DSP Multi Asset Omni Fund of Funds

DRAFT SCHEME INFORMATION DOCUMENT SECTION I SO No. 1 DSP Multi Asset Omni Fund of Funds (An open ended fund of fund scheme investing in units of active and passive schemes of Equity, Debt and Commodity asset classes.) This product is Scheme Riskometer# Benchmark Riskometer# suitable for investors who are 55% Nifty 500 TRI + 15% Domestic seeking*: SO No. 3 Price of Physical Gold (LBMA) + 5% Domestic Price of Physical Silver (LBMA) + 25% NIFTY Composite Debt Index • Long-term capital growth • Investments in units of equity- oriented, debt- oriented and commodity oriented schemes *Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. (# For latest Riskometers, investors may refer on the website of the Fund viz. www.dspim.com ) (The 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. 10 each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices 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 for continuous sale and repurchase within five Business Days from the date of allotment Name of Mutual Fund DSP Mutual Fund Name of Asset Management Company DSP Asset Managers Private Limited CIN of Asset Management Company (U65990MH2021PTC362316) Name of Trustee Company DSP Trustee Private Limited CIN of Trustee Company (U65991MH1996PTC100444) 1Addresses of the entities Mafatlal Centre, 10th Floor, Nariman Point, Mumbai 400021 Website of the entities www.dspim.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 units 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 DSP Mutual Fund, Standard Risk factors, Special Considerations, Tax and Legal issues and general information on www.dspim.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, www.dspim.com. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This draft Scheme Information Document is dated ________ 2TABLE OF CONTENTS Particulars Page No. SECTION I PART I. HIGHLIGHTS / SUMMARY OF THE SCHEME 4 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? 19 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 20 E. WHO MANAGES THE SCHEME? 20 F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF MUTUAL FUND? 22 G. HOW HAS THE SCHEME PERFORMED 22 H. ADDITIONAL SCHEME RELATED DISCLOSURES 23 PART III. OTHER DETAILS 23 A. COMPUTATION OF NAV 23 B. NEW FUND OFFER (NFO) EXPENSES 25 C. ANNUAL SCHEME RECURRING EXPENSES 25 D. LOAD STRUCTURE 28 SECTION II I. INTRODUCTION 30 A. DEFINITIONS/ INTERPRETATION 28 B. RISK FACTORS 32 C. RISK MITIGATION STRATEGIES 39 II. INFORMATION ABOUT THE SCHEME 41 A. WHERE WILL THE SCHEME INVEST 41 B. WHAT ARE THE INVESTMENT RESTRICTIONS? 42 C. FUNDAMENTAL ATTRIBUTES 44 D. INDEX METHODOLOGY 45 E. PRINCIPLES OF INCENTIVE STRUCTURE FOR MARKET MAKERS (FOR ETFS) 45 F. FLOORS AND CEILING WITHIN A RANGE OF 5% OF THE INTENDED ALLOCATION 45 AGAINST EACH SUB CLASS OF ASSET G. OTHER SCHEME SPECIFIC DISCLOSURES 45 III. OTHER DETAILS 71 A. OVERVIEW OF THE UNDERLYING FUNDS 71 B. PERIODIC DISCLOSURES 71 C. TRANSPARENCY/NAV DISCLOSURE 74 D. TRANSACTION CHARGES AND STAMP DUTY 74 E. ASSOCIATE TRANSACTIONS 74 F. TAXATION 74 G. RIGHTS OF UNITHOLDERS 78 H. LIST OF OFFICIAL POINTS OF ACCEPTANCE 78 I. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS 78 OR INVESTIGATIONS 3PART I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr.No Title Description I. Name of the Scheme DSP Multi Asset Omni Fund of Funds II. Category of the Scheme Fund of Funds (FoFs) (Domestic) III. Scheme Type An open ended fund of fund scheme investing in units of active and passive schemes of Equity, Debt and Commodity asset classes. IV. Scheme Code (To be inserted before launch of scheme) SO No.7 V. Investment Objective The investment objective of the scheme is to generate capital appreciation and income through diversified exposure across multiple asset classes - equity, debt, and commodities. SO No. 5 There is no assurance that the investment objective of the Scheme will be achieved. VI. Liquidity/listing details Liquidity details - As per SEBI (MF) Regulations, Redemption or repurchase proceeds shall be dispatched to Unit Holders within 3 working Days from the date of acceptance of redemption or repurchase. Investor may note that in case of exceptional scenarios as prescribed by AMFI vide its communication no. AMFI/ 35P/ MEM-COR/ 74 / 2022- 23 dated January 16, 2023 read with clause 14.1.3 of SEBI Master Circular, the AMC may not be able to adhere with the timelines prescribed above. Listing details - The Scheme is open ended and the Units are not listed on any stock exchange. However, the Mutual Fund may, at its sole discretion, list the Units on one or more Stock Exchanges at a later date, and thereupon the Mutual Fund will make suitable public announcement to that effect. VII. Benchmark Index (Total • Name of the benchmark 55% Nifty 500 TRI + 15% Domestic Price of Return Index) Physical Gold (LBMA) + 5% Domestic Price of Physical Silver (LBMA) + 25% NIFTY Composite Debt Index • Justification – Nifty 500 TRI - As the scheme will invest in equity schemes, this index provides representation encompassing the broader equity universe. NIFTY Composite Debt Index – As the scheme will invest across duration schemes, this index aligns with the scheme's debt investment strategy. Domestic Prices of Physical Gold - This component captures the performance of gold prices in the domestic market, corresponding to the scheme's allocation to gold Domestic Prices of Physical Silver - This component captures the performance of Silver prices in the domestic market, corresponding to the scheme's allocation to Silver The Trustee may change the benchmark for any of the Schemes in future, if a benchmark better suited to the investment objective of that Scheme is available at such time and as per the guidelines and directives issued by SEBI from time to time. 4• Second tier benchmark – Not applicable VIII. NAV Disclosure The NAVs of the Scheme/plans will be calculated by the Mutual Fund on each Business Day and will be made available by 10 a.m. of the immediately succeeding Business Day. The information on NAVs of the Scheme/plans may be obtained by the Unit Holders, on any day, by calling the office of the AMC or any of the Investor Service Centres at various locations. The NAV of the Scheme will also be updated on the AMFI website www.amfiindia.com and on AMC’s website www.dspim.com Refer Section II for further details IX. Applicable timelines Timeline for 1. Dispatch of redemption proceeds - As per SEBI (MF) Regulations, redemption proceeds shall be dispatched within 3 (Three) Working Days from the date of acceptance of redemption request. Investor may note that in case of exceptional scenorios as prescribed by AMFI vide its communication no. AMFI/ 35P/ MEM- COR/ 74 / 2022-23 dated January 16, 2023 read with clause 14.1.3 of SEBI Master Circular, the AMC may not be able to adhere with the timelines prescribed above. 2. Dispatch of IDCW - IDCW warrants shall be dispatched to the Unit Holders within 7 Working days from the record date for declaration of the IDCW X. Plans and Options Plans and Options: Plan Options Sub- Income Option Distribution cum Capital Withdrawal Frequency/Recor d Date Regular Growth - Plan and Income Payout At the discretion Direct Distribution of IDCW of Trustee Plan cum Capital & Withdrawal Reinvest (IDCW) ment of IDCW Investors may note that under Income Distribution cum Capital Withdrawal options the amounts can be distributed out of investor’s capital (Equalization Reserve), which is part of sale price that represents realized gains. #In case the Record Date falls on a non Business Day, the immediate next Business Day shall be considered as the Record Date. All the Plans and option under the Scheme will have common portfolio. Default option- Investors should indicate the Scheme / Plan and / or Option / Sub 5Option, wherever applicable, for which the subscription is made by mentioning the full name of Scheme/ Plan/ option or sub option in the appropriate space provided for this purpose in the application form. In case of valid applications received, without indicating the Scheme / Plan and / or Option etc. or where the details regarding Plan and/or Option are not clear or ambiguous, the following defaults will be applied: If no indication is given under the Default following Option - Growth/Income Distribution cum Growth Option Capital Withdrawal (IDCW) Sub-option - Payout of Income Payout of Income Distribution cum Capital Withdrawal Distribution cum (IDCW)/ Reinvestment of Income Capital Withdrawal Distribution cum Capital Withdrawal (IDCW) (IDCW) In case an investor/Unit Holder fails to mention the plan and broker details in the application form, then the application shall be processed under respective option/sub-option under Direct Plan of the Scheme Processing of Application Form/Transaction Request: The below table summarizes the procedures which would be adopted while processing application form/transaction request by the AMC. Sr. AMFI Registration Plan as Transaction shall No. Number (ARN) selected in be processed and Code/Direct/Blank the Units shall be as mentioned in application allotted under the application form/ form/ transaction transaction request request 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, any purchase or switch-in or SIP & STP registration shall be processed under Direct Plan or rejected depending on the mode of the transaction. “Invalid ARNs” shall include ARN validity period expired, ARN cancelled /terminated, ARN suspended, ARN Holder deceased, Nomenclature change, as required pursuant to SEBI (Investment Advisers) Regulations, 2013, not complied by the Mutual Fund Distributor (‘MFD’), MFD is debarred by 6SEBI, ARN not present in AMFI ARN database, ARN not empanelled with AMC. Notes: a. Investors should provide details/instructions only in the space provided in the form. Any details/notings/information/ instruction provided at a non -designated area of the standard form being used, or any additional details, for which space is not designated in the standard form, may not be executed and the AMC will not be liable for the same. b. Applications not specifying Schemes/Plans/Options and/ or accompanied by cheque/demand drafts/account to account transfer instructions favouring Schemes/Plans/Options other than those specified in the application form are liable to be rejected. c. Where the Scheme name as written on the application form and on the payment instrument differs, the proceeds may, at the discretion of the AMC be allotted in the Scheme as mentioned on the application form. d. Investors shall note that once Units are allotted, AMC shall not entertain requests regarding change of Plan/Option, with a retrospective effect. e. Any change in IDCW sub option due to additional investment or customer request will be applicable to all existing Units in the IDCW option of the scheme concerned. f. The AMC and its Registrar reserve the right to disclose the details of investors and their transactions to third parties viz. banks, distributors, Registered Investment Advisors from whom applications of investors are received and any other organization for the purpose of compliance with legal and regulatory requirements or for complying with antimony laundering requirements. g. Returned cheques are liable not to be presented again for collection, and the accompanying application could also be rejected. In case returned cheques are presented, the necessary charges including returned charges may be debited to the investor. For detailed disclosure on default plans and options, kindly refer SAI XI. Load Structure Exit Load: 1% if redeemed within 1 Month Note: No exit load shall be levied In case of switch of investments from Direct Plan to Regular Plan and vice versa XII. Minimum Application • During NFO: Rs. 100/- and any amount thereafter Amount/switch in • On continuous basis: Rs. 100/- and any amount thereafter Note: The minimum application amount will not be applicable for investment made in schemes in line with SEBI guidelines on Alignment of interest of Designated Employees of AMC. XIII. Minimum Additional Purchase Amount Rs. 100/- and any amount thereafter XIV. Minimum Redemption/switch out Not applicable amount XV. New Fund Offer Period NFO for DSP Multi Asset Omni Fund of Funds This is the period during Opens on: ____ which a new scheme sells Closes on: _____ its units to the investors. 7As per clause 1.10.1A of SEBI Master Circular, the NFO shall remain open for subscription for a minimum period of three Working Days. Further, as per clause 1.10.1 of the SEBI Master Circular, the maximum number of days for which the NFO will be open shall be 15 days. Extension or Termination of NFO Period In case the NFO Opening/ Closing Date is subsequently declared as a non-Business Day, the following Business Day will be deemed to be the NFO Opening/ Closing Date. The AMC/Trustee reserves the right to change the New Fund Offer Period, subject to the condition that the subscription list of the New Fund Offer Period shall not be kept open for more than 15 days. An addendum shall be uploaded on the AMC website i.e. www.dspim.com notifying the change in the NFO Dates / Period. XVI. New Fund Offer Price: Rs. 10/- per unit during the New Fund Offer. This is the price per unit that the investors have to pay to invest during the NFO. XVII. Segregated The Scheme is not enabled for segregated portfolio portfolio/side pocketing disclosure XVIII. Swing pricing disclosure Swing pricing framework is not applicable. XIX. Stock lending/short The Scheme will not engage in stock lending/short selling selling XX. How to Apply and other Investors have different options to transact for their investments. details Investors intending to invest in physical mode can submit their transaction request to AMC Offices or Investor Service Centres of CAMS. Investors can also transact digitally on AMC/RTA website or through Stock Exchange Platforms, MF Utilities Pvt Ltd. Investor can reach out to their investment advisor for transacting on digital platforms. Financial transactions through email in respect of non- individual investors shall be accepted in terms of AMFI Best Practice Guidelines (BPG) no. 118/ 2024-25 dated January 31, 2025. For the terms and conditions of for availing the facility to transact through electronic mail, please refer SAI. Application form and Key Information Memorandum may be obtained from Official Points of Acceptance (OPAs) / Investor Service Centres (ISCs) of the AMC or RTA or Distributors or can be downloaded from our website www.dspim.com Application form and Key Information Memorandum may be obtained from Official Points of Acceptance (OPAs) / Investor Service Centres (ISCs) of the AMC or RTA or Distributors or can be downloaded from our website www.dspim.com Investors intending to apply through ASBA will be required to submit ASBA form to their 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 SCSB at their designated branches. 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 location other than SCSB as it will not be processed. For details on ASBA process please refer the ASBA application form. 8Please refer further details in section II. XXI. Investor services Contact details for general service requests: Investors may contact any of the AMC's Investor Service Centers or call on Toll Free number 1800-208-4499 or 1800-200-4499 for any queries. E-mail: service@dspim.com Contact details for complaint resolution: Mr. Santosh Pandey Investor Relations Officer The Ruby, 25th Floor, 29, Senapati Bapat Marg, Dadar (West), Mumbai – 400028, Tel.: 022 - 66578000 Stock Exchange Transactions: For grievances related to stock exchange transactions, contact either the stockbroker or the investor grievances cell of the respective stock exchange. MFU Customer Care: For transactions related to MFU, Investors may contact the customer care of MFUI on 1800-266-1415 (business hours on all days except Sunday and Public Holidays) or send an email to clientservices@mfuindia.com. XXII. Specific attribute of the Not applicable scheme (such as lock in, duration in case of target Maturity scheme/close ended schemes) (as applicable) XXIII. Special product/facility Special product/facility available during NFO: available during the NFO and on ongoing basis 1. Switching: During the NFO period (switch request will be accepted upto 3.00 p.m. on the last day of the NFO), the Unit holders will be able to invest into the NFO of the Scheme by switching part or all of their Unit holdings held in the existing schemes of the Mutual Fund. A switch has the effect of redemption from one scheme/plan/ option and a purchase in the other scheme/plan/option to which the switching has been done. The price at which the units will be switched-out will be based on the redemption price of the scheme from which switch-out is done and the proceeds will be invested into the Scheme at the NFO Price Unit holders are requested to note that application for switch-out for units for which funds are not realized via purchase or switch-in in the scheme of the Fund shall be liable to be rejected. In other, switch out of units will be processed only if the funds for such units are realized in the scheme by a way of payment instructions/ transfer or switch-in funding process. Further, all switch funding shall be in line with redemption funding timelines adopted by the concerned scheme i.e. if a scheme follows 9T+3 payout for redemption, the switch out funding should also be made on the T+3 and not earlier or later than T+3, where T is the day of transaction. The funds from the switch out schemes into the switch in scheme should be received till allotment date. If the NFO of the scheme is called off for any reason whatsoever, the Switch Out amount from other schemes to the NFO scheme will be paid to the investor within 5 Business Days of the closure of the NFO, similar to a redemption from Switch out scheme. Investors should note that the Switch transaction will not be nullified and the switch amount will be paid out as redemption. Further, such payments will not qualify as delayed payments and no interest will be payable by the Fund/AMC/RTA in such cases where the payment date is beyond 10 days of the switch out date, as the switch transactions are accepted from the first day of the entire NFO period and the NFO may be called off after the closure of NFO 2. Systematic Investment Plan (SIP) Investors can, during the NFO, benefit by investing Rupee amounts periodically for a continuous period through SIP. SIP allows investors to invest a fixed amount of Rupees on daily (business days) or specific dates every month or quarter by purchasing Units of the Scheme at the Purchase Price prevailing at such time. Investors can enroll themselves for SIP (minimum 12 installments) by ticking the appropriate box in the application form and filling up the relevant SIP form specifying the amount, period and SIP date. The detailed terms and conditions are mentioned in the SIP Auto Debit Form. SIP through post-dated cheques will not be accepted during NFO. 3. Applications Supported by Blocked Amount (ASBA) facility ASBA facility will be provided to the investors subscribing to NFO of the Scheme. It shall co-exist with the existing process, wherein cheques/ demand drafts are used as a mode of payment. Please refer ASBA application form for detailed instructions. Please refer the SAI and ASBA application form for complete details on ASBA. Special product/facility available on ongoing basis: 1. Systematic Investment Plan (SIP): SIP allows investing fixed amounts regularly on specific dates monthly or quarterly by purchasing Units of the Scheme at applicable Net Asset Value (NAV). • Daily SIP facility: Under Daily SIP, the Unit Holder can invest a fixed amount into the scheme on a daily basis. Daily SIP installment shall be processed only when it is a Business Day for the scheme. It is to be noted that allotment of units are subject to realization of credit in the scheme. In case, if more than one SIP instalments credits are realized on a particular day, both the instalments will be processed for the applicable NAV in terms of the provisions of the Scheme Information Document. • SIP TOP-UP facility: The facility provides flexibility to the investors to increase the SIP installment over the tenure of the SIP. SIP Top-Up facility will be available under scheme offering 10SIP facility. SIP Top-Up frequency in case of investors availing this facility will be half yearly and yearly. If the SIP Top-Up frequency is not indicated for SIP under frequencies daily or monthly or quarterly, it will be considered as yearly interval. The AMC may change the terms and conditions for SIP TOP-UP facility from time to time, due to changing market and operational conditions. Investors are advised to check the latest terms and conditions from any of the offices of the AMC, before investing same is available on www.dspim.com • SIP Pause facility: Under the SIP pause facility, the investor can stop the running SIP for certain period and Restart the SIP again (at a folio level) by filling up a designated form. Investors who wish to Pause their SIP instalments debit for a certain period. SIP Pause can be for a minimum period of 1 month to a maximum period of 6 months. SIP Pause request should be submitted 15 days before the next SIP instalment date. 2. Systematic Transfer Plan (STP): STP allows investing fixed amounts regularly on specific dates monthly or quarterly by transferring Units from one scheme to another scheme at applicable Net Asset Value (NAV). • Daily STP facility: Under Daily STP, the Unit Holder can switch a fixed amount from any one Scheme (Source Scheme) to any other Scheme (Target Scheme) on a daily basis subject to exit load as applicable. The minimum period for Daily STP shall be 6 days and maximum for any period subject to the end period being year 2099. STP installment shall be processed only when it is a Business day for both source and target Scheme. In case the start date is not mentioned, the Daily STP shall start from the 7th day from the date of submission of valid STP registration form. In case the end date is not mentioned, the STP shall be registered for a period of one year. • Flex Systematic Transfer Plan (‘Flex STP’): Flex STP Facility, is a facility wherein Unit holder(s) of designated open-ended Scheme of the Fund can opt to systematically transfer amount(s), which may vary based on the value of investments already made/transferred under this facility, on the date of transfer at predetermined intervals from designated open-ended Scheme of the Fund [hereinafter referred to as “Transferor Scheme”] to the ‘Growth Option’ only, of designated open-ended scheme of the Fund [hereinafter referred to as “Transferee Scheme”]. Transferor Scheme means all scheme of the Fund currently having STP facility and Transferee Scheme means growth option of all scheme of the Fund. All other terms and conditions applicable to STP facility will be applicable to Flex STP. For general terms and conditions and more information, Unit holder(s) are requested to read Terms and Conditions available on www.dspim.com. • Value Systematic Transfer Plan (‘Value STP’): Value STP facility, is a facility wherein Unit holder(s) of designated open- ended scheme of the Fund can opt to systematically transfer amount(s), which may vary based on the value of investments already made/transferred under this facility, on the date of transfer at predetermined intervals from designated open-ended scheme of the Fund [hereinafter referred to as “Transferor Scheme”] to the ‘Growth Option’ only of designated open-ended 11Scheme of the Fund [hereinafter referred to as “Transferee Scheme”], including a feature of ‘Reverse Transfer’ from Transferee Scheme into the Transferor Scheme, in order to achieve the Target Market Value on each transfer date in the Transferee Scheme, subject to the terms and conditions of Value STP. 3. Systematic Withdrawal Plan (SWP): SWP allows redeeming fixed amounts of money regularly on specific dates monthly or quarterly from a specified scheme. 4. Switching: A switch has the effect of redemption from one scheme/ plan/option and a purchase in the other scheme/plan/ option to which the switching has been done. To effect a switch, a Unit Holder must provide clear instructions. Such instructions may be provided in digital platforms or in writing or by completing the transaction slip/form attached to the account statement. The switch request can be made for any amount of Rs. 100/- or more. A Unit Holder may request switch of a specified amount or a specified number of Units only. If the Unit Holder has specified both the amount (in Rs.) and the number of Units, switch-out of units will be carried out based on the number of units specified by the Unit Holder. 5. Pledge of Units for Loans: Units can be pledged by the Unit Holders as security for raising loans, subject to any rules / restrictions that the Trustee may prescribe from time to time. For Units held in demat form, the rules of the respective DP will be applicable for pledge of the Units. Units held in demat form can be pledged by completing the requisite forms/formalities as may be required by the Depository. The pledge gets created in favour of the pledgee only when the pledgee’s DP confirms the creation of pledge in the system. In case of Units held in physical form, the Registrar will note and record such pledge. A standard form for this purpose is available at any of the official points of acceptance of transactions and on www.dspim.com. 6. One time mandate facility: This Facility enables the Unit Holder/s of DSP - Mutual Fund (‘Fund’) to transact with in a simple, convenient and paperless manner by submitting OTM - One Time Mandate registration form to the Fund which authorizes his/her bank to debit their account up to a certain specified limit per transaction, as and when they wish to transact with the Fund, without the need of submitting cheque or fund transfer letter with every transaction thereafter. This Facility enables Unit holder(s) of the Fund to start Systematic Investment Plan (SIP) or invest lump sum amounts in any Scheme of the Fund by sending instructions through Transaction forms, and online facility specified by the AMC. It is to be noted that allotment of units are subject to realization of credit in the scheme 7. Transfer of Income Distribution cum Capital Withdrawal plan (IDCW): Unit holders under the Regular Plan & Direct Plan (wherever applicable) and IDCW Options(s) (other than Daily IDCW Reinvest sub-option) of all the open ended Scheme of the Mutual Fund can opt to transfer their IDCW to any other option under the Regular Plan & Direct Plan (wherever applicable) (other than Daily IDCW Reinvest sub-option) of all the open- ended Scheme of the Mutual Fund by availing the facility of IDCW Transfer Plan (DTP). 12Under DTP, IDCW as & when declared (as reduced by the amount of applicable statutory levy) in the transferor Scheme (subject to minimum of Rs.100/-) will be automatically invested without any exit load into the transferee Scheme, as opted by the Unit holder. Such transfer will be treated as fresh subscription in the transferee Scheme and invested at the Applicable NAV on the Business Day immediately following the record date, subject to terms and conditions applicable to the transferee Scheme. Investors are requested to note that the AMC may change the terms and conditions for SWP facility from time to time, due to changing market and operational conditions. Investors are advised to check the latest terms and conditions from any of the offices of the AMC, before investing same is available on www.dspim.com. For further details, please refer SAI. XXIV. Weblink • Link for TER for last 6 months and Daily TER- https://www.dspim.com/mandatory-disclosures/ter • Link for Scheme factsheet- https://www.dspim.com/downloads/Factsheets XXV. Minimum installment Rs. 100/- and any amount thereafter Amount for Systematic Investment Plan (SIP) XXVI. Minimum installment Rs. 100/- and any amount thereafter Amount for Systematic Withdrawal Plan (SWP)/Systematic Transfer Plan (STP) XXVII. Minimum balance to be Not applicable maintained and consequences of non maintenance 13DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY SO No. 56 It is confirmed that: (i) The draft 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 draft 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 draft 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 draft Scheme Information Document including figures, data, yields etc. have been checked and are factually correct (vi) The AMC has complied with the compliance checklist applicable for draft Scheme Information Documents and other than cited deviations/ that there are no deviations from the regulations. (vii) Notwithstanding anything contained in this draft 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 DSP Multi Asset Omni Fund of Funds approved by them is a new product offered by DSP Mutual Fund and is not a minor modification of any existing scheme/fund/product. Date: Name: Dr. Pritesh Majmudar Place: Mumbai Designation: Head – Legal and Compliance 14Part II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation will be as follows: Indicative allocations Instruments (% of total assets) Minimum Maximum Units of domestic equity-oriented schemes, 95% 100% debt-oriented schemes and Gold & Silver ETFs: 1. Equity Oriented schemes 25% 80% 2. Debt Oriented schemes 10% 60% SO No. 13 & 21 3. Gold & Silver ETF 10% 65% Cash & Cash Equivalent@ 0% 5% @ As per SEBI letter no. SEBI/HO/ IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021,Cash and Cash Equivalents will include following securities having residual maturity of less than 91 Days: 1. TREPS, 2. Treasury Bills, 3. Government securities, and 4. Repo on Government Securities and any other securities as may be allowed under the regulations prevailing from time to time. Indicative table:( Actual instrument/percentages may vary subject to applicable SEBI circulars) Sl. no Type of Instrument Percentage of exposure Circular references 1. Securities Lending Nil Clause 12.11 of the SEBI Master Circular 2. Derivatives Nil Clause 12.25 of the SEBI Master Circular 3. Equity Derivatives for non- hedging Nil Clause 12.25 of the SEBI purposes Master Circular 4. Debt Instruments with SO / CE rating Nil - 5. Overseas Securities Nil - 6. Securitized Debt Nil - 7. Debt Instruments with special Nil - features (AT1 and AT2 Bonds) 8. Tri-party repos (including Reverse Upto 5% - repo in T-bills and G-sec 9. Other / own mutual funds Upto 100% Clause 4 of seventh schedule of SEBI (Mutual Funds) Regulations, 1996 10. Repo/ reverse repo transactions in Nil - corporate debt securities 11. Credit Default Swap transactions Nil - 12. Unrated debt instruments Nil - 1513. Short Selling Nil - 14. REITs and InvITs Nil - 15. Covered Call Option Nil - 16. Short Term Deposit Nil Clause 12.16 of the SEBI Master Circular. SO No. 18 & Refer Note-1 19 Indicative table is subset of primary asset allocation table mentioned above and both shall be read in conjunction. Currently, the Scheme may invest in following mutual fund Schemes: Scheme Name DSP Healthcare Fund DSP Arbitrage Fund DSP Business Cycle Fund DSP Flexi Cap Fund DSP Large Cap Fund DSP Large & Mid Cap Fund DSP Mid Cap Fund DSP Small Cap Fund DSP Focused Fund DSP India T.I.G.E.R Fund DSP Multicap Fund DSP Natural Resources & New Energy Fund DSP Banking & Financial Services Fund DSP Value Fund SBI Contra Fund SBI Automotive Opportunities Fund Aditya Birla Sun Life Consumption Fund SBI Innovative Opportunities Fund Bandhan Small Cap Fund Bandhan Flexi Cap Fund ICICI Pru Value Discovery Fund Parag Parikh Flexi Cap Fund Invesco India Contra Fund Kotak Emerging Equity Fund Kotak Flexicap Fund WhiteOak Capital Multi Cap Fund DSP Liquidity Fund DSP Ultra Short Fund DSP Low Duration Fund 16DSP Short Term Fund DSP Credit Risk Fund DSP Strategic Bond Fund DSP Bond Fund DSP Banking and PSU Debt Fund DSP Floater Fund DSP Savings Fund DSP Gilt Fund DSP 10Y G-Sec Fund DSP Regular Savings Fund DSP Corporate Bond Fund DSP Overnight Fund HDFC Long Duration Debt Fund ICICI Prudential All Seasons Bond Fund HDFC Credit Risk Debt Fund DSP NIFTY 1D Rate Liquid ETF DSP Nifty SDL Plus G-Sec Jun 2028 DSP Nifty SDL Plus GSec Sep27 Index Fund DSP CRISIL-IBX Gilt Plus SDL Apr33 Index DSP BSE Sensex Next 30 ETF DSP Nifty Smallcap250 Quality 50 Index Fund DSP Nifty500 Flexicap Quality 30 ETF DSP Nifty Next 50 Index Fund DSP Nifty 50 Equal Weight ETF DSP Nifty Top 10 Equal Weight ETF DSP NIFTY BANK ETF DSP Nifty 50 ETF DSP Nifty Midcap 150 Quality 50 ETF DSP NIFTY IT ETF DSP NIFTY PVT BANK ETF DSP NIFTY PSU BANK ETF DSP Nifty Healthcare ETF DSP BSE SENSEX ETF DSP BSE Liquid Rate ETF DSP Gold ETF DSP SILVER ETF ICICI Prudential Nifty Commodities ETF ICICI Prudential Nifty Financial Services Ex-Bank ETF ICICI Prudential Nifty FMCG ETF ICICI Prudential Nifty India Consumption ETF ICICI Prudential Nifty Infrastructure ETF ICICI Prudential Nifty Metal ETF 17ICICI Prudential Nifty Oil & Gas ETF Apart from above, the Scheme may, at the discretion of the Investment Manager/fund manager, also invest in any other domestic mutual funds or ETFs (including those of other AMCs) in line with investment objective, investment strategy, asset allocation, benchmark etc by virtue of notice cum addendum and same shall not be considered as a fundamental attribute change. The proportion of an investment in any underlying fund may vary and will be solely at the discretion of the fund manager of the Scheme. Note 1 - Investment in Short-Term Deposits- Pending deployment of the funds of the Scheme shall be in terms of clause 12.16 of the SEBI Master Circular, the AMC may invest funds of the Scheme in short term deposits of scheduled commercial banks, subject to following conditions: 1. The term ‘short term’ for parking of funds shall be treated as a period not exceeding 91 days. 2. Such deposits shall be held in the name of the Scheme. 3. The Scheme shall not park more than 15% of its net assets in the short term deposit(s) of all the scheduled commercial banks put together. However, it may be raised to 20% with the prior approval of the Trustee. Also, parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. 4. The Scheme shall not park more than 10% of its net assets in short term deposit(s) with any one scheduled commercial bank including its subsidiaries. 5. The Trustee shall ensure that the funds of the Scheme are not parked in the short term deposits of a bank which has invested in that Scheme. 6. AMC will not charge any investment management and advisory fees for parking of funds in short term deposits of scheduled commercial banks. 7. The Trustee shall also ensure that the bank in which a scheme has short term deposits do not invest in the scheme until the scheme has short term deposits with such bank. The above provisions do not apply to term deposits placed as margins for trading in cash and derivative market. Timelines for deployment of funds collected in NFO - In line with SEBI circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025, deployment of the funds garnered in an NFO shall be made 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. The Investment Committee, after examining the root cause for delay may extend the timeline by 30 business days. Cumulative gross exposure – As per Clause 12.24 of the SEBI Master Circular, the cumulative gross exposure through units of DSP Silver ETF and other permitted securities/ asset class shall not exceed 100% of the net assets of the scheme subject to the regulatory approval, if any. Cash and cash equivalents as per SEBI letter no. SO No. SEBI/HO/ IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021 which includes T-bills, 14 &17 Government Securities, Repo on Government Securities and any other securities as may be allowed under the regulations prevailing from time to time subject to the regulatory approval, if any, having residual maturity of less than 91 Days, shall not be considered for the purpose of calculating gross exposure limit. 18Portfolio rebalancing- Rebalancing of deviation due to short term defensive consideration: Due to market conditions, the AMC may invest beyond the range set out in the asset allocation. Such deviations shall normally be for a short term and defensive considerations in line with clause 1.14.1.2 of the SEBI Master Circular; the intention being at all times to protect the interests of the Unit Holders SO no. and the Scheme shall rebalance the portfolio within 30 calendar days from the date of such deviation. 22 &24 It may be noted that no prior intimation/indication will be given to investors when the composition/asset allocation pattern under the Scheme undergoes changes within the permitted band as indicated above. Portfolio rebalancing in case of passive breach: As per clause 2.9 of SEBI Master circular and the clarifications/ guidelines issued by AMFI/ SEBI from time to time read with SEBI Circular dated June 26, 2025, in the event of deviation from mandated asset allocation or any prescribed regulatory limit, as maybe applicable to the scheme, passive SO No. breaches (i.e. occurrence of instances not arising out of omission and commission of AMC), shall be 23 & 24 rebalanced within 30 business days. Where the portfolio is not rebalanced within above mentioned period, 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. In case the portfolio is not rebalanced within the aforementioned mandated plus extended timelines the AMC shall comply with the prescribed restrictions, the reporting and disclosure requirements as specified in Clause 2.9 of the SEBI Master Circular. SO no. 29 B. WHERE WILL THE SCHEME INVEST? The scheme will invest in units of equity-oriented, debt-oriented and commodity oriented schemes. The scheme may also invest a certain portion of its corpus in cash and cash equivalent, only to the extent necessary to meet the liquidity requirements for honoring repurchase / redemptions / expenses. In view of the nature of the Scheme, the asset allocation pattern as indicated above may not change, except in line with the changes made in SEBI (MF) Regulations, from time to time. The corpus of the Scheme will be invested in 1. Units of Equity oriented active funds and/or equity-oriented Index Funds and/or ETFs. 2. Units of Debt oriented active funds and/or debt-oriented Index Funds and/or ETFs. 3. Units of Commodity ETFs 4. Cash and Cash Equivalents will include following securities having residual maturity of less than 91 Days: i. TREPS, ii. Treasury Bills, iii. Government securities, and iv. Repo on Government Securities and any other securities as may be allowed under the regulations prevailing from time to time subject to the regulatory approval, if any. 5. Short Term Deposits For Detailed definition and applicable regulations/guidelines for each instrument please refer Section- II C. WHAT ARE THE INVESTMENT STRATEGIES? SO No. 27 & 28 19The scheme aims to generate income and capital appreciation by investing in units of active and passive schemes across multiple asset class - equity, debt and commodities. The actual percentage of investment in asset classes will be decided after considering the prevailing market conditions, the macroeconomic environment (including interest rates and inflation), the performance of the corporate sector, the equity markets and general liquidity and other considerations in the economy and markets. Allocation to funds within each asset class will be actively determined by the fund manager. Fund Manager can use internal as well as external research or report in making investment decisions. The fund of fund has flexibility to invest in active and passive schemes of DSP as well as of other AMCs. PORTFOLIO TURNOVER POLICY Portfolio Turnover measures the volume of trading that occurs in a Scheme’s portfolio during a given time period. The Scheme is an open-ended fund, and it is expected that there may be a number of subscriptions and repurchases on a daily basis. Generally, turnover will depend upon the extent of purchase and redemption of units and the need to rebalance the portfolio. However, it will be the endeavor of the Fund Manager to maintain an optimal portfolio turnover rate commensurate with the investment objective of the Scheme and the purchase/ redemption transactions on an ongoing basis in the Scheme. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? Benchmark (Total Returns Index): 55% Nifty 500 TRI + 15% Domestic Price of Physical Gold (LBMA) + 5% Domestic Price of Physical Silver (LBMA) + 25% NIFTY Composite Debt Index Justification: Nifty 500 TRI - As the scheme will invest in equity schemes, this index provides representation encompassing the broader equity universe. NIFTY Composite Debt Index – As the scheme will invest across duration schemes, this index aligns with the scheme's debt investment strategy. Domestic Prices of Physical Gold - This component captures the performance of gold prices in the domestic market, corresponding to the scheme's allocation to gold. Domestic Prices of Physical Silver - This component captures the performance of Silver prices in the domestic market, corresponding to the scheme's allocation to Silver. The Trustee may change the benchmark for any of the Schemes in future, if a benchmark better suited to the investment objective of that Scheme is available at such time, subject to the guidelines and directives issued by SEBI from time to time. E. WHO MANAGES THE SCHEME? SO No. 33 Fund Age Tenure Qualifications Brief Experience Other Scheme Manager managed Mr. Anil 44 NA Chartered Over 26 years of experience as DSP NIFTY 1D Rate Ghelani years Financial under: Liquid ETF Analyst (CFA From April 1, 2023 till date - DSP Nifty 50 Equal Institute USA) DSPAM – Head of Passive Weight ETF Chartered Investments & Products Accountant From April 16, 2018 till March DSP Nifty 50 Equal (ICAI India) 31, 2023 - DSPIM – Head of Weight Index Fund B. Com. (H. R. Passive Investments & Products. DSP Nifty 50 ETF College From December 2014 to April University of 15, 2018 - DSPIM – DSP Nifty 50 Index Mumbai) Senior Vice President, Products Fund & Passive Investments 20Fund Age Tenure Qualifications Brief Experience Other Scheme Manager managed From January 2013 – November DSP Nifty Bank ETF 2014, DSP Pension Fund DSP Nifty IT ETF Managers Pvt. Ltd. - Business Head & Chief Investment Officer DSP Nifty Midcap From January 2006 – December 150 Quality 50 ETF 2012 - DSPIM – Head of Risk & DSP Nifty Midcap Quantitative Analysis (RQA) 150 Quality 50 From July 2003 to December Index Fund 2005 - DSPIM - AVP - Fund Administration DSP Nifty Next 50 From February 2003 to July Index Fund 2003 - IL&FS Asset DSP Nifty Private Management Company - Asst. Bank ETF Manager – Fund Operations DSP Nifty PSU Bank From February 2000 to January ETF 2003 - S. R. Batliboi (member DSP Gold ETF Fund firm of Ernst & Young) – CA of Fund articleship till Jan 2002 Executive from Feb 2002 DSP Nifty From August 1998 to June 2000 Smallcap250 - V. C. Shah & Co., Quality 50 Index Chartered Accountants - CA Fund articleship DSP Nifty Healthcare ETF DSP BSE Sensex ETF DSP BSE Liquid Rate ETF DSP Nifty Bank Index DSP Nifty Top 10 Equal Weight Index Fund DSP Nifty Top 10 Equal Weight ETF DSP BSE SENSEX Next 30 Index Fund DSP BSE SENSEX Next 30 ETF Mr. 45 NA B Com , ACA, Over 22 years of experience as DSP NIFTY 1D Rate Diipesh years Candidate of under: Liquid ETF Shah From April 1, 2023 till date - the CFA DSP Nifty 50 Equal DSPAM – Fund Manager – ETF Program, CFA Weight ETF and Passive Investments Institute USA, From November 2020 till March DSP Nifty 50 Equal Level I Cleared 31, 2023 - DSPIM – Fund Manager Weight Index Fund – ETF and Passive Investments. DSP Nifty 50 ETF From September 2019 to October, 2020 - DSPIM – Dealer – DSP Nifty 50 Index ETF and Passive Investments. Fund From August 2018 to DSP Nifty Bank ETF September, 2019 - JM Financial Institutional Broking Limited as DSP Nifty IT ETF Institutional Equity Sales DSP Nifty Midcap 21Fund Age Tenure Qualifications Brief Experience Other Scheme Manager managed Trading. 150 Quality 50 ETF From June 2014 to July 2018 - DSP Nifty Midcap Centrum Boking Limited as 150 Quality 50 Institutional Equity Sales Index Fund Trading. From September 2013 to June 2014 - JM Financial DSP Nifty Next 50 Institutional Broking Limited as Index Fund Institutional Equity Sales DSP Nifty Private Trading. Bank ETF From January 2011 to August 2013 - IDFC Securities Limited DSP Nifty PSU Bank as Institutional Equity Sales ETF Trading DSP Gold ETF Fund From July 2010 to September of Fund 2010 - Kotak Securities Limited as Institutional Equity Sales DSP Nifty Trading Smallcap250 Quality 50 Index Fund DSP Nifty Healthcare ETF DSP BSE Sensex ETF DSP BSE Liquid Rate ETF DSP Nifty Bank Index DSP Nifty Top 10 Equal Weight Index Fund DSP Nifty Top 10 Equal Weight ETF DSP BSE SENSEX Next 30 Index Fund DSP BSE SENSEX Next 30 ETF F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? List of other existing Fund of Fund schemes: 1. DSP Global Clean Energy Fund of Fund 2. DSP Income Plus Arbitrage Fund of Fund 3. DSP World Gold Fund of Fund 4. DSP US Flexible Equity Fund of Fund 5. DSP Global Innovation Fund of Fund 6. DSP World Mining Fund of Fund 7. DSP US Treasury Fund of Fund 8. DSP Gold ETF Fund of Fund 9. DSP Silver ETF Fund of Fund For details please refer - https://www.dspim.com/mandatory-disclosures/disclosures-under-offer- documents/scheme-comparison 22G. HOW HAS THE SCHEME PERFORMED This being a new Scheme, there is no performance track record. H. ADDITIONAL SCHEME RELATED DISCLOSURES i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors) This being a new Scheme, this is not available. Website link- https://www.dspim.com/mandatory-disclosures/top-10-issuer-and-sector- allocation ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme- Not applicable iii. Website link for portfolio disclosure –Monthly/Half Yearly This being a new Scheme, this is not available. https://www.dspim.com/mandatory-disclosures/portfolio-disclosures iv. Portfolio Turnover Rate – Not applicable v. Expense ratio of underlying scheme(s): Please refer to point “A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be provided i. Aggregate investment in the Scheme by: (Details are as on ______) Sr. No. Category of Persons Net Value Market Value Fund Manager Units NAV per unit (in Rs.) 1 Mr. Anil Ghelani This being a new Scheme, this is not available. 2 Mr. Diipesh Shah For any other 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 – Sub-regulation 16(A) in Regulation 25 of SEBI (Mutual Funds) Regulations, 1996 read along with clause 6.9 of SEBI Master Circular and AMFI Best Practice Guidelines Circular No.100 /2022-23 on ‘Alignment of interest of AMCs with the Unitholders of the Mutual Fund schemes’, is not applicable to Fund of Fund schemes. However, mandatory contribution in terms of units (including past and future corporate actions thereon) in the scheme already made by AMC pursuant to erstwhile regulation 28(4) and 28(5) of SEBI (MF) Regulations shall not be withdrawn. For details of investments of AMC in the scheme (Refer link - https://www.dspim.com/mandatory-disclosures/amcs-investments-in-schemes ) Part III- OTHER DETAILS A. COMPUTATION OF NAV The NAV of the Units of a Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation date. 23NAV of Units under each Scheme may be calculated by either of the following methods shown below: Market or Fair Value of Scheme’s investments + Current Assets - Current Liabilities and Provisions NAV Per Unit (Rs.) = No. of Units outstanding under the Scheme The numerical illustration of the above method is provided below. Market or Fair Value of Scheme’s investments (Rs.) = 11,42,53,650.00 Current Assets (Rs.) = 10,00,000.00 Current Liabilities and Provisions (Rs.) = 5,00,000.00 No. of Units outstanding under the Scheme = 1,00,00,000 11,42,53,650.00 + 10,00,000.00 - 5,00,000.00 NAV Per Unit (Rs.) = = 11.4754 1,00,00,000 N.B.: The aforesaid provisions pertaining to “Calculation of NAV” shall apply in respect of each individual Scheme and/or plan as the case may be. The NAV Per Unit above is rounded off to four decimals. SO No. 43 The NAV will be calculated as of the close of every Business Day. NAVs will be rounded off to four decimal places. The valuation of the Schemes’ assets and calculation of the Schemes’ NAVs shall be subject to audit on an annual basis and such regulations as may be prescribed by SEBI from time to time. Note: In respect of Schemes having Growth and IDCW Options, there will be more than one NAV, one for each Option, after the declaration of the first IDCW by that Scheme. While determining the price of the units, the mutual fund shall ensure that the repurchase price shall not be lower than 95% of the 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. Ongoing price for subscription (Purchase Price) / switch-in from other schemes/ plans by investor (This is the price you need to pay for purchase/switch-in) SO No. The Purchase Price of the Units on an ongoing basis will be calculated as described below, which is 48 based on the Applicable NAV Purchase Price = Applicable NAV Illustration: Say, Applicable NAV = Rs. 12/- Therefore, Purchase Price = Rs.12/- Ongoing price for redemption (sale) /switch outs (to other Scheme/plans of the Mutual Fund)/intra- Plan switching by investors (Redemption Price) (This is the price you will receive for redemptions/switch outs) The Redemption Price of the Units will be calculated on the basis of the Applicable NAV subject to prevailing Exit Load, if any. In the case of Schemes which currently have no Exit Load, the Redemption Price will be the Applicable NAV. In the case of Schemes having an Exit Load or in which an Exit Load is introduced, the Redemption Price will be calculated as under: 24Redemption Price = Applicable NAV x (1 - Exit Load) Illustration: Say, Applicable NAV = Rs. 12.0000 and the Exit Load is 0.50%, Redemption Price = 12 x (1-0.005) = Rs. 11.9400. Investors may note that the Trustee has the right to modify the existing Load Structure in any manner or introduce an Exit Load or a combination or Exit Load and/or any other Load subject to a maximum as prescribed under the SEBI (MF) Regulations. Should the Trustee on any date, impose or enhance any load, such imposition or enhancement shall be applicable on prospective investment only. B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, registrar expenses, printing and stationary, bank charges etc. The entire NFO expenses were borne by the AMC. C. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses incurred for operating the Scheme. These expenses include and are not limited to Investment Management and Advisory Fee charged by the AMC, Registrar’s fee, Marketing and selling costs etc., as given in the Table 2 which summarizes estimated annualized recurring expenses as a % of daily net assets of the Scheme. 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 should refer to the website of the mutual fund. Operating & recurring expenses under regulation 52 (6) & 52 (6A): The Scheme may charge expenses within overall limits as specified in the Regulations except those expenses which are specifically prohibited. The annual total of all charges and expenses of the Scheme shall be subject to the following limits, defined under Regulation 52 of SEBI MF regulations: Table 1: Limit as prescribed under regulation 52 of SEBI MF regulations for fund of fund scheme investing in index and exchange traded funds: Particulars As a % of daily net assets as Additional TER as Additional per Regulation 52(6) (a) (iii) per Regulation 52 expenses (6A) (b)^ under regulation 52 (6A) (c)^ On total assets 2.00% 0.30% 0.05% Provided that the total expense ratio to be charged over and above the weighted average of the total expense ratio of the underlying scheme shall not exceed two times the weighted average of the total expense ratio levied by the underlying scheme(s), subject to the overall ceilings as stated above. SO No. 46 Notes to Table 1: ^In addition to expenses as permissible under Regulation 52(6)(a)(iii), the AMC may also charge the following to the Scheme of the Fund under Regulation 52 (6A): a. Brokerage and transaction costs which are incurred for the purpose of execution of trade 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. It is clarified that the brokerage and transaction cost incurred for the purpose of execution of trade over and above the said 0.12 percent for cash market transactions may be charged to the 25Scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. b. Additional expenses up to 0.30 per cent of daily net assets of the concerned Schemes of the Fund if new inflows from such cities as may be specified by Regulations from time to time are at least: a. 30 per cent of gross new inflows from retail investors* in the concerned Scheme, or; b. 15 per cent of the average assets under management (year to date) of the concerned Scheme, whichever is higher. SO No. 47 Provided that if inflows from such cities is less than the higher of (i) or (ii) mentioned above, such expenses on daily net assets of the concerned Scheme shall be charged on proportionate basis. * Inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investors. The additional expenses charged shall be utilized for distribution expenses incurred for bringing inflows from such cities. The additional expense charged to the Scheme on account of inflows from such cities shall be credited back to the concerned Scheme in case such inflows are redeemed within a period of one year from the date of investment. Note: Pursuant to the directions received from SEBI vide its letter no. SEBI/HO/IMD-SEC- 3/P/OW/2023/5823/1 dated February 24, 2023 read along with AMFI communication dated March 02, 2023, w.e.f March 01, 2023 no additional expense shall be charged on the new inflows received on or after March 01, 2023 from specified cities as per Regulation 52 (6A) (b) till any further guidance is received from SEBI in this regard. c. Additional expenses not exceeding 0.05 % of daily net assets of the scheme as per Regulation 52(6A)(c). Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable GST on investment and advisory fees: a) AMC may charge GST on investment and advisory fees of the Scheme in addition to the maximum limit of TER as per the Regulation 52(6) and (6A). b) GST on expenses other than investment and advisory fees: AMC may charge GST on expenses other than investment and advisory fees of the Scheme, if any within the maximum limit of TER as per the Regulation under 52(6) and (6A). c) GST on brokerage & transaction cost: GST on brokerage and transaction costs which are incurred for the purpose of execution of trade, will be within the limit of expenses as per the Regulation 52(6) and (6A). Others: In accordance with Clause 10.1.12.(a) of the SEBI Master Circular, all scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall be paid from the scheme only within the regulatory limits and not from the books of the AMC, or by the trustee or sponsors. Provided that the expenses that are very small in value but high in volume (as provided by AMFI in consultation with SEBI) may be paid out of AMC’s books. Such expenses can be paid out of AMC’s books at actuals or not exceeding 2 bps of the Scheme AUM, whichever is lower. Further with regards to the cost of borrowings in terms of Regulation 44(2), the same shall be adjusted against the portfolio yield of the Scheme and borrowing costs in excess of portfolio yield, if any, shall be borne by the AMC. C. Disclosure relating to changes in TER: 26In accordance with Clause 10.1.8 of the SEBI Master Circular, the AMC shall prominently disclose TER on daily basis on the website www.dspim.com. Further, changes in the base TER (i.e. TER excluding additional expenses provided in Regulation 52(6A)(b), 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996 and Goods and Services Tax on investment and advisory fees) in comparison to previous base TER charged to any scheme/plan shall be communicated to investors of the scheme/plan through notice via email or SMS at least three working days prior to effecting such change. The notices of change in base TER shall be updated on the website at least three working days prior to effecting such change Provided that any decrease in TER in a mutual fund scheme due to various regulatory requirements, would not require issuance of any prior notice to the investors. The prior intimation/notice shall not be required for any increase or decrease in base TER due to change in AUM and any decrease in base TER due to various regulatory requirements. A. Illustrative example for estimating expenses for a scheme: The AMC in good faith has estimated and summarized in the below table for each Scheme. The actual total expenses may be more or less than as specified in the table below. The below expenses are subject to inter-se change and may increase/decrease as per actuals, and/or any change in the Regulations. Table 2: The estimated total expenses as a % of daily net assets of the Scheme are as follows: Sr No. Indicative Expense Heads % of daily net assets i. Investment Management and Advisory Fees ii. Audit fees/fees and expenses of trustees* iii. Custodial fees iv. Registrar & Transfer Agent (RTA) Fees including cost of providing account statements / IDCW / redemption cheques/ warrants v. Marketing & Selling expense including Agents Commission and statutory advertisement vi. Cost related to investor communications Upto 2.00% vii. Cost of fund transfer from location to location viii. Brokerage & transaction cost pertaining to distribution of units ix. GST on expenses other than investment and advisory fees x. GST on brokerage and transaction cost xi. Brokerage & transaction cost over and above 0.12 percent for cash trades. (a) Maximum total expense ratio (TER) permissible under Upto 2.00% Regulation 52 (6) (a)(i) (b) Additional expenses under regulation 52 (6A) (c)$ Upto 0.05% (b) Additional expenses for gross new inflows from specified cities Up to 0.30% under regulation 52(6A)(b) *The Trusteeship fees as per the provisions of the Trust Deed are subject to a maximum of 0.02% of the average net Trust Funds per annum. Trustee shall charge the Trusteeship Fees in proportion to the net assets of each of the Scheme of the Mutual Fund. SO No. 47 $ The nature of expenses can be any permissible expenses including management fees. Additional expenses not exceeding 0.05 % of daily net assets of the scheme as per Regulation 52(6A)(c) shall not be charged to the schemes where the exit load is not levied or applicable The goods and service tax on Investment Management and Advisory fees will depend on the total amount charged as Investment Management and Advisory fees. Currently it is chargeable at 18% on Investment Management and Advisory Fees. 27Expense Structure for Direct Plan - Direct Plan will have lower expense ratio than Regular Plan of the Scheme. The expenses under Direct Plan shall exclude the distribution and commission expenses and additional expenses for gross new flows from specified cities under regulation 52(6A)(b). All fees and expenses charged in a direct plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in a Regular Plan. The above expense structures are indicative in nature. Actual expenses could be lower than mentioned above. The purpose of the above table is to assist the investor in understanding the various costs & expenses SO that the investor in the Scheme will bear directly or indirectly. No. 48 For the actual current expenses being charged, the investor should refer to the website of the Mutual Fund. B. Illustration of impact of expense ratio on scheme’s returns: Particulars Regular Plan Direct Plan Amount invested at the beginning of the year 10,000 10,000 Annual income accrued to the scheme 1,000 1,000 Expenses other than Distribution expenses 75 75 Distribution expenses 25 Returns after expenses at the end of the year 900 925 % Returns after expenses at the end of the year 9.00% 9.25% Link for TER disclosure: https://www.dspim.com/mandatory-disclosures/ter The investors shall note that they are bearing the recurring expenses of the scheme, in addition to the expenses of other schemes in which the Fund of Funds Scheme makes investments. D. LOAD STRUCTURE Exit 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 (www.dspim.com) or may call at (toll free no. 1800 208 4499 or 1800 200 4499) or your distributor. Type of Load Load chargeable (as %age of NAV) Exit Load (as a % of Applicable NAV) 1% if redeemed within 1 month SO No. 45 Note on load exemptions: 1. There will be no Exit Load on inter-option switching. 2. No load will be charged on issue of bonus Units and Units allotted on reinvestment of IDCW 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 and vice versa Investors may note that the Trustee has the right to modify exit load subject to a maximum as prescribed under the SEBI (MF) Regulations. Any imposition or enhancement in the load shall be applicable on prospective investments only. At the time of changing the load structure, the AMC shall 28consider the following measures to avoid complaints from investors about investment in the Scheme without knowing the loads: (i) Addendum detailing the changes will be attached to the SID and Key Information Memorandum (KIM). The addendum may be circulated to all the distributors/brokers so that the same can be attached to all SIDs and KIMs already in stock. (ii) Arrangements will be made to display the addendum to the SID in the form of an addenda in all the ISCs/offices of the AMC/Registrar. (iii) The introduction of the Exit Load along with the details may 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. Investors are requested to check the prevailing load structure of the Schemes before investing. Exit load charged shall be credited to the scheme. The GST on exit load shall be paid out of the exit load proceeds and exit load net of GST shall be credited to the concerned scheme. 29Section II I. Introduction A. Definitions/interpretation Business/Working Day A day other than (1) Saturday and Sunday; (2) a day on which the National Stock Exchange / BSE is closed; (3) a day on which the Sale and Redemption of Units is suspended; (4) day on which any of the Underlying fund is closed for subscription/redemption. The AMC reserves the right to declare any day as a non-business day at any of its locations at its sole discretion. Custodian Citibank N. A., acting as custodian to the Scheme, or any other Custodian who is approved by the Trustee. Scheme Information This document issued by DSP Mutual Fund, offering Units of DSP Multi Asset Document/SID Omni Fund of Funds. Scheme DSP Multi Asset Omni Fund of Funds (DSPMAOFOF) SEBI Master Circular SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024 For common definitions, please refer website Link- https://www.dspim.com/mandatory- disclosures/disclosures-under-offer-documents/definitions-interpretation ABBREVIATIONS & INTERPRETATIONS In this SID, the following abbreviations have been used: AMC: Asset Management Company MBS: Mortgaged Backed Securities AMFI : Association of Mutual Funds in India MFSS: Mutual Fund Service System AML: Anti-Money Laundering MFU: MF Utilities India Private Limited ABS: Asset Backed Securities NAV: Net Asset Value ASBA: Application Supported by Blocked NEFT: National Electronic Funds Amount Transfer AOP: Association of Person NFO: New Fund Offer BSE: BSE Limited NRI: Non-Resident Indian BSE StAR BSE Stock Exchange Platform for NRE: Non Resident External MF: Allotment and Repurchase of Mutual Funds CAS: Consolidated Account Statement NRO: Non Resident Ordinary CAMS: Computer Age Management Services NSE / National National Stock Exchange of India Limited Stock Limited Exchange: CDSL: Central Depository Services (India) NSDL: National Securities Depository Limited Limited DFI: Development Financial Institutions OTC: Over the Counter DP: Depository Participant OTM: One Time Mandate ECS: Electronic Clearing System POA: Power of Attorney EFT: Electronic Funds Transfer PIO: Person of Indian Origin FPI: Foreign Portfolio Investor PMLA: Prevention of Money Laundering Act, 2002 FRA: Forward Rate Agreement POS: Points of Service FIRC: Foreign Inward Remittance Certificate PSU: Public Sector Undertaking FOF: Fund of Funds RBI: Reserve Bank of India FPI: Foreign Portfolio Investor REITs: Real Estate Investment Trusts 30FATCA: Foreign Account Tax Compliance Act RTGS: Real Time Gross Settlement Flex STP: Flex Systematic Transfer Plan SEBI: Securities and Exchange Board of India HUF: Hindu Undivided Family SI: Standing Instructions IDCW: Income Distribution cum Capital SIP: Systematic Investment Plan Withdrawal IMA: Investment Management Agreement SWP: Systematic Withdrawal Plan InvITs: Infrastructure Investment Trusts STP: Systematic Transfer Plan IRS: Interest Rate Swap STT: Securities Transaction Tax ISC: Investor Service Centre SCSB: Self Certified Syndicate Bank KYC: Know Your Customer SLR: Statutory Liquidity Ratio LTV: Loan to Value Ratio UBO: Ultimate Beneficial Ownership TREPS: Tri-party REPOs Value STP : Value Systematic Transfer Plan AMC: Asset Management Company MBS: Mortgaged Backed Securities AMFI : Association of Mutual Funds in India MFSS: Mutual Fund Service System AML: Anti-Money Laundering MFU: MF Utilities India Private Limited ABS: Asset Backed Securities NAV: Net Asset Value ASBA: Application Supported by Blocked NEFT: National Electronic Funds Amount Transfer AOP: Association of Person NFO: New Fund Offer BSE: BSE Limited NRI: Non-Resident Indian BSE StAR BSE Stock Exchange Platform for NRE: Non Resident External MF: Allotment and Repurchase of Mutual Funds CAS: Consolidated Account Statement NRO: Non Resident Ordinary CAMS: Computer Age Management Services NSE / National National Stock Exchange of India Limited Stock Limited Exchange: CDSL: Central Depository Services (India) NSDL: National Securities Depository Limited Limited DFI: Development Financial Institutions OTC: Over the Counter DP: Depository Participant OTM: One Time Mandate ECS: Electronic Clearing System POA: Power of Attorney EFT: Electronic Funds Transfer PIO: Person of Indian Origin FPI: Foreign Portfolio Investor PMLA: Prevention of Money Laundering Act, 2002 FRA: Forward Rate Agreement POS: Points of Service FIRC: Foreign Inward Remittance Certificate PSU: Public Sector Undertaking FOF: Fund of Funds RBI: Reserve Bank of India FPI: Foreign Portfolio Investor REITs: Real Estate Investment Trusts FATCA: Foreign Account Tax Compliance Act RTGS: Real Time Gross Settlement Flex STP: Flex Systematic Transfer Plan SEBI: Securities and Exchange Board of India HUF: Hindu Undivided Family SI: Standing Instructions IDCW: Income Distribution cum Capital SIP: Systematic Investment Plan Withdrawal IMA: Investment Management Agreement SWP: Systematic Withdrawal Plan InvITs: Infrastructure Investment Trusts STP: Systematic Transfer Plan IRS: Interest Rate Swap STT: Securities Transaction Tax ISC: Investor Service Centre SCSB: Self Certified Syndicate Bank KYC: Know Your Customer SLR: Statutory Liquidity Ratio LTV: Loan to Value Ratio UBO: Ultimate Beneficial Ownership TREPS: Tri-party REPOs Value STP : Value Systematic Transfer Plan INTERPRETATION For all purposes of this SID, except as otherwise expressly provided or unless the context otherwise requires: 31▪ The terms defined in this SID include the plural as well as the singular. ▪ Pronouns having a masculine or feminine gender shall be deemed to include the other. ▪ All references to “US$” refer to United States Dollars and “Rs.” refer to Indian Rupees. A “Crore” means “ten million” and a “Lakh” means a “hundred thousand”. References to times of day (i.e. a.m. or p.m.) are to Indian Standard Time (IST) times and references to a day are to a calendar day including non-Business Day. B. Risk factors SO No. 8 Risk Associated with investing in Fund of Fund Scheme: • The scheme specific risk factors of each of the underlying schemes become applicable where a fund of funds invests in any underlying scheme. Investors who intend to invest in Fund of Funds are required to and are deemed to have read and understood the risk factors of the underlying schemes relevant to the Fund of Funds scheme that they invest in. Copies of the Scheme Information Documents pertaining to the various schemes of DSP Mutual Fund, which disclose the relevant risk factors, may be accessed at www.dspim.com. • The Scheme’s performance will predominantly depend upon the performance of the corresponding Underlying Funds. • Any change in the investment policy or the fundamental attributes of the Underlying Fund in which the Scheme invests may affect the performance of the Scheme. • The portfolio disclosure of the Scheme will be largely limited to the particulars of the relevant Underlying Funds and investments by the Scheme in cash and cash equivalents. Therefore, Unit Holders may not be able to obtain specific details of the Scheme in respect of the Underlying Fund’s portfolio. • The performance of the underlying Funds depends on the ability of the respective Investment Managers to develop and implement investment strategies that achieve their investment objective. Moreover, any subjective decisions made by the Investment Manager may cause an underlying scheme to incur losses or to miss profit opportunities. • In addition to the recurring expenses of the Scheme, the Unit Holders shall also bear the applicable expenses of the Underlying Funds. Therefore, the returns that the Unit Holder of the Scheme may receive, at times, be lower than the returns that a Unit Holder, who is directly investing in the same Underlying Fund, could obtain. • The NAV’s of the Scheme(s) may be affected by the changes in the general market conditions, factors and forces affecting the capital markets in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures, currency exchange rates, changes in the government policies, taxation laws, any other policies, political and economic developments etc. • The Fund of Funds scheme may shift the weightage of investments between schemes into which it invests, the expenses charged being dependent on the structure of the underlying schemes (being different) may lead to a non- uniform charging of expenses over a period of time. • A Fund Manager managing any one of the Fund of Funds schemes may also be the Fund Manager for any underlying schemes. • In the event of receipt of an inordinately large number of redemption requests and inability of the Underlying Scheme(s) to generate enough liquidity because of market conditions, there may be delays in redemption of units. 32• There will be no prior intimation or prior indication given to the Unit holders when the composition/ asset allocation pattern under the scheme changes within the broad range defined in this offer document. • The liquidity of the Scheme(s) investments is inherently restricted by liquidity of Underlying Scheme. • The tax benefits available to the FoF Scheme(s) are the same as those available under the current taxation laws and subject to relevant conditions. The information given is included for general purposes only and is based on advice that the AMC has received regarding the law and the practice that is currently in force in India. The investors and the unitholders should be aware that the relevant fiscal rules and their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each investor/unitholder is advised to consult his/her own professional tax advisor. • If the AMC were to charge an Exit load and the underlying scheme do not waive/exempt the Exit Load charged on redemptions, the investors will incur load expenses on two occasions. First, on their redemptions/ switch- out in the options under the Scheme and second, on the Scheme’s redemption / switch-out in the options under the underlying scheme. Scheme specific Risk factors: Risks associated with transacting in scheme units through stock exchange mechanism In respect of transactions in units of the schemes through NSE and/or BSE or any other recognized stock exchange promoted platforms, allotment and redemption of Units on any Business Day will depend upon the order processing/settlement by NSE, BSE or such other exchange and their respective clearing corporations on which the AMC and Fund has no control. Further, transactions conducted through the stock exchange mechanism shall be governed by the operating guidelines and directives issued by NSE, BSE or such other recognized exchange in this regard. Risk associated with favorable taxation of certain scheme in India: In any event beyond the control of AMC if the scheme is not able to invest the minimum % of the threshold that it is required to invest in eligible asset classes as per the domestic income tax regulation and rule, the benefit of lower tax, if any, on income distribution or capital gains may not be available to the Unit Holders. The summary of tax implications given in the taxation section (Units and Offer Section) is based on the existing provisions of the tax laws. The current taxation laws may change due to change in the domestic Tax Act or any subsequent changes / amendments in Finance Act / Rules / Regulations. Such change may entail a higher tax to the scheme or to the investors by way of any tax as made applicable thus adversely impacting the scheme. The investor is requested to consult their tax counsel for detail understanding of the tax laws and the risk factor associated with such tax laws. Risk Factors associated with investments in Cash and Cash Equivalents: - Price-Risk or Interest-Rate Risk: Cash and cash equivalents run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. However, Cash and cash equivalents in this scheme are intended to be held till maturity. For such securities held till maturity, there will not be any interest rate risk at the end of the tenure. - Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation Yield-to-Maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. - Reinvestment Risk: Investments in cash and cash equivalents may carry reinvestment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate. 33- Pre-payment Risk: Certain cash and cash equivalents give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the fund to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the fund. Risks associated with Investment in Underlying schemes (As applicable): Risk factors pertaining to investments in Equity and Equity-related securities / investments: i. Price Risk: Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. The value of the Schemes‘ equity investments, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or any other appropriate authority policies and other political and economic developments which may have an adverse bearing on individual securities, a specific sector or all sectors. Investments in equity shares and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risks. Investors may note that dividend is due only when declared and there is no assurance that a company (even though it may have a track record of payment of dividend in the past) may continue paying dividend in future. As such, the scheme is vulnerable to instances where investments in securities may not earn dividend or where lesser dividend is declared by a company in subsequent years in which investments are made by schemes. As the profitability of companies are likely to vary and have a material bearing on their ability to declare and pay dividend, the performance of the scheme may be adversely affected due to such factors. Changes in government policy in general and changes in tax benefits applicable to Mutual Funds may impact the returns to investors in the Schemes ii. Liquidity Risk for listed securities: While securities that are listed on the stock exchange carry lower liquidity risk, the ability to execute investment strategies or sell these investments could be limited by the overall trading volume, settlement periods, transfer cycles on the stock exchanges and may lead to the Scheme not realizing desired price and may incur losses till the security is finally sold. Although the investment universe constitutes securities which will have high market liquidity, there is a possibility that market liquidity could get impacted on account of company/sector/general market related events and there could be a price impact on account of portfolio rebalancing and/or liquidity demands on account of redemptions iii. Liquidity Risk on account of unquoted and unlisted securities: Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk. Within the Regulatory limits, the AMC may choose to invest in unlisted securities or may receive such securities as a part of corporate action. The Schemes may not be able to immediately sell certain types of illiquid Securities. The prices and subsequent valuation of restricted and illiquid Securities may reflect a premium / discount, which may be significant, from the market price of comparable Securities for which a liquid market exists. Further Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The NAV of the Scheme(s) can go up and down because of such factors that affect the capital markets in general. The AMC cannot give assurance but will endeavor to liquidate any illiquid securities not a part of the investment strategy or underlying index at the earliest with least possible price impact. Risks Associated with Investment in Debt Securities and Money Market Instruments 34• Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. However, certain debt securities may be intended to be held till maturity. For such securities held till maturity, there will not be any interest rate risk at the end of the tenure. Duration risk refers to the movement in price of the invested debt instruments due to change in interest rates over different durations of maturity of instruments. Duration of portfolio is expressed in years and should be used as a measure of the sensitivity of the fixed income instrument to a change in interest rates. A longer portfolio duration is associated with greater price fluctuations. A rise in interest rates could normally lead to decrease in prices and generally negatively affects portfolios having longer duration vis-a-vis portfolios having shorter duration. A fall in interest rate generally benefits portfolio having longer duration. A longer duration portfolio is also generally associated with greater volatility vis-a-vis a shorter duration portfolio. • Term Structure of Interest Rates (TSIR) Risk: The Net Asset Value (NAV) of the Scheme(s), to the extent invested in Debt and Money Market securities, will be affected by changes in the general level of interest rates. The NAV of the Scheme(s) is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates. • Credit Risk: Investments in Debt Securities are subject to the risk of an issuer's inability to meet interest and principal payments on its obligations and market perception of the creditworthiness of the issuer. Different types of securities in which the Scheme would invest as given in the SID carry different levels of credit risk. Accordingly, the Scheme’ risk may increase or decrease depending upon their investment patterns. E.g., corporate bonds carry a higher amount of risk than Government securities. Further, even among corporate bonds, bonds which are rated AAA are comparatively less risky than bonds which are AA rated. Investments in money market instruments involve credit risk commensurate with short term rating of the issuers. • Rating Migration Risk: Fixed income securities are exposed to rating migration risk, which could impact the price on account of change in the credit rating. For example: One notch downgrade of a AAA rated issuer to AA+ will have an adverse impact on the price of the security and vice-versa for an upgrade of a AA+ issuer. • Liquidity or Marketability Risk: This refers to the ease with which a security can be purchased or sold at or near to its valuation Yield-to-Maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. The liquidity of investments made in the Scheme may be restricted by trading volumes besides operational issues like settlement periods and transfer procedures. Different segments of the Indian financial markets have different settlement processes & periods and such periods may be extended significantly by unforeseen circumstances. There have been times in the past, when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct further transactions. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are not invested and no return is earned thereon. The inability of the Scheme to make intended securities purchases or sale could cause the Scheme to miss certain investment opportunities due to the absence of a well-developed and liquid secondary market for debt securities which would result at times, in potential underperformance in the Scheme. • Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. Investments in fixed income securities may carry reinvestment risk as the cash flows received may get invested at a lower rate of interest prevailing on the date of investment of cash flows viz. interest or redemptions received during the tenure of the scheme. • Pre-payment Risk: Certain fixed income securities give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the fund to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the fund. 35• Risk from zero coupon securities: As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rates. Therefore, the interest rate risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio. • Risk associated with floating rate securities: To the extent the Scheme’ investments are in floating rate debt instruments or fixed debt instruments swapped for floating rate return, they will be affected by: a) Interest rate movement (Basis Risk) - Coupon rates on floating rate securities are reset periodically in line with the benchmark index movement. Normally, the interest rate risk inherent in a floating rate instrument is limited compared to a fixed rate instrument. Changes in the prevailing level of interest rates will likely affect the value of the Scheme’ holdings until the next reset date and thus the value of the Scheme’ Units. The value of securities held by the Scheme generally will vary inversely with changes in prevailing interest rates. The Mutual Fund could be exposed to interest rate risk (i) to the extent of time gap in the resetting of the benchmark rates, and (ii) to the extent the benchmark index fails to capture interest rate changes appropriately; b) Spread Movement (Spread Risk) - Though the basis (i.e. benchmark) gets readjusted on a regular basis, the spread (i.e. markup) over benchmark remains constant. This can result in some volatility to the holding period return of floating rate instruments; c) Settlement Risk (Counterparty Risk) - Specific floating rate assets may also be created by swapping a fixed return into a floating rate return. In such a swap, there is the risk that the counterparty (who will pay floating rate return and receive fixed rate return) may default; d) Liquidity Risk: The market for floating rate securities is still in its evolutionary stage and therefore may render the market illiquid from time to time, for such securities that the Scheme are invested in. 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 for 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 investing in underlying ETFs: • In addition to the recurring expenses of the Scheme, the Unit Holders shall also bear the applicable expenses of the Underlying ETF/index fund. Therefore, the returns that the Unit Holder of the Scheme may receive may be impacted or may, at times, be lower than the returns that a Unit Holder, who is directly investing in the same Underlying ETF/index fund, could obtain. 36• Index-Related Risk. There is no guarantee that the underlying ETF’s/index funds investment results will have a high degree of correlation to those of the Underlying Index or that the underlying ETF/index fund will achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the underlying ETF’s/index funds ability to adjust its exposure to the required levels in order to track the Underlying Index. Errors in index data, index computations or the construction of the Underlying Index in accordance with its methodology may occur from time to time and may not be identified and corrected by the Index Provider for a period of time or at all, which may have an adverse impact on the underlying ETF/index fund. Unusual market conditions may cause the Index Provider to postpone a scheduled rebalance, which could cause the Underlying Index to vary from its normal or expected composition • Passive Investment Risk. The underlying ETF/index fund is not actively managed, and the fund manager generally does not attempt to take defensive positions under any market conditions, including declining markets • Tracking Error Risk. The underlying ETF/index fund may be subject to tracking error, which is the divergence of its performance from that of the Underlying Index. Tracking error may occur because of differences between the securities and other instruments held in the ETF/index fund portfolio and those included in the Underlying Index, pricing differences (including, as applicable, differences between a security’s price at the local market close and the ETF’s/index funds valuation of a security at the time of calculation of the Fund’s NAV), transaction costs incurred by the ETF/index fund, the holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or interest, the requirements to maintain pass through tax treatment, portfolio transactions carried out to minimize the distribution of capital gains to shareholders, acceptance of custom baskets, changes to the Underlying Index or the costs to the ETF/index fund of complying with various new or existing regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the ETF/index fund incurs fees and expenses, while the Underlying Index does not. Risk associated with investments in Gold & Gold ETF‘s and Silver & Silver ETFs: • Gold/Silver Price Risk: Fluctuations in the price of Gold / Silver could adversely affect investment value of the Scheme. The factors that may affect the price of Gold / Silver, inter alia, include demand & supply, economic and political developments, changes in interest rates and perceived trends in bullion prices, exchange rates, inflation trends, market movements, movement/trade of Gold / Silver that may be imposed by RBI, trade and restrictions on import/export of Gold / Silver or Gold / Silver jewellery etc. The returns from physical Gold / Silver may underperform returns from any other asset class. Investors should be aware that there is no assurance that Gold / Silver will maintain its long-term value in terms of purchasing power in the future. In the event that the price of Gold / Silver declines, the value of investment is expected to decline proportionately. • Liquidity Risk: The scheme has to sell Gold / Silver only to bullion bankers/ traders who are authorized to buy Gold / Silver. Though, there are adequate number of players (commercial or bullion bankers) to whom the Scheme can sell Gold / Silver. However, the Scheme may have to resort to distress sale of Gold / Silver if there is no or low demand for Gold / Silver to meet its cash needs of redemption or expenses. The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity requirements. • Risks associated with handling, storing and safekeeping of physical Gold / Silver: There is a risk that part or all of the Scheme's Gold / Silver could be lost, damaged or stolen. Access to the Scheme's Gold / Silver could also be restricted by natural events or human actions. Any of these actions may have adverse impact on the operations of the scheme and consequently on investment in units. • Currency Risk: The formula for deriving the NAV of the units of the scheme is based on the imported (landed) value of the Gold / Silver, which is computed by multiplying international market price by US Dollar value. Hence the value of NAV or Gold / Silver will depend upon the conversion value and attracts all the risk associated with such conversion. 37• Physical Gold / Silver: There is a risk that part or all of the Scheme's Gold / Silver could be lost, damaged or stolen. Access to the Scheme's Gold / Silver could also be restricted by natural events or human actions. Any of these actions may have adverse impact on the operations of the scheme and consequently on investment in units. • Indirect taxation: For the valuation of Gold / Silver by the Scheme, indirect taxes like customs duty, VAT, etc. would also be considered. Hence, any change in the rates of indirect taxation / applicable taxes would affect the valuation of the Scheme. • Counter party Risk: There is no Exchange for physical Gold / Silver in India. The Scheme may have to buy or sell Gold / Silver from the open market, which may lead to counter party risks for the Mutual Fund for trading and settlement. • Risks Related to the Custody of Gold / Silver The Custodian is responsible for the safekeeping of the Gold / Silver bullion and also facilitates the transfer of Gold / Silver bullion into and out of the vault. Although the Custodian is a market maker, clearer and approved weigher under the rules of the LBMA (which sets out good practices for participants in the bullion market), the LBMA is not an official or governmental regulatory body. Accordingly, the Scheme is dependent on the Custodian to comply with the best practices of the LBMA and to implement satisfactory internal controls for its Gold / Silver bullion custody operations in order to keep the Gold / Silver bullion secure. The Custodian is responsible for loss or damage to the Gold / Silver only under limited circumstances. The AMC does not insure its Gold / Silver (Underlying Gold / Silver of the scheme). The Custodian maintains insurance on such terms and conditions as it considers appropriate in connection with its custodial obligations under the Custodian Agreement and is responsible for all costs, fees and expenses arising from the insurance policy or policies. The AMC is not a beneficiary of any such insurance and does not have the ability to dictate the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian maintains adequate insurance or any insurance with respect to the Gold / Silver held by the Custodian on behalf of the Trust. • Operational Risks: Gold / Silver Exchange Traded Funds are relatively new products and their value could decrease if unanticipated operational or trading problems arise. Gold / Silver Exchange Traded Fund, an open ended Exchange Traded Fund, is therefore subject to operational risks. • The scheme may invest in Gold / Silver ETFs. The units may trade above or below their NAV. The NAV of the Scheme will fluctuate with changes in the market value of the holdings. The trading prices will fluctuate in accordance with changes in their NAV as well as market supply and demand. The units of the ETFs will be valued at the market price of the said units on the principal exchange. The valuation price may be at a variance to the underlying NAV of the fund, due to market expectations, demand supply of the units, etc. • However, given that units can be created and redeemed in Creation Units, it is expected that large discounts or premiums to the NAV will not sustain due to arbitrage opportunity available. In case of investment in Gold / Silver ETFs, the scheme will subscribe to the units of Gold / Silver ETFs according to the value equivalent to unit creation size as applicable. When subscriptions received are not adequate enough to invest in creation unit size, the subscriptions may be deployed in debt and money market instruments which will have a different return profile compared to Gold / Silver returns profile • Tracking Error: “Tracking Error” i.e. the annualised standard deviation of the difference in daily returns between physical Gold / Silver and the NAV of Gold / Silver ETF may arise including but not limited to the following reasons: - a) Expenditure incurred by the fund. b) Available funds may not be invested at all times as the Scheme may keep a portion of the funds in cash to meet Redemptions, for corporate actions or otherwise. c) Securities trading may halt temporarily due to circuit filters. d) Disinvestments to meet redemptions, recurring expenses, etc. e) Execution of large buy / sell orders SO No. 10 38f) Transaction cost (including taxes and insurance premium) and recurring expenses g) Realisation of Unit holders’ funds h) Accounting for indirect taxes including tax reclaims i) SEBI Regulations (if any) may impose restrictions on the investment and/or disvestment activities of the Scheme. Such restrictions are typically outside the control of the AMC and may cause or exacerbate the Tracking Error Risks associated with investment in Sectoral / thematic fund: Any sectoral or thematic fund will seek to invest in underlying investments belonging to a defined sector or the theme. Investor needs to understand that a specific sector/theme may not achieve desired result / growth and may also experience unexpected changes adversely affecting the performance, thus investing in a sectoral /thematic fund could involve potentially higher volatility and risk. Further the fund would be restricted to invest in underlying investments from the defined sectors/themes and thus the concentration risk is also expected to be high. RISK MANAGEMENT STRATEGIES SO No. 9 • Market Liquidity Risk: Amongst all the segments of the fixed income market in India, the government securities market demonstrates the highest market liquidity. The liquidity varies from security to security with benchmark securities for the reference tenors like 10 years, 5 years etc. showing relatively higher market liquidity. With time, the benchmark liquidity changes and hence liquidity propagates from one security to the other. The liquidity risk will be managed and/or sought to be addressed by creating a portfolio which has adequate access to liquidity. The Investment Manager will select fixed income securities, which have or are expected to have high secondary market liquidity. Market Liquidity Risk will be managed actively within the portfolio liquidity limits. • Credit Risk: Credit Risk associated with fixed income securities will be managed by making investments in securities issued by borrowers, which have a good credit profile. The credit research process includes a detailed in-house analysis and due diligence. Limits are assigned for each of the issuer (other than government of India); these limits are for the amount as well as maximum permissible tenor for each issuer. The credit process ensures that issuer level review is done at inception as well as periodically by taking into consideration the balance sheet and operating strength of the issuer. • Rating Migration Risk: The endeavor is to invest in high grade/quality sovereign securities and thus ensuring the rating migration risk to be minima; • Interest Rate Risk: The Scheme is expected to have duration based on the underlying securities. The interest rate risk cannot be eliminated and it exists as it is the primary feature of the scheme by providing investors access to a higher interest rate risk portfolio, which would benefit in a declining interest rate environment. • Re-investment Risk: The Investment Manager will endeavor that besides the tactical and/or strategic interest rate calls, the portfolio is fully invested. • Term Structure of Interest Rates (TSIR) Risk: The Scheme is expected to have duration based on the underlying securities. As the nature of the scheme is to have higher duration, the Term Structure of Interest Rates (TSIR) Risk cannot be eliminated and it exists as it is the primary feature of the scheme. • Risks associated with floating rate securities: There is restricted liquidity in floating rate securities, resulting in lack of price discovery. Hence, incremental investments in floating rate securities are going to be limited. • Risk associated with Cash and Cash Equivalents: The scheme will invest in securities as per the intended allocation and thus this risk are low as compared to other risk mentioned above. The AMC will endeavor to minimize the Liquidity Risk, Interest Rate Risk, Reinvestment Risk. 39Risk Associated with investments in mutual funds / ETFs and Index securities: i. Liquidity Risk on account of investments in underlying funds: The investments are made in underlying funds, which provide adequate liquidity. ii. Expense Risks associated with investments in underlying funds: The aggregate of expenses incurred by the Fund-of-Funds scheme and the underlying funds is subject to limits prescribed by SEBI. iii. Portfolio Disclosure Risks associated with investments in underlying fund: The extent of the portfolio disclosures pertaining to the underlying fund’s portfolio and other details viz. TER, etc. will be subject to the periodical disclosures made by the underlying funds. AMC will endeavour to retrieve data for adequate disclosures as are mandated under the regulations. iv. Investment Policy and/or fundamental attribute change risks associated with investments in underlying funds: Investments are made in such underlying funds, which have similar investment objectives to the domestic fund in India. However, there exists possibility that there is a change in the fundamental attributes of the underlying fund. In such circumstances, the Investment Manager will seek to invest in other funds, which have the same investment objective as the domestic fund. Risks associated with Gold / Silver and Gold / Silver ETFs Price risk: The investments will follow the underlying price of Gold / Silver and therefore the level of portfolio volatility would be same as that of the underlying Gold / Silver price. The investment managers will ensure that the portfolio allocation to the securities is as per the allocation allowed by the scheme document. Liquidity risk: Gold / Silver is a globally traded commodity and thereby liquid. There are also designated Authorized Participants who facilitate liquidity on the exchange Event risk/Custody Risk: There is a risk that part or all of the physical Gold / Silver belonging to the Scheme could be lost, damaged or stolen. In order to ensure safety, the said Gold / Silver will be stored with custodian in its vaults. Gold / Silver held by custodian is also insured. The custodian will insure/cover all such risks. Tracking error & Tracing Difference Risk: While the objective of the Scheme is to closely track the price of Physical Gold / Silver, the performance may not be commensurate with the Price of Gold / Silver on any given day or over any given period. Such variations are commonly referred and measure as the tracking error or tracking difference. Tracking errors or Tracking difference may cause the scheme to generate returns which are not in line with the performance of the underlying benchmark and may arise from a variety of factors including but not limited to: a. Expenditure incurred by the fund. b. Available funds may not be invested at all times as the Scheme may keep a portion of the funds in cash to meet Redemptions, for corporate actions or otherwise. c. Securities trading may halt temporarily due to circuit filters. d. Disinvestments to meet redemptions, recurring expenses, etc. e. Execution of large buy / sell orders f. Transaction cost (including taxes and insurance premium) and recurring expenses g. Realisation of Unit holders’ funds h. Accounting for indirect taxes including tax reclaims i. SEBI Regulations (if any) may impose restrictions on the investment and/or disinvestment activities of the Scheme. Such restrictions are typically outside the control of the AMC and may cause or exacerbate the Tracking Error. AMC would monitor the tracking error or Tracking difference of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible and within the permissible limits. However, this may vary due to the reasons mentioned above or any other reasons that may arise and particularly when the markets are very volatile. However, there can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error or tracking difference relative to performance of the Underlying benchmark. 40II. Information about the scheme: A. Where will the scheme invest- The scheme will invest in units of: 1. Equity oriented active funds and/or equity-oriented Index Funds and/or ETFs. 2. Debt oriented active funds and/or debt-oriented Index Funds and/or ETFs. 3. Commodity ETFs The Scheme may also invest a certain portion of its corpus in cash and cash equivalents, only to the extent necessary to meet the liquidity requirements for honoring repurchase / redemptions / expenses. In view of the nature of the Scheme, the asset allocation pattern as indicated above may not change, except in line with the changes made in SEBI (MF) Regulations, from time to time. Detailed description of the instruments mentioned in section I. 1. Units of Equity oriented active funds, Debt oriented active funds, Index Funds, ETFs and Commodity ETFs(Schemes of DSP Mutual Fund or other AMCs) registered with SEBI. Units of mutual funds represent an investor's share in an Equity or Debt Index Funds and ETFs or Commodity ETF mutual fund scheme. When investors buy mutual fund units, they pool their money with other investors to collectively invest in a diversified portfolio of assets such as stocks, bonds, or other securities. Each unit reflects the proportionate ownership of the fund's assets. The value of these units, known as the Net Asset Value (NAV), fluctuates based on the performance of the underlying assets. 2. Cash and Cash Equivalents will include following securities having residual maturity of less than 91 Days: a) Government Securities- Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Government Securities Act, 2006, as amended or re-enacted from time to time. b) Repos & Reverse Repos- 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. c) TREPS- TREPs is a money market instrument that enables entities to borrow and lend against sovereign collateral security. The maturity ranges from 1 day to 90 days and can also be made available upto 1 year. Central Government securities including T-bills are eligible securities that can be used as collateral for borrowing through TREPs. d) Treasury Bills- Treasury bills (T-bills) are short-term government securities issued at a discount to their face value and mature within one year. They do not pay periodic interest but provide returns by maturing at their full face value, with the difference between the purchase price and the maturity value representing the investor's earnings. T-bills are considered low-risk investments due to government backing. 3. Short Term Deposits- Pending deployment of funds as per the investment objective of the Scheme, the Funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. Applicable guidelines/details of instrument where the scheme will invest- Investment in Short-Term Deposits- Pending deployment of funds of the Scheme, the AMC may invest funds of the Scheme in short-term deposits of scheduled commercial banks, subject to the following conditions issued by clause 12.16 of 41SEBI Master Circular. “Short Term” for parking of funds shall be treated as a period not exceeding 91 days. (i) Such short-term deposits shall be held in the name of the Scheme. (ii) The Scheme shall not park more than 15% of their net assets in the short term deposit(s) of all the scheduled commercial banks put together. However, it may be raised to 20% with the prior approval of the Trustee. Also, parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. (iii) The Scheme shall not park more than 10% of their net assets in short term deposit(s) with any one scheduled commercial bank including its subsidiaries. (iv) The Trustee shall ensure that the funds of the Scheme are not parked in the short term deposits of a bank which has invested in the Scheme. (v) The Trustee shall also ensure that the bank in which a scheme has short term deposits do not invest in the scheme until the scheme has short term deposits with such bank. (vi) AMC will not charge any investment management and advisory fees for parking of funds in short term deposits of scheduled commercial banks. The above provisions do not apply to term deposits placed as margins for trading in cash and derivative market. B. What are the investment restrictions? As per the Trust Deed read with the SEBI (MF) Regulations, the following investment restrictions apply in respect of the Scheme at the time of making investments. However, all investments by the Scheme will be made in accordance with the investment objective; asset allocation and where the scheme will invest, described earlier, as well as the SEBI (MF) Regulations, including Schedule VII thereof, as amended from time to time. 1. Transfer of investments from one Scheme to another Scheme in the Mutual Fund shall be allowed as per guidelines prescribed under clause 12.30 of SEBI Master Circular and amendments made from time to time. Clause 9.11 SEBI Master Circular has prescribed the methodology for determination of price to be considered for inter-scheme transfers. 2. The Mutual Fund shall get the securities purchased/transferred in the name of the Mutual Fund on account of the Schemes, wherever the instruments are intended to be of a long term nature. 3. Pending deployment of funds of the Scheme in terms of the investment objective of the Scheme, the Mutual Fund may invest them in short term deposits of scheduled commercial banks, in terms of shall be in terms of Clause 12.16 of the SEBI Master Circular subject to the following conditions: (i) “Short Term” for parking of funds shall be treated as a period not exceeding 91 days. (ii) Such short-term deposits shall be held in the name of the Scheme. (iii) The Scheme shall not park more than 15% of their net assets in the short term deposit(s) of all the scheduled commercial banks put together. However, it may be raised to 20% with the prior approval of the Trustee. Also, parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. (iv) The Scheme shall not park more than 10% of their net assets in short term deposit(s) with any one scheduled commercial bank including its subsidiaries. (v) The Trustee shall ensure that the funds of the Scheme are not parked in the short term deposits of a bank which has invested in the Scheme. (vi) AMC will not charge any investment management and advisory fees for parking of funds in short term deposits of scheduled commercial banks. (vii)The Trustee shall also ensure that the bank in which a scheme has short term deposits do not invest in the scheme until the scheme has short term deposits with such bank. The above provisions do not apply to term deposits placed as margins for trading in cash and derivative market. 42Note: The above limits are subject to limits mentioned in the asset allocation table of Debt / Money Market instruments. 4. The Scheme shall not make any investment in: i. any unlisted security of any associate or group company of the Sponsors; or ii. any security issued by way of private placement by an associate or group company of the Sponsors; or iii. the listed securities of group companies of the Sponsors, which is in excess of 25% of the net assets except for investments by equity oriented exchange traded funds and index funds and subject to such conditions as may be specified by the SEBI. 5. No term loans for any purpose may be advanced by the Mutual Fund and the Mutual Fund shall not borrow except to meet temporary liquidity needs of the Schemes for the purpose of repurchase, redemption of Units or payment of interest or IDCWs to Unit Holders, provided that the Mutual Fund shall not borrow more than 20% of the net assets of each of the Schemes and the duration of such borrowing shall not exceed a period of six months. 6. The Underlying Schemes shall not invest in any other Fund of Funds scheme. 7. The Scheme shall not invest into another Fund of Funds Scheme. 8. The Scheme shall not make any investment in derivatives instruments. 9. The Scheme will not invest in equity linked debentures. 10. The Scheme shall not invest in ADR/GDR/overseas securities. 11. The Scheme will not invest in Securitized Debt. 12. The Scheme will not invest in Repo/reverse repo of corporate debt securities. 13. The Scheme will not invest in unrated debt instruments 14. The Scheme will not invest in Credit Default Swaps. 15. The Scheme will not invest in Debt instruments having Structured Obligations / Credit Enhancements. 16. The Scheme will not invest in securities covered under Clause No. 12.2 of the SEBI Master Circular. 17. The Scheme will not engage in Stock Lending and Borrowing 18. The Scheme will not engage in short selling. 19. The Scheme will not invest in Units of REITs and InvITs. 20. No term loans for any purpose may be advanced by the Mutual Fund and the Mutual Fund shall not borrow except to meet temporary liquidity needs of the Schemes for the purpose of repurchase, redemption of Units or payment of interest or IDCWs to Unit Holders, provided that the Mutual Fund shall not borrow more than 20% of the net assets of each of the Schemes and the duration of such borrowing shall not exceed a period of six months. 21. If any company invests more than 5 percent of the NAV of any of the Scheme, investment made by that or any other Scheme of the Mutual Fund in that company or its subsidiaries will be disclosed in accordance with the SEBI (MF) Regulations 22. As per Clause 12.24 of the SEBI Master Circular, the cumulative gross exposure through units of Equity Index/ETFs, Debt Index/ETFs, Commodity ETFs and other permitted securities/ asset class shall not exceed 100% of the net assets of the scheme subject to the regulatory approval, if any. Cash and cash equivalents as per SEBI letter no. SEBI/HO/ IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 43dated November 03, 2021 shall not be considered for the purpose of calculating gross exposure limit. 23. No sponsor of a mutual fund, its associate or group company including the asset management company of the fund, through the schemes of the mutual fund or otherwise, individually or collectively, directly or indirectly, have – a. 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or b. representation on the board of the asset management company or the trustee company of any other mutual fund. 24. The Scheme will comply with any other Regulations applicable to the investment of mutual funds from time to time. These investment limitations/parameters as expressed (linked to the Net Asset/Net Asset Value/capital) shall, in the ordinary course, apply as at the date of the most recent transaction or commitment to invest, and changes do not have to be effected merely because, owing to appreciation or depreciation in value or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any Scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Mutual Fund, any such limits would thereby be breached. If these limits are exceeded for reasons beyond its control, the AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unit Holders. Apart from the Investment Restrictions prescribed under the SEBI (MF) Regulations, internal risk parameters for limiting exposure to a particular scheme may be prescribed from time to time to respond to the dynamic market conditions and market opportunities. The Trustee /AMC may alter the above stated limitations from time to time, and also to the extent the SEBI (MF) Regulations change, so as to permit the Scheme to make their investments in the full spectrum of permitted investments in order to achieve their investment objective. All the investment restrictions shall be applicable at the time of making investments. SO No. 60 C. Fundamental Attributes Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master Circular: (i) Type of a scheme An open ended fund of fund scheme investing in units of active and passive schemes of Equity, Debt and Commodity asset classes. (ii) Investment Objective • Main Objective – Please refer “HIGHLIGHTS/SUMMARY OF THE SCHEME – Investment Objective • Investment pattern – Please refer “How will the Scheme allocate its assets?” (iii) Terms of Issue • Liquidity provisions such as listing, repurchase, redemption. Please refer, “Part I. Highlights/summary of the scheme.” • Aggregate fees and expenses charged to the Scheme. Please refer, “Section- Annual scheme recurring Expenses.” • Any safety net or guarantee provided – Not applicable In accordance with Regulation 18(15A) read with 25(26) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master Circular, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(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 44the 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. D. Index Methodology – Not applicable E. Principles of incentive structure for market makers – Not Applicable F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per clause 13.6.2 of SEBI master circular for mutual funds - Not applicable G. Other Scheme Specific Disclosures: Listing and transfer of units The Scheme is open ended and the Units are not proposed to be listed on any stock exchange. However, the Mutual Fund may, at its sole discretion, list the Units on one or more Stock Exchanges at a later date, and thereupon the Mutual Fund will make suitable public announcement to that effect. The Mutual Fund will offer and redeem the Units on a continuous basis during the Continuous Offer Period. The Unit holders are given an option to hold the Units by way of an Account Statement (physical form) or in Dematerialized (demat form). Transfer of Units is possible in Demat and as well as in non-demat. Units held in Demat form are transferable (subject to lock- in period, if any and subject to lien, if any marked on the units) in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018, as may be amended from time to time. Transfer can be made only in favor of transferees who are capable of holding Units and having a Demat Account. The delivery instructions for transfer of Units will have to be lodged with the DP in requisite form as may be required from time to time and transfer will be effected in accordance with such rules / regulations as may be in force governing transfer of securities in dematerialized mode. Further, for the procedure of release of lien, the investors shall contact their respective DP. However, if a person becomes a holder of the Units consequent to operation of law or upon enforcement of a pledge, the Mutual Fund will, subject to production of satisfactory evidence, effect the transfer, if the transferee is otherwise eligible to hold the Units. Similarly, in cases of transfers taking place consequent to death, insolvency etc., the transferee’s name will be recorded by the Mutual Fund subject to production of satisfactory evidence. Transfer of units held in Non-Demat [Statement of Account (‘SOA’)] mode: As per the AMFI Best Practices Guidelines Circular No.116 /2024-25 dated August 14, 2024 on ‘Standard Process for 45Transfer of Units held in Non-Demat (SoA) mode’, units held by individual unitholders in Non-Demat (‘SoA’) mode can be transferred only in following cases- (i) Surviving joint unitholder, who wants to add new joint holder(s) in the folio upon demise of one or more joint unitholder(s). (ii) A nominee of a deceased unitholder, who wants to transfer the units to the legal heirs of the deceased unitholder, post the transmission of units in the name of the nominee. (iii) A minor unitholder who has turned a major and has changed his/her status from minor to major, wants to add the name of the parent / guardian, sibling, spouse etc. in the folio as joint holder(s). Partial transfer of units held in a folio shall be allowed. If the request for transfer of units is lodged on the record date, the IDCW payout/ reinvestment shall be made to the transferor. Redemption of the transferred units shall not be allowed for 10 days from the date of transfer. This will enable the investor to revert in case the transfer is initiated fraudulently. Mode of submitting the Transfer Request Non-Demat (SOA) mode The facility for transfer of units held in SoA mode shall be available only through online mode via the transaction portals of the RTAs and the MF Central, i.e., the transfer of units held in SoA mode shall not be allowed through physical/ paper-based mode or via the stock exchange platforms, MFU, channel partners and EOPs etc. For details on pre-requisites, payment of stamp duty on transfer of units, please refer SAI. Dematerialization of units The Unit holders would have an option to hold the Units in demat form or account statement (non-demat) form. Units held in Demat Form are freely transferable. The Applicant SO No. 58 intending to hold Units in demat form will be required to have a Demat account with a Depository Participant (DP) of the NSDL/ CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units. For further details, please refer SAI. Minimum Target amount The Mutual Fund seeks to collect a minimum (This is the minimum amount subscription amount of Rs. 10 crore in the Scheme required to operate the scheme during the NFO period. In the event this amount is not and if this is not collected during raised during the NFO period, the amount collected the NFO period, then all the under the Scheme will be refunded to the applicants as investors would be refunded the mentioned in the section, ‘Refund’. amount invested without any return.) Maximum Amount to be raised (if There is no maximum subscription amount for the any) Scheme to be raised and therefore, subject to the applications being in accordance with the terms of this offer, full allotment will be made to the applicants. Any 46application for subscription of units may be rejected if found incomplete or due to unavailability of underlying securities, etc. Dividend Policy (IDCW) (i) Growth Option The Mutual Fund will not declare any IDCWs under this option. The income earned under this Option will remain invested in the option and will be reflected in the NAV. This option is suitable for investors who are not looking for current income but who have invested with the intention of capital appreciation. Moreover, if Units under this option are held as capital asset for a period of greater than twelve months from the date of acquisition, Unit Holders will get the benefit of long term capital gains tax. (ii) Income Distribution cum Capital Withdrawal option (IDCW) The above Option is suited for investors seeking income through IDCWs declared by the Scheme. Only Unit Holders opting for the IDCW Option (Option B) will receive IDCWs. The Trustee, in its sole discretion, may also declare interim IDCWs. This Option in turn offers two sub-options i.e. “Payout IDCW” and “Reinvest IDCW”, as under: • Payout IDCW As per the SEBI (MF) Regulations, the Mutual Fund shall dispatch IDCW proceeds to the Unit Holders within 7 Working Days of the record date of the IDCW. IDCWs will be paid by cheque, net of taxes, as may be applicable. Unit Holders will also have the option of direct payment of IDCW to the bank account. The cheques will be drawn in the name of the sole/first holder and will be posted to the registered address of the sole/first holder as indicated in the original application form. To safeguard the interest of Unit Holders from loss or theft of IDCW cheques, investors should provide the name of their bank, branch and account number in the application form. IDCW cheques will be sent to the Unit Holder after incorporating such information. If the IDCW amount payable (net of tax deducted at source, wherever applicable) under the IDCW Payout sub-option of the Scheme is for an amount equal to or less than (i) Rs. 100/- in the then such IDCW will compulsorily and automatically reinvested in the Scheme/Plan by issuing additional Units of the Scheme under Regular Plan/ Direct Plan at the Applicable NAV on the next Business day after the Record Date. There shall be no load on IDCW so reinvested. • Reinvest IDCW Under this sub-option, IDCWs are reinvested by way of allotment of additional Units of the Scheme, instead of receiving IDCW payout. Such additional Units by way of reinvestment of IDCWs will be at the Applicable NAV on the next Business day after the Record Date. The additional Units issued under this sub-option and held as long term capital asset will get the benefit of long-term capital gains tax if sold after being held for greater than twelve months. For this purpose, twelve months will be 47computed from the date when such additional units are allotted. Effect of IDCW: The NAV of the Unit Holders in IDCW Option will stand reduced by the amount of IDCW declared. On declaration of IDCW, the NAV of the IDCW option will further stand reduced by the applicable statutory levy/surcharge/cess/ any other levy payable by the scheme in respect of separate category of investors if any. Notwithstanding varying rates of statutory levies, the ex- IDCW NAV will remain the same for all categories of investors in a particular option, though the amount of IDCW received by Unit Holders may vary depending on the category of each Unit Holder. For details on taxation of IDCW please refer the SAI. For details on taxation of IDCW please refer the SAI. Notes: The Trustee may decide to declare distributions under the IDCW Option of the Scheme subject to availability of distributable surplus. There is no assurance or guarantee to the Unit Holders as to the rate of IDCW will be regularly paid, though it is the intention of the Scheme to make IDCW distribution under the respective plan/options of the Scheme. For IDCW Options having a defined frequency, the Trustee at its sole discretion may also declare interim distributions between two successive record dates. The declaration/actual payment of IDCW and the frequency thereof will depend on the availability of distributable surplus computed in accordance with SEBI (MF) Regulations. The decision of the Trustee in this regard shall be final. An investor on record of the CAMS / Statement of Beneficiary Owners maintained by the Depositories for the purpose of IDCW distribution is an investor who is a Unit Holder/ Beneficial Owners as on the Record Date. In order to be a Unit Holder, an investor has to be allocated Units representing receipt of clear funds by the Scheme. IDCW, if declared, will be paid (subject to deduction of tax at source, if any) to those Unit holders whose names appear in the Register of Unit holders on the record date. In case of units held in dematerialized mode, the Depositories (NSDL/CDSL) will provide the list of eligible demat account holders and the number of units held by them in electronic form on the Record date to the Registrars and Transfer Agent of the Mutual Fund. On payment of IDCW, the NAV will stand reduced by the amount of IDCW and Dividend distribution tax/statutory levy (if applicable) paid. The Trustee/AMC reserves the right to change the record date from time to time. IDCW Distribution Procedure 48In accordance with clause 11.6.1 of Master Circular, the procedure for IDCW Distribution would be as under: a. Quantum of IDCW and the record date will be fixed by the Trustee. IDCW so decided shall be paid, subject to availability of distributable surplus. Further, with respect to declaration of IDCW upto monthly frequency, the trustees can delegate to the officials of AMC to declare and fix the record date as well as decide the quantum of IDCW subject to the conditions as laid under clause 11.6.3 of Master Circular b. Within one calendar day of decision by the Trustee, the AMC shall issue notice to the public communicating the decision about the IDCW including the record date, 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. c. The Record Date will be 2 working days from the date of publication in at least one English newspaper or in a newspaper published in the language of the region where the Head Office of the mutual fund is situated, whichever is issued earlier. Record date shall be the date which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of Unit holders maintained by the Mutual Fund/statement of beneficial ownership maintained by the Depositories, as applicable, for receiving IDCW. d. The notice will, in font size 10, bold, categorically state that pursuant to payment of IDCW, the NAV of the Scheme would fall to the extent of payout and statutory levy (if applicable). e. The NAV will be adjusted to the extent of IDCW distribution and statutory levy, if any, at the close of business hours on record date. f. Before the issue of such notice, no communication indicating the probable date of IDCW declaration in any manner whatsoever, will be issued by Mutual Fund Allotment (Detailed procedure) Allotment will be completed after due reconciliation of receipt of funds for all valid applications within 5 Business Days from the closure of the NFO period. Clear funds should be available to the Fund One business day prior to the date of allotment in respect of all purchase SO No. 61 applications received during the NFO period. All cases where clear funds have not been identified or received for whatsoever reasons, including technical clearing reasons, will not be considered for allotment and the amount will be refunded to the investor in due course. The AMC will not 49entertain any claims of allotment or compensation in such cases. Full allotment will be made to all valid applications received. Allotment to NRIs/FIIs will be subject to RBI approval, if required. Subject to the SEBI (MF) Regulations, the Trustee may reject any application received in case the application is found invalid/incomplete or for any other reason in the Trustee's sole discretion. All allotments will be provisional, subject to realization of payment instrument and subject to the AMC having been reasonably satisfied about receipt of clear funds. Any redemption or switch out transaction in the interim is liable to be rejected at the sole discretion of the AMC. In case of cheque returns, the Mutual Fund will send the copy of the returned cheque and bank return memo by normal post within 15 days of the Registrar having received, at its registered office, the physical and the return memo. The Mutual Fund will not be responsible for any loss or damage to the applicant on account of any delay in informing him/her/it about the return of the cheque, where such delay is caused by the clearing mechanisms of banks and clearing houses involved in realization of cheques. It is mandatory for NRIs to attach a copy of the payment cheque/FIRC/Debit Certificate to ascertain the repatriation status of the amount invested. NRI applicants should also clearly tick on account type as NRE or NRO or FCNR to determine the repatriation status of the investment amount. The AMC and the Registrar may ascertain the repatriation status purely based on the details provided in the application form under ‘Investment and payment details’ and will not be liable for any incorrect information provided by the applicants. Applicants will have to coordinate with their authorized dealers and banks to repatriate the investment amount as and when needed. Allotment confirmation specifying the number of Units allotted shall be sent to the Unit holders at their registered e-mail address and/or mobile number by way of email and/or SMS within 5 Business Days from the date of receipt of transaction request. All applications and/or refunds that are rejected for any reason whatsoever will be returned through instruments or payment channels such as RTGS, NEFT, IMPS, direct credit, etc. or any other mode allowed by Reserve Bank of India from time to time, for payments including refunds to unitholders in form of the cheque, demand draft. Further, AMCs may also use modes of despatch such as speed post, courier etc. for payments including refunds to unitholders in addition to the registered post with acknowledgement due within 15 days to the address as mentioned by the applicant. The Mutual Fund reserves the right to recover from an investor any loss caused to the Scheme on account of dishonor of cheques issued by him/her/it for purchase of Units. For investors who have given demat account details, the Units will be credited to the investor’s demat account after 50due verification and confirmation from NSDL/CDSL of the demat account details and only after the funds are credited into the Mutual Fund’s scheme(s) account to the satisfaction of the AMC. Allotment confirmation specifying the number of Units allotted shall be sent to the Unit holders at their registered e-mail address and/or mobile number by way of email and/or SMS within 5 Business Days from the date of receipt of transaction request. Note: Allotment of units will be done after deduction of applicable stamp duty. Refund a. If the Scheme fail to collect the minimum subscription amount of Rs. 10 Crore, the Mutual Fund shall be liable to refund the money to the applicants. b. Refund of subscription money to applicants whose applications are invalid for any reason whatsoever, will commence immediately after the closure of the NFO subject to receipt of funds. c. Refunds will be completed within 5 Business Days from the closure of the New Fund Offer Period. If the Mutual Fund refunds the amount after 5 Business Days, interest as specified by SEBI (currently, 15% per annum) shall be paid by the AMC. AMC may also use instruments or payment channels such as RTGS, NEFT, IMPS, direct credit, etc. or any other mode allowed by Reserve Bank of India from time to time, for payments including refunds to unitholders in addition to the cheque, demand draft. As per the directives issued by SEBI, it is mandatory for Applicants to mention their bank account numbers in their applications for purchase of Units. Further, AMCs may also use modes of despatch such as speed post, courier etc. for payments including refunds to unitholders in addition to the registered post along with due acknowledgement. Who can invest The following persons (subject to, wherever relevant, This is an indicative list and investors purchase of units of mutual fund being permitted under shall consult their financial advisor to respective constitutions and relevant statutory ascertain whether the scheme is regulations) are eligible and may apply for subscription to suitable to their risk profile. the Units of the Scheme: a. Indian Resident Adult Individuals either singly or jointly (not exceeding three) b. Minors through parent/legal guardian c. Companies, Bodies Corporate, Public Sector Undertakings, association of persons or bodies of individuals whether incorporated or not and societies registered under the Societies Registration Act, 1860 (so long as the purchase of Units is permitted under the respective constitutions) d. Religious, Charitable and Private Trusts, under the provisions of 11(5) of Income Tax Act, 1961 read with Rule 17C of Income Tax Rules, 1962 (subject to receipt of necessary approvals as “Public Securities”, where required) e. Trustee of private trusts authorised to invest in mutual fund Scheme under the Trust Deed 51f. Partnership Firms and Limited Liability Partnerships (LLPs) g. Karta of Hindu Undivided Family (HUF) h. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions i. NRIs/Persons of Indian origin residing abroad on full repatriation basis (subject to RBI approval, if any) or on non-repatriation basis j. Foreign Portfolio Investors (FPI) as defined in Regulation 2(1) (h) of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 k. Army, Air Force, Navy and other para-military units and bodies created by such institutions l. Scientific and Industrial Research Organisations m. International Multilateral Agencies approved by the Government of India n. Non-Government Provident/Pension/Gratuity funds as and when permitted to invest o. Others who are permitted to invest in the Scheme as per their respective constitutions p. Mutual Funds registered under the SEBI (Mutual Funds) Regulations, 1996 q. A Scheme of the DSP Mutual Fund, subject to the conditions and limits prescribed in SEBI (MF) Regulations and/or by the Trustee, AMC or Sponsors (The AMC shall not charge any fees on such investments). SO No. 59 r. The AMC (No fees shall be charged on such investments). All category of investors (whether existing or new) as permitted above are eligible to subscribe under Direct Plan. Investments under the Direct Plan can be made through various mode offered by the Fund for investing directly in the Fund. Applicability and provisions of Foreign Account Compliance Act (FATCA) For further details relating to FATCA, investors are requested to refer SAI which is available on the website viz. www.dspim.com Who cannot invest Non-acceptance of subscriptions from U.S. Persons and Residents of Canada in the Scheme United States Person (U.S. Person), corporations and other entities organized under the applicable laws of the U.S. and Residents of Canada as defined under the applicable laws of Canada should not invest in units of any of the Schemes of the Fund and should note the following: a. No fresh purchases /additional purchases/switches in any Schemes of the Fund would be allowed. However, existing Unit Holder(s) will be allowed to redeem their units from the Schemes of the Fund. If an existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada, then such Unit Holder(s) will not 52be able to purchase any additional Units in any of the Scheme of the Fund. However, subscription (including systematic investments) and switch transactions requests received from U.S. persons who are Non-resident Indians (NRIs) /Persons of Indian origin (PIO) and at the time of such investment, are present in India and submit a physical transaction request along with such documents as may be prescribed by the AMC/ Trustee Company from time to time shall be accepted. The AMC shall accept such investments subject to the applicable laws and such other terms and conditions as may be notified by the AMC/ Trustee Company. The investor shall be responsible for complying with all the applicable laws for such investments. The AMC reserves the right to reject the transaction request or redeem with applicable exit load and TDS or reverse allotted units, as the case may be, as and when identified by the AMC, which are not in compliance with the terms and conditions notified in this regard. b. For transaction from Stock Exchange platform, while transferring units from the broker account to investor account, if the investor has U.S./Canadian address then the transactions, subject to the abovementioned conditions, may be rejected. c. In case the AMC/Fund subsequently identifies that the subscription amount is received from U.S. Person(s) or Resident(s) of Canada, in that case the AMC/Fund at its discretion shall redeem all the units held by such person from the Scheme of the Fund at applicable Net Asset Value.” How to Apply and other details Application form and Key Information Memorandum may be obtained from Official Points of Acceptance (OPAs) / Investor Service Centres (ISCs) of the AMC or RTA or Distributors or can be downloaded from our website SO No. 35 www.dspim.com. Please refer to the SAI and Application form for further details and the instructions. Applications can be submitted at any of the official points of acceptance of transactions, the addresses of which are given at the end of this SID and updated list is available on the website of the Fund and the registrar. Investors can log on to www.camsonline.com for details of various offices/ISCs of Registrar. Stock brokers registered with recognized stock exchange and empaneled with the AMC shall also be considered as ‘official point of Acceptance of Transaction’. It is mandatory for every applicant to provide the name of the bank, branch, address, account type and account number as per requirements laid down by SEBI and any other requirements stated in the Application Form. Applications without these details will be treated as 53incomplete. Such incomplete applications will be rejected. Financial transactions through email in respect of non- individual investors shall be accepted in terms of AMFI Best Practice Guidelines (BPG) no. 118/ 2024-25 dated January 31, 2025. For the terms and conditions of for availing the facility to transact through electronic mail, please refer SAI. For detailed disclosure, kindly refer SAI. 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 to The Trustee may, in the general interest of Unit Holders, freely retain or dispose of units being keeping in view the unforeseen circumstances/unusual offered. market conditions, limit the total number of Units which may be redeemed on any Business Day to 5% of the total number of Units then in issue under the Scheme (or such higher percentage as the Trustees may determine). Any Units, which by virtue of these limitations are not redeemed on a particular Business Day, will be carried forward for redemption to the next Business Day, in order of receipt. Redemptions so carried forward will be priced on the basis of the Redemption Price of the Business Day or Non Business Day (if and as applicable) on which redemption is made. Under such circumstances, to the extent multiple redemption requests are received at the same time on a single Business Day, redemptions will be made on pro-rata basis, based on the size of each redemption request, the balance amount being carried forward for redemption to the next Business Day(s). Also, in the event of an order being received from any regulatory authority/body, directing attachment of the Units of any investor, redemption of Units will be restricted in due compliance of such order. Restriction on Redemption of Units of the Scheme Subject to the approval of the Boards of the AMC and of the Trustee and subject also to necessary communication of the same to SEBI, the redemption of / switch-out of Units of Scheme(s) of the Fund, may be temporarily suspended/ restricted. In accordance with clause 1.12 of the SEBI Master Circular and subject to prevailing regulations, restriction on/suspension of redemptions / switch-out of Units of the Scheme(s) of the Fund, may be imposed when there are circumstances leading to systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: a) Liquidity issues: when market at large becomes illiquid affecting almost all securities rather than any issuer specific security; b) Market failures, exchange closures: when markets are 54affected by unexpected events which impact 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; c) Operational issues: when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Restriction on / suspension of redemption of Units of the Scheme(s) may be imposed for a specified period of time not exceeding 10 working days in any 90 days period. When restriction on / suspension of redemption of Units of the Scheme(s) is imposed, the following procedure shall be applied: i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject to such restriction. ii. Where redemption / switch-out requests are above Rs. 2 lakhs, the AMC shall redeem the first Rs. 2 lakhs without such restriction and remaining part over and above Rs. 2 lakhs shall be subject to such restriction. Cut off timing for subscriptions/ Applicable NAV and Cut-off time redemptions/ switches Applicable NAV is the Net Asset Value per Unit at the close This is the time before which your of the Business Day on which a valid application is accepted application (complete in all respects) and time stamped. An application will be considered should reach the official points of accepted on a Business Day, subject to it being complete in acceptance. all respects and received and time stamped upto the relevant cut-off time as specified below, at any of the official points of acceptance of transactions. Applications received via post or courier at any of the centres will be accepted on the basis of when the application is time stamped by the centre and not on the basis of date and time of receipt of the post or the courier. In accordance with Clause 8.4.6.2 of SEBI Master Circular, in respect of purchase of units of mutual fund schemes (except liquid and overnight schemes), closing NAV of the day shall be applicable on which the funds are available for utilization irrespective of the size and time of receipt of such application. Pursuant to above, the NAV applicability for purchase/switch-in/ subscription in the Scheme will be subject to following clauses: 1. Application for purchase/subscription/switch-in is received before the applicable cut-off time on a Business Day. 2. Funds for the entire amount of purchase/subscription/switch-in as per the application is credited before the cut-off time to the bank account of the Scheme in which subscription is made. 3. The funds are available for utilization before the cut-off time the Scheme. (a) Purchase and Switch-in 55Particulars Applicable NAV Where the valid application is Closing NAV of received upto cut-off time of 3.00 same Business p.m. on a business day at the official Day shall be point(s) of acceptance and funds for applicable the entire amount of subscription/purchase are available for utilization upto 3.00 p.m. on the same Business Day. Where the valid application is Closing NAV of received upto cut-off time of 3.00 such p.m. on a business day at the official subsequent point(s) of acceptance and funds for Business Day the entire amount of on which the subscription/purchase are available funds are for utilization after 3.00 p.m. on the available for same Business Day or on any utilization subsequent Business Day prior to 3.00 p.m. Where the valid application is Closing NAV of received after cut-off time of 3.00 subsequent p.m. on a business day at the official Business Day point(s) of acceptance and funds for shall be the entire amount of applicable subscription/purchase/switch-in are available for utilization upto 3.00 p.m. on the same Business Day. (b) Redemption and Switch-out Particulars Applicable NAV Where the application is received on NAV of the any Business Day at the official points same day of acceptance of transactions upto 3.00 p.m. Where the application is received NAV of the after 3.00 p.m. next Business Day. With respect to investors who transact through the stock exchange, Applicable NAV shall be reckoned on the basis of the time stamping as evidenced by confirmation slip given by stock exchange mechanism. Applicable Net Asset Value in case of Multiple applications/transactions received under all open-ended Schemes of the Fund: All transactions as per conditions mentioned below shall be aggregated and closing NAV of the day on which funds for respective transaction (irrespective of source of funds) are available for utilization. 1. All transactions received on same Business Day (as per cut-off timing and Time stamping rule). 2. Aggregation of transactions shall be applicable to the 56Scheme. 3. Transactions shall include purchases, additional purchases and exclude Switches, SIP/STP and trigger transactions. 4. Aggregation of transactions shall be done on the basis of investor/s/Unit Holder/s Permanent Account Number (PAN). In case of joint holding in folios, transactions with similar holding pattern will be aggregated. The principle followed for such aggregation will be similar as applied for compilation of Consolidated Account Statement (CAS). 5. All transactions will be aggregated where investor holding pattern is same as stated in point no.4 above. 6. Only transactions in the same Scheme of the Fund shall be clubbed. It will include transactions at Plans/Options level (i.e. Regular Plan, Direct Plan, IDCW Option, Growth Option, etc). 7. Transactions in the name of minor received through guardian will not be aggregated with the transaction in the name of same guardian. However, two or more transactions in folios of a minor received through same guardian will be considered for aggregation. 8. In the case funds are received on separate days and are available for utilization on different business days before the cut off time, the applicable NAV shall be of the Business day/s on which the cleared funds are available for utilization for the respective application amount. 9. Irrespective the date and time of debit to the customer bank accounts, the date and time of actual credit in the Scheme’s bank account, which could be different due settlement cycle in the banking industry, would be considered for applicability of NAV. 10. Investors are advised to make use of digital/electronic payment to transfer the funds to the Scheme’s bank account. Transaction through online facilities/ electronic mode: The time of transaction done through various online facilities/electronic modes offered by the AMC, for the purpose of determining the applicability of NAV, would be the time when the request of purchase/sale/switch of units is received in the servers of AMC/RTA as per terms and conditions of such facilities. Note for switching: Where there is a switch application from one scheme to another, ‘Switch out’ shall be treated as redemption in one scheme and the Applicable NAV based on the cut off time for redemption and payout rules shall be applied. Similarly, the ‘switch in’ shall be treated as purchase and the Applicable NAV based on the cut off time for purchase and realization of funds by the ‘switch in’ scheme related rules shall be applied. Where an application is received and time stamping is done after the cut-off time, the request will be deemed to have been received on the next Business Day. 57Minimum amount for purchase/redemption/switches Minimum Rs. 100/- and any amount (mention the provisions for ETFs, as amount for thereafter may be applicable, for direct Purchase subscription/redemption with AMC. Note: The minimum application (Including amount will not be applicable for Subsequent investment made in schemes in Purchase/SIP line with SEBI guidelines on Purchase) Alignment of interest of Designated Employees of AMC. Minimum Not Applicable amount for Redemption Minimum Rs. 100/- and any amount amount for thereafter Switches *In case of Units held in dematerialized mode, the redemption request can be given only with DPs or on Stock exchange Platform. Accounts Statements The AMC shall send an allotment confirmation specifying the number of Units allotted shall be sent to the Unit holders at their registered e-mail address and/or mobile number by way of email and/or SMS within 5 working Days from the date of receipt of the valid application/transaction. A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds 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. eCAS will be sent on or before 12th of the succeeding month and physical CAS will be sent on or before 15th of the succeeding month. However, if the investor wishes to opt for physical copy may request for the same. Half-yearly CAS shall be issued at the end of every six months (i.e. April and October). eCAS shall be sent on or before 18th day of succeeding month and physical CAS shall be sent on or before 21st day of succeeding month to all investors 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 IDCW proceeds will be paid directly into the Unitholder's bank account through various electronic payout modes such as Direct credit/NEFT/RTGS and cheques as applicable within 7 working days of the record date of IDCW In the event of delay/failure to despatch the IDCW warrants within the aforesaid period, interest for the period of delay in transfer of IDCW shall be paid by AMC to unitholders at the rate of 15% per annum along with the proceeds of IDCW. 58Redemption Units can be redeemed (sold back to the Mutual Fund) at the relevant Redemption Price. The redemption requests can be made on the pre-printed forms (transaction slip/common transaction form) or by using the form at the bottom of the account statement. The redemption request can be submitted at any of the Official Points of Acceptance of transaction, the details of which are mentioned at the end of this SID. As all allotments are provisional, subject to realization of payment instrument and subject to the AMC having been reasonably satisfied that the Mutual Fund has received clear funds, any redemption or switch out transaction in the interim is liable to be rejected at the sole discretion of the AMC. A unit Holder may request redemption of a specified amount or a specified number of Units only. If the redemption request is made for a specified amount and the number of Units is also specified by the Unit Holder, the number of Units specified will be considered for deciding the redemption amount. Unit Holders may also request for redemption of their entire holding and close the account by indicating the same at an appropriate place in the transaction slip/common transaction slip. It may, however, be noted that in the event of death of the Unit Holder, the nominee or legal heir, (subject to production of requisite documentary evidence to the satisfaction of the AMC) as the case may be, shall be able to redeem the investment. In case an investor has purchased Units on more than one day (either under the NFO Period or through subsequent purchases) the Units purchased first (i.e. those Units which have been held for the longest period of time), will be deemed to have been redeemed first, i.e. on a First- In-First-Out basis. In case the Units are standing in the names of more than one Unit Holder, where mode of holding is specified as Joint redemption requests will have to be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the Unit Holders will have the power to make redemption requests, without it being necessary for all the Unit Holders to sign. However, in all cases, the proceeds of the redemption will be paid to the first-named holder only. The Redemption or repurchase proceeds shall be dispatched to Unit Holders within 3 Working Days from the date of acceptance of redemption or repurchase. Investor may note that in case of exceptional scenarios as prescribed by AMFI vide its communication no. AMFI/ 35P/ MEM-COR/ 74 / 2022-23 dated January 16, 2023 read with Clause 14.1.3 of the SEBI Master Circular, the AMC may not be able to adhere with the timelines prescribed above. Unit Holders are encouraged and advised to submit their requests for bank mandate/ Multiple Bank Accounts Registration request atleast 10 business days prior to date 59of redemption / IDCW payment, if any. The AMC reserves the right to extend/modify the timelines on a case to case basis. The redemption payment will be issued in favour of the sole/ first Unit Holder’s registered name and bank account number, if provided. Payment via cheque, where issued, will be sent to the address of the sole/first Holder registered with the fund at the time of dispatch entirely at the risk of the unit holder. The redemption cheque/demand draft will be payable at par at all the places where the official points of acceptance of transaction are located. Bank charges for collection of redemption proceeds will be borne by the Unit Holder. With a view to safeguarding their interest, it is mandatory that Unit Holders indicate their Bank Account No., name of the bank and branch in the application for purchasing Units of the Scheme. A fresh account statement will also be sent/emailed to redeeming investors, indicating the new balance to the credit in the account, along with the redemption cheque. Unit holders are requested to note that application for redemption or switch out for units for which funds are not realized via purchase or switch-in in the Scheme of the Fund shall be liable to be rejected. In other words, redemption of units will be processed only if the funds for such units are realized in the Scheme by a way of payment instructions/transfer or switch-in funding process. The proceeds towards redemptions and IDCW will be dispatched by a reasonable mode of dispatch like courier, speed post, UCP, etc. in case of cheque/demand draft or directly credited to the bank account (as per the details mentioned by the investor), entirely and solely at the risk of the investor. The Mutual Fund will endeavour to remit redemption proceeds via electronic means, as made available by RBI. Where such electronic means are not available or feasible under any circumstances, the Mutual Fund will remit the redemption proceeds by way of cheques. The investor will not hold the Mutual Fund or the AMC or the Registrar responsible for any non-receipt or delay of receipt of redemption & IDCW proceeds due to any negligence or deficiency in service by the courier company, postal authorities or the bank executing direct credits, or due to incorrect bank account details provided by the investor. In case of redemptions, Unit holders should note that Two Factor Authentication [2FA] is mandatory for all redemption / switches including STP/SWP submitted through electronic mode. OTP will be sent to either email id or mobile number registered in the folio and the Unit holder have to confirm on the OTP received. On successful validation only, the redemptions will be accepted and processed. Redemption by NRIs and FPIs Credit balances in the account of an NRI/FPI investor may 60be redeemed by such investors in accordance with the procedure described above and subject to the procedures laid down by RBI, if any. Such redemption proceeds will be paid by means of a Rupee cheque payable to the NRI’s/FPIs. Effect of Redemption On redemption, the unit capital and reserves will stand reduced by an amount equivalent to the product of the number of Units redeemed and the Redemption Price as on the date of redemption. Units once redeemed will be extinguished and will not be re-issued. Fractional Units Since a request for purchase is generally made in Rupee amounts and not in terms of number of Units of the Scheme, a Unit Holder may be left with fractional Units. Fractional Units will be computed and accounted for up to three decimal places. However, fractional Units will, in no way, affect the Unit Holder’s ability to redeem the Units, either in part or in full, standing to his/her/its credit. Redemption by investors transacting through the Stock Exchange mechanism Investors who wish to transact through the stock exchange shall place orders for redemptions as currently practiced for secondary market activities. Investors must submit the Delivery Instruction Slip to their Depository Participant on the same day of submission of redemption request, within such stipulated time as may be specified by NSE/BSE, failing which the transaction will be rejected. Investors shall seek redemption requests in terms of number of Units only and not in Rupee amounts. Redemption amounts shall be paid by the AMC to the bank mandate registered with the Depository Participant. Redemption by investors who hold Units in dematerialized form Redemption request for Units held in demat mode shall not be accepted at the offices of the Mutual Fund/AMC/Registrar. Unit holders shall submit such request only through their respective Depository Participant. Redemptions only for Available & Clear Units Further, if an investor makes a redemption request few days after purchase of Units, till clearance of funds is identified, the Mutual Fund shall have the right to reject the redemption request until such time as the Mutual Fund ensures that the amount remitted by the investor (for purchase of Units) is realized and that the proceeds have been credited to the Scheme’s Account. However, this is only applicable if the value of redemption is such that some or all of the freshly purchased Units may have to be redeemed to effect the full redemption. 61Bank Mandate It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per requirements laid down by SEBI and any other requirements stated in the Application Form. Applications without these details will be treated as incomplete. Such incomplete applications will be rejected. The Registrar/AMC may ask the investor to provide a blank SO No. 62 cancelled cheque or its photocopy for the purpose of verifying the bank account number. Investor/s or /Unit Holder/s are requested to note that any one of the following documents shall be submitted by the investor/s or /Unit Holder/s, in case the cheque provided along with fresh subscription/new folio creation does not belong to the bank mandate specified in the application form: a. Original cancelled cheque having the First Holder Name printed on the cheque [or] b. Original bank statement reflecting the First Holder Name, Bank Account Number and Bank Name as specified in the application [or] c. Photocopy of the bank statement / bank pass book duly attested by the bank manager and bank seal preferably with designation and employee number [or] d. Photocopy of the bank statement / passbook / cancelled cheque copy duly attested by the AMC/ RTA branch officials after verification of original bank statement / passbook / cheque shown by the investor or their representative [or] e. Confirmation by the bank manager with seal, on the bank’s letter head with name, designation and employee number confirming the investor details and bank mandate information. Where such additional documents are not provided for the verification of bank account for redemption or IDCW payment, the AMC reserves the right to capture the bank account used towards subscription payment for the purpose of redemption and IDCW payments. For more details on Multiple Bank Accounts Registration Facility, Bank Account Details, Change of Bank, please refer SAI. Delay in payment of redemption / As per SEBI (MF) Regulations, the Mutual Fund shall transfer repurchase proceeds/dividend the redemption proceeds within 3 Working Days from the date of redemption/repurchase. In the event of delay/failure to transfer the redemption/repurchase proceeds within the aforesaid 3 Working Days, the AMC will be liable to pay interest to the Unit Holders at such rate as may be specified by SEBI for the period of such delay (currently @ 15% per annum). Investor may note that in case of exceptional scenarios as prescribed by AMFI vide its communication no. AMFI/ 35P/ MEM-COR/ 74 / 2022-23 dated January 16, 2023 read with 62Clause 14.1.3 of the SEBI Master Circular, the AMC may not be able to adhere with the timelines prescribed above. IDCW warrants shall be dispatched to the Unit Holders within 7 Working Days of the date of record date of IDCW. In the event of delay/failure to despatch the IDCW warrants within the aforesaid 7 Working Days, the AMC will be liable to pay interest to the Unit Holders at such rate as may be specified by SEBI for the period of such delay (currently @ 15% per annum). The interest on delayed payment would be computed from the record date for IDCW. Unclaimed Redemption and Income The treatment of unclaimed redemption and IDCW amounts Distribution cum Capital Withdrawal shall be in terms of clause 14.3 of SEBI Master Circular, as SO No. 53 Amount amended from time to time and the same is specified in SAI. Disclosure w.r.t investment by minors Where the investment is on behalf of minor by the guardian, please note the following important points. a. The minor shall be the sole and only first holder in SO No. 37 the account. Nomination facility is not available for applications/ folios on behalf of a minor. Joint holders’ details and nomination details, even if mentioned and signed will not be considered. b. Guardian of the minor should either be a natural guardian (i.e. father or mother) or a court appointed legal guardian. c. Details like minor’s date of birth, Guardian’s relation with Minor, Guardian name, PAN, KYC are mandatory, along with supporting documents. Photo copy of the document evidencing the date of birth of minor like i. Birth certificate of the minor, or ii. School leaving certificate / Mark sheet issued by Higher Secondary Board of respective states, ICSE, CBSE etc., or iii. Passport of the minor, or iv. any other suitable proof should be attached with the application form. d. Where the guardian is not a natural guardian (father or mother) and is a court appointed legal guardian, suitable supporting documentary evidence should be provided. e. If the mandatory details and/or documents are not provided, the application is liable to be rejected without any information to the applicant. f. Payment towards subscription/investment through any mode in units of the schemes of Fund shall be accepted from the bank account of the minor, bank account of the parent or legal guardian of the minor, or from a joint bank account of the minor with parent or legal guardian. g. All redemption proceeds shall be credited only in the verified bank account of the minor or a joint bank account of the minor with the parent or legal guardian after completing all KYC formalities. A minor Unit Holder, on becoming major, may inform the Registrar about attaining majority, and provide his specimen signature duly authenticated by his banker as 63well as his details of bank account and a certified true copy of the PAN card, KYC details and such other details as may be asked by AMC from time to time to enable the Registrar to update records and allow the minor turned major to operate the account in his own right. Further, all other requirement for investments by minor and process of transmission shall be followed in line with clause 17.6 of SEBI Master Circular read with SEBI Circular dated May 12, 2023 as amended from time to time. Requirement of Minimum Investors in The Scheme shall have a minimum of 20 investors each and the Schemes no single investor shall account for more than 25% of the corpus of the Scheme. These conditions shall be complied with, in each calendar quarter on an average basis, as specified by SEBI. In case of non-fulfillment of the condition of 20 investors in a calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations shall become applicable automatically without any reference from SEBI, and accordingly the Scheme shall be wound up and the units redeemed at the relevant applicable NAV. If there is breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be available and thereafter, the investor who is in breach of the rule, shall be given 15 days’ notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25 % limit within the aforesaid 15 days would lead to automatic redemption 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. Transactions through Channel Investors may enter into an agreement with certain Distributors distributors (with whom AMC also has a tie up) referred to as “Channel Distributors” who provide the facility to investors to transact in units of mutual funds through various modes such as their website / other electronic means or through Power of Attorney in favour of the Channel Distributor, as the case may be. Under such arrangement, the Channel Distributors will aggregate the details of transactions (viz. subscriptions/ redemptions/switches) of their various investors and forward the same electronically to the AMC / RTA for processing on daily basis as per the cut-off timings applicable to the relevant schemes. The Channel Distributor is required to send copy of investors’ KYC and agreement entered into between the investor & distributor to the RTA (one time for central record keeping) as also the transaction documents / proof of transaction authorization as the case may be, to the AMC / RTA as per agreed timelines. Normally, the subscription proceeds, when invested through this mode, are by way of direct credits to the specified bank account of DSP Mutual Fund. The redemption proceeds (subject to deduction of tax at source, if any) and IDCW payouts, if any, are paid by the AMC to the investor directly through direct credit in the bank account of the investor specified by the distributor or through issuance of payment instrument, as applicable. In case KYC and other necessary documents are not 64furnished within the stipulated timeline, the transaction request shall be liable to be rejected or the folio will be locked for future subscriptions/ switches. The Mutual Fund, the AMC, the Trustee, along with their directors, employees and representatives shall not be liable for any errors, damages or losses arising out of or in connection with the transactions undertaken by investors or as provided by the distributors through the above mode. It may be noted that investors investing through this mode may also approach the AMC / ISC directly with their transaction requests (financial / non-financial) or avail of the online transaction facilities offered by the AMC. Subscription of Units through Electronic Subject to the investor fulfilling certain terms and conditions Mode as stipulated by AMC from time to time, the AMC, Mutual Fund, Registrar or any other agent or representative of the AMC, Mutual Fund, the Registrar (“Recipient”) may accept transactions through any electronic mode (fax/web/ electronic transactions) (“Electronic Transactions”). The acceptance of Electronic Transactions will be solely at the risk of the investor and the Recipient shall not in any way be liable or responsible for any loss, damage caused to the investor directly or indirectly, as a result of the investor sending or purporting to send such transactions including where such transaction sent / purported to be sent is not processed on account of the fact that it was not received by the Recipient. The investor acknowledges that Electronic Transaction is not a secure means of giving instructions / transactions requests and that the investor is aware of the risks involved including those arising out of such transmission being inaccurate, imperfect, ineffective, illegible, having a lack of quality or clarity, garbled, altered, distorted, not timely etc. The investor’s request to the Recipient to act on Electronic Transaction is for the investor’s convenience and the Recipient is not obliged or bound to act on the same. The investor authorizes the recipient to accept and act on any Electronic Transaction which the recipient believes in good faith to be given by the investor and the recipient may at its discretion treat any such transaction as if the same was given to the recipient under the investor’s original signature. In case there is any difference between the particulars mentioned in the fax/ web/ electronic transmission received as against the original document which may be received thereafter, the Recipient shall not be liable for any consequences arising therefrom. The investor agrees that the recipient may adopt additional security measures including signature verification, telephone call backs or a combination of the same, which may be recorded and the investor consents to such recording and agrees to co-operate with the recipient to enable confirmation of such transaction requests. In consideration of the Recipient from time to time accepting and at its sole discretion (including but not limited to the AMC extending / discontinuing such facilities from time to time) acting on any 65Electronic Transaction request received / purporting to be received from the investor, the investor agrees to indemnify and keep indemnified the AMC, Directors, employees, agents, representatives of the AMC, Mutual Fund and Trustees from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, sustained by or threatened against the indemnified parties whatsoever arising from or in connection with or any way relating to the indemnified parties in good faith accepting and acting on Electronic Transaction requests including relying upon such transaction requests purporting to come from the investor even though it may not come from the Investor. The AMC reserves the right to modify the terms and conditions or to discontinue the facility at any point of time. Unit holders should note that Two Factor Authentication [2FA] is mandatory for all subscriptions including SIP registration submitted through electronic mode. OTP will be sent to either email id or mobile number registered in the folio and the Unit holder have to confirm on the OTP received. On successful validation only, the subscriptions / systematic registration will be accepted and processed. Process for change of address Investors who wish to change their address have to get their new address updated in their KYC records. Investor will have to submit a KYC Change Request Form in case of individual investors and KYC form in case of non individual investors along with proof of address and submit to any of the AMC Offices or CAMS Investor Service Centers. Based on the new address updated in the KYC records, the same will be updated in the investor folio. Where such additional documents are not provided for the verification of bank account for redemption or IDCW payment, the AMC reserves the right to capture the bank account used towards subscription payment for the purpose of redemption and IDCW payments. Trading in Units through Stock The facility of transacting through the stock exchange Exchange mechanism mechanism enables investors to buy and sell the Units of the Scheme(s) through the stock brokers registered with the BSE and/or NSE in accordance with the guidelines issued by SEBI and operating guidelines and directives issued by NSE, BSE or such other recognized stock exchange in this regard and agreed with the Asset Management Company/ Registrar and Transfer Agent. The investor shall be serviced directly by such stock brokers/ Depository Participant. The Mutual Fund will not be in a position to accept any request for transactions or service requests in respect of Units bought under this facility in demat mode. This facility will be offered to investors who wish to hold Units in dematerialized form or in physical mode. Further, the minimum purchase/ redemption amount in the respective plan / option of such notified Schemes of the Fund will be applicable for each transaction. This facility will currently not support transactions done through switches or facilities such as SWP and STP. 66In case of non-financial requests/applications such as change of address, change of bank details, etc., investors should approach the respective Depository Participant(s). Unit holders may have/open a beneficiary account with a Depository Participant of a Depository and choose to hold the Units in dematerialized mode. The Unit holders have the option to dematerialize the Units as per the account statement sent by the Registrar by making an application to the AMC/registrar for this purpose. Rematerialization of Units can be carried out in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018 as may be amended from time to time. Investors, who wish to get back their securities in physical form, may request their respective Depository Participant for rematerialization of Units in their beneficiary accounts. The Depository Participant will generate a rematerialization request number and the request will be dispatched to the AMC/ Registrar. On acceptance of request from the Depository Participant, the AMC/Registrar will dispatch the account statement to the investor and will also send confirmation to the Depository participant. Transactions conducted through the Stock Exchange mechanism shall be governed by the SEBI (Mutual Funds) Regulations 1996 and operating guidelines and directives issued by NSE, BSE or such other recognized exchange in this regard. Further, in line with SEBI circular No. SEBI/HO/MRD1/DSAP/CIR/P/2020/29 dated February 26, 2020 as amended from time to time, investors can directly buy/redeem units of the Scheme through stock exchange platform. Third Party Payment Avoidance & To safeguard the interests of applicant/investors and additional documents/ declaration avoid fraudulent transactions in any other name, the required Mutual Fund does not accept Third Party Payments. In case of subscriptions, the Mutual Fund shall verify the bank account from which the funds have been paid for the subscription. In case it is identified that the funds have not come from the investor’s bank account, the subscription will be rejected. Please refer SAI for details. Cash Investments in mutual funds In order to help enhance the reach of mutual fund products amongst small investors, who may not be tax payers and may not have PAN/bank accounts, such as farmers, small traders/businessmen/workers, SEBI has permitted receipt of cash transactions for fresh purchases/ additional purchases to the extent of Rs. 50,000/- per investor, per financial year shall be allowed subject to: i. compliance with Prevention of Money Laundering Act, 2002 and Rules framed there under; the SEBI Circular(s) on Anti Money Laundering (AML) and other applicable Anti Money Laundering Rules, Regulations and Guidelines; and ii. sufficient systems and procedures in place. 67However, payment towards redemptions, IDCW, etc. with respect to aforementioned investments shall be paid only through banking channel. The Fund/AMC is currently in the process of setting up appropriate systems and procedures for the said purpose. Appropriate notice shall be displayed on its website viz. as well as at the Investor Service Centres, once the facility is made available to the investors. Facility to transact in units of the The AMC has entered into an Agreement with MF Utilities Schemes through MF Utility portal & India Private Limited (MFUI), for usage of MF Utility MFUI Points of Services pursuant to (“MFU”) - a shared services initiative of various Asset appointment of MF Utilities India Management Companies, which acts as a transaction Private Limited aggregation portal for transacting in multiple schemes of various Mutual Funds with a single form and a single payment instrument. Investors can execute financial and non-financial transactions pertaining to Schemes of the Fund electronically on the MFU portal i.e. www.mfuonline.com as and when such a facility is made available by MFUI. The MFU portal i.e. www.mfuonline.com will be considered as Official Point of Acceptance for such transactions. The Points of Service (“POS”) of MFUI with effect from the respective dates as published on MFUI website i.e. www.mfuindia.com against the POS locations will be considered as Official Point of Acceptance/ Investor Services Centre where application for financial transactions in schemes of the Fund will be accepted on an ongoing basis. Further, investors can also submit their non-financial transaction requests at the POS. The salient features of the facility to transact in units of the Schemes through MFU are given below: 1. Common Account Number (“CAN”): Investors are required to submit duly filled in CAN Registration Form (“CRF”) and prescribed documents at the MFUI POS to obtain CAN. The CRF can be downloaded from MFUI website i.e. www.mfuindia.com or can be obtained from MFUI POS. CAN is a single reference number for all investments in the Mutual Fund industry, for transacting in multiple schemes of various Mutual Funds through MFU and to map existing investments, if any. MFU will map the existing folios of investors in various schemes of Mutual Funds to the CAN to enable transacting across schemes of Mutual Funds through MFU. The AMC and / or its Registrar and Transfer Agent (RTA) shall provide necessary details to MFUI as may be needed for providing the required services to investors / distributors through MFU. CAN registered investors can transact in physical mode through MFUI POS by submitting relevant Common 68Transaction Form prescribed by MFUI. 2. CAN registered investors can transact through electronic mode through MFU portal i.e. www.mfuonline.com as and when such a facility is made available to them by MFUI. The time of transaction submission done through MFU portal i.e. www.mfuonline.com and the successful receipt of the same in the servers of MFUI would be the time-stamp for the transaction. 3. Investors not registered with MFUI can also submit their financial & non-financial transactions request at MFUI POS by giving reference of their existing folio number allotted by the Fund. 4. The transactions on the MFU portal shall be subject to the terms & conditions as may be stipulated by MFUI / Mutual Fund / the AMC from time to time. 5. All other terms and conditions of offering of the Scheme as specified in the SID, KIM and SAI shall be applicable to transaction through MFUI. Redemptions only for Available & Clear If an investor makes a redemption request few days after Units purchase of Units, till clearance of funds is identified, the Mutual Fund shall have the right to reject the redemption request until such time as the Mutual Fund ensures that the amount remitted by the investor (for purchase of Units) is realized and that the proceeds have been credited to the Scheme’s Account. However, this is only applicable if the value of redemption is such that some or all of the freshly purchased Units may have to be redeemed to effect the full redemption. KYC Requirements Investor are requested to take note that it is mandatory to complete the KYC requirements (including updation of Permanent Account Number) for all unit holders, including for all joint holders and the guardian in case of folio of a minor investor. Accordingly, financial transactions (including redemptions, switches and all types of systematic plans) and non-financial requests are liable to be rejected, if the unit holders have not completed the KYC requirements. Notwithstanding in the above cases, the AMC reserves the right to ask for any requisite documents before processing of financial and non-financial transactions or freeze the folios as appropriate. Unit holders are advised to use the applicable KYC Form for completing the KYC requirements and submit the form at the point of acceptance. Further, upon updation of PAN details with the KRA (KRA-KYC)/ CERSAI (CKYC), the unit holders are requested to intimate us/our Registrar and Transfer Agent their PAN information along with the folio details for updation in our records. Facility to transact in units of the MFCentral is created with an intent to be a one stop Schemes through MF Central 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 Terms & Conditions of 69the Platform from time to time. MF Central will be enabling various features and services in a phased manner. MF Central may be accessed using https://mfcentral.com/ and a Mobile App in future. Nomination for Mutual Fund Unit Pursuant to clause 17.16 of the SEBI Master Circular with Holders respect to nomination for unitholders, the following shall be considered: 1. New Investors: Investors who are subscribing to units of DSP Mutual Fund solely, shall submit either the nomination form or the prescribed declaration form for opting out of nomination in physical or online as per the choice of the unit holder(s). The requirement of nomination shall be optional for jointly held folio(s). 1. In case of physical option: The forms shall carry the wet signature of all the unit holder(s). 2. In case of online option: (1) The unit holder(s) shall validate the forms by using e- Sign facility recognized under Information Technology Act, 2000 or (2) Through two factor authentication (2FA) in which one of the factor shall be a One-Time Password sent to the unit holders at their email/phone number registered with the KYC Registration Authority or AMC. Implication of failure with respect to nomination: New investors subscribing solely, the application will be rejected if the applicant does not provide nomination or does not provide declaration form for opting out of nomination, duly signed in physical form or through online modes. 1. Existing Unitholders: The existing individual unitholders of DSP Mutual Fund are encouraged, in their own interest, to provide the nomination/ opting out of nomination duly signed in physical form or through online modes for ensuring smooth transmission of securities held by them as well as to prevent accumulation of unclaimed assets in securities market. 2. Who cannot nominate: The nomination can be made only by individuals applying for/holding units on their own behalf singly or jointly. Non- individuals including a Society, Trust, Body Corporate, Partnership Firm, Karta of Hindu undivided family, a Power of Attorney holder and/or Guardian of Minor unitholder Holder of Power of Attorney (POA) cannot nominate. The application will be rejected if the holder aforesaid non individual sign the nomination form. Payment details The cheque or demand draft should be drawn in favour of the ‘Scheme Name’, as the case may be, and should be crossed Account Payee Only. Applications not specifying Schemes/Plans/Options and/or accompanied by cheque/demand drafts/account to account transfer instructions favouring Schemes/Plans/Options other than those specified in the application form are liable to be 70rejected. Further, where the Scheme name as written on the application form and on the payment instrument differs, the proceeds may, at the discretion of the AMC be allotted in the Scheme as mentioned on the application form. III. Other Details A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be provided – The same is provided below SO no. B. Overview of the Underlying Funds where the Scheme will invest- The Scheme is a new fund to 26 be launched hence this disclosure is not applicable. The underlying fund where the Scheme will invest shall be compliant with all provisions of Clause 12.19 of SEBI Master Circular. C. Periodic Disclosures- Half yearly In case of unit holders whose email address are registered with the Fund, the AMC Portfolio shall send half yearly portfolio via email within 10 days from the end of each half- Disclosures: year. The half yearly portfolio of the Scheme shall also be available in a user- (This is a list of friendly and downloadable spreadsheet format on the AMFI’s website securities where www.amfiindia.com and website of AMC viz. www.dspim.com on or before the the corpus of each 10th day of succeeding month. Scheme is currently invested. The The advertisement in this reference will be published by the Fund in all India market value of edition of atleast two daily newspapers, one each in English and Hindi. these investments is also stated in The AMC shall provide a physical copy of the statement of the Scheme portfolio, portfolio without charging any cost, on specific request received from a unitholder. disclosures) Refer to AMC website (https://www.dspim.com/mandatory-disclosures/portfolio- disclosures and AMFI website (https://www.amfiindia.com/investor- corner/online-center/portfoliodisclosure ) for further details. Monthly Portfolio The monthly portfolio of the Scheme shall be available in a user-friendly and Disclosure downloadable format on the website viz. www.dspim.com on or before the tenth day of succeeding month. In case of unit holders whose email addresses are registered with the Fund, the AMC shall send monthly portfolio via email within 10 days from the end of each month. The AMC shall provide a physical copy of the statement of the Scheme portfolio, without charging any cost, on specific request received from a unitholder. Refer to AMC website (https://www.dspim.com/mandatory-disclosures/portfolio- disclosures) and AMFI website (https://www.amfiindia.com/investor- corner/online-center/portfoliodisclosure ) for further details. Monthly Average The Mutual Fund shall disclose the Monthly AAUM under different categories of Asset under Schemes as specified by SEBI in the prescribed format on a monthly basis on its Management website viz. www.dspim.com and forward to AMFI within 7 working days from the (Monthly AAUM) end of the month. Disclosure Half Yearly The Mutual Fund shall, before the expiry of one month from the close of each half Financial Results year, (i.e. March 31 and September 30) shall display the unaudited financial results on www.dspim.com and advertisement in this regards will be published by the Mutual Fund 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. 71In accordance with SEBI circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024, disclosure w.r.t. the total recurring expenses, returns during the half year and compounded annualized yields shall be separately disclosed for direct and regular plans. Refer to AMC website (link- https://www.dspim.com/mandatory-disclosures/fund- financials), AMFI website (link- https://www.amfiindia.com/research- information/other-data/accounts-data ) for further details. Annual Report Annual report or Abridged Summary, in the format prescribed by SEBI, will be hosted on AMC’s website www.dspim.com and on the website of AMFI www.amfiindia.com Annual Report or Abridged Summary will also be sent by way of e-mail to the investor’s who have registered their email address with the Fund not later than four months from the date of the closure of the relevant financial year i.e. March 31 each year. In case of unit holders whose email addresses are not available with the Fund, the AMC shall send physical copies of scheme annual reports or abridged summary to those unitholders who have ‘opted-in’ to receive physical copies. The opt-in facility to receive physical copy of the scheme-wise annual report or abridged summary thereof shall be provided in the application form for new subscribers. Unitholders who still wish to receive physical copies of the annual report/abridged summary notwithstanding their registration of e-mail addresses with the Fund, may indicate their option to the AMC in writing and AMC shall provide abridged summary of annual report without charging any cost. Physical copies of the report will also be available to the unitholders at the registered offices at all times. For request on physical copy refer relevant disclosures mentioned in the SAI available on AMC website i.e. www.dspim.com The advertisement in this reference will be published by the Fund in all India edition of atleast two daily newspapers, one each in English and Hindi. Investors are requested to register their e-mail addresses with Mutual Fund. Refer to AMC website (link- https://www.dspim.com/mandatory- disclosures/annual-reports), AMFI website (link- https://www.amfiindia.com/research-information/other-data/accounts-data ) for further details. Dashboard In accordance with clause 5.8.4 of the SEBI Master Circular, the AMC has developed a dashboard on the website wherein the investor can access information relating to scheme’s AUM, investment objective, expense ratios, portfolio details and past performance of each scheme. In accordance with SEBI circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024, disclosures w.r.t. expense ratio, returns and/or yield of the schemes will be made for both regular and direct plans. Refer to AMC website (https://www.dspim.com/mandatory- disclosures/dashboard) for further details. Performance In accordance with clause 5.9 of the SEBI Master Circular, the AMC shall disclose disclosure the performance of all schemes on the website of AMFI on a daily basis. The disclosure shall include other scheme AUM and previous day NAV. In accordance with SEBI circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024, disclosures w.r.t. returns of the schemes will be made for both regular and direct plans. Refer to AMFI website (https://www.amfiindia.com/research-information/other- data/mf-scheme-performance-details) for further details. 72Risk-o-Meter In accordance with SEBI circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024, in addition to the existing labels relating to levels of risk i.e. Low, Low to Moderate, Moderate, Moderately High, High and Very High, the Risk- o-meter shall also be depicted using a colour scheme. SO No. 38 In accordance with clause 5.16.1 of the SEBI Master Circular, AMC, based on internal assessment, shall disclose the following in all disclosures, including promotional material or that stipulated by SEBI: a. risk-o-meter of the scheme wherever the performance of the scheme is disclosed. b. 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 shall also include the scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark. Further, as per Clause 17.4.1.i and 17.4.1.j of the Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, Risk-o-meters shall be evaluated on a monthly basis and Mutual Funds/AMCs shall disclose the Risk-o- meters along with portfolio disclosure for their schemes on AMCs website and on AMFI website within 10 days from the close of each month. (Refer to AMC website https://www.dspim.com/mandatory-disclosures/portfolio-disclosures and refer to AMFI website https://www.amfiindia.com/investor-corner/online- center/riskmeterinformation Mutual Funds shall also disclose the risk level of schemes as on March 31 of every year, along with number of times the risk level has changed over the year, on AMCs website and AMFI website. Refer to AMC website https://www.dspim.com/mandatory-disclosures/annual- risk-o-meter-disclosure and refer to AMFI website https://www.amfiindia.com/investor-corner/online-center/riskmeterinformation Investors may please note that the Risk-o-meter disclosed is basis internal assessment of the scheme portfolio as on the date of disclosure. Any change in risk-o-meter of the Scheme or its benchmark shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular scheme. Scheme Summary The AMC has provided on its website a standalone scheme document for all the Document Schemes which contains all the details of the Scheme including but not limited to Scheme features, Fund Manager details, investment details, investment objective, expense ratios, etc. Scheme summary document is uploaded on the websites of SO No. 38 AMC, AMFI and stock exchanges in 3 data formats i.e. PDF, Spreadsheet and a machine readable format (either JSON or XML). In accordance with SEBI circular no. SEBI/HO/IMD/PoD1/CIR/P/2024/150 dated November 05, 2024, disclosures w.r.t. expense ratio of the schemes will be made for both regular and direct plans. Refer to AMC website https://www.dspim.com/mandatory-disclosures/scheme- summary-document AMFI link - Research and Information - Scheme Details | Best Mutual Funds India (amfiindia.com) Special Investor are requested to read special consideration section in SAI. Consideration 73D. Transparency/NAV Disclosure: The NAVs of the Scheme/plans will be calculated by the Mutual Fund on each Business Day and will be made available by 10 a.m. of the immediately succeeding Business Day. The AMC shall publish an advertisement every year disclosing the hosting of the scheme wise annual report on their respective website and on the website of AMFI and the modes such as SMS, telephone, email or written request (letter) through which unitholders can submit a request for a physical or electronic copy of the scheme wise annual report or abridged summary thereof. Such advertisement shall be published in the all India edition of at least two daily newspapers, one each in English and Hindi. The AMC shall provide a physical copy of the statement of the Scheme portfolio, without charging any cost, on specific request received from a unitholder. Latest available NAVs shall be available to unitholders through SMS, upon receiving a specific request in this regard. NAV will be calculated and declared on every Business Day, except in special circumstances described under ‘Restriction on Redemption of Units’ in the SAI. The AMC will declare separate NAV under Regular Plan and Direct Plan of Scheme. Refer relevant disclosures mentioned in the Statement of Additional Information (‘SAI’) available on the AMC’s website. i.e. www.dspim.com. E. Transaction charges and stamp duty: • Transaction Charge – In line with the provisions of SEBI Circular No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2025/115 dated August 08, 2025, transaction charges paid to Mutual Fund distributors has been discontinued from the date of issue of the Circular. • Stamp duty - Mutual fund units issued against Purchase transactions would be subject to levy of stamp duty @ 0.005% of the amount invested. For more details, investors are requested to refer SAI. F. Associate Transactions- Please refer to Statement of Additional Information (SAI) G. Taxation- For details on taxation please refer to the clause on Taxation in the SAI apart from the following: The information provided is as per the provisions of the Income-tax Act, 1961 (“the Act”), as amended by the Finance Act, 2025. The information is provided for general information only. It does not purport to be a complete analysis of all relevant tax considerations; nor does it purport to be a complete description of all potential tax costs, tax incidence and risks for the investors. In view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorized dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the Schemes. It is assumed that units of mutual fund are held as capital asset by the investors. $Non Equity Oriented Funds SO No. 41& 42 (other than Specified Mutual Funds) Particulars Resident Investors NRI/PIOs & Other Non- FPI Investors Mutual Fund resident Investors other than FPI Tax Rates TDS Rates Tax Rates TDS Rates Tax Rates TDS Rates Tax / TDS Rates 74Tax on Income Taxable at 10% i.In respect 20% (u/s 20% (u/s 20% (u/s NIL (u/s Distributed by normal rates of (under of non- 196A) or as 115AD) 196D) or 10(23D)) Mutual Funds tax applicable to section resident per applicable as per the assessee 194K) non- DTAA applicable corporate whichever is DTAA Taxable at lower whichever normal is lower rates of tax applicable to the assessee (other than units purchased in foreign currency) ii.In respect of non- resident (not being company) or foreign corporates - 20% (for units purchased in foreign currency) Capital Gains Long Term: Listed units of 12.5% (u/s 112) NIL 12.5% (u/s 12.5% (u/s 12.5% NIL NIL (u/s a non-equity 112) 195) without 10(23D)) oriented exchange Scheme (other fluctuation than Specified (u/s 115AD) Mutual Funds) Unlisted units 12.5% (u/s 112) NIL 12.5% 12.5% without 12.5% NIL NIL (u/s of a non-equity without exchange without 10(23D)) oriented exchange fluctuation exchange Scheme (other fluctuation (u/s 195) fluctuation than Specified (u/s 112) (u/s 115AD) Mutual Funds) Short Term: 75Units of a non- Taxable at NIL In respect of In respect of 30% (u/s NIL NIL (u/s equity oriented normal rates of non- non-resident 115AD) 10(23D)) Scheme (other tax applicable to resident non than Specified the assessee non- corporates - Mutual Funds) corporate 30% Taxable at normal In respect of rates of tax non-resident applicable corporates(u/s to the 195): 35% assessee. In respect of non- resident corporates: 35% $Non Equity oriented funds are funds other than Equity oriented funds and Specified Mutual Funds: “equity oriented fund” has been defined to mean a fund set up under a scheme of a mutual fund specified under section 10(23D) of the Act and- a) In a case where the fund invests in the units of another fund which is traded on a recognized stock exchange- (I) a minimum of 90 per cent. of the total proceeds of such fund is invested in the units of such other fund; and (II) such other fund also invests a minimum of 90 per cent of its total proceeds in the equity shares of domestic companies listed on recognized stock exchange; and b) in any other case, a minimum of 65 per cent of the total proceeds of such fund is invested in the equity shares of domestic companies listed on recognized stock exchanges. "Specified Mutual Fund" 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 (b) 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). A dditional Notes: I ncome of Mutual Fund is exempt from tax as per section 10(23D) of the Act. Based on the investment objectives of the scheme as defined in this document, the scheme will potentially be classified as "Non Equity oriented Fund (other than Specified Mutual Fund)" for the purpose of taxation. Accordingly, the applicable rates have been covered above. These rates should also be applicable to units acquired in case of consolidation of options under any scheme of a mutual fund (in the absence of any specific exemption provision in the Income-tax Act, 1961) Capital gains on redemption of listed units held for a period of more than 12 months from the date of allotment & capital gains on redemption of unlisted units held for a period of more than 24 months from the date of allotment shall be treated as Long Term Capital Gains. The above rates are subject to surcharge as applicable (refer table below for rates) and Health and Education cess at the rate of 4% on income tax and surcharge. Income > 50 Income > 1 Income > Income > Income lakhs and cr and 2 cr and 5 cr and exceeding Particulars upto 1 upto 2 upto 5 upto 10 10 cr(in crores(in cr(in Rs) cr(in Rs) cr(in Rs) Rs) Rs) Resident and 10% 15% 15% 15% 15% Non Resident Individuals / HUFs / BOIs / AOPs and Artificial 76juridical persons - Long Term Capital Gains Non Resident 10% 15% 25% 25%& 25%& Individuals / HUFs / BOIs / AOPs and Artificial juridical persons - Short Term Capital Gains and Income Distribution Firms, Local - 12% 12% 12% 12% authorities Co-operative 7% 7% 7% 12% societies Co-operative 10% 10% 10% 10% 10% societies ++(New regime under section 115BAD) Domestic - 7% 7% 7% 12% Company ++(New regime under section 10% 10% 10% 10% 10% 115BAA) FII/ FPI, Foreign - 2% 2% 2% 5% company Please note surcharge is not applicable in case of TDS deducted on income distributed to resident investors under section 194K & The maximum rate of surcharge for individuals and HUFs or association of persons [other than a cooperative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 who opt for the new tax regime under section 115BAC, shall be 25% instead of 37% under normal provisions (Old tax regime). The new tax regime would be the default tax regime from FY 2023-24 onwards. ++ In case company/co-operative society opts for new regime of taxation, then the surcharge would be applicable at the rate of 10% irrespective of the taxable income. Any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee), shall furnish his valid and operative Permanent Account Number to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher of the following rates, namely: (i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of twenty per cent. The aforesaid provision dealing with higher taxation in the absence of furnishing Permanent Account Number shall not apply to a non-resident with effect from 1st June, 2016 on furnishing the following details and documents by such non- resident: (i) name, e-mail id, contact number; 77(ii) address in the country or specified territory outside India of which the non- resident is a resident; (iii) a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate; (iv) Tax Identification Number of the non-resident in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the non-resident is identified by the Government of that country or the specified territory of which he claims to be a resident. For detailed tax implications, please refer to 'SECTION VIII – TAX & LEGAL & GENERAL INFORMATION' provided in 'Statement of Additional Information ('SAI')'. H. Rights of Unitholders - Please refer to SAI for details. I. List of official points of acceptance: https://www.dspim.com/mandatory- disclosures/disclosures-under-offer-documents/list-of-investor-service-centers-iscs-official-points- of-official-points-of-acceptance-collecting-banker-details J. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations For Which Action May Have Been Taken Or Is In The Process Of Being Taken By Any Regulatory Authority – SO No. 49 & 50 Investors are requested to refer AMC website- https://www.dspim.com/mandatory- disclosures/disclosures-under-offer-documents/penalties-pending-litigation-or-proceedings- findings-of-inspections-or-investigations Undertaking from Trustees SO No. 66 The Trustees have ensured that DSP Multi Asset Omni Fund of Funds, approved by them, is a new product offered by DSP Mutual Fund. DSP Multi Asset Omni Fund of Funds has been approved by the Trustees on ____________. Notwithstanding anything contained in this SID, the provisions of the SEBI (MF) Regulations, 1996 SO and the guidelines there under shall be applicable. No. 64 For DSP Trustee Private Limited Trustee: DSP Mutual Fund Place: Mumbai Sd/- Date: Shitin D. Desai Director 78