the first tier benchmark to be adopted by mutual funds and which are reflective of the category of the scheme. E. WHO MANAGES THE SCHEME? The Scheme will be managed by Mr. Sanjay Doshi. His details are as under: SO. 32 & 33 Name of Age & Qualifications Previous Experience Other Funds Managed Fund Manager Sanjay Age: 45 years An experienced investment Abakkus Flexi Cap Fund Doshi professional with around two decades (submitted to SEBI for Educational Qualification: in equity fund management and approval) • CFA, CFA Institute, USA research. Previously, held the role of • MBA Finance, NMIMS, Senior Fund Manager at Abakkus Asset Mumbai, Manager Private Limited (Apr–May • CA, ICAI, 2025), focusing on macro analysis, • B. Com., R. A. Poddar mentoring, and research effectiveness. College of Commerce & From Sept 2024 to Feb 2025, worked as Economics, Mumbai, Senior Fund Manager at TCG Asset Management, managing AIF schemes and driving team and product development. Spent over 13 years at Nippon Life India Asset Management (Feb 2011–Sept 2024), managing multiple flagship funds including the Power & Infra Fund and Retirement Fund, and contributing to research across sectors like engineering, autos, and utilities. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? Not Applicable. F. HOW HAS THE SCHEME PERFORMED? Scheme Performance This scheme is a new scheme and does not have any performance track record. 23Absolute Returns for each This scheme is a new scheme and does not have any performance financial year for the last 5 years track record. G. ADDITIONAL SCHEME RELATED DISCLOSURES - Not Applicable as it is a new scheme. i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors). Not Applicable as this is a new Scheme. However appropriate disclosure in this respect will be available at https://www.abakkusmf.com ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of debt and equity ETFs/index funds including detailed description. Not Applicable. iii. Functional Website link for Portfolio Disclosure – Fortnightly/Monthly/Half Yearly – Not applicable. However appropriate disclosure in this respect will be available at https://www.abakkusmf.com. iv. Portfolio Turnover Rate. Not Applicable. v. Aggregate investment in the Scheme. Not Applicable as it is a new scheme. For disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard kindly refer SAI. vi. Investments of AMC in the Scheme – https://www.abakkusmf.com/ SO. 58 The AMC may invest in the Scheme(s) anytime during the continuous offer period subject to the SEBI (MF) Regulations, 1996. The AMC may also invest in existing schemes of the Mutual Fund. As per the existing SEBI (MF) Regulations, 1996, the AMC will not charge Investment Management and Advisory fee on the investment made by it in the Scheme(s) or existing Schemes of the Mutual Fund. Subject to Regulation 25(16A) of the SEBI (Mutual Funds) Regulations, 1996 read with paragraph 6.9 of SEBI Master Circular on Mutual Funds dated June 27, 2024, the AMC shall invest such amounts in such schemes of the mutual fund, based on the risks associated with the schemes, as may be specified by SEBI from time to time. Such investment shall be maintained at all times and shall not be redeemed unless the scheme is wound up. The investors can refer to the investments made by the AMC in the Scheme on the website of the Company at https://www.abakkusmf.com. PART III- OTHER DETAILS A. COMPUTATION OF NAV SO. 42 The Net Asset Value (NAV) per Unit of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, 1996, or such norms as may be specified by SEBI from time to time. In case of any conflict between the Principles of Fair Valuation and valuation guidelines specified by SEBI, the Principles of Fair Valuation shall prevail. The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below: NAV (Rs.) = Market or Fair Current Assets Current Liabilities Value of Scheme’s + including Accrued - and Provisions Investments Income ________________________________________________________________ No. of Units outstanding under Scheme on the Valuation Day 24The NAV shall be calculated up to four decimal places. However, the AMC reserves the right to declare the NAVs up to additional decimal places as it deems appropriate. Separate NAV will be calculated and disclosed for each Option. The NAVs of the Growth Option and the Dividend Option will be different after the declaration of the first Dividend. The NAVs will be calculated for all the Business days. Pursuant to Regulation 49 (3) the repurchase Price of the units of an open ended scheme will not be lower than 95% of the NAV. Any imposition or enhancement of Load in future shall be applicable on prospective investments only. SO. 47 Illustration on Computation of NAV: SO. 42 Particulars Amount (Rs) Asset/Liability Securities 500,000 Asset Cash and cash equivalent 300,000 Asset Receivables 200,000 Asset Accrued Interest 50,000 Asset Total Assets 1,050,000 Short-term liabilities 200,000 Liability Long-term liabilities 150,000 Liability Accrued Expenses 100,000 Expense Total Liabilities and expenses 450,000 Particulars Amount (Rs) Total Assets (A) 1,050,000 Total Liabilities and expenses (B) 450,000 Net Asset value = (A – B) 600,000 Total units outstanding 50,000 NAV per unit 12 per unit Ongoing price for Redemption/Switch outs (to other schemes/plans of the Mutual Fund) by Investors. Ongoing price for redemption/Switch out (to other Schemes/Plans of the Mutual Fund) is the price which a Unit holder will receive for redemption/Switch-outs. During the continuous offer of the Scheme, the Unit holder can redeem the Unit at Applicable NAV. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of NAV etc. refer to SAI. Methodology for calculation of sale and re-purchase price of the units of mutual fund scheme: Let’s assume that the NAV of a Mutual Fund Scheme on April 01, 2024 is Rs. 10/-. Purchase of mutual fund units: The Purchase Price of the Units on an ongoing basis will be same as Applicable NAV. Purchase Price = Applicable NAV In the above example, purchase is done on April 01, 2024, when the Applicable NAV = Rs. 10/- Therefore, Purchase Price = Rs. 10/- 25As per existing Regulations, no entry load is charged with respect to applications for purchase / additional purchase of mutual funds units. Redemption/Re-purchase of mutual fund units The Redemption Price of the Units will be calculated on the basis of the Applicable NAV subject to prevailing Exit Load, if any. In case of redemption, the amount payable to the investor shall be calculated as follows: Redemption Price = Applicable NAV * (1 - Exit Load) Say, in the above example the exit load applicable is: For exit on or before 12 months from the date of allotment – 1.00% For exit after 12 months from the date of allotment – Nil. Scenario 1: Redemption is done during applicability of exit load In case the investor requests for redemption on or before 12 months i.e. on or before March 31, 2025; say December 1, 2024, when the NAV of the scheme is Rs. 12/- and the exit load applicable is 1%, so the Redemption amount payable to investor shall be calculated as follows: Redemption Price = Applicable NAV * (1 - Exit Load) = Rs. 12 * (1-1%) = Rs. 11.88/- Scenario 2: Redemption is done when the exit load is NIL In case the investor requests for redemption after 12 months i.e. after March 31, 2025; say April 1, 2025, when the NAV of the scheme is Rs. 12/- and the exit load applicable is NIL, so the Redemption amount payable to investor shall be calculated as follows: Redemption Price = Applicable NAV * (1 - Exit Load) = Rs. 12 * (1-0) = Rs. 12/- The aforesaid example does not take into consideration any applicable statutory levies or taxes. Accordingly, the redemption amount payable to investor shall further reduce to the extent of applicable statutory levies or taxes. B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO such as sales and marketing expenses, advertising, registrar expenses, printing and stationery, communication, statutory expenses, bank charges etc. As required under the SEBI (Mutual Funds) Regulations, all NFO expenses will be borne only by the AMC and not by the Scheme. Accordingly, the NFO expenses would be incurred from AMC books and not from Scheme’s books. C. ANNUAL SCHEME RECURRING EXPENSES The AMC has estimated that upto 2.00 % of the daily net assets of the scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor may refer to the website of the Mutual Fund https://www.abakkusmf.com Further, the disclosure of Total Expense Ratio (TER) on a daily basis shall also be made on the website of AMFI (www.amfiindia.com). The Mutual Fund would update the current expense ratios on the website at least three Business days prior to the effective date of the change. 26Expense Head % of daily net assets Investment Management and Advisory Fees Trustee fees ** Audit fees Custodial fees RTA Fees Marketing & Selling expense including Agent commission and statutory advertisement Costs related to investor communications Costs of fund transfer from location to location Upto 2.00% Cost of providing account statements and dividend redemption cheques and warrants Costs of statutory Advertisements Cost towards investor education & awareness (at least 2 - bps) Brokerage & transaction cost over and above 12 bps for cash and 5 bps for derivative market trades respectively1 Goods & Services Tax (GST) on expenses other than investment and advisory fees2 Goods & Services Tax (GST) on brokerage and transaction cost2 Other Expenses (to be specified as per Reg 52 of SEBI (MF Regulations) Maximum total expense ratio (TER) permissible under Regulation 52 (6) Upto 2.00% Additional expenses under regulation 52 (6A) (c)3 Upto 0.05% Additional expenses for gross new inflows from specified cities 4 Upto 0.30% As per Paragraph 10.1.3 of SEBI Master Circular on Mutual Funds dated June 27, 2024, and AMFI Circular No. CIR/ ARN-23/ 2022-23 dated March 07, 2023, the B-30 incentive structure for new inflows shall be kept in abeyance. till the incentive structure is appropriately re-instated by SEBI with necessary safeguards. ** In accordance with the Trust Deed constituting the Mutual Fund, the Trustee Company shall be entitled to charge fees upto 10 bps per annum on the daily net assets of the funds subject to a maximum of Rs. 5,00,00,000 per annum at Mutual Fund Scheme level; plus taxes. Such fee shall be paid to the Trustee within seven working days from the end of each quarter every year, namely, within 7 working days from June 30, September 30, December 31 and March 31 of each year. The Trustee may charge expenses as permitted from time to time under the Trust Deed and SEBI (MF) Regulations. The trusteeship fee shall be subject to the limits if any prescribed under the Regulations. Investor Education and Awareness Initiative As per clause 10.1.16 of Master Circular, the AMC shall annually set apart at least 2 basis points p.a. (i.e. 0.02% p.a.) on daily net assets of the Scheme within the limits of total expenses prescribed under Regulation 52 of SEBI (MF) Regulations for investor education and awareness initiatives undertaken. The total expenses charged to the Scheme shall not exceed the limits stated in Regulation 52 of the SEBI (MF) Regulations and as permitted under SEBI Circulars issued from time to time. The Mutual Fund would update the current expense ratios on the website – https://www.abakkusmf.com. at least three working days prior to the effective date of the change and update the TER under the Section titled “Statutory Disclosures” under sub- section titled “Total Expense Ratio of Mutual Fund Schemes”. Notes: Additional Expenses: 1) Brokerage and transaction costs which are incurred for the purpose of execution of trades up to 0.12 per cent of trade value in case of cash market transactions and 0.05 per cent of trade value in case of derivatives transactions. The brokerage and transaction cost incurred for the purpose of execution of trade may be capitalized to the extent of 0.12 per cent and 0.05 per cent for cash market transactions and derivatives transactions respectively. Any amount towards brokerage & transaction costs, over and above the said 12 27bps for cash market transactions and 5 bps for derivatives transactions respectively may be charged to the scheme within the maximum limit of total expenses ratio as prescribed under Regulation 52(6) of the SEBI (MF) Regulations, 1996. 2) Goods & Services Tax (GST) on expenses other than investment any advisory fees, if any, shall be borne by the scheme within the maximum limit of total expenses ratio as prescribed under Regulation 52 (6) of the SEBI (MF) Regulations, 1996. Goods & Services Tax (GST) on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under regulation 52 of the SEBI (MF) Regulations, 1996. Goods & Services Tax (GST) on investment management and advisory fees shall be charged to the Scheme in addition to the maximum limit of total expenses ratio as prescribed under Regulation 52 (6) of the SEBI (MF) Regulations, 1996. 3) Additional expenses, incurred towards different heads mentioned under sub-regulations (2) and (4) of Regulation 52 of the Regulations, not exceeding 0.05 percent of daily net assets of the scheme. Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable. 4) Expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such cities as specified by AMFI data, from time to time are at least (a) 30 per cent of the gross new inflows into the scheme, or (b) 15 per cent of the average assets under management (year to date) of the scheme, whichever is higher; In case inflows from such cities are less than the higher of (a) or (b) above, such expenses on daily net assets of the scheme shall be charged on proportionate basis in accordance with Paragraph 10.1.3 of SEBI Master Circular on Mutual Funds dated June 27, 2024. The expenses so charged shall be utilised for distribution expenses incurred for bringing inflows from such cities. However, the amount incurred as expense on account of inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment. Provided further that the additional TER can be charged based on inflows only from retail investors (Para 10.1.3 of SEBI Master Circular on Mutual Funds dated June 27, 2024), has defined that inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from ― retail investor) from beyond top 30 cities. Provided that the additional commission for beyond top 30 cities shall be paid as trail only. As per the AMFI Letter 35P/ MEM-COR/ 85-a/ 2022-23 dated March 03, 2023, the above B-30 incentive structure shall be in abeyance till further guidelines by SEBI. SO. 46 These estimates have been made in good faith as per the information available to and estimates made by the Investment Manager and are subject to change inter-se or in total subject to prevailing Regulations. Type of expenses charged shall be as per the Regulations. The AMC may incur actual expenses which may be more or less than those estimated above under any head and/or in total. Direct Plan shall have a lower expense ratio. Commission/Distribution expenses will not be charged in case of Direct Plan. The TER of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses/ commission which is charged in the Regular Plan. Any other expenses which are directly attributable to a Scheme maybe charged with the approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited. The recurring expenses of the Scheme (including the Investment Management and Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations, 1996. For the actual current expenses being charged, the Investor should refer to the website of the AMC https://www.abakkusmf.com 28The recurring expenses of the Scheme (excluding additional expenses under regulation 52(6A) (c) and additional distribution expenses for gross inflows from specified cities), as per SEBI Regulations are as follows: Assets under management Slab (In Rs. crore) Total expense ratio limits for equity oriented schemes on the first Rs.500 crores of the daily net assets 2.00 on the next Rs.250 crores of the daily net assets 1.75 on the next Rs.1,250 crores of the daily net assets 1.50 on the next Rs.3,000 crores of the daily net assets 1.35 on the next Rs.5,000 crores of the daily net assets 1.25 on the next Rs.40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for every increase of Rs.5,000crores of daily net assets or part thereof. On balance of the assets 0.80% Illustration of impact of expense ratio on scheme’s returns: SO. 44 Particulars Regular Plan(Rs) Direct Plan(Rs) Amount Invested at the beginning of the year 10,000 10,000 Returns before Expenses 1500 1500 Expenses other than Distribution Expenses 150 150 Distribution Expenses 100 - Returns after Expenses at the end of the Year 1250 1350 Returns in Percentage (%) 12.50 13.50 Note(s): • The purpose of the above illustration is purely to explain the impact of expense ratio charged under the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments. • It is assumed that the expenses charged are evenly distributed throughout the year. • The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses/commission. • Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to seek appropriate advice. TER for the Segregated Portfolio, if applicable 1. AMC shall not charge investment and advisory fees on the segregated portfolio. However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata basis only upon recovery of the investments in segregated portfolio. 2. The TER so levied shall not exceed the simple average of such expenses (excluding the investment and advisory fees) charged on daily basis on the main portfolio (in % terms) during the period for which the segregated portfolio was in existence. 3. The legal charges related to recovery of the investments of the segregated portfolio may be charged to the segregated portfolio in proportion to the amount of recovery. However, the same shall be within the maximum TER limit as applicable to the main portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC. 4. The costs related to segregated portfolio shall in no case be charged to the main portfolio. 29D. LOAD STRUCTURE Load is an amount, which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC; https://www.abakkusmf.com or connect at mf.investor.support@abakkusinvest.com or your distributor. As per clause 8.6 of SEBI Master Circular dated June 27, 2024, has decided that there shall be no entry Load for all Mutual Fund Schemes. SO. 47 Type of Load Load chargeable (as %age of NAV) Exit Load Investment period i.e. number of days Exit load as a % of from the date of subscription NAV redemption proceeds 1 Day 0.0070% 2 Days 0.0065% 3 Days 0.0060% 4 Days 0.0055% 5 Days 0.0050% 6 Days 0.0045% 7 Days or more NIL Note: For the purpose of levying exit load , if subscription (application & Funds) is received within cut off time on a day , Day 1 shall be considered to be the same day, else the day after the date of allotment of units shall be considered as Day 1. However, the Trustee shall have a right to prescribe or modify the load structure with prospective effect subject to a maximum prescribed under the Regulations. In accordance with clause 10.8.1 of SEBI Master Circular on Mutual Funds dated June 27, 2024, to bring about parity among all class of unit holders, no distinction among unit holders would be made based on the amount of subscription while charging exit loads. The exit load charged, if any, shall be credited to the scheme. Goods and Services tax on exit load shall be paid out of the exit load proceeds and exit load net of Goods and Services tax shall be credited to the schemes. Note on Load Exemptions: 1. AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors. 2. No load will be charged on issue of bonus Units for existing as well as prospective investors. 3. No exit load shall be levied in case of switch of investments from Direct Plan to Regular Plan, plans/options and sub-options of the Scheme and vice versa. The investor is requested to check the prevailing load structure of the scheme before investing. Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure on the Units subscribed/ redeemed on any Business Day. At the time of changing the load structure, the AMC / Mutual Fund may adopt the following procedure: I. The addendum detailing the changes will be attached to Scheme Information Documents and key information memorandum. The addendum will be circulated to all the distributors/brokers so that the same can be attached to all Scheme Information Documents and key information memoranda already in stock. II. Arrangements will be made to display the addendum in the Scheme Information Document in the form of a notice in all the investor service centres and distributors/brokers office. III. The introduction of the exit load along with the details will be stamped in the acknowledgement slip issued to the investors on submission of the application form and will also be disclosed in the statement of accounts issued after the introduction of such load. 30IV. Any other measure which the Mutual Fund may consider necessary. The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in Load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis). REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME Pursuant to paragraph 6.11 of SEBI Master Circular on Mutual Funds dated June 27, 2024, the Scheme shall have: I. minimum of 20 investors and II. no single investor shall account for more than 25% of the corpus of the Scheme. In case the Scheme does not have a minimum of 20 investors, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations, 1996 would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over 25% limit. Failure on the part of the said investor to redeem his exposure over 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. 31Section II I. Introduction A. Definitions/interpretation For detailed description please refer the website of the Company at link: https://www.abakkusmf.com. B. Risk factors Scheme Specific Risk Factors SO. 08 Some of the specific risk factors related to the schemes include, but are not limited to the following: 1. Risks factors associated with Fixed Income Securities: Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, Money Market Instruments and Derivatives 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a Money Market Instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government Securities different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV. 2. Risks factors associated with Derivatives Transactions 32Systematic Risk: Systematic Risk is the risk associated with the entire market. Unlike unsystematic risk, it is not linked to a specific security or sector. Systematic risk is a market risk which can be due to macro-economic factors, news events, etc. Mark to Market Risk: This risk is on account of day to day fluctuations in the underlying Security and its derivative instrument, which can adversely impact the portfolio. Credit Risk: The credit risk is the risk that the counter party will default in its obligations and is generally small as in a Derivative transaction there is generally no exchange of the principal amount. Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates. Basis Risk: When a security is hedged using a Derivative, the change in price of the security and the change in price of the Derivative may not be fully correlated leading to basis risk in the portfolio. Liquidity risk: During the life of the Derivative, the benchmark might become Illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio. Model Risk: The risk of mis–pricing or improper valuation of Derivatives. Trade Execution: Risk where the final execution price is different from the screen price, leading to dilution in the spreads and hence impacting the profitability of the reverse arbitrage strategy. Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put the whole system at risk and the whole system can come to a halt. The scheme may invest in various derivative products in accordance with and to the extent permitted under the regulations from time to time. Derivative products are specialized instruments that require investment techniques and risk analysis which are different from those associated with stocks and other traditional securities. SO. 28 Derivatives are highly leveraged instruments and a small price fluctuation in the underlying can have a larger impact on its value. Thus, its use can lead to disproportionate gains or losses to the portfolio. Execution of derivatives instruments depends on the ability of the fund manager to identify good opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. The fund manager will be able to identify or execute such strategies. “The risks associated with the use of Derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.” 3. Risk factors associated with Securitized Debt: The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, loans against consumer durables, etc. MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential/ commercial properties. At present in Indian market, following types of loans are securitized: 1. Auto Loans (cars/commercial vehicles/two wheelers) 2. Residential Mortgages or Housing Loans 3. Consumer Durable Loans 4. Corporate Loans 33In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The other main risks pertaining to Securitized debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate. 4. 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 this case the approved intermediary to comply with the terms of the agreement. Such failure can result in a possible loss of rights to the collateral, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of corporate benefits accruing thereon. 5. Risk factors associated with processing of transactions through Stock Exchange Mechanism: The trading mechanism introduced by the Stock Exchange(s) is configured to accept and process transactions for mutual fund Units in both Physical and Demat Form. The allotment and/or redemption of Units through NSE and/or BSE or any other recognised Stock Exchange(s), on any Business Day will depend upon the modalities of processing viz. collection of application form, order processing /settlement, etc. upon which the Fund has no control. Moreover, transactions conducted through the Stock Exchange mechanism shall be governed by the operating guidelines and directives issued by respective recognized Stock Exchange(s). 6. Risks factors associated with Investing in Structured Obligation (SO) & Credit Enhancement (CE) rated securities The risks factors stated below for the Structured Obligations & Credit Enhancement are in addition to the risk factors associated with debt instruments. -Credit rating agencies assign CE rating to an instrument based on any identifiable credit enhancement for the debt instrument issued by an issuer. The credit enhancement could be in various forms and could include guarantee, shortfall undertaking, letter of comfort, etc. from another entity. This entity could be either related or non-related to the issuer like a bank, financial institution, etc. Credit enhancement could include additional security in form of pledge of shares listed on stock exchanges, etc. SO transactions are asset backed/ mortgage backed securities, securitized paper backed by hypothecation of car loan receivables, securities backed by trade receivables, credit card receivables etc. Hence, for CE rated instruments evaluation of the credit enhancement provider, as well as the issuer is undertaken to determine the issuer rating. In case of SO rated issuer, the underlying loan pools or securitization, etc. is assessed to arrive at rating for the issuer. Liquidity Risk: SO rated securities are often complex structures, with a variety of credit enhancements. Debt securities lack a well-developed secondary market in India, and due to the credit enhanced nature of CE securities as well as structured nature of SO securities, the liquidity in the market for these instruments is adversely affected compared to similar rated debt instruments. Hence, lower liquidity of such instruments, could lead to inability of the scheme to sell such debt instruments and generate liquidity for the scheme or higher impact cost when such instruments are sold. Credit Risk: The credit risk of debt instruments 34which are CE rated derives rating based on the combined strength of the issuer as well as the structure. Hence, any weakness in either the issuer or the structure could have an adverse credit impact on the debt instrument. Inability of the investors to enforce the structure due to issues such as legal risk, inability to sell the underlying collateral or enforce guarantee, etc. In case of SO transactions, co-mingling risk and risk of servicer increases the overall risk for the securitized debt or assets backed transactions. Therefore, apart from issuer level credit risk such debt instruments are also susceptible to structure related credit risk. Risks associated with Covered Call Strategy The risk associated with covered calls is the loss of upside, i.e. if the shares are assigned (called away), the option seller forgoes any share price appreciation above the option strike price. The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered call options are sold to the maximum extent allowed by regulatory authority, the scheme may not be able to sell the underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call option contracts have been written become illiquid. Hence, the scheme may not be able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity. The writing of covered call option would lead to loss of opportunity due to appreciation in value of the underlying equity shares. Hence, when the appreciation in equity share price is more than the option premium received the scheme would be at a loss. The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to buy any options. 7. Risks factors associated with segregated portfolio 1. Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer. 2. Security comprises of segregated portfolio may not realise any value. 3. Listing of units of segregated portfolio on recognised stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. 8. Risk Factors associated with Credit Default Swap Credit Risks- Couter party default creates a considerable risk in swap agreements. Parties may default on payment obligations. Market Risks- CDS can be highly volatile in value, shifting with the underlying credit quality or general market conditions and could realise significant losses. The Indian CDS market is still in its growing stage and lacks proper depth. 9. Risk factors associated with investment in Tri-Party Repo: The mutual fund is a member of securities segment and Triparty Repo trade settlement of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in Tri-party Repo trades are settled centrally through the infrastructure and settlement systems provided by CCIL; thus reducing the settlement and counterparty risks considerably for transactions in the said segments. The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL). As per the waterfall mechanism, after the defaulter’s margins and the defaulter’s contribution to the default fund have been appropriated, CCIL’s contribution is used to meet the losses. 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. Thus the scheme is subject to risk of the initial margin and default fund contribution being invoked in the event of failure of any settlement obligations. In addition, the fund contribution is allowed to be used to meet the residual loss in case of default by the other clearing member (the defaulting member). CCIL shall maintain two separate Default Funds in respect of its Securities Segment, one with a view to meet losses arising out of any default by its members from outright and repo trades and the other 35for meeting losses arising out of any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to the default fund of CCIL, in the event that the contribution of the mutual fund is called upon to absorb settlement/default losses of another member by CCIL, as a result the scheme may lose an amount equivalent to its contribution to the default fund Risk associated with potential change in Tax structure This summary of tax implications given in the taxation section is based on the current provisions of the applicable tax laws. This information is provided for general purpose only. The current taxation laws may change due to change in the ‘Income Tax Act 1961’ or any subsequent changes/amendments in Finance Act/Rules/Regulations. Any change may entail a higher outgo to the scheme or to the investors by way of securities transaction taxes, fees, taxes etc. thus adversely impacting the scheme and its returns. 10. Risk associated with Investment in Units of Mutual Funds: Mutual funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee against loss resulting from investing in the Scheme. The various factors which impact the value of the Schemes’ investments include, but are not limited to, fluctuations in the bond markets, fluctuations in interest rates, prevailing political and economic environment, changes in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes, suspension of subscription/redemptions of the scheme, change in fundamental attribute etc. The Scheme may invest in schemes of Mutual Funds. Hence, scheme specific risk factors of each such mutual fund schemes will be applicable to the Scheme portfolio. 11. Other Scheme Specific Risk factors: • Mutual Fund Schemes are not guaranteed or assured return products. • Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. • As the price/value/interest rates of the securities in which the Scheme invests fluctuates, the value of investment in a mutual fund Scheme may go up or down. • In addition to the factors that affect the value of individual investments in the Scheme, the NAV of the Scheme may fluctuate with movements in the broader equity and bond markets and may be influenced by factors affecting capital and money markets in general, such as, but not limited to, changes in interest rates, currency exchange rates, changes in Government policies, taxation, political, economic or other developments and increased volatility in the stock and bond markets. • Past performance does not guarantee future performance of any Mutual Fund Scheme. C. Risk Mitigation Strategies SO. 09 Effective risk management is crucial for achieving top quartile performance. Adequate safeguards would be incorporated in the portfolio management process. The main instrument for reducing risk is through diversification. The Fund Manager’s job is to identify securities which offer higher returns with a lower level of risk. While identifying such securities, rigorous credit evaluation would be carried out by the investment team. The Company has implemented the Front Office System (FOS) for this purpose. The system has incorporated all the investment restrictions as per SEBI guidelines and “soft” warning alerts at appropriate levels for pre-emptive monitoring. The system enables identifying & measuring the risk through various risk measurement tools like various risk ratios, average duration and analyzes the same and acts in a preventive manner. Risk Type Risk Management Strategy Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, Money Market Instruments and Derivatives 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. 36Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Liquidity risk is managed at the portfolio construction stage by strategically allocating investments in securities that have high liquidity. The scheme will have regular stress tests run on the portfolio that simulate various liquidity-related scenarios to provide the fund manager insight into how to best handle liquidity crunches, allowing them to make changes to the portfolio to better protect investors against illiquidity scenarios. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a Money Market Instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government Securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV. The following are the key risks associated with investments in Fixed Income Securities and the strategy adopted by the AMC in addressing these key risks. Interest Rate Risk Fixed income securities such as government bonds, corporate bonds Money Market Instruments and Derivatives 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. The modified duration of a portfolio is one of the means of measuring the interest rate risk of the portfolio. Higher is the modified duration, the fund stands exposed to a higher degree of interest rate risk. The Fund Manager would decide on the modified duration to be maintained for the portfolio at a particular point of time after taking into account the current scenario and the investment objective of the scheme. The portfolio duration will be decided after doing a thorough research on the general macroeconomic condition, political environment, systemic liquidity, inflationary expectations, corporate performance and other macroeconomic considerations. The Investment Committee of the AMC would be monitoring the portfolios constantly and would be giving direction regarding portfolio modified duration to the Fund Manager. Credit Risk This is the risk associated with the issuer of a debenture/bond or a Money Market Instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government Securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. 37The Investment Team would follow a bottom up approach to create a debt Investment universe. The investment team would carry out rigorous in depth credit evaluation of the money market and debt instruments the scheme proposes to invest in. The credit evaluation will essentially be a bottom up approach and include a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer. Data from external Credit Rating Agencies like CRISIL, ICRA, FITCH and CARE would be taken into account while constructing this universe. This universe would be constantly monitored by the Investment Committee which would recommend any additions/ deletions from the investment universe. Liquidity Risk The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. The Fund Manager would maintain adequate cash/cash equivalent securities to manage the day to day redemptions of the fund. Attention would be given to the historic redemption trends while deciding on the cash equivalent component of the portfolios. Also the Fund Manager and Dealer would be keeping track of various securities being traded in the market and would strive to keep the component of illiquid securities in the portfolio at a low percentage of the total portfolio. Liquidity Risk Management Framework: SO.12 The Scheme shall adopt the Liquidity Risk Management Framework (LRM) as mandated by AMFI and SEBI, which requires Scheme Portfolio to maintain certain portion of their investments in liquid assets. This portion as required to be kept, is ascertained basis the scheme’s liability profile, i.e. investor profile. This framework seeks to estimate a likely quantum of redemption that the scheme is expected to face over the subsequent 30-day period and requires the scheme to maintain liquid assets to that extent as a minimum requirement. The Framework also enumerates corrective actions to be taken in the event of any shortfall owing to higher redemption than estimated. The Investment Manager also has in place an Asset Liability Mismatch (ALM) Framework which monitors similar aspects. Potential Risk Matrix and Risk-o-meter : The maximum risk that a scheme will run as per design and a measurement of that risk on a regular basis. Remedial measures also in place in case any of the design boundaries are breached. Swing Pricing: Pursuant to clause 4.10 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the AMC through its Swing Pricing policy in place to help in case of severe liquidity stress at an AMC level or a severe dysfunction at market level, the Swing Pricing offers the contingency plan in case of extreme exigencies. Investors are suggested to read the detailed disclosure pertaining to this policy under “Swing Pricing’’ section in SAI. In case of severe liquidity stress at an AMC level or a severe dysfunction at market level, the Swing Pricing guidelines get triggered which offers the contingency plan in case all else fails. II. Information about the scheme A. Where will the scheme invest? The corpus of the Scheme will be invested in money market and debt instruments and other permitted instruments, wherever applicable, which will include but not limited to: SO. 29 Tri-party repo (TREPS) 38Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri- Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. TREPS facilitates, borrowing and lending of funds, in Triparty Repo arrangement. Certificate of Deposit (CD) of scheduled commercial banks and development financial Institutions Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue. Commercial Paper (CP) Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. Treasury Bill (T-Bill) Treasury Bills (T-Bills) are issued by the Government of India to meet their short term borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and364 days. Bill Rediscounting (bills of exchange/promissory notes of public sector and private sector corporate entities). Repo Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, G-Secs, State Government securities and T-Bills are eligible for Repo/Reverse Repo. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. Non-convertible debentures and bonds Non-convertible debentures as well as bonds are securities issued by companies / Institutions promoted / owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee, Public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. The Scheme may also invest in the non- convertible part of convertible debt securities. Floating rate debt instruments Floating rate debt instruments are instruments issued by Central / state governments, corporates, PSUs, etc. with interest rates that are reset periodically. Securitized Assets Securitization is a structured finance process which involves pooling and repackaging of cashflow producing financial assets into securities that are then sold to investors. They are termed as Asset Backed Securities (“ABS”) or Mortgage Backed Securities (“MBS”). ABS are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. Credit support for these securities may be based on the underlying assets and/or provided through credit enhancements by a third party. MBS is an asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. Such Mortgage could be either residential or commercial properties. ABS/MBS instrument reflect the undivided interest in the underlying assets and do not represent the obligation of the issuer of 39ABS/MBS or the originator of underlying receivables. Securitization often utilizes the services of a special purpose vehicle. Pass through Certificate (PTC) (Pay through or other Participation Certificates) represents beneficial interest in an underlying pool of cash flows. These cash flows represent dues against single or multiple loans originated by the sellers of these loans. These loans are given by banks or financial institutions to corporates. PTCs may be backed, but not exclusively, by receivables of personal loans, car loans, two wheeler loans and other assets subject to applicable regulations. Investment in CDMDF In accordance with the requirement of regulation 43A of SEBI (Mutual Funds) Regulations, 1996 read with Chapter 16.A of SEBI Master Circular on Mutual Funds dated June 27, 2024on Investment by Mutual Fund Schemes and AMCs in units of Corporate Debt Market Development Fund, scheme shall invest 25 bps of its AUM. CDMDF Framework CDMDF shall comply with the Guarantee Scheme for Corporate Debt (GSCD) as notified by Ministry of Finance vide notification no. G.S.R. 559(E) dated July 26, 2023, and Chapter 16.A of SEBI Master Circular on Mutual Funds dated June 27, 2024and circulars/guidelines/Letters issued by SEBI and AMFI from time to time, which includes the framework for the corporate debt market development fund. The framework will inclusive of following points- a) The CDMDF shall deal only in following securities during normal times: − Low duration Government Securities − Treasury bills − Tri-party Repo on G-sec − Guaranteed corporate bond repo with maturity not exceeding 7 days b) The fees and expenses of CDMDF shall be as follows: − During Normal times: (0.15% + tax) of the Portfolio Value charged on a daily pro-rata basis. − During Market stress: (0.20% + tax) of the Portfolio Value charged on a daily pro-rata basis. − “Portfolio Value” means the aggregate amount of the portfolio of investments including cash balance without netting off of leverage undertaken by the CDMDF. c) Corporate debt securities to be bought by CDMDF during market dislocation include listed money market instruments. The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating. d) CDMDF shall follow the Fair Pricing document, while purchase of corporate debt securities during market dislocation as specified in Chapter 16.A of SEBI Master Circular of Mutual Funds dated June 27, 2024 and circulars/guidelines/Letters issued by SEBI and AMFI from time to time. e) CDMDF shall follow the loss waterfall accounting and guidelines w.r.t. purchase allocation and trade settlement of corporate debt securities bought by CDMDF, specified in Chapter 16.A of SEBI Master Circular on Mutual Funds dated June 27, 2024 and circulars/guidelines/Letters issued by SEBI and AMFI from time to time. The following are certain additional disclosures w.r.t. investment in securitized debt: 1. How the risk profile of securitized debt fits into the risk appetite of the scheme 40Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed income characteristics. The risk of investing in securitized debt is similar to investing in debt securities. However it differs in two respects. Typically the liquidity of securitized debt is less than similar debt securities. For certain types of securitized debt (backed by mortgages, credit card debt, etc.), there is an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which may reduce returns if the re-investment rates are lower than initially envisaged. Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns, he may invest in securitized debt up to the limits specified in the asset allocation table above. 2. Policy relating to originators based on nature of originator, track record, NPAs, losses in earlier securitized debt, etc. The originator is the person who has initially given the loan. The originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). An analysis of the originator is especially important in case of retail loans as this affects the credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of the originator. For example, losses or performance of earlier issuances does not indicate quality of current series. However such past performance may be used as a guide to evaluate the loan standards, servicing capability and performance of the originator. Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies, etc. The fund manager/credit analyst evaluates originators based on the following parameters: • Track record • Willingness to pay, through credit enhancement facilities etc. • Ability to pay • Business risk assessment, wherein following factors are considered: - Outlook for the economy (domestic and global) - Outlook for the industry - Company specific factors In addition a detailed review and assessment of rating rationale is done including interactions with the originator as well as the credit rating agency. The following additional evaluation parameters are used as applicable for the originator / underlying issuer for pool loan and single loan securitization transactions: • Default track record/ frequent alteration of redemption conditions / covenants • High leverage ratios of the ultimate borrower (for single-sell downs) - both on a standalone basis as well on a consolidated level/ group level • Higher proportion of reschedulement of underlying assets of the pool or loan, as the case may be • Higher proportion of overdue assets of the pool or the underlying loan, as the case may be • Poor reputation in market • Insufficient track record of servicing of the pool or the loan, as the case may be. 3. Risk mitigation strategies for investments with each kind of originator An analysis of the originator is especially important in case of retail loans as the size and reach affects the credit quality and servicing of the PTC. In addition, the quality of the collection process, infrastructure and follow-up 41mechanism; quality of MIS; and credit enhancement mechanism are key risk mitigants for the better originators/servicers. In case of securitization involving single loans or a small pool of loans, the credit risk of the underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of evaluating the performance potential of the PTC. Securitization transactions may include some risk mitigants (to reduce credit risk). These may include interest subvention (difference in interest rates on the underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the senior tranches get paid before the junior tranche) and/ or guarantees. 4. The level of diversification with respect to the underlying assets, and risk mitigation measures for less diversified investments In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of judging the performance potential of the PTC. Additional risk mitigants may include interest subvention, over collateralization, presence of an equity / subordinate tranche and / or guarantees. The credit analyst also uses analysis by credit rating agencies on the risk profile of the securitized debt. Currently, the following parameters are used while evaluating investment decision relating to a pool securitization transaction. The Investment Committee may revise the parameters from time to time: Characteristics/ Mortgage Commercial CAR 2 Micro Personal Single Others Type of Pool Loan Vehicle and wheelers Finance Loans * Sell Construction Pools * Downs Equipment Approximate Up to 10 Up to 3 years Up to 3 Up to 3 NA NA Refer Refer Average years years years Note 1 Note Maturity (in 2 months) Collateral >10% >10% >10% >10% NA NA Refer Refer margin Note 1 Note (including cash, 2 guarantees, excess interest spread, subordinate tranche) Average Loan <90% <80% <80% <80% NA NA Refer Refer to Value Ratio Note 1 Note 2 Average >3 >3 months >3 >3 NA NA Refer Refer seasoning of months months months Note 1 Note the Pool 2 Maximum single <1% <1% <1% <1% NA NA Refer Refer exposure range Note 1 Note 2 42Average single <1% <1% <1% <1% NA NA Refer Refer exposure range Note 1 Note % 2 * Currently, the Schemes will not invest in these types of securitized debt Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. The investment limits applicable to the underlying borrower are applied to the single loan sell- down. Note 2: Other investments will be decided on a case-to-case basis The credit analyst may consider the following risk mitigating measures in his analysis of the securitized debt: • Size of the loan • Average original maturity of the pool • Loan to Value Ratio • Average seasoning of the pool • Default rate distribution • Geographical Distribution • Credit enhancement facility • Liquid facility • Structure of the pool 5. Minimum retention period of the debt by originator prior to securitization Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period of between nine and twelve months for assets before they can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Fund will invest in securitized debt that are compliant with the laws and regulations. 6. Minimum retention percentage by originator of debts to be securitized Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements, including maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention requirement of between five and ten percent of the book value of the loans by the originator. The minimum retention requirement depends on the tenor and structure of the securitization transaction. The Fund will invest in securitized debt that are compliant with the laws and regulations. 7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of an originator and the originator in turn makes investments in that particular scheme of the fund The key risk is securitized debt relates to the underlying borrowers and not the originator. In a securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer. However, the originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). As the originators may also invest in the scheme, the fund manager shall ensure that the investment decision is based on parameters as set by the Investment Review Committee (IRC) of the asset management company and IRC shall review the same at regular interval. 8. The resources and mechanism of individual risk assessment with the AMC for monitoring investment in securitized debt 43The fund management team including the credit analyst has the experience to analyze securitized debt. In addition, credit research agencies provide analysis of individual instruments and pools. On an on-going basis (typically monthly) the servicer provides reports regarding the performance of the pool. These reports would form the base for ongoing evaluation where applicable. In addition, rating reports indicating rating changes would be monitored for changes in rating agency opinion of the credit risk. When issued When, as and if issued’ (commonly known as “when-issued” (WI) security) refers to a security that has been authorized for issuance but not yet actually issued. WI trading takes place between the time a new issue is announced and the time it is actually issued. All “when issued” transactions are on an “if” basis, to be settled if and when the actual security is issued. SEBI has on April 16, 2008 in principle allowed Mutual Funds to undertake ‘When Issued (WI)’ transactions in Central Government securities, at par with other market participants. • Open Positions in the ‘WI’ market are subject to the following limits: Category Reissued Security Newly Issued Security Non-PDs Long Position, not exceeding 5 Long Position, not exceeding 5 percent of the notified amount. percent of the notified amount. Debt derivative instruments: Interest Rate Swap - An Interest Rate Swap (“IRS”) is a financial contract between two parties exchanging or swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified period. Such contracts generally involve exchange of a “fixed to floating” or “floating to fixed” rate of interest. Accordingly, on each payment date that occurs during the swap period, cash payments based on fixed/ floating and floating rates are made by the parties to one another. Forward Rate Agreement - A Forward Rate Agreement (“FRA”) is a financial contract between two parties to exchange interest payments for a ‘notional principal’ amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract (fixed) and the settlement rate, are made by the parties to one another. The settlement rate is the agreed benchmark/ reference rate prevailing on the settlement date. Interest Rate Futures:- A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a financial instrument in a designated future month at a market determined price (the futures price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest Rate Future is a futures contract with an interest bearing instrument as the underlying asset. Characteristics of Interest Rate Futures 1. Obligation to buy or sell a bond at a future date 2. Standardized contract. 3. Exchange traded 4. Physical settlement 5. Daily mark to market 44Investments in Debt & Debt Related Instruments Debt instruments (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bonds/notes, securitized debt, pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to: 1. Debt issuances of the statutory bodies (which may or may not carry a state/central government guarantee), 2. Debt securities that have been guaranteed by Government of India and State Governments, 3. Debt securities issued by Corporate Entities (Public /Private sector undertakings), 4. Debt securities issued by Public/Private sector banks and development financial institutions, 5. Securitized Debt, Structured Obligations, Credit enhanced Debt, Money Market Instruments include: 1. Commercial papers 2. Commercial bills 3. Tri-party Repos on Government securities or treasury bills (TREPS) 4. Certificate of deposit 5. Usance bills 6. Permitted securities under a repo/reverse repo agreement 7. Any other like instruments as may be permitted by RBI/SEBI for liquidity requirements from time to time a) Repo As per Section 45U (c) of RBI Act, 1934, “repo” means an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed. b) Reverse repo As per Section 45U (c) of RBI Act, 1934, “reverse repo” means an instrument for lending funds by purchasing securities with an agreement to resell the securities on a mutually agreed future date at an agreed price which includes interest for the funds lent. c) Triparty Repo According to Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018, triparty repo means a repo contract where a third entity (apart from the borrower and lender), called a Triparty Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody, and management during the life of the transaction. d) Derivative instruments like Stock/Index Futures, Stock/Index Options, Interest Rate Future, Interest Rate Swap, Forward Rate Agreement and such other derivative instruments permitted by SEBI. e) Cash & cash equivalents Cash Equivalent shall consist of following securities having residual maturity of less than 91 days: (i) Government Securities; (ii) T-Bills; and (iii) Repo on Government securities f) Investment in debt instruments having structured obligations/credit enhancements. g) Non-convertible Preference shares. h) Repo transactions in corporate debt securities. i) Units of REITs & InvITs “REIT” or “Real Estate Investment Trust” under SEBI (Real Estate Investment Trusts) Regulations, 2014 means a person that pools rupees fifty crores or more for the purpose of issuing units to at least two hundred investors so as to acquire and manage real estate asset(s) or property(ies), that would entitle such investors to receive the income generated therefrom without 45giving them the day-to-day control over the management and operation of such real estate asset(s) or property(ies). Explanation 1. –For the purpose of these regulations, a REIT or Real Estate Investment Trust shall include an SM REIT under Chapter VIB of these regulations. Explanation 2. –For the removal of doubts, it is hereby clarified that for the purpose of these regulations, any company which acquires and manages real estate asset(s) or property(ies) and offers or issues securities to the investors, shall not be construed as a REIT or Real Estate Investment Trust. “InvIT” or “Infrastructure Investment Trust” shall mean the trust registered as such under SEBI (Infrastructure Investment Trusts) Regulations, 2014. j) Debt instruments with special features. Investments in debt instruments with special features will be made in accordance with SEBI Master Circular for Mutual Funds dated June 27, 2024. k) Units of Mutual Funds Schemes/Exchange Traded Funds. l) Any other domestic fixed income securities subject to requisite approvals from SEBI/RBI, if needed. SO. 30 Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed, in lines with Para 12.30 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024. so The Fund Manager reserves the right to invest in any other securities that may be permitted from time to time and that align with the scheme's investment objectives. Any change in the asset allocation affecting the investment profile of the scheme will be effected only in accordance with SEBI (MF) Regulations. Debt and Money Markets in India The Indian debt market is today one of the largest in Asia and includes securities issued by the Government (Central & State Governments), public sector undertakings, other government bodies, financial institutions, banks and corporates. Government and public sector enterprises are the predominant borrowers in the markets. The major players in the Indian debt markets today are banks, financial institutions, mutual funds, insurance companies, primary dealers, trusts, pension funds and corporates. Market comprises broadly two segments, viz. Government Securities market or G-Sec market and corporate debt market. The latter is further classified as market for PSU bonds and private sector bonds. The Government Securities (G-Secs) market is the oldest and the largest component of the Indian debt market in terms of market capitalization, outstanding securities and trading volumes. The G-Secs market plays a vital role in the Indian economy as it provides the benchmark for determining the level of interest rates in the country through the yields on the Government Securities which are referred to as the risk-free rate of return in any economy. Over the years, there have been new products introduced by the RBI like Cash management bills (CMBs), zero coupon bonds, floating rate bonds, inflation indexed bonds, etc. The corporate bond market, in the sense of private corporate sector raising debt through public issuance in capital market, is a significant and growing part of the Indian Debt Market. A large part of the issuance in the non-Government debt market is currently on private placement basis. The money markets in India essentially consist of the call money market (i.e. market for overnight and term money between banks and institutions), repo transactions (temporary sale with an agreement to buy back the securities at a future date at a specified price), commercial papers (CPs, short term unsecured promissory notes, generally issued by corporates), certificate of deposits (CDs, issued by banks), Cash Management Bills (CMBs issued by RBI) and Treasury Bills (issued by RBI). In the Institutional market, the key money market players are banks, financial institutions, insurance companies, mutual funds, primary dealers and corporates. In money market, activity levels of the Government and non-government debt vary from time to time. Instruments that comprise a major portion of money market activity include but not limited to: Tri-party repo (TREPS) • Repo/Reverse Repo Agreement • Treasury Bills 46• Government securities with a residual maturity of < 1 year. • Commercial Paper • Certificate of Deposit • Cash Management Bills Though not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with a residual maturity of less than 1 year, are actively traded and offer a viable investment option. The market has evolved in past 2-3 years in terms of risk premia attached to different class of issuers. Bank CDs have clearly emerged as popular asset class with increased acceptability in secondary market. PSU banks trade at competitive yields on the back of comfort from majority government holding. Highly rated manufacturing companies also command premium on account of limited supply. However, there has been increased activity in papers issued by private/foreign banks/NBFCs/companies in high-growth or due to higher yields offered by them. Even though companies across these sectors might have been rated on a same scale, the difference in the yield on the papers for similar maturities reflects the perception of their respective credit profiles. The following table gives approximate yields prevailing on June 30, 2025, on some of the instruments and further illustrates this point. Instrument Yield Range Interbank Call Money 5.30 – 5.84% 91 Day Treasury Bill 5.30 – 5.61% 364 Day Treasury Bill 5.36 – 5.61% A1 + Commercial Paper 90 Days 5.98 – 6.45% G-Sec 5 year 5.83 – 6.11% G-Sec 10 year 6.25 – 6.37% 1 Year Corporate Bond – AAA Rated 6.44 – 6.73% 3 Year Corporate Bond – AAA Rated 6.59 – 6.84% 5 Year Corporate Bond – AAA Rated 6.69 – 6.93% These yields are indicative and do not indicate yields that may be obtained in future as interest rates keep changing consequent to changes in macro-economic conditions and RBI policy. The price and yield on various debt instruments fluctuate from time to time depending upon the macro economic situation, inflation rate, overall liquidity position, foreign exchange scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc. The Fund Manager reserves the right to invest in such securities as maybe permitted from time to time and which are in line with the investment objectives of the Scheme. B. What are the investment restrictions? Pursuant to Regulations, specifically the Seventh schedule and amendments thereto, the following investment restrictions are currently applicable to the Scheme: 1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activities under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV of the Scheme with the prior approval of the Board of Trustee and the Board of Directors of AMC. Further, the scheme shall not invest more than: a. 10% of the AUM in debt and money market securities rated AAA; or b. 8% of the AUM in debt and money market securities rated AA; or c. 6% of the AUM in debt and money market securities rated A and below issued by a single issuer. 47The above investment limits may be extended by up to 2% of the debt portfolio of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and Tri-party Repos on Government securities or treasury bills (TREPS). Provided further that investment within such limit can be made in mortgaged backed securitized debt which are rated not below investment grade by a credit rating agency registered with SEBI. Provided further that such limit shall not be applicable for investments in case of debt exchange traded funds or such other funds as may be specified by SEBI from time to time. Note: According to the Asset Allocation of the Scheme, the indicative allocation of the Scheme to Debt and Money market instruments shall be in the range of 0% to 5% of the net assets of the Scheme, subject to conditions specified. 2. A mutual fund scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments. Provided that Mutual Fund Schemes may invest in unlisted nonconvertible debentures up to a maximum of 10% of the debt portfolio of the scheme subject to such conditions as may be specified by the Board from time to time: Provided further that mutual fund schemes shall comply with the norms under this clause within the time and in the manner as may be specified by the Board: Provided further that the norms for investments by mutual fund schemes in unrated debt instruments shall be specified by the Board from time to time. 3. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund (restricted to only debt and liquid funds) without charging any fees, provided the aggregate inter-scheme investment made by all the schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the Net Asset Value of the Mutual Fund. 4. The scheme shall not make any investment in i) Any unlisted security of an associate or group company of the sponsor ii) Any security issued by way of private placement by an associate or group company of the sponsor; or iii) The listed securities of group companies of the sponsor which in excess of 25% of net assets. 5. The Mutual Fund shall get the securities purchased or transferred in the name of the Fund on account of the concerned Scheme, wherever investments are intended to be of a long-term nature. 6. Transfer of investments from one scheme to another scheme in the same Mutual Fund is permitted provided: i. such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall have the same meaning as specified by a Stock Exchange for spot transactions); and ii. the securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made and Valuation policy of the Company. iii. IST purchases would be allowed subject to the guidelines as specified in Paragraph 12.30 of SEBI Master circular on Mutual Funds dated June 27, 2024. 7. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: 48Further the Mutual Fund may enter into Derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. 8. The sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the RBI in this regard. 9. The Scheme shall not make any investment in any fund of funds scheme. 10. Liquid Funds and Overnight Funds shall not park funds pending deployment in short term deposits of scheduled commercial banks as per paragraph 4.5 of SEBI Master Circular on Mutual Funds dated June 27, 2024. 11. Liquid funds shall hold at least 20% of its net assets in liquid assets. For this purpose, ‘liquid assets’ shall include Cash, Government Securities, T-bills and Repo on Government Securities. In case, the exposure in such liquid assets falls below 20% of net assets of the scheme, the AMC shall ensure compliance with the above requirement before making any further investments. 12. Liquid Funds and Overnight Funds shall not invest in debt securities having structured obligations (SO rating) and/ or credit enhancements (CE rating). However, debt securities with government guarantee shall be excluded from such restriction. 13. The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of Repurchase/Redemption of Unit or payment of interest and/or Dividend to the Unit holder. 14. The Fund shall not borrow more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a period of 6 months. 15. Schemes shall not have total exposure exceeding 20% of its net assets in a particular sector (excluding investments in Bank Certificate of Deposits Short Term Deposits with scheduled commercial banks, CBLO, Government of India Securities, Treasury Bills and AAA rated Securities issued by Public Financial Institutions and Public Sector Banks). Provided that an additional exposure to financial services sector (over and above the limit of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only.SO.31 Further, an additional exposure of 5% of the net assets of the scheme has been allowed for investments in securitized debt instruments based on retail housing loan portfolio and/or affordable housing loan portfolio. Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these HFCs are registered with National Housing Bank and the total investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme. 16. Mutual Funds/AMCs shall ensure that total exposure of debt schemes of mutual funds in a group (excluding investments in securities issued by Public Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of the net assets of the scheme. Such investment limit may be extended to 25% of the net assets of the scheme with the prior approval of the Board of Trustees. For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates. The investments by debt mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the asset management company shall not exceed 10% of the net assets of the 49scheme. Such investment limit may be extended to 15% of the net assets of the scheme with the prior approval of the Board of Trustees. As per Paragraph 12.9.3.3 of SEBI Master circular on Mutual Funds dated June 27, 2024, for the purpose of this provision, ‘Group’ shall have the same meaning as defined in paragraph 2 (mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates . The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time. All the investment restrictions will be applicable at the time of making investments. Apart from the Investment Restrictions prescribed under the Regulations, internal risk parameters for limiting exposure to a particular scrip or sector may be prescribed from time to time to respond to the dynamic market conditions and market opportunities. The AMC/Trustee may alter these above stated restrictions from time to time to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. C. Fundamental Attributes SO. 59 Following are the Fundamental Attributes of the scheme, in terms of paragraph 1.14 of SEBI Master Circular for Mutual Funds dated June 27, 2024: (i) Type of a scheme - To generate optimal returns consistent with moderate levels of risk and high liquidity by investing in debt and money market instruments. (ii) Investment Objective Main Objective - Growth Investment Pattern – Please refer to Section ‘How will the Scheme Allocate its Assets?’ (iii) Terms of Issue - Liquidity provisions such as listing, repurchase, redemption. The Scheme(s) will offer Units for Redemption/Switch out on every Business Day at NAV based prices except in special circumstances described in this Scheme Information Document. - Aggregate fees and expenses charged to the scheme. Please refer to section Part III- OTHER DETAILS - C. ANNUAL SCHEME RECURRING EXPENSES for details - Any safety net or guarantee provided. The Scheme does not assure or guarantee any returns. Changes in Fundamental Attributes: In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, 1996 and Clause 1.14.1.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024 the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plans(s)/Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s)/Option(s) thereunder and affect the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit load. 50D. Other Scheme Specific Disclosures: Listing and Transfer The scheme is an open ended scheme and would not be listed on any of the stock exchanges. The Trustees, at its discretion, can undertake listing on any of the stock exchange on a later date. The units of the scheme can be transferred in demat form in addition to the account statement. Additions/ deletion of names will not be allowed under any folio of the scheme. This however will not apply in case of death of unitholder (in respect of joint holdings) as this would be treated as transmission of units and not transfer. Dematerialization of units Pursuant to Para 14.4.2 of SEBI Master Circular on Mutual Funds dated SO. 57 (a), (b) (c) June 27, 2024, Abakkus Mutual Fund will provide an option to the investors of the Fund to mention demat account details in the subscription form, in case they desire to hold units in the dematerialised mode. The option to subscribe to the units in the dematerialised mode is available for all the schemes of the Fund, except for subscription through Systematic Investment Plan (SIP) and for plans / options. Minimum Target amount The Fund seeks to collect a minimum subscription amount of Rs. 20,00,00,000/- (Indian rupees twenty crore) under the scheme. Maximum Amount to be raised There is no upper limit on the total amount to be collected in the New (if any) Fund Offer. Dividend Policy (IDCW) Any IDCW shall be compulsorily reinvested in the same option under the scheme at prevailing NAV on record date. The Scheme may declare IDCW subject to the availability of distributable surplus and approval from Trustees. IDCW would become payable to the unitholders whose names appear on the register of unitholders on the record date as fixed for the scheme. The IDCW declared will be paid net of tax deducted at source, wherever applicable. There is no assurance or guarantee to the Unit holders as to the rate of IDCW distribution nor that the IDCW will be declared regularly. If the Fund declares IDCW, the NAV of the Scheme would stand reduced by the amount of IDCW. IDCW is the amount that can be distributed out of equalisation reserve which is part of the sale price that represents realised gains Allotment SO. 60 All Applicants whose monies towards purchase of Units have been realised by the Fund will receive a full and firm allotment of Units, provided also the applications are complete in all respects and are found to be in order. Any application for subscription of units may be rejected if found invalid, incomplete subject to SEBI Regulation. For applicants applying through 'APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA)', during NFO, on allotment, the amount will be unblocked in their respective bank accounts and account will be debited only to the extent required to pay for allotment of Units applied in the application form. Allotment of Units shall be subject to: (i) the achievement of the minimum target amount; (ii) receipt of complete Application Forms that are in order; (iii) realisation of the specified minimum Subscription amount from the Investor etc. Note: Allotment of units will be done after deduction of applicable stamp duty and transaction charges, if any. Applicants under the Scheme will have an option to hold the Units either in physical form (i.e. account statement) or in dematerialized form. Accordingly, the AMC shall allot units either in physical form (i.e. account statement) or in dematerialized form within 5 Business Days from the date of closure of 51the NFO period/ receiving transactions request during continuous offer period. On a Continuous basis: The AMC shall issue units in dematerialized form to a unit holder in the Scheme within 2 Business Days from the date of allotment. All Units will rank pari passu, among Units within the same Option in the Scheme. Face Value per unit of all Plans/ Options under the Scheme is Rs.100/-. The Unit holder may request for a physical account statement without any charges by writing to/calling the AMC/ISC/RTA. The Mutual Fund/ AMC shall dispatch an account statement within 5 Business Days from the date of the receipt of request from the Unit holder. Refund If application is rejected, full amount will be refunded within five business days of the closure of New Fund Offer Period or within such period as allowed by SEBI. If refunded after the time period stipulated under the Regulations, interest @ 15% p.a. for delay period will be paid and charged to the AMC. Who can invest The following persons (subject to, wherever relevant, purchase of unit of This is an indicative list and the scheme of the Mutual Fund, being permitted and duly authorized investors shall consult their under their respective bye-laws/constitutions, and relevant statutory financial advisor to ascertain regulations) are eligible and may apply for Subscription to the Units of the whether the scheme is suitable Scheme: to their risk profile. 1. Resident adult individuals either singly or jointly (not exceeding three) or on an Anyone or Survivor basis; 2. Hindu Undivided Family (HUF) through Karta; 3. Minors through their parent / legal guardian; 4. Partnership Firms; 5. Limited Liability Partnerships 6. Proprietorship in the name of the sole proprietor; 7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.), Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860(so long as the purchase of Unit is permitted under the respective constitutions; 8. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions; 9. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private trusts authorized to invest in mutual fund schemes under their trust deeds; 10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) residing abroad on repatriation basis or on non-repatriation basis; 11. Foreign Institutional Investors (FIIs) and their sub-accounts registered with SEBI on repatriation basis; 12. Army, Air Force, Navy and other para-military units and bodies created by such institutions; 13. Scientific and Industrial Research Organizations; 14. Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI 15. Provident/ Pension/ Gratuity Fund to the extent they are permitted; 16. Qualified Foreign Investors (QFI) on repatriation basis; 17. Foreign Portfolio Investor (FPI) as registered with SEBI on repatriation basis; 18. Other schemes of Abakkus Mutual Fund or any other mutual fund subject to the conditions and limits prescribed by SEBI Regulations; 5219. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme(s) 20. Such other person as maybe decided by the AMC from time to time. Who cannot invest The persons/entities as specified under section “Who Can Invest?” shall not be eligible to invest in the Scheme, if such persons/entities are: 1. United States Person (U.S. person*) as defined under the extant laws of the United States of America, except the following: a. NRIs/PIOs may invest/transact, in the Scheme, when present in India, as lump sum subscription, redemption and/or switch transaction, including registration of systematic transactions only through physical form and upon submission of such additional documents/undertakings, etc., as may be stipulated by AMC/Trustee from time to time and subject to compliance with all applicable laws and regulations prior to investing in the Scheme. b. FPIs may invest in the Scheme as lump sum subscription and/or switch transaction (other than systematic transactions) through submission of physical form in India, subject to compliance with all applicable laws and regulations and the terms, conditions, and documentation requirements stipulated by the AMC/Trustee from time to time, prior to investing in the Scheme. The Trustee/AMC reserves the right to put the transaction requests received from such U.S. person on hold/reject the transaction request/redeem the units, if allotted, as the case may be, as and when identified by the AMC that the same is not in compliance with the applicable laws and/or the terms and conditions stipulated by Trustee/ AMC from time to time. Such redemptions will be subject to applicable taxes and exit load, if any. The physical application form(s) for transactions (in non-demat mode) from such U.S. person will be accepted ONLY at the Investor Service Centres (ISCs) of AMC. Additionally, such transactions in physical application form(s) will also be accepted through Distributors and other platforms subject to receipt of such additional documents/undertakings, etc., as may be stipulated by AMC/Trustee from time to time from the Distributors/Investors with additional declarations. 1. Residents of Canada; 2. Investor residing in any Financial Action Task Force (FATF) designated High Risk jurisdiction. *The term “U.S. person” means any person that is a U.S. person within the meaning of Regulations under the Securities Act of 1933 of U.S. or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc, as may be in force from time to time. Such other persons as may be specified by AMC from time to time. The Fund reserves the right to include/exclude new/existing categories of investors who can invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, as applicable. 53The AMC/Trustee shall not be liable for any loss or expenses incurred in respect of those transaction requests/allotted units which have been kept on hold or rejected or reversed. How to Apply and other details. The Application Forms/Change Request Forms for KYC are available at the ISC of AMC and KFIN and at the website of Mutual Fund https://www.abakkusmf.com/ SO. 35 Please refer to the SAI and Application form for the instructions. Official Point of Acceptance is available at: Abakkus Mutual Fund: https://www.abakkusmf.com/ KFIN Technologies Limited SEBI Registration – INR000000221 Address – Selenium Building, Tower-B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, R. R. District, Telangana – 500 032 India Website – www.kfintech.com Name, address and contact no. of official points of acceptance, collecting banker details etc. are available on back cover page of the SID. Please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI. SO. 61 The policy regarding reissue of Not Applicable repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the right The units of the scheme can be transferred in demat form in addition to to freely retain or dispose of the account statement. Additions/ deletion of names will not be allowed units being offered under any folio of the scheme. This however will not apply in case of death of unitholder (in respect of joint holdings) as this would be treated as transmission of units and not transfer. Please refer SAI for the procedure of transmission & pledging. Investors are requested to visit the funds website for the list of prescribed documents under any of the procedures or call the investors service centres for any clarification on the above. There is no upper limit of redemption. However, this is subject to the following: a) The repurchase would be permitted to the extent of credit balance in the Unit holder’s account. b) The Asset Management Company (AMC) may, in the general interest of all Unit holders of the Scheme, keep in view the unforeseen circumstances/unsure conditions, limit the total number of Units which may be redeemed on any Business Day. c) Restrictions may be imposed under the following circumstances that lead to a systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets. a) Liquidity issues - When markets at large become illiquid, affecting all securities rather than any issuer specific security. b) Market failures, exchange closures - When markets are affected by unexpected events which impact on the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies. 54c) Operational issues - When exceptional circumstances are caused by force majeure, unpredictable operational problems, and technical failures (e.g., a blackout). Under the aforesaid circumstances, the AMC / Trustee may restrict redemption for a specified period of time not exceeding 10 working days in any 90 days period. Any imposition of restriction on redemption/switch of units would require specific approval of Board of AMCs and Trustees and the same should be informed to SEBI immediately. Unitholders should note that the following provisions shall be applicable when redemption requests are placed during such restricted period. i) No redemption requests up to Rs. 2 lakh shall be subject to such restriction and ii) Where redemption requests are above Rs. 2 lakh, AMCs shall redeem the first Rs. 2 lakh without such restriction and remaining part over and above Rs. 2 lakh shall be subject to such restriction. Refer SAI for further details. Cut off timing for subscriptions/ The below cut-off timings and applicability of NAV shall be applicable in redemptions/ switches This is respect of valid applications received at the Official Point(s) of the time before which your Acceptance on a Business Day: application (complete in all respects) should reach the For Subscriptions/Purchases including Switch-Ins for liquid scheme: official points of acceptance a)Where the application is received upto 1.30 pm on a Business Day and funds are available for utilization before the cut-off time, the closing NAV of the day immediately preceding the day of receipt of application. b) Where the application is received after 1.30 pm on a Business Day and funds are available for utilization on the same day, the closing NAV of the day immediately preceding the next Business Day. c) Irrespective of the time of receipt of application, where the funds are not available for utilization before the cut-off time, the closing NAV of the day immediately preceding the day on which the funds are available for utilization. For Redemptions including Switch - outs: -In respect of valid applications received up to 3.00 p.m. – the closing NAV of the day immediately preceding the next Business Day ; and -In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next Business Day shall be applicable. Minimum amount for During NFO: purchase/redemption/switches Minimum application amount (lumpsum): Rs. 1000/- and in multiples of Re. 1/- thereafter. On Continuous basis: Minimum amount for purchase/Switch in Rs. 100/- and in multiples of Re 1/- thereafter Minimum Additional Purchase Amount Rs. 100/- and in multiples of Re. 1/- thereafter Minimum Redemption Amount/Switch Out Rs. 100/- or 1 Unit or account balance whichever is lower. 55Switch Out- Rs. 500/- and in multiples of Re. 1/- thereafter. The Switch must comply with the redemption rules of the Scheme and the issue rules of the other (receiving ) scheme. In case the Investor specifies both the number of Units and amount, the number of Units shall be considered for Redemption. In case the Unit holder does not specify either the number or amount, the request will not be processed. The minimum amount of Redemption/Switch-out may be changed in future by the AMC/Trustee. Note: The minimum application amount will not be applicable for investment made in the Scheme in line with SEBI circulars on Alignment of interest of Designated Employees of AMC. Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 Business Days of receipt of valid application/transaction to the Unit holders registered e-mail address and/or mobile number (whether units are held in demat mode or in account statement form). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor if any) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month within 12 days from the end of the month for the unitholders who have opted for delivery via electronic mode and within 15 days from the end of the month for unitholders who have opted for delivery via physical mode. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before 18th day of April and September for investors who have opted for delivery via electronic mode and on or before 21st day of April and October for investors who have opted delivery via physical mode, providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable. For further details, refer SAI. Dividend/ IDCW The payment of dividend/IDCW to the unitholders shall be made within seven working days from the record date. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within 3 (three) Business Days from the date of redemption or repurchase. For list of exceptional circumstances refer para 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024. For further details, please refer SAI. Bank Mandate Registering Multiple Bank Accounts (Pay-in bank accounts) 1. The AMC has introduced the facility of registering Multiple Bank Accounts in respect of an investor folio. 562. Registering of Multiple Bank Accounts will enable the Fund to systematically validate the Pay-in payment and avoid acceptance of third party payments. “Pay-in” refers to payment by the Fund to the Investor. 3. Investor can register upto 5 Pay-in bank accounts in case of individuals and HUFs, and upto 10 in other cases. 4. In case of Multiple Registered Bank Account, investor may choose one of the registered bank accounts for the credit of redemption/dividend proceeds (being “Pay-out bank account”). Investor may, however, specify any other registered bank accounts for credit for redemption proceeds at the time of requesting for the redemption. Investor may change such Pay-out Bank Account, as necessary, through written instructions. 5. For the purpose of registration of bank accounts(s), Investor should submit Bank Mandate Registration Form together with any of the following documents. i) Cancelled cheque leaf in respect of bank account to be registered; or ii) Bank Statement/Pass Book page with the Investor’s bank account number, name and address. 6. The AMC will register the bank account only after verifying that the sole/1st Joint holder is the holder/one of the joint holders of the bank account. In case the copy of documents is submitted, investor shall submit the original to the AMC/Service Centre for verification and the same shall be returned. 7. Investors may note that in case where his bank account number has changed for any reason, a letter issued by the bank communicating such change is also required to be submitted along with the Bank Mandate Registration Form. 8. In case of existing investors, their existing registered bank mandate, and in case of new Investors, their bank account details as mentioned in the Application Form shall be treated as default account for Pay- out, if they have not specifically designated a default Pay-out bank account. Investors may change the same through written instructions. 9. Where an investor proposes to delete his existing default Pay-out account, he shall compulsorily designate another account as default account. 10. In case of modification in the Bank Mandate, the AMC may provide for a cooling period of upto 10 days for revised mandate/default Bank Account. The same shall be communicated to the investor through such means as may be deemed fit by the AMC. Bank account which is stated first shall be treated as default bank account. For further details please refer to paragraph on Registration of Multiple Bank Accounts in respect of an Investor Folio in the SAI. The AMC reserves the right to alter/ discontinue all / any of the above-mentioned special product(s)/ facility(ies) at any point of time. Further, the AMC reserves the right to introduce more special product(s) / facility(ties) at a later date subject to prevailing SEBI Guidelines and Regulations. Investors may also note the terms and conditions as appearing in the Multiple Bank Account Registration Form are also available at the Investor Service Centre/AMC Website. The AMC may request for such 57additional documents or information as it may deem fit for registering the aforesaid Bank Accounts. Delay in payment of The Asset Management Company shall be liable to pay interest to the redemption/repurchase unitholders at rate of 15% per annum (or such rate as may be prescribed proceeds/dividend by SEBI from time to time) specified vide paragraph 14.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024 by SEBI for the period of such delay. Unclaimed Redemption and In accordance with para 14.3 of SEBI Master Circular dated 27th Income Distribution cum Capital June’2024, the unclaimed Redemption amount may be deployed by the Withdrawal Amount SO. 52 Mutual Fund in call money market or money market Instruments as well as in a separate plan or liquid scheme/overnight scheme/money market mutual fund scheme floated by mutual funds. Investors who claim these amounts during a period of three years from the due date shall be paid initial unclaimed amount along with the income earned on its deployment. Investors who claim these amounts after 3 years, shall be paid initial unclaimed amount along with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. AMC shall play a proactive role in tracing the rightful owner of the unclaimed amounts considering the steps suggested by regulator vide the referred circular. Disclosure w.r.t investment by Payment for investment by means of Cheque or any other mode shall be minors SO.37 accepted from the bank account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parent or legal guardian only, else the transaction is liable to get rejected. However, irrespective of the source of payment for subscription, all redemption proceeds shall be credited only in the verified bank account of the minor, i.e. the account the minor may hold with the parent/legal guardian after completing all KYC formalities. For systematic transactions in a minor’s folio, AMC would register standing instructions till the date of the minor attaining majority. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. No further transactions shall be allowed till the status of the minor is changed to major. Investments in the name of the minor through guardian will be guided by process mentioned in para 17.6.1 SEBI Master Circular No SEBI/HO/IMD/IMD-PoD1/P/CIR/2024/90 dated June 27, 2024 Investors can also subscribe to Purchase/Redemption of units through Stock Exchange Infrastructure: the Units of the Scheme through MFSS facility of NSE and BSE The investors can purchase and redeem units of the scheme on Mutual StAR MF facility of BSE Fund Services System (MFSS) of the National Stock Exchange of India Ltd. (NSE) and on the BSE Platform for Allotment and Repurchase of Mutual Funds (BSE StAR MF System) of Bombay Stock Exchange Limited (BSE). The following are the salient features of the abovementioned facility: A. The MFSS and BSE StAR MF System are the electronic platforms provided by NSE and BSE respectively to facilitate purchase/ redemption of units of mutual fund scheme(s). The units of eligible schemes are not listed on NSE & BSE and the same cannot be traded on the stock exchange like shares. 58B. The facility for purchase/redemption of units on MFSS/BSE StAR MF will be available on all business days between 9.00 a.m. to 3.00 p.m. or such other time as may be decided from time to time. C. Eligible Participants All the trading members of NSE and BSE who are registered with AMFI as mutual fund advisor and who are registered with NSE and BSE as Participants will be eligible to offer MFSS and BSE StAR MF System respectively (‘Participants’). In addition to this, the Participants will be required to be empanelled with Abakkus Investment Managers Private Limited and comply with the requirements which may be specified by SEBI/NSE/BSE from time to time. All such Participants will be considered as Official Points of Acceptance (OPA) of Abakkus Mutual Fund in accordance with the provisions of SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006. D. Eligible investors The facility for purchase/redemption of units of the scheme will be available to existing as well as new investors. However, switching of units is not currently permitted. To purchase /redeem the units of the scheme through MFSS facility, an investor is required to sign up for MFSS by providing a letter to Participant in the format prescribed by NSE. For availing BSE StAR MF System, the investor must comply with operating guidelines issued by BSE. E. Investors have an option to hold units in either physical mode or dematerialized (electronic) mode. F. Cut off timing for purchase /redemption of units Time stamping as evidenced by confirmation slip given by stock exchange mechanism will be considered for the purpose of determining applicable NAV and cut off timing for the transactions. The applicability of NAV will be subject to guidelines issued by SEBI on uniform cut-off time for applicability of NAV. G. The procedure for purchase/redemption of units through MFSS/BSE StAR MF System is as follows: • Physical mode: Purchase of Units: a. The investor is required to submit purchase application form (subject to limits prescribed by NSE/BSE from time to time) along with all necessary documents to the Participant. b. Investor will be required to transfer the funds to Participant. c. The Participant shall verify the application for mandatory details and KYC compliance. d. After completion of the verification, the Participant will enter the purchase order in the Stock Exchange system and issue system generated order confirmation slip to the investor. Such confirmation 59slip will be the proof of transaction till the investor receives allotment details from Participant. e. The Participant will provide allotment details to the investor. f. The Registrar will send Statement of Account showing number of units allotted to the investor. Redemption of Units: a. The investor is required to submit redemption request (subject to limits prescribed by NSE/BSE from time to time) along with all necessary documents to Participant. b. After completion of verification, the Participant will enter redemption order in the Stock Exchange system and issue system generated confirmation slip to the investor. The confirmation slip will be proof of transaction till the redemption proceeds are received from the Registrar. c. The redemption proceeds will be directly sent by the Registrar through appropriate payment mode such as direct credit, NEFT or cheque/demand draft as decided by AMC from time to time, as per the bank account details available in the records of Registrar. • Depository mode: Purchase of Units: • The investor intending to purchase units in Depository mode is required to have depository account (beneficiary account) with the depository participant of National Securities Depository Ltd. and/or Central Depository Services (India) Ltd. • The investor is required to place an order for purchase of units (subject to limits prescribed by NSE/BSE from time to time) with the Participant. • The investor should provide his Depository account details along with PAN details to the Participant. Where investor intends to hold units in dematerialized mode, KYC performed by Depository Participant will be considered compliance with applicable requirements specified in this regard in terms of clause 16.1.1 of SEBI Master Circular on Mutual Funds dated June 27, 2024 • The Participant will enter the purchase order in the Stock Exchange system and issue system generated order confirmation slip to the investor. Such confirmation slip will be the proof of transaction till the investor receives allotment details from Participant. • The investor will transfer the funds to the Participant. • The Participant will provide allotment details to the investor. • Registrar will credit units to the depository account of the investor directly through credit corporate action process. • Depository Participant will issue demit statement to the investor showing credit of units. Redemption of Units: 1) Investors who intend to redeem units through dematerialized mode must either hold units in depository (electronic) mode or convert his existing units from statement of account mode to depository mode prior to placing of redemption order. 602) The investor is required to place an order for redemption (subject to limits prescribed by NSE/BSE from time to time) with the Participant. The investor should provide their Depository Participant on same day with Depository Instruction Slip with relevant units to be credited to Clearing Corporation pool account. 3) The redemption order will be entered in the system and an order confirmation slip will be issued to investor. The confirmation slip will be proof of transaction till the redemption proceeds are received from the Registrar. 4) The redemption proceeds will be directly sent by the Registrar through appropriate payment mode such as direct credit, NEFT or cheque/demand draft as decided by AMC from time to time, as per the bank account details recorded with the Depository. H. An account statement will be issued by Abakkus Mutual Fund to investors who purchase/redeem units under this facility in physical mode. In case of investor who purchase/redeem units through this facility in dematerialized mode, his depository participant will issue demit statement showing credit/debit of units to the investor’s accounts. Such demit statement given by the Depository Participant will be deemed to be adequate compliance with the requirements for dispatch of statement of account prescribed by SEBI. I. Investors should note that electronic platform provided by NSE/BSE is only to facilitate purchase/redemption of units in the Scheme. In case of non-commercial transaction like change of bank mandate, nomination etc. the Unit holder should submit such request to the Investor Services Center of Abakkus Mutual Fund in case of units held in physical mode. Further in case of units held in dematerialized mode, requests for change of address, bank details, nomination should be submitted to his Depository Participant. J. Investors will be required to comply with Know Your Customer (KYC) norms as prescribed by BSE/NSE/NSDL/CDSL and Abakkus Mutual Fund to purchase/redeem units through stock exchange infrastructure. Investors should note that the terms & conditions and operating guidelines issued by NSE/BSE shall be applicable for purchase/ redemption of units through stock exchange infrastructure III. Other Details I. Periodic Disclosures Half yearly Disclosures: The Mutual Fund shall provide a complete statement of the Scheme Portfolio/Financial Results portfolio within ten days from the close of each half year (i.e. 31st March and 30th September), in the manner specified by SEBI. The Portfolio This is a list of securities where Statement will also be displayed on the website of the AMC and AMFI. the corpus of the Scheme is currently invested. The market Paragraph 5.3 of SEBI Master Circular on Mutual Funds dated June 27, value of these investments is 2024, the AMC shall within one month from the close of each half year, also stated in portfolio that is on 31st March and on 30th September, host a soft copy of its disclosures. unaudited financial results on its website: https://www.abakkusmf.com. 61and publish a notice regarding availability of the same in at least one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the mutual fund is situated. Monthly Portfolio Disclosure The Mutual Fund shall disclose the Portfolio of the Scheme as on the last day of the month on its website https://www.abakkusmf.com on or before the tenth day of the succeeding month in the prescribed format and AMFI W ebsite at www.amfiindia.com Annual Report The Scheme wise annual report or an abridged summary thereof shall be provided to all Unit holders not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31stMarch each year) in the manner specified by SEBI. The mutual fund shall provide physical copy of the abridged summary of the Annual Report without any cost, if a request through any mode is received from a unitholder. The full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. Scheme wise annual report shall also be displayed on the website of the AMC https://www.abakkusmf.com and Association of Mutual Funds in India (www.amfiindia.com). A link of the scheme annual report or abridged summary shall be displayed prominently on the website of the Fund and shall also be displayed on the website of Association of Mutual Funds in India (AMFI) (www.amfiindia.com). Scheme Summary Document In accordance with Paragraph 1.2 of SEBI Master on Mutual Funds dated (SSD) SO. 38 June 27, 2024, Scheme summary document for all schemes of Mutual Fund in the requisite format (pdf, spreadsheet and machine readable format) shall be uploaded on a monthly basis i.e. 15th of every month or within 5 Business days from the date of any change or modification in the scheme information on the website of the AMC i.e. https://www.abakkusmf.com and AMFI i.e. www.amfiindia.com and Registered Stock Exchanges i.e. National Stock Exchange of India Limited and BSE Limited. Risk-o-meter In accordance with Paragraph 17.4 of SEBI Master Circular on Mutual Funds SO. 38 dated June 27, 2024, the Risk-o-meter shall have following six levels of risk: i. Low Risk ii. Low to Moderate Risk iii. Moderate Risk iv. Moderately High Risk v. High Risk and vi. Very High Risk Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders. The risk-o-meter shall be evaluated on a monthly basis and the risk-o-meter along with portfolio disclosure shall be disclosed on the AMC website as well as AMFI website within 10 days from the close of each month. Further, Paragraph 5.16 of SEBI Master Circular on Mutual Funds dated June 27, 2024: AMCs shall disclose the following in all disclosures, including promotional material or that stipulated by SEBI: 62II. Risk-o-meter of the scheme wherever the performance of the scheme is disclosed. II. Risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that of the benchmark is disclosed. The portfolio disclosure in terms of paragraph 17.4.1.i of SEBI Master Circular on Mutual Funds dated June 27, 2024 on ‘Go Green Initiative in Mutual Funds’ shall also include the scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark. Investors may refer to the website/portfolio disclosure for the latest Risk-o-meter of the Scheme. AMFI Best Practice Guidelines Non-individual Investors are requested to note the following: Circular No. 118/2024-25) on Acceptance of financial 1. Risks Involved in Transacting via Email transactions through email in respect of non-individual The Non-individual investor acknowledges and accepts the inherent risks investor. associated with conducting financial transactions via email. These risks include, but are not limited to, the possibility of unauthorized access to email communications, transmission delays, data loss, or alteration due to technical glitches or cyberattacks, which could impact the completeness or accuracy of the transaction. Additionally, emails may be susceptible to interception, unauthorized access, and other security vulnerabilities, which could lead to fraudulent transactions. Therefore, investors must be cautious while initiating financial transactions via email and should ensure the confidentiality and integrity of their communication. 2. Limitation of Liability of AMC / RTAs. The Asset Management Company (AMC) and the Registrar and Transfer Agent (RTA) shall not be held liable for any loss or damage caused by the non-receipt or delay in receiving any transaction sent by the investor via email. This includes situations where emails are not delivered, are delayed, or are intercepted due to issues beyond the control of the AMC or RTA, including but not limited to, technical failures, service provider errors, or unauthorized access to the email account. The AMC and RTA will not be responsible for any transactions that are erroneously processed or not processed due to such issues. The liability of the AMC and RTA is limited solely to the extent of ensuring that the transaction is processed once received in the proper format and within a reasonable timeframe, subject to system availability and security checks. responsible for any transactions that are erroneously processed or not processed due to such issues. The liability of the AMC and RTA is limited solely to the extent of ensuring that the transaction is processed once received in the proper format and within a reasonable timeframe, subject to system availability and security checks. 3. Security Measures to Ensure Safe Email Communication The AMC and RTA are committed to ensuring the highest level of security for email communications and shall implement appropriate safeguards. These measures include the use of encrypted email services, secure authentication protocols, and virus/malware scanning for all incoming and outgoing emails. Additionally, access to email accounts and transaction systems shall be restricted to authorized personnel only, and multi-factor authentication will be employed to verify the identity of the individuals initiating transactions. The AMC shall take all reasonable steps to prevent 63unauthorized access, disclosure, or alteration of the financial data transmitted via email. 4. Retention of Transaction Records: The AMC and RTA will retain records of all transactions routed via email in accordance with applicable laws and regulations. These records will include, but are not limited to, transaction requests, email correspondence, and confirmation receipts, for a minimum period as mandated by regulatory authorities. The Non-Individual investor agrees that these records shall be stored in a secure digital format to ensure their integrity and availability for future reference. The trail for each transaction, allowing for the traceability of emails and the status of each request submitted via email. 5. Procedure for Addition/Deletion of Authorized Signatories: The facility to transact via email shall follow an appropriate procedure for the addition or deletion of authorized signatories. Such changes must be communicated to the AMC through a formal notification, in the form of a signed letter or email from the authorized representative of the entity, accompanied by the requisite board resolution or authority letter. The AMC shall process these changes only upon receipt of valid documentation confirming the updated list of authorized signatories and only be effective once the AMC has acknowledged receipt and validation of the notification. 6. Authorization for Non-Individual Investors: For non-individual investors, including registered mutual fund distributors or third parties authorized by the investor, to submit financial transactions via email on behalf of the entity, the AMC and RTA require prior written authorization from the investor. This authorization should clearly state the scope of authority granted to the third party and must be submitted with each transaction request. The AMC will accept such transactions only if the relevant authorization documents are in place and the corresponds with the pre-registered contact information for the entity or authorized third party. 7. Security Procedures for Transaction Confirmation To confirm and authenticate email-based financial transactions, the AMC will employ a range of security procedures, including digital signatures, encrypted communication, and multi-step verification processes. These procedures are designed to verify that the transaction is genuinely authorized by the investor and ensure that the instructions have not been tampered with. Upon receipt of an email transaction, the AMC will conduct thorough checks to confirm the authenticity of the request, including comparing it against the pre-registered information (email addresses, signatories, etc.). Only upon successful verification will the transaction be processed. 8. Electronic Time Stamping and Audit Trail for Email Transactions 64Each transaction processed via email shall be subject to an electronic time- stamping mechanism that records the exact time and date of receipt. This time stamp will serve as a reference point for any future inquiries or disputes regarding the transaction. Furthermore, AMC shall maintain an audit trail, tracking all actions related to the email transaction, including receipt, verification, and processing. The audit trail will provide transparency, ensure accountability, and facilitate the resolution of any issues related to email-based transactions. 9. Change in Registered Email Address/Contact Details Any change in the registered email address or contact details of the entity must be communicated to the AMC via a physical letter, including a scanned copy, signed by the designated authorized officials of the entity. This change request must also be supported by a copy of the relevant board resolutions or authority letter from the entity, issued on the official letterhead. The AMC will not accept email requests for such changes. Further, changes in the registered email address will not be processed unless the request complies with these requirements. This ensures that only authorized personnel can modify the contact details associated with the Non-individual investor’s account. 10. Changes in Bank Mandate: No changes to the bank mandate (including adding or modifying bank account details) will be accepted via email. Such changes must be submitted using the prescribed service request form, duly signed by the entity’s authorized signatories. The form must also be accompanied by the wet signatures of the designated officials of the entity. This ensures the authenticity and validity of any change in the bank details associated with the Non- individual Investor’s account, and that no unauthorized modifications made via email. 11. Digital Signatures and Validity of Electronically Executed Documents: In case of any document executed electronically, the AMC recognizes the validity of Digital Signature Certificates (DSCs) or Aadhaar-based e- signatures provided by the authorized officials of the entity. These digitally signed documents will be treated as legally binding and valid, even if they are not sent from the registered email address of the authorized officials. However, the email domain from which the document is sent must match the official domain name of the entity. Such documents, when executed with a valid DSC or e-signature, will be processed by the AMC without requiring further verification through physical signatures 2. Transparency/NAV Disclosure [Details with reference to information given in Section I] SO. 41 The AMC will calculate and disclose the first NAVs of the Scheme not later than 5 Business Days from the date of allotment of units under the NFO. Subsequently, the AMC will calculate and disclose NAVs at the close of every Business Day in the manner specified by SEBI. The Net Asset Value of the scheme shall be calculated on daily basis and disclosed in the manner specified by SEBI. Abakkus Investment Managers Private Limited (“AMC”) shall update the NAVs on its website https://www.abakkusmf.com/and of the Association of Mutual Funds in India (“AMFI”) (www.amfiindia.com) before 11.00 p.m. every Business Day. In case of any delay, the reasons for such delay would be explained to 65AMFI in writing. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. The AMC will disclose the portfolio in a user friendly & downloadable spreadsheet format, as on the last day of the month /half year for the scheme(s) on its website https://www.abakkusmf.com/and on the website of AMFI (www.amfiindia.com) of the Scheme within ten days from the close of each month/half year. In case of investors whose email addresses are registered with Abakkus MF, the AMC shall send via email both the monthly and half yearly statement of scheme portfolio within 10 days from the close of each month/half year respectively. The AMC will make available the Annual Report of the Scheme within four months of the end of the financial year. The Annual Report shall also be displayed on the website of AMC and AMFI. 3. Transaction charges and stamp duty Transaction Charges: Transaction charges have been removed pursuant to SEBI Circular No. SEBI/HO/IMD/PoD1/CIR/P/2025/115 dated August 08, 2025. Stamp Duty: Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019, a stamp duty at the rate of 0.005% of the transaction value would be levied on applicable mutual fund investment transactions such as purchases (including switch-in) with effect from July 1, 2020. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchases, switch-ins, Systematic Investment Plan (SIP) installments, Systematic Transfer Plan (STP-ins ) installments etc. to the unit holders would be reduced to that extent. For further details, refer SAI. 4. Associate Transactions Please refer to Statement of Additional Information (SAI). 5. Taxation For details on taxation please refer to the clause on Taxation in the SAI apart from the following: Nature of Income and Taxability Investors (Resident and Non-Resident) Tax on Income Distribution As per applicable rates Long Term Capital Gain* 12.50% Listed & Unlisted Units Short Term Capital Gain As per applicable rates Note: * For Investment made in Specified Mutual Fund Scheme on or after April 01, 2023, any capital gains would be considered as short term in nature and taxed as per applicable tax rates of the investor irrespective of the holding period of units. Specified Mutual Fund Scheme: means: (a) a Mutual Fund by whatever name called, which invests more than sixty-five per cent of its total proceeds in debt and money market instruments; or a fund which invests sixty-five per cent or more of its total proceeds in units of a fund referred to in sub-clause (a): Provided that the percentage of investment in debt and money market instruments or in units of a fund in respect of the Specified Mutual Fund, shall be computed with reference to the annual average of the daily closing figures. Note: The Finance Act (No.2) 2024 removed indexation benefit available on long-term capital gains from other than equity-oriented mutual fund units. For further details on Taxability please refer to clause of Taxation in the SAI. 66Rights of Unitholders Please refer to SAI for details. 6. List of official points of acceptance: The details pertaining to official points of acceptance of AMC and RTA are available on the website of the AMC at https://www.abakkusmf.com/contact.html 7. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations SO. 48 & SO. 49 There have been no penalties or pending litigation on the AMC since incorporation. The investors may refer to the details on the website of the Company at link: https://www.abakkusmf.com/statutory-disclosures.html# Notes: The Scheme under this Scheme Information Document was approved by the Trustees on September 03, 2025. Notwithstanding anything contained in the Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder shall be applicable. SO. 63 For and on behalf of the Board of Directors of Abakkus Investment Managers Private Limited Sd/- Vaibhav Chugh CEO Place: Mumbai Date: October 01, 2025 67OFFICIAL POINTS OF ACCEPTANCE OF ABAKKUS MF FOR NFO & ONGOING TRANSACTIONS Abakkus Corporate Centre, 9th floor, Param House, Shanti Nagar, Near Grand Hyatt, off Santacruz Chembur Link Road, Santacruz East, Mumbai – 400055 Website link - https://www.abakkusmf.com/contact.html DETAILS OF ABAKKUS MF INVESTOR SERVICE CENTER OFFICES - KFIN TECHNOLOGIES LIMITED Name, address and contact no. of Registrar and Transfer Agent (R&T): KFin Technologies Limited Unit: Abakkus Mutual Fund Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500032 Contact No.: 040-6716 2222 Website address of R&T: https://www.kfintech.com For list of Investor Service Centres please refer website link: https://www.abakkusmf.com/contact.html In addition to the existing official points of acceptance (“OPA”) for accepting transactions in the units of the schemes of the Abakkus Mutual Fund as disclosed in the SID, https://www.mfuindia.com/ i.e. online transaction portal of MFU. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY *************************************************** 68