DSP Nifty500 Flexicap Quality 30 Index Fund

DRAFT SCHEME INFORMATION DOCUMENT SECTION I DSP Nifty500 Flexicap Quality 30 Index Fund SO No. 1 (An open ended scheme replicating / tracking Nifty500 Flexicap Quality 30 Index) This product is suitable for Scheme Riskometer Benchmark Riskometer SO No. 3 investors who are seeking*: Nifty500 Flexicap Quality 30 TRI • Long-term capital growth • Investment in equity and equity related securities covered by Nifty500 Flexicap Quality 30 Index, subject to tracking error. *Investors should consult their financial advisers if in doubt about whether the Scheme is suitable for them. (For latest Risk-o-meters, 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 DS P 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) Addresses 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 1Board 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. 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 _________ 2NSE INDICES LTD Disclaimer: The Product(s) are not sponsored, endorsed, sold or promoted by "NSE INDICES LTD" (formerly known as India Index Services & Products Limited (IISL). NSE INDICES LTD does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty500 Flexicap Quality 30 Index to track general stock market performance in India. The relationship of NSE INDICES LTD to the Issuer is only in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE INDICES LTD without regard to the Issuer or the Product(s). NSE INDICES LTD does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty500 Flexicap Quality 30 Index. NSE INDICES LTD is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE INDICES LTD has no obligation or liability in connection with the administration, marketing or trading of the Product(s). NSE INDICES LTD do not guarantee the accuracy and/or the completeness of the Nifty500 Flexicap Quality 30 Index or any data included therein and NSE INDICES LTD shall not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LTD does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty500 Flexicap Quality 30 Index or any data included therein. NSE INDICES LTD makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LTD expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. 3TABLE OF CONTENTS Particulars Page No. SECTION I PART I. HIGHLIGHTS / SUMMARY OF THE SCHEME 5 PART II. INFORMATION ABOUT THE SCHEME 16 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? 16 B. WHERE WILL THE SCHEME INVEST? 19 C. WHAT ARE THE INVESTMENT STRATEGIES? 19 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 20 E. INDEX METHODOLOGY 20 F. WHO MANAGES THE SCHEME? 22 G. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF MUTUAL FUND? 23 H. HOW HAS THE SCHEME PERFORMED 24 I. ADDITIONAL SCHEME RELATED DISCLOSURES 24 PART III. OTHER DETAILS 25 A. COMPUTATION OF NAV 25 B. NEW FUND OFFER (NFO) EXPENSES 26 C. ANNUAL SCHEME RECURRING EXPENSES 26 D. LOAD STRUCTURE 29 E. TRACKING ERROR & TRACKING DIFFERENCE 30 SECTION II I. INTRODUCTION 32 A. DEFINITIONS/ INTERPRETATION 32 B. RISK FACTORS 33 C. RISK MITIGATION STRATEGIES 37 II. INFORMATION ABOUT THE SCHEME 39 A. WHERE WILL THE SCHEME INVEST 39 B. WHAT ARE THE INVESTMENT RESTRICTIONS? 44 C. FUNDAMENTAL ATTRIBUTES 46 D. PRINCIPLES OF INCENTIVE STRUCTURE FOR MARKET MAKERS 46 E. FLOORS AND CEILING WITHIN A RANGE OF 5% OF THE INTENDED ALLOCATION 46 AGAINST EACH SUB CLASS OF ASSET F. OTHER SCHEME SPECIFIC DISCLOSURES 46 III. OTHER DETAILS 70 A. OVERVIEW OF THE UNDERLYING FUNDS 70 B. PERIODIC DISCLOSURES 70 C. TRANSPARENCY/NAV DISCLOSURE 73 D. TRANSACTION CHARGES AND STAMP DUTY 73 E. ASSOCIATE TRANSACTIONS 74 F. TAXATION 74 G. RIGHTS OF UNITHOLDERS 77 H. LIST OF OFFICIAL POINTS OF ACCEPTANCE 77 I. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS 77 OR INVESTIGATIONS 4PART I: HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. Title Description No I. Name of the Scheme DSP Nifty500 Flexicap Quality 30 Index Fund II. Category of the Scheme Index Fund III. Scheme Type An open ended scheme replicating / tracking Nifty500 Flexicap Quality 30 Index SO No. 7 IV. Scheme Code (To be inserted before launch of Scheme) V. Investment Objective The investment objective of the Scheme is to generate returns that are commensurate with the performance of the Nifty500 Flexicap Quality 30 Index, subject to tracking error. 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 proceeds shall be dispatched within 3 (three) Working Days from the date of redemption. 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 No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated June 27, 2024 (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 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. VII. Benchmark (Total Benchmark of the Scheme - Nifty500 Flexicap Quality 30 TRI Return Index) Justification- The benchmark has been selected as per required under Clause no. 1.9 as per SEBI Master Circular dated June 27, 2024. The corpus of the scheme will be invested in stocks in the same proportion as in Nifty500 Flexicap Quality 30 Index. The Scheme would endeavor to attain returns comparable to Nifty500 Flexicap Quality 30 Index, subject to the tracking error. The Benchmark has been chosen on the basis of the investment pattern/objective of the scheme and the composition of the index. 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 11 p.m. of the same 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 www.dspim.com. Further Details in Section II. IX. Applicable timelines Timeline for: • Dispatch of redemption proceeds - As per SEBI (MF) Regulations, the Mutual Fund shall dispatch the redemption proceeds within 3 5working days from the date of acceptance of redemption request. 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 No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2023/74 dated June 27, 2024 (SEBI Master Circular), the AMC may not be able to adhere with the timelines prescribed above. • Dispatch of Income Distribution cum Capital Withdrawal (‘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: Plans/Options and sub Plan Options Sub- Income options under the Scheme Option Distribution cum Capital Withdrawal Frequency/Recor d Date Regular Growth - Plan and Direct Income Payout of At the discretion of Plan Distribution IDCW & Trustee cum Capital Reinvest Withdrawal ment of (IDCW) 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.” Default option: Investors should indicate the Scheme / Plan and / or Option / Sub Option, 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 following Default Option - Growth/ IDCW Growth Sub-option - Payout of IDCW/ Reinvestment of IDCW Payout of 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. The Plans under the Scheme will have common portfolio. 6Sr. AMFI Plan as Transaction shall be No. Registration selected in processed and Units Number (ARN) the shall be allotted under Code/Direct/Blanapplication k as mentioned form/ 1 iNno t mentionedt he tNroatn saction Direct Plan 2 aNpopt lmiceantitoionn feodr m/ rmDeierqenucteito snt ed Direct Plan transaction 3 Not mentioned Regular Direct Plan request 4 Mentioned Direct Direct Plan 5 Direct Not Direct Plan 6 Direct mReegnutliaorn ed Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Regular Plan mentioned 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 SEBI, ARN not present in AMFI ARN database, ARN not empanelled with AMC. Notes: a. 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. b. 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. c. Investors shall note that once Units are allotted, AMC shall not entertain requests regarding change of Plan/Option, with a retrospective effect. d. Applications not specifying Scheme/Plans/Options and/ or accompanied by cheque/demand drafts/account to account transfer instructions favouring Scheme/Plans/Options other than those specified in the application form are liable to be rejected. e. 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. f. Investors should provide details/instructions only in the space provided in the form. Any details/noting/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. g. 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 anti- money laundering requirements. 7h. 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: Nil 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 Rs. 100/- & any amount thereafter Purchase Amount XIV. Minimum Not applicable Redemption/switch out amount XV. New Fund Offer Period NFO for DSP Nifty500 Flexicap Quality 30 Index Fund This is the period during which a new scheme Opens on: ____ sells its units to the Closes on: _____ investors. As 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 SO No. 34 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 portfolio/side The Scheme is not enabled for segregated portfolio. pocketing disclosure XVIII. Swing pricing disclosure Swing pricing framework is not applicable. XIX. Stock lending/short Subject to SEBI (MF) Regulations and the applicable guidelines issued by selling SEBI, the Scheme may engage in stock lending. The Scheme will not engage in short selling. 8XX. 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. 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. Please 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. Prakash Pujari Investor Relations Officer DSP Asset Managers Private Limited, Natraj, Office Premises No. 302, 3rd Floor, M V Road Junction. W. E. Highway, Andheri (East), Mumbai - 400069, Tel.: 022 - 67178000 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) 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 9the 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 T+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 within One business day prior to the 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. 10Special 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 SIP 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), 11which 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 Scheme 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. • Super Systematic Transfer Plan (‘Super STP’): Super STP, 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 prevailing equity valuations at defined intervals from designated open-ended Scheme of the Fund [hereinafter referred to as “Source Scheme”] to the ‘Growth Option’ of designated open-ended scheme of the Fund [hereinafter referred to as “Target Scheme”]. This scheme is Target Scheme. 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 12demat 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). Under 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?category=Information%20Docume nts&sub_category=Factsheets 13XXV. Minimum installment Rs. 100/- & any amount thereafter. Amount for Systematic Investment Plan (SIP) XXVI. Minimum installment Rs. 100/- & any amount thereafter. Amount for SWP and STP XXVII. Minimum balance to be Not applicable maintained and SO No. 36 consequences of non maintenance 14DUE 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 Nifty500 Flexicap Quality 30 Index Fund 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 15II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, it is anticipated that the asset allocation of the Scheme shall be as follows: Indicative allocations Instruments (% of total assets) Minimum Maximum Equity and Equity Related Securities of companies constituting Nifty500 95% 100% Flexicap Quality 30 Index, the Underlying Index Cash and Cash Equivalents@ 0% 5% SO No. 13 & 21 @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. SO No. Indicative table (Actual instrument/percentages may vary subject to applicable SEBI circulars) 18, 19 & 20 Sl. no Type of Instrument Percentage of exposure Circular references 1. Securities Lending Upto 20% (5% for single Clause 12.11 of the SEBI intermediary) Master Circular 2. Derivatives Upto 20% Clause 12.25 of the SEBI Master Circular 3. Equity Derivatives for non- hedging Upto 20% Clause 12.25 of the SEBI purposes Master Circular 4. Securitized Debt Nil - 5. Debt Instruments with SO / CE rating Nil - 6. Overseas Securities/ADR/GDR Nil - 7. ReITS and InVITS Nil - 8. Debt Instruments with special features Nil - (AT1 and AT2 Bonds) 9. Tri-party repos (including Reverse Repo Upto 5% - in T-bills/G-Sec) 10. Other / own mutual funds Nil - 11. Repo/ reverse repo transactions in Nil - corporate debt securities 12. Credit Default Swap transactions Nil - 13. Covered call option Nil - 14. Unrated debt instruments Nil - 15. Short Selling Nil - 16. Short Term Deposits Refer Note 1 Clause 12.16 of SEBI Master Circular Indicative table is subset of primary asset allocation table mentioned above and both shall be read in conjunction. 16Note 1: Pending deployment of funds of the Scheme shall be in terms of clause 12.16 of SEBI Master Circular. The AMC may invest funds of the Scheme in short-term deposits of scheduled commercial banks, 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. 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. vii. 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. The underlying index shall comply with the below restrictions in line with clause 3.4 of SEBI Master Circular: a) The index shall have a minimum of 10 stocks as its constituents. b) For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index. For other than sectoral/ thematic indices, no single stock shall have more than 25% weight in the index. c) The weightage of the top three constituents of the index, cumulatively shall not be more than 65% of the Index. d) The individual constituent of the index shall have a trading frequency greater than or equal to 80% and an average impact cost of 1% or less over previous six months. The net assets of the scheme will be invested in stocks constituting the Nifty500 Flexicap Quality 30 Index. This would be done by investing in all the stocks comprising the Nifty500 Flexicap Quality 30 Index in the same weightage that they represent in the Nifty500 Flexicap Quality 30 Index. A small portion of the net assets will be invested in Cash and Cash Equivalents. Index futures/options are meant to be an efficient way of buying/selling an index compared to buying/selling a portfolio of physical shares representing an index for ease of execution and settlement. It can help in reducing the Tracking Error in the Scheme. Index futures/options may avoid the need for trading in individual components of the index, which may not be possible at times, keeping in mind the circuit filter system and the liquidity in some of the individual stocks. Equity Derivatives can be used as a tool for cash equitization and where the fund has got cash (within the maximum permissible asset allocation table), in case where rebalance comes, then instead of cash, index contract can be used for temporary basis. Index futures/options can also be helpful in reducing the transaction costs and the processing costs on account of ease of execution of one trade compared to several trades of shares comprising the underlying index and will be easy to settle compared to physical portfolio of shares representing the underlying index. In case of investments in index futures/options, the risk/reward would be the same as investments in portfolio of shares representing an index. However, there may be a cost attached to buying an index future/option. The Scheme will not maintain any leveraged or trading positions. Exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when equity shares are unavailable, insufficient or for rebalancing in case of corporate actions. Exposure to such derivatives will be restricted to 20% of net assets of the scheme. However, investment in derivatives will be for a temporary period on defensive considerations. The Scheme shall rebalance the portfolio in case of any deviation to the asset allocation. Such rebalancing shall be done within 7 calendar days from the date of 17such deviation. Investment in derivatives shall be made in accordance with clause 12.25 of SEBI Master Circular and such other guidelines on derivatives as issued by SEBI from time to time. In accordance with clause 12.11 of the SEBI Master Circular, the Scheme will not generally deploy more than 20% of its net assets in stock lending and not more than 5% of its net assets through a single intermediary (i.e. the limit of 5% will be at broker level). 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 12.24.1 of the SEBI Master Circular, the cumulative gross exposure through equity, derivative position and other permitted securities/ asset class as may be permitted by the Board from time to time SO No. subject to regulatory approvals, if any shall not exceed 100% of the net assets of the scheme. Cash and cash 14 &17 equivalents as per SEBI letter no. SEBI/HO/ IMD-II/DOF3/ OW/P/ 2021/ 31487 / 1 dated November 03, 2021 which includes T-bills, 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. 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 as per SEBI Circular no. SO No. SEBI/HO/IMD/DF2/CIR/P/2021/024 dated March 4, 2021; the intention being at all times to protect the interests of the Unit Holders and the Scheme shall rebalance the portfolio within 7 calendar days from the 23 & 24 date of deviation. 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: In line with clause 3.6.7.1 of SEBI Master Circular, in case of change in constituents of the index due to periodic review, the portfolio of Scheme shall be rebalanced within 7 calendar days. Further, any transactions undertaken in the portfolio of Index Schemes in order to meet the redemption and SO no. subscription obligations shall be done while ensuring that post such transactions replication of the portfolio with the index is maintained at all points of time. 22 &24 In the event of involuntary corporate action, the scheme shall dispose the security not forming part of the underlying index within 7 days from the date of allotment/listing. CHANGE IN INVESTMENT PATTERN The Scheme will hold all the securities that comprise the underlying Index in the same proportion as the index. Expectation is that, over a period of time, the tracking error of the Scheme relative to the performance of the Underlying Index will be relatively low. The AMC would monitor the tracking error of the Scheme on an 18ongoing basis and would seek to minimize tracking error to the maximum extent possible. Under normal market circumstances, such tracking error is not expected to exceed by 2% p.a. for daily 12 month rolling return. However, in case of events like, dividend issuance by constituent members, rights issuance by constituent members, and market volatility during rebalancing of the portfolio following the rebalancing of the Underlying Basket, etc. or in abnormal market circumstances, the tracking error may exceed the above limits. Since the scheme is an open ended index linked equity scheme, it will endeavor that at no point of time the scheme will deviate from the index. B. WHERE WILL THE SCHEME INVEST? The corpus of the Scheme will invest in Securities which are constituents of Nifty500 Flexicap Quality 30 Index and in Cash and Cash Equivalents. The corpus of the Scheme will be invested in various types of securities (including but not limited to) such as: 1. Equity and Equity related Securities of companies constituting Nifty500 Flexicap Quality 30 Index. 2. Stock futures/index futures and such other permitted derivative instruments only for portfolio SO No. rebalancing. 29 3. Cash and Cash Equivalents. 4. Investment in Short Term Deposits. Further, due to corporate action in companies comprising of the index, the scheme may be allocated/allotted securities which are not part of the index. For example, the Fund may invest in stocks not included in the relevant underlying index in order to reflect various corporate actions (such as mergers) and other changes in the relevant underlying index (such as reconstitutions, additions, deletions and these holdings will be in anticipation and in the direction of impending changes in the underlying index). For detailed definition/description of instruments and applicable regulations/guidelines for instruments please refer Section II. C. WHAT ARE THE INVESTMENT STRATEGIES? Strategy for Equity Securities The Scheme will be managed passively with investments in stocks in the same proportion as in Nifty500 SO No. Flexicap Quality 30 Index (underlying index). The investment strategy would revolve around minimizing the 27 & 28 tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental subscriptions / redemptions in the Scheme. A small portion of the net assets may be held as cash & cash equivalents to meet the liquidity requirements under the Scheme. Strategy for Derivatives Exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when equity shares are unavailable, insufficient or for rebalancing in case of corporate actions for a temporary period on defensive considerations. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. For detailed derivative strategies, please refer to SAI. Portfolio Turnover Policy 19Portfolio Turnover measures the volume of trading that occurs in a Scheme’s portfolio during a given time period. The Scheme is an open-ended Exchange Traded Fund and it is expected that there may be a number of subscriptions and repurchases on a daily basis through Stock Exchange(s) or Market Makers and Large Investors. Generally, turnover will depend upon the extent of purchase and redemption of units and the need to rebalance the portfolio on account of change in the composition, if any, and corporate actions of securities included in the underlying index. 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): Nifty500 Flexicap Quality 30 TRI Justification- The benchmark has been selected as per required under Clause no. 1.9 as per SEBI Master Circular dated June 27, 2024. The corpus of the scheme will be invested in stocks in the same proportion as in Nifty500 Flexicap Quality 30 Index . The Scheme would endeavor to attain returns comparable to Nifty500 Flexicap Quality 30 Index, subject to the tracking error. The Benchmark has been chosen on the basis of the investment pattern/objective of the scheme and the composition of the index. E. INDEX METHODOLOGY ABOUT THE INDEX Index Provider Nifty500 Flexicap Quality 30 Index aims to track the performance of top 10 stocks from each of the Nifty100 Quality 30 (Large cap segment), Nifty Midcap150 Quality 50 (Mid cap segment) and Nifty Smallcap250 Quality 50 (Small cap segment) indices, selected based on their six-month average free-float market capitalization. Methodology The index has a base date of October 01, 2009, with a base value of 1000. • Stocks forming part of each segment universe at the time of review are eligible for inclusion in the index • 10 stocks from each segment universe based on free-float market capitalization are selected to be part of the index • The overall weight allocation between the large cap segment and mid-small cap segment is based on the trend of Mid-Small to Large ratio and its 200 day Moving Average • The weight of each stock within the segment is weighted equally • The index is reconstituted semi-annually and rebalanced quarterly Index Re-Balancing: Index is re-balanced on semi-annual basis. The cut-off date is May 31 and November 30 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change. Index Governance A professional team manages all NSE indices. There is a three-tier governance structure comprising the Boa rd of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance S ub-Committee. 20Constituent Details (Data as on 28 Mar 2025): Company Name Weight (%) Impact Cost Large Cap 66.7 Hindustan Unilever Ltd. 6.8 0.02 Nestle India Ltd. 6.7 0.03 HDFC Bank Ltd. 6.7 0.01 Asian Paints Ltd. 6.7 0.02 ITC Ltd. 6.7 0.02 Tech Mahindra Ltd. 6.7 0.03 Tata Consultancy Services Ltd. 6.6 0.02 Maruti Suzuki India Ltd. 6.6 0.02 Infosys Ltd. 6.6 0.02 HCL Technologies Ltd. 6.6 0.02 Mid Cap 16.7 Cummins India Ltd. 1.7 0.03 Colgate Palmolive (India) Ltd. 1.7 0.03 Astral Ltd. 1.7 0.04 Coforge Ltd. 1.7 0.03 Tube Investments of India Ltd. 1.7 0.03 APL Apollo Tubes Ltd. 1.7 0.05 HDFC Asset Management Company Ltd. 1.7 0.01 Persistent Systems Ltd. 1.6 0.04 Dixon Technologies (India) Ltd. 1.6 0.03 Tata Elxsi Ltd. 1.6 0.02 Small Cap 16.6 Central Depository Services (India) Ltd. 1.7 0.04 Computer Age Management Services Ltd. 1.7 0.03 J.B. Chemicals & Pharmaceuticals Ltd. 1.7 0.05 Cyient Ltd. 1.7 0.04 Indian Energy Exchange Ltd. 1.7 0.03 Amara Raja Energy & Mobility Ltd. 1.7 0.04 Gujarat State Petronet Ltd. 1.7 0.06 Birlasoft Ltd. 1.6 0.04 360 ONE WAM Ltd. 1.6 0.05 Sonata Software Ltd. 1.6 0.06 Source: NSE 21F. WHO MANAGES THE SCHEME? SO No. 33 Name of Age Tenure Educational Brief Experience Other Scheme the Fund Qualifications managed by Fund Manager Manager 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 2023 to present – DSP Nifty 50 Equal Institute USA) DSPAM - Head of Passive Weight ETF Chartered Investments & Products. Accountant From April 16, 2018 to March 31, DSP Nifty 50 Equal (ICAI India) 2023 - DSPIM – Head of Passive Weight Index Fund B. Com. (H. R. Investments & Products. DSP Nifty 50 ETF College From January 2013 to April University of 2018, DSP Pension Fund DSP Nifty 50 Index Mumbai) Managers Pvt. Ltd. - Business Fund Head & Chief Investment Officer DSP Nifty Bank ETF From December 2014 to April 15, 2018 - DSPIM – DSP Nifty IT ETF Senior Vice President, Products DSP Nifty Midcap & Passive Investments 150 Quality 50 ETF From January 2006 – December 2012 - DSPIM – Head of Risk & DSP Nifty Midcap Quantitative Analysis (RQA) 150 Quality 50 Index From July 2003 to December Fund 2005 - DSPIM - AVP - Fund DSP Nifty Next 50 Administration Index Fund From February 2003 to July 2003 - IL&FS Asset DSP Nifty Private Management Company - Asst. Bank ETF Manager – Fund DSP Nifty PSU Bank Operations ETF From February 2000 to January 2003 - S. R. Batliboi (member DSP Gold ETF Fund firm of Ernst & Young) – CA of Fund articleship till Jan 2002 DSP Nifty Executive from Feb 2002 Smallcap250 From August 1998 to June 2000 - Quality 50 Index V. C. Shah & Co., Fund Chartered Accountants - CA 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 22Name of Age Tenure Educational Brief Experience Other Scheme the Fund Qualifications managed by Fund Manager Manager DSP Nifty Private Bank Index Fund Mr. 46 NA B Com , ACA, Over 22 years of experience as DSP NIFTY 1D Rate Diipesh years Candidate of the under: Liquid ETF Shah From April 2023 to present – DSP Nifty 50 Equal CFA Program, DSPAM - Fund Manager – ETF Weight ETF CFA Institute and Passive Investments. DSP Nifty 50 Equal USA, Level I From November 2020 to March Weight Index Fund Cleared 2023 - DSPIM – Fund Manager – DSP Nifty 50 ETF ETF and Passive Investments. DSP Nifty 50 Index From September 2019 to Fund October, 2020 - DSPIM – Dealer – DSP Nifty Bank ETF ETF and Passive Investments. DSP Nifty IT ETF From August 2018 to September, DSP Nifty Midcap 2019 - JM Financial Institutional 150 Quality 50 ETF Broking Limited as Institutional DSP Nifty Midcap Equity Sales Trading. 150 Quality 50 From June 2014 to July 2018 - Index Fund Centrum Boking Limited as DSP Nifty Next 50 Institutional Equity Sales Index Fund Trading. From September 2013 DSP Nifty Private to June 2014 - JM Financial Bank ETF Institutional Broking Limited as DSP Nifty PSU Bank Institutional Equity Sales ETF Trading. DSP Gold ETF Fund From January 2011 to August of Fund 2013 - IDFC Securities Limited as DSP Nifty Institutional Equity Sales Trading Smallcap250 From July 2010 to September Quality 50 Index 2010 - Kotak Securities Limited Fund as Institutional Equity Sales DSP Nifty Trading 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 DSP Nifty Private Bank Index Fund G. HOW IS THE SCHEME DIFFERENT FROM THE EXISTING SCHEMES OF THE MUTUAL FUND? List of other existing Index schemes- 231. DSP Nifty 50 Equal Weight Index Fund 2. DSP Nifty 50 Index Fund 3. DSP Nifty SDL Plus G-Sec Jun 2028 30:70 Index Fund SO No. 434 . DSP CRISIL SDL Plus G-Sec Apr 2033 50:50 Index Fund 5. DSP Nifty SDL Plus G-Sec Sep 2027 50:50 Index Fund 6. DSP Nifty Midcap 150 Quality 50 Index Fund 7. DSP Nifty Smallcap250 Quality 50 Index Fund 8. DSP Nifty Next 50 Index Fund 9. DSP Nifty Bank Index Fund 10. DSP Nifty Top 10 Equal Weight Index Fund 11. DSP BSE SENSEX Next 30 Index Fund 12. DSP Nifty Private Bank Index Fund For further details please refer our website (website link-https://www.dspim.com/mandatory- disclosures/disclosures-under-offer-documents/scheme-comparison) H. HOW HAS THE SCHEME PERFORMED? This being a new Scheme, there is no performance track record. I. 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- This being a new Scheme, this is not available. 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- This being a new Scheme, this is not available. v. 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. Diipesh Shah This being a new Scheme, this is not available. 2 Mr. Anil Ghelani 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 Index Funds. 24Part 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. NAV 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: SO No. 43 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. The NAV will be calculated as of the close of every Business Day. NAV of the scheme 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. - Ongoing price for subscription (Purchase Price)/ switch –in from other Scheme/ plan (This is the price you need to pay for purchase/switch-in) The Purchase Price of the Units on an ongoing basis will be calculated as described below, which is 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 Scheme which currently have no Exit Load, the Redemption Price will be 25the Applicable NAV. In the case of Scheme having an Exit Load or in which an Exit Load is introduced, the Redemption Price will be calculated as under: Redemption 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. For details on load structure please see Load Structure. While determining the price of the units, the mutual fund shall ensure that the repurchase price of Scheme SO is not be lower than 95% Net Asset Value as provided under SEBI (MF) Regulations. For other details such as No. policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay 48 in disclosure of NAV etc. refer to SAI. 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 stationery, bank charges etc. will be borne by 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. This section outlines various expenses that will be borne by the Scheme. The information provided below would assist the investor in understanding the expense structure of the Scheme, types of different fees / expenses, their percentage the investor is likely to incur on purchasing and selling the Units of the Scheme. The AMC has estimated that upto 1.00 % 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 index fund: Particulars As a % of daily net assets as Additional TER as per Regulation 52 (6A) per Regulation 52(6) (b) (b)^ On total assets 1.00% 0.30% Notes to Table 1: 26^In addition to expenses as permissible under Regulation 52 (6) (c), the AMC may also charge the following to the Scheme of the Fund under Regulation 52 (6A): • 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 and 0.05 percent for cash market transactions and derivatives transactions respectively may be charged to the Scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations, 1996. • Additional expenses up to 0.30 per cent of daily net assets of the concerned Schemes of the Fund if SO No. new inflows from such cities as may be specified by Regulations from time to time are at least: 47 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. 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. GST on investment and advisory fees: i. 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). ii. 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). iii. 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 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. 27Further 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. Disclosure relating to changes in TER: In accordance with clause 10.1.8 of 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. Illustrative example for estimating expenses for a scheme with corpus of 100 crores: The AMC in good faith has estimated and summarized in the below table for each Scheme, the expenses on a corpus size of Rs. 100 crores. 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 Expense Heads % of daily net assets . (Estimated p.a.) (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 agent commission and statutory advertisement (vi) Cost related to investor communications (vii) Cost of fund transfer from location to location Upto 1.00% (viii) Brokerage & Transaction cost pertaining to distribution of units SO No. 44 (ix) Cost towards investor education & awareness (at least 0.01 percent) (x) Brokerage & transaction cost over and above 0.12 percent and 0.05 percent for cash and derivative market trades, respectively. (xi) Goods & Service Tax on expenses other than investment and advisory fees (xii) Goods & Service Tax on brokerage and transaction cost (a) Maximum total expense ratio (TER) permissible under Upto 1.00% Regulation 52 (6) (b) (b) Additional expenses for gross new inflows from specified cities Up to 0.30% SO No. 47 under regulation 52(6A)(b) 28* 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. 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. Expense 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 that the investor in the Scheme will bear directly or indirectly. For the actual current expenses being charged, the investor should refer to the website of the Mutual Fund. SO No. 45 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 Returns before expenses 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 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. SO No. 48 Type of Load Load chargeable (as %age of NAV) Exit # Nil #Applicable for investments made through normal purchase and SIP/STP/SWP transactions. Please note, that for the purpose of calculating the holding period each investment/transaction made into a Scheme will be tracked separately. Investors are advised to contact any of the Investor Service Centres or the AMC to know the latest position on Exit Load structure prior to investing in the Scheme. Note on load exemptions: 1. There will be no Exit Load on inter-option switching. 292. 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 Exit load charged (If any) shall be credited to the Scheme. The goods and service tax on exit load shall be paid out of the exit load proceeds and exit load net of goods and service tax shall be credited to the Scheme. Investors may note that the Trustee has the right to modify the existing load structure, 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 consider the following measures to avoid complaints from investors about investment in the Scheme without knowing the loads: • 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. • Arrangements will be made to display the addendum to the SID in the form of a notice in all the ISCs/offices of the AMC/Registrar. • 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 Scheme before investing. Exit load charged shall be credited to the scheme. The goods and service tax on exit load shall be paid out of the exit load proceeds and exit load net of goods and service tax shall be credited to the concerned scheme. E. TRACKING ERROR & TRACKING DIFFERENCE Tracking Error may arise due to reasons including but not limited to the following: a. Expenditure incurred by the fund. b. The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses. The fund may not be invested at all times as it may keep a portion of the funds in cash to meet redemptions or for corporate actions. c. Securities trading may halt temporarily due to circuit filters. d. Corporate actions such as debenture or warrant conversion, rights, merger, change in constituents etc. e. Rounding off of quantity of shares in underlying index. g. Disinvestments to meet redemptions, recurring expenses, etc. f. Execution of large buy / sell orders g. Transaction cost (including taxes and insurance premium) and recurring expenses h. Realization of Unit holder’s funds i. Index providers may either exclude or include new scrips in their periodic review of the scrips that comprise the underlying index. In such an event, the Fund will try to reallocate its portfolio but the available investment/reinvestment opportunity may not permit absolute mirroring immediately. It will be the endeavor of the fund manager to keep the tracking error as low as possible. Under normal circumstances, such tracking error is not expected to exceed 2% per annum. However, in case of events like, dividend received from underlying securities, rights issue from underlying securities and market volatility during rebalancing of the portfolio following the rebalancing of the underlying index, etc. or in abnormal market circumstances and force majeure which are beyond the control of the AMC, the tracking error may exceed the above limits and the same shall be brought to the notice of the Board of Trustees with the corrective actions taken by the AMC, if any. There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the Index. Tracking Error of the Index Schemes based on past one year rolling data, shall be disclosed on a daily basis, on the website of AMC i.e. www.dspim.com and AMFI. 30Tracking Difference: Tracking Difference is defined as the annualized difference of daily returns between the index and the NAV of the ETF Schemes. Tracking difference of the Scheme shall be disclosed on the website of the AMC i.e. www.dspim.com and AMFI, on a monthly basis, for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units. 31Section II I. Introduction A. Definitions/interpretation Definitions: Business / Working Day A day other than: (1) Saturday and Sunday; (2) a day on which the National Stock Exchange is closed (3) a day on which the Sale and Redemption of Units is suspended. 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 a custodian to the Scheme, or any other Custodian who is approved by the Trustee. Scheme/DSPN500FQ30IF DSP Nifty500 Flexicap Quality 30 Index Fund Scheme Information This document issued by DSP Mutual Fund, offering Units of DSP Nifty500 Document Flexicap Quality 30 Index Fund. 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 Ltd. 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 Ltd. 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 POA: Power of Attorney ECS: Electronic Clearing System PIO: Person of Indian Origin EFT: Electronic Funds Transfer PMLA: Prevention of Money Laundering Act, 2002 FPI: Foreign Portfolio Investor POS: Points of Service FRA: Forward Rate Agreement PSU: Public Sector Undertaking FIRC: Foreign Inward Remittance RBI: Reserve Bank of India Certificate FOF: Fund of Funds RTGS: Real Time Gross Settlement 32FPI: Foreign Portfolio Investor SEBI: Securities and Exchange Board of India FATCA: Foreign Account Tax Compliance Act SI: Standing Instructions Flex STP: Flex Systematic Transfer Plan SIP: Systematic Investment Plan HUF: Hindu Undivided Family SWP: Systematic Withdrawal Plan IMA: Investment Management Agreement STP: Systematic Transfer Plan 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 TREPs: Tri-Party REPOs UBO: Ultimate Beneficial Ownership Value STP : Value Systematic Transfer Plan Interpretation For all purposes of this SID, except as otherwise expressly provided or unless the context otherwise requires: • 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. INR” 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) and references to a day are to a calendar day including non-Business Day. B. Risk factors Scheme Specific Risk Factors: SO No. 8 Risks associated with 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. 33Risks associated with Passive Investments: As the scheme proposes to invest not less than 95% of the net assets in the securities of the underlying Index, the Scheme will not be actively managed. The Scheme may be affected by a general decline in the Indian markets relating to its Underlying Index. The Scheme invests in the securities included in its underlying index regardless of their investment merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets. The value of the Scheme’s investments, may be affected generally by factors affecting equity 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. Consequently, the NAV of the Units of the Scheme may fluctuate and can go up or down In the event the Nifty Flexicap Momentum Quality Index is dissolved or withdrawn by NSE Indices Limited (formerly known as India Index Services and Products Ltd. (IISL)), the Trustees reserve the right to modify the schemes so as to track a different and suitable index and appropriate intimation will be sent to the unitholder of the scheme. Tracking Error and Tracking difference Risk: SO No. 10 The Fund Manager would not be able to invest the entire corpus exactly in the same proportion as in the underlying index due to certain factors such as the fees and expenses of the respective scheme, corporate actions, cash balance, changes to the underlying index and regulatory policies which may affect AMC’s ability to achieve close correlation with the underlying index of the scheme. The scheme’s returns may therefore deviate from those of its underlying index. “Tracking Error” is defined as the standard deviation of the difference between daily returns of the underlying index and the NAV of the respective scheme. “Tracking Difference” is the annualized difference of daily returns between the Index and the NAV of the scheme (difference between fund return and the index return). Tracking Error & Tracking Difference may arise including but not limited to the following reasons: i. Expenditure incurred by the fund. ii. The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses. The fund may not be invested at all time as it may keep a portion of the funds in cash to meet redemptions or for corporate actions. iii. Securities trading may halt temporarily due to circuit filters. iv. Corporate actions such as debenture or warrant conversion, rights, merger, change in constituents etc. v. Rounding off of quantity of shares in underlying index. vi. IDCW payout. vii. Disinvestments to meet redemptions, recurring expenses, IDCW payouts etc. viii. Execution of large buys / sell orders ix. Transaction cost (including taxes and insurance premium) and recurring expenses x. Realization of Unit holders funds xi. Index providers may either exclude or include new scrips in their periodic review of the scrips that comprise the underlying index. In such an event, the Fund will try to reallocate its portfolio but the available investment/reinvestment opportunity may not permit absolute mirroring immediately. SEBI Regulations (if any) may impose restrictions on the investment and/or divestment activities of the Scheme. Such restrictions are typically outside the control of the AMC and may cause or exacerbate the Tracking Error. It will be the endeavor of the fund manager to keep the tracking error as low as possible. However, in case of events like, dividend received from underlying securities, rights issue from underlying securities, and market volatility during rebalancing of the portfolio following the rebalancing of the underlying index, etc. or in abnormal market circumstances may result in tracking error. There can be no assurance or guarantee that the Scheme will achieve any particular level of tracking error relative to performance of the Index. Model Risk: The scheme seeks to invest in a portfolio of 30 companies using a two-factor model, developed through rigorous back-testing and research. However, there is no guarantee that this model will outperform the benchmark or generate higher returns. 34Portfolio Churn risk: The scheme is subject to portfolio churn risk, which arises from frequent buying and selling of securities within the fund. High portfolio churn may lead to increased transaction costs and tax implications. Smaller Capitalisation Companies Securities of smaller capitalisation companies may, from time to time, and especially in falling markets, become illiquid and experience short-term price volatility and wide spreads between bid and offer prices. Investment in smaller capitalisation companies may involve higher risk than investment in larger companies. The securities of smaller companies may be subject to more abrupt or erratic market movements than larger, more established companies or the market average in general. These companies may have limited product lines, markets or financial resources, or they may be dependent on a limited management group. Full development of those companies takes time. In addition, many small company stocks trade less frequently and in smaller volume, and may be subject to more abrupt or erratic price movements than stocks of large companies. The securities of small companies may also be more sensitive to market changes than the securities of large companies. These factors may result in above-average fluctuations in the Net Asset Value of the scheme. Concentration Risk: When a Mutual Fund Scheme, by mandate, restricts its investments only to a particular sector or theme; there arises a risk called concentration risk. If the sector, for any reason, fails to perform, the portfolio value will plummet and the Investment Manager will not be able to diversify the investment in any other sector. Investments under this scheme will be in equity or equity related stocks spanning across the selected theme. Hence the concentration risks could be high. Risk associated with Cash and Cash Equivalents i. 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. ii. 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. iii. 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. iv. 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. 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 35as 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 Risks associated with trading in derivatives: The use of derivatives may expose Scheme to a higher degree of risk. In particular, derivative contracts can be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard bonds or equities. Leveraged derivative positions can therefore increase Scheme volatility. Derivatives require the maintenance of adequate controls to monitor the transactions and the embedded market risks that they add to the portfolio. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. Other risks in using derivatives include but are not limited to: i. Counterparty Risk - this occurs when a counterparty fails to abide by its contractual obligations and therefore, the Scheme are compelled to negotiate with another counter party, at the then prevailing (possibly unfavourable) market price. For exchange traded derivatives, the risk is mitigated as the exchange provides the guaranteed settlement but one takes the performance risk on the exchange. ii. Market Liquidity Risk - this occurs where the derivatives cannot be transacted due to limited trading volumes and/or the transaction is completed with a severe price impact. iii. Model Risk - the risk of mis-pricing or improper valuation of derivatives. iv. Basis Risk - arises due to a difference in the price movement of the derivative vis-à-vis that of the security being hedged. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued involve uncertainty and decision of the Investment Manager may not always be profitable. No assurance can be given that the Investment Manager will be able to identify or execute such strategies. Some other risks investors must read carefully before making any investments in this Scheme, as it is expected to make investments in equity derivatives are as follows: Derivative trades involve execution risks, whereby the rates seen on the screen may not be the rate at which ultimate execution takes place. • The option buyer’s risk is limited to the premium paid. • Investments in index/stock futures face the similar risk as the investments in the underlying stock or index. • Risk of loss in trading in futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and potentially high volatility of the futures markets. 36• The derivatives market may not have the volumes that may be seen in other developed markets, which may result in volatility in the values. • The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Risk associated with Securities Lending & Borrowing: Securities Lending and Borrowing (“SLB”) is an exchange traded product in India, with trades done on order matching platforms setup by the clearing corporation/house of recognized stock exchanges. In accordance with SEBI guidelines, there is a robust risk management system and safeguards exercised by the clearing corporation/house, which also guarantee financial settlement hence eliminating counterparty risk on borrowers. The Scheme may participate as a lender in the SLB market and lend securities held in the portfolio for earning fees from such lending to enhance revenue of the Scheme. The key risk to the Scheme is creation of temporary illiquidity due to the inability to sell such lent securities, till the time such securities are returned on the contractual settlement date or on exercise of early recall. 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. Risks Associated with Transaction In Units Through Stock Exchange Mechanism In respect of transactions in Units of the Scheme through NSE and/or BSE or any other recognised stock exchange, 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 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 recognised exchange in this regard. C. RISK MITIGATION STRATEGIES SO No. 9 i. Market Risk, Concentration Risk & Liquidity Risk: This being an open-ended scheme replicating/tracking equity Index, above mentioned risks are inherent to this scheme similar to other equity schemes. The scheme being a passive fund will predominantly be investing in underlying index, the Investment Manager will endeavor to minimize above risks, however it will have a limited role in the same. ii. Risk Associated with cash and cash equivalent: 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. iii. Risk associated with Stock Lending: The investment managers will ensure adherence to the limits assigned for stock lending and will ensure that the liquidity Risk is managed actively within the portfolio liquidity limits by maintaining proper asset-liability match to ensure payout of the obligations. 37iv. Risk associated with derivatives: The investment managers will invest only in exchange traded derivatives (settlement guaranteed) and the investment shall be in line with guidelines and regulatory limits as specified by regulators & scheme documents. No investment will be made in OTC derivative contracts for equity derivatives. v. Tracking Error and tracking difference: The Investment Manager would monitor the tracking error and tracking difference of the Scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible. The investment manager will endeavour to maintain low cash levels to minimize tracking error and tracking difference. 38II. Information about the Scheme: A. Where will the scheme invest The corpus of the Scheme will invest in Securities which are constituents of Nifty500 Flexicap Quality 30 Index and in Cash and Cash Equivalents. The corpus of the Scheme will be invested in various types of securities (including but not limited to) such as: 1. Equity and Equity related Securities of companies constituting Nifty500 Flexicap Quality 30 Index Equity Related Instruments include convertible debentures, convertible preference shares, dividend warrants, warrants carrying the right to obtain equity shares, equity derivatives and such other instrument as may be specified by the Board from time to time. 2. Stock futures and such other permitted derivative instruments only for portfolio rebalancing. i. Derivatives- Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index, such as: interest rates, exchange rates, commodities, and equities. ii. A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future. iii. Options- An Option is a contract which gives holder the right (but not the obligation) to buy or sell a security or other asset during a given time for a specified price called the 'Strike' price. iv. Call Option- A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specified quantity of an underlying asset (such as a stock or commodity) at a predetermined price (strike price) within a specified period. Investors purchase call options when they anticipate that the price of the underlying asset will rise, allowing them to buy the asset at a lower price and potentially sell it at a higher market price for a profit. v. Put Option- A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying asset (such as a stock or commodity) at a predetermined price (strike price) within a specified period. Investors purchase put options when they anticipate that the price of the underlying asset will decline, allowing them to sell the asset at a higher price than the market value, potentially earning a profit from the price difference. 3. Cash and Cash Equivalents. Cash and Cash Equivalents will include following securities having residual maturity of less than 91 Days: • TREPS, • Treasury Bills, • Government securities, and • 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. 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. Triparty REPO- 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. 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. 39Government securities are the 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. 4. Investment in 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. Further, due to corporate action in companies comprising of the index, the scheme may be allocated/allotted securities which are not part of the index. For example, the Fund may invest in stocks not included in the relevant underlying index in order to reflect various corporate actions (such as mergers) and other changes in the relevant underlying index (such as reconstitutions, additions, deletions and these holdings will be in anticipation and in the direction of impending changes in the underlying index). Applicable guidelines for the instruments in which scheme will invest- Securities Lending- In accordance with clause 12.11 of the SEBI Master Circular, the Scheme will not generally deploy more than 20% of its net assets in stock lending and not more than 5% of its net assets through a single intermediary (i.e the limit of 5% will be at broker level). Investment in Short-Term Deposits Pending deployment of funds of the Scheme shall be in terms of clause 12.16 of SEBI Master Circular. The AMC may invest funds of the Scheme in short-term deposits of scheduled commercial banks, 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. 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. vii. 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. Investments in Derivative Instruments As part of the Fund Management process, the Scheme may use Derivative instruments such as stock futures and options contracts, warrants, convertible Securities, swap agreements or any other Derivative instruments that are permissible or may be permissible in future under applicable regulations and such investments shall be in accordance with the investment objectives of the Scheme for a short period of time and the portfolio shall be rebalanced within 7 days. Purpose of investment in Derivatives 1. The Scheme shall fully cover its positions in the Derivatives market by holding underlying Securities/cash or cash equivalents/option and/or obligation for acquiring underlying assets to honour the obligations contracted in the Derivatives market. 402. The Securities held would be marked to market by the AMC to ensure full coverage of investments made in Derivative products at all times. Trading in Derivatives The Mutual Fund may use various derivatives only for the purpose of Portfolio Rebalancing of the Scheme. Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index. The Scheme while investing in equities shall transact in exchange traded equity derivatives only and these instruments may take the form of Futures and Options on individual equities/securities and such other derivative instruments as may be appropriate and permitted under the SEBI Regulations and guidelines from time to time. Key features of Trading in Derivatives The use of derivatives provides flexibility to the Schemes only for the purpose of Portfolio Rebalancing. The following section describes some of the more common derivatives transactions with illustrations. Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index, such as interest rates, exchange rates, commodities and equities. 1. Futures A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future. Currently, futures contracts have a maximum expiration cycle of 3 months. Three contracts are available for trading, with 1 month, 2 months and 3 months expiry respectively. A new contract is introduced on the next trading day following the expiry of the relevant monthly contract. Futures contracts typically expire on the last Thursday of the month. For example, a contract with the December 2021 expiration expires on the last Thursday of December 2021 (December 31, 2021). Basic Structure of a Stock Future A futures contract on a stock gives its owner the right and obligation to buy or sell stocks. Single Stock Futures traded on NSE (National Stock Exchange) are physically settled; on the expiration day, depending upon the side of the trade, security is either delivered or received against the payment. A purchase or sale of futures on a security gives the trader essentially the same price exposure as a purchase or sale of the security itself. In this regard, trading stock futures is no different from trading the security itself. Example using hypothetical figures: The Scheme holds shares of XYZ Ltd., the current price of which is Rs. 500 per share. The Scheme sells one month futures on the shares of XYZ Ltd. at the rate of Rs. 540. If the price of the stock falls, the Mutual Fund will suffer losses on the stock position held. However, in such a scenario, there will be a profit on the short futures position. At the end of the period, the price of the stock falls to Rs. 450 and this fall in the price of the stock results in a fall in the price of futures to Rs. 470. There will be a loss of Rs. 50 per share (Rs. 500 - Rs. 450) on the holding of the stock, which will be offset by the profits of Rs. 70 (Rs. 540 - Rs. 470) made on the short futures position. Please note that the above example is given for illustration purposes only. Some assumptions have been made for the sake of simplicity. Certain factors like margins and other related costs have been ignored. The risks associated with stock futures are similar to those associated with equity investments. Additional risks could be on account of illiquidity and potential mis-pricing of the futures. 2. Options 41An option gives a person the right but not an obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee. The premium is the price negotiated and set when the option is bought or sold. A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option. An option contract may be of two kinds: 1) Call option An option that provides the buyer the right to buy is a call option. The buyer of the call option can call upon the seller of the option and buy from him the underlying asset at the agreed price. The seller of the option has to fulfill the obligation upon exercise of the option. 2) Put option The right to sell is called a put option. Here, the buyer of the option can exercise his right to sell the underlying asset to the seller of the option at the agreed price. Option contracts are classified into two styles: (a) European Style In a European option, the holder of the option can only exercise his right on the date of expiration only. (b) American Style In an American option, the holder can exercise his right anytime between the purchase date and the expiration date. Basic Structure of an Equity Option In India, options contracts on indices and stocks are European style and physically settled Example using hypothetical figures: Market type : N Instrument Type : OPTSTK Underlying : XYZ Ltd. (XYZ) Purchase date : December 1, 2021 Expiry date : December 31, 2021 Option Type : Put Option (Purchased) Strike Price : Rs. 5,750.00 Spot Price : Rs. 5,800.00 Premium : Rs. 200.00 Lot Size : 100 No. of Contracts : 50 Say, the Mutual Fund purchases on December 1, 2021, 1 month Put Options on XYZ Ltd. (XYZ) on the NSE i.e. put options on 5000 shares (50 contracts of 100 shares each) of XYZ. If the share price of XYZ Ltd. falls to Rs. 5,500 /- on December 31, 2021 and the Investment Manager decides to exercise the option, the impact will be as Follows: Premium Expense = Rs. 200 * 50 * 100 = Rs. 10, 00,000/- Stocks to be given at = Rs. 5,750/- Profits for the Mutual Fund = (5,750.00-5,500.00)*50*100 = Rs. 12, 50,000/- Net Profit = Rs. 12, 50,000 - Rs. 10,00,000 = Rs. 2,50,000/- In the above example, the Investment Manager hedged the market risk on 5000 shares of XYZ Ltd. by purchasing put options. Please note that the above example is given for illustration purposes only. Some assumptions have been made for the sake of simplicity. Certain factors like margins have been ignored. The purchase of Put 42Options does not increase the market risk in the Mutual Fund as the risk is already in the Mutual Fund’s portfolio on account of the underlying asset position (in his example shares of XYZ Ltd.). The Premium paid for the option is treated as an expense and added to the holding cost of the relevant security. Additional risks could be on account of illiquidity and potential mis-pricing of the options. Exposure to Equity Derivatives i. Position limit for the Mutual Fund for stock based derivative contracts: The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL). ii. Position limit for the Scheme: The position limits for the Scheme and disclosure requirements are as follows: a. For stock option and stock futures contracts, the gross open position across all derivative contracts on a particular underlying stock of a scheme of a Fund shall not exceed the higher of 1% of free float market capitalization (in terms of number of shares). Or 5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of contracts). b. This position limit shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange. c. For index based contracts, the Mutual Fund shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index. As and when SEBI notifies amended limits in position limits for exchange traded derivative contracts in future, the aforesaid position limits, to the extent relevant, shall be read as if they were substituted with the SEBI amended limits. Exposure Limits: With respect to investments made in derivative instruments, the Schemes shall comply with the following exposure limits in line with clause 12.24 and clause 12.25 of SEBI Master Circular: 1. The cumulative gross exposure through equity, debt, derivative positions other permitted securities/assets and such other securities/assets as may be permitted by SEBI from time to time should not exceed 100% of the net assets of the scheme. However, the following shall not be considered while calculating the gross exposure: a. Security-wise hedged position and b. Exposure in cash or cash equivalents with residual maturity of less than 91 days 2. The total exposure related to option premium must not exceed 20% of the net assets of the Scheme. 3. The Mutual Fund shall not write options or purchase instruments with embedded written options. 4. Definition of Exposure in case of Derivative Positions: Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows: Position Exposure Long Future Futures Price * Lot Size * Number of Contracts Short Future Futures Price * Lot Size * Number of Contracts Option Bought Option Premium Paid * Lot Size * Number of Contracts 43B. 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 will the Scheme invest, described earlier, as well as the SEBI (MF) Regulations, including Schedule VII thereof, as amended from time to time. 1. The Mutual Fund under all its Scheme shall not own more than 10% of any company’s paid up capital carrying voting rights. 2. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided that the Mutual Fund may engage in securities lending and borrowing in accordance with the framework specified by SEBI. Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the RBI in this regard. 3. The Mutual Fund shall get the securities purchased/transferred in the name of the Mutual Fund on account of the Scheme, wherever the instruments are intended to be of a long term nature. 4. No Scheme shall make any investment in: (a) any unlisted security of any associate or group company of the Sponsors; or (b) any security issued by way of private placement by an associate or group company of the Sponsors; or (c) 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 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. 6. All investments by a mutual fund scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed 7. 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 Scheme 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 Scheme and the duration of such borrowing shall not exceed a period of six months. 8. 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. 9. The cumulative gross exposure through equity, derivative positions and other permitted securities/assets and such other securities/assets as may be permitted by the Board from time to time should not exceed 100% of the net assets of the scheme. However, the following shall not be considered while calculating the gross exposure: 44a. Security-wise hedged position and b. Exposure in cash or cash equivalents with residual maturity of less than 91 days. 10. The underlying index shall comply with the below restrictions in line with clause 3.4 of SEBI Master Circular: a. The index shall have a minimum of 10 stocks as its constituents. b. For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index. For other than sectoral/ thematic indices, no single stock shall have more than 25% weight in the index. c. The weightage of the top three constituents of the index, cumulatively shall not be more than 65% of the Index. d. The individual constituent of the index shall have a trading frequency greater than or equal to 80% and an average impact cost of 1% or less over previous six months. The Scheme shall evaluate and ensure compliance to the aforesaid norms at the end of every calendar quarter. 11. Pending deployment of funds of the Scheme shall be in terms of clause 12.16 of SEBI Master Circular. The AMC may invest funds of the Scheme in short-term deposits of scheduled commercial banks, 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. 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. vii. AMC will not charge any investment management and advisory fees for parking of funds in short term deposits of scheduled commercial banks. 12. The Scheme shall not make any investment in any fund of funds Scheme. 13. 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. 45SO No. 60 C. Fundamental Attributes Following are the Fundamental Attributes of the Scheme, in terms of Clause 1.14 of SEBI Master Circular for Mutual Funds dated June 27, 2024: (i) Type of Scheme ▪ An open ended scheme replicating/ tracking Nifty500 Flexicap Quality 30 Index (ii) Investment Objective • Main Objective - Please refer “Highlights/summary of the scheme” • Investment pattern - Please refer “How will the Scheme allocate its assets?” (iii) Terms of Issue ▪ Liquidity provisions such as listing, repurchase, redemption. Please refer, “Highlights/summary of the scheme” ▪ Aggregate fees and expenses charged to the Scheme. Please refer “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 for Mutual Funds dated June 27, 2024 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 the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit load. D. Principles of incentive structure for market makers- Not applicable E. 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 dated June 27, 2024- Not applicable F. 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 46(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 Transfer 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 47units, 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 intending to hold Units in demat form will be required to have a Demat SO No. 58 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 subscription amount (This is the minimum amount of Rs. 5 crore in the Scheme during the NFO period. In the event required to operate the scheme this amount is not raised during the NFO period, the amount and if this is not collected collected under the Scheme will be refunded to the applicants as during the NFO period, then all mentioned in the section, ‘Refund’. the investors would be refunded the amount invested without any return.) Maximum Amount to be There is no maximum subscription amount for the Scheme to be raised (if any) 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 application for subscription of units may be rejected if found incomplete or due to unavailability of underlying securities, etc. Dividend Policy ( ID CW ) (i) Growth Option Under this option, the Mutual Fund will not declare any IDCW. The income earned by the Scheme will remain invested in the Scheme concerned and will be reflected in the NAV. This Option is suitable for investors who are not looking for current income but who have invested only with the intention of capital appreciation. Moreover, if Units under this Option are held as a capital asset for a period of greater than 12 months from the date of acquisition, Unit Holders should get the benefit of long term capital gains tax. Please refer in the SAI. (ii) Income Distribution cum Capital Withdrawal option (IDCW) The above option is suited for investors seeking income through IDCW declared by the Scheme. Only Unit Holders opting for such option will receive IDCW. Under this option, the Scheme envisage declaring IDCW comprising substantially of net income and realized gains. The option stated in point (ii) above, in turn offer two sub- options i.e. “Payout of IDCW” or “Reinvestment of IDCW” • Payout of IDCW As per the SEBI (MF) Regulations, the Mutual Fund shall dispatch to the Unit Holders, IDCW warrants within 7 Working days of the record date of IDCW. IDCW will be payable to those Unit Holders whose names appear in the Register of Unit Holders on the date (Record Date). IDCW 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 48of the sole/first holder and will be posted to the registered address of the sole/first holder as indicated in the original application form entirely at the risk of the unitholders. 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. • Reinvestment of IDCW Under this sub-option, IDCW will be reinvested by way of additional Units of the Scheme instead of being paid out. Such reinvestment will be at the applicable NAV on the next Business Day after the Record Date. There shall however, be no entry load/exit load, if any, on the IDCW so re- invested. The IDCW so reinvested shall be constructive payment of IDCW to the Unit Holders and constructive receipt of the same amount from each Unit Holder, for reinvestment in Units. The additional Units issued under this option and held as capital asset would get the benefit of long term capital gains if sold after being held for greater than 12 months. For this purpose, 12 months will be computed from the date when such additional Units are issued/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. 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. 49An 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 In 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. 50Allotment 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 SO No. 61 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 due 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. 51Note: Allotment of units will be done after deduction of applicable stamp duty and transaction charges, if any. Refund a. If the Scheme fail to collect the minimum subscription amount of Rs. 5 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 (This is an indicative list and you are requested to consult your This is an indicative list and financial advisor to ascertain whether the Scheme is suitable to investors shall consult their your risk profile.) financial advisor to ascertain whether the scheme is The following persons (subject to, wherever relevant, purchase suitable to their risk profile. of units of mutual funds, being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for subscription to 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 f. Partnership Firms 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 funds l. Scientific and Industrial Research Organisations 52m. 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. The 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: • 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 be 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. 53• 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. • In case the AMC/Fund subsequently indentifies 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 www.dspim.com. Please refer to the SAI and Application form for further details and the instructions. SO No. 35 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 incomplete. Such incomplete applications will be rejected. The policy regarding reissue of Not applicable repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the right The Trustee may, in the general interest of Unit Holders, keeping to freely retain or dispose of in view the unforeseen circumstances/unusual market units being offered. 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 54redemption 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 affected 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 Applicable NAV and Cut-off time subscriptions/ redemptions/ switches Applicable NAV is the Net Asset Value per Unit at the close of the Business Day on which a valid application is accepted and time This is the time before which stamped. An application will be considered accepted on a your application (complete in Business Day, subject to it being complete in all respects and all respects) should reach the received and time stamped upto the relevant cut-off time as official points of specified below, at any of the official points of acceptance of acceptance. 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. 55In 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 Particulars Applicable NAV Where the valid application is received Closing NAV of upto cut-off time of 3.00 p.m. on a business same Business day at the official point(s) of acceptance Day shall be and funds for the entire amount of applicable subscription/purchase are available for utilization upto 3.00 p.m. on the same Business Day. Where the valid application is received Closing NAV of upto cut-off time of 3.00 p.m. on a business such day at the official point(s) of acceptance subsequent and funds for the entire amount of Business Day on subscription/purchase are available for which the funds utilization after 3.00 p.m. on the same are available for Business Day or on any subsequent Business utilization prior Day to 3.00 p.m. Where the valid application is received Closing NAV of after cut-off time of 3.00 p.m. on a subsequent business day at the official point(s) of Business Day acceptance and funds for the entire amount shall be of subscription/purchase/switch-in are applicable available for utilization upto 3.00 p.m. on the same Business Day. (b) Redemption and Switch-out Particulars Applicable NAV Where the valid application is received on NAV of the same any Business Day at the official points of day acceptance of transactions upto 3.00 p.m. Where the valid application is received NAV of the next after 3.00 p.m. Business Day. 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. 56With 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 Scheme. 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. 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. 57Where 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. Minimum amount for purchase/redemption/switches Minimum amount Rs. 100/- and any amount thereafter for Purchase (Including Subsequent Purchase/SIP Purchase) Minimum amount Not Applicable for Redemption Minimum amount Rs. 100/- and any amount thereafter for Switches *In case of Units held in dematerialized mode, the redemption request can be given only with DPs or on Stock exchange Platform; and only in number of Units. Accounts Statements 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 (including transaction charges paid to the distributor) 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 by mail or email 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. September/ March) 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, please 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. Redemption 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 58details 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 three Working Days from the date of acceptance of redemption or repurchase. 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 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 of 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 59will 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 be 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 or by a foreign currency draft drawn at the then rates of exchange less bank charges, subject to RBI procedures and approvals. 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 60Since 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. Bank 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 cancelled cheque or its photocopy for the purpose of verifying the bank account number. SO No. 62 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 61application [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 Delay in payment of redemption / repurchase proceeds- redemption / repurchase proceeds/dividend The Redemption or repurchase proceeds shall be dispatched to Unit Holders within three Working Days from the date of acceptance of redemption or repurchase. In the event of delay/failure to transfer the redemption/repurchase proceeds within the aforesaid period, Interest for the period of delay in transfer of redemption or repurchase shall be paid by AMC to unitholders at the rate of 15% per annum along with the proceeds 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. Delay in payment of IDCW/ dividend- IDCW payments shall be dispatched/transferred to the investors within seven working days from the IDCW record date. In case the AMC fails to make IDCW payment within seven working days, the AMC shall be liable to pay interest to investors at 15% per annum. The interest on delayed payment would be computed from the record date for IDCW. Unclaimed Redemption and The treatment of unclaimed redemption amounts shall be in Income terms of clause 14.3 of SEBI Master Circular. SO No. 53 Distribution cum Capital Withdrawal Amount For further details, please refer SAI. Disclosure w.r.t investment by For Investments ‘On behalf of Minor’: Where the investment minors 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 the SO No. 37 account. Nomination facility is not available for applications/ folios on behalf of a minor. Joint holders’ details and 62nomination 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 well 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. 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 Scheme. 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 63authorization 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, and IDCW payouts, if any), 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 furnished 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 Subject to the investor fulfilling certain terms and conditions as Electronic Mode 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 64call 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 Electronic 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 and/or 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 65/ 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. In 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 by making an application to their DP 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. 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(s) through stock exchange platform. Third Party Payment Avoidance To safeguard the interests of applicant/investors and avoid & additional fraudulent transactions in any other name, the Mutual Fund does documents/declaration not accept Third Party Payments. In case of subscriptions, the required 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 In order to help enhance the reach of mutual fund products funds 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. However, payment towards redemptions, 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. 66Appropriate 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 AMC has entered into an Agreement with MF Utilities India the Scheme through MFU portal Private Limited (MFUI), for usage of MF Utility (“MFU”) - a shared & MFUI Points of Services services initiative of various Asset Management Companies, pursuant to appointment of which acts as a transaction aggregation portal for transacting in MFUI: 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 Transaction 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. 673) 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. 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. 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 MFCentral is created with an intent to be a one stop portal / the Schemes through mobile app for all Mutual fund investments and service-related MFCentral: 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 the Platform from time to time. MFCentral will be enabling various features and services in a phased manner. MFCentral may be accessed using https://mfcentral.com/ and a Mobile App in future. 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 rejected. 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. 68Nomination: Pursuant to clause 17.16 of the SEBI Master Circular with respect to nomination for unitholders, the following shall be considered: 1. New Investors: Investors who are subscribing to units of DSP Mutual Fund, 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. 2. 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. 3. 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. Requirement of minimum The Scheme shall have a minimum of 20 investors each and no investors in the scheme single investor shall account for more than 25% of the corpus of the Scheme(s). 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 69without 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 III. Other Details A. Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund - Not applicable B. Periodic Disclosures - Half yearly (This is a list of securities where the corpus of each Scheme is currently invested. Portfolio The market value of these investments is also stated in portfolio disclosures) Disclosures: (This is a list of In case of unit holders whose email address are registered with the Fund, the AMC securities where shall send half yearly portfolio via email within 10 days from the end of each half- the corpus of each year. The half yearly portfolio of the Scheme shall also be available in a user- Scheme is currently friendly and downloadable spreadsheet format on the AMFI’s website invested. The www.amfiindia.com and website of AMC viz. www.dspim.com on or before the 10th market value of day of succeeding month. these investments is also stated in The advertisement in this reference will be published by the Fund in all India edition portfolio of atleast two daily newspapers, one each in English and Hindi. disclosures) 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 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. 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. In 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 70the 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 the disclosure 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. 71Risk-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- SO No. 38 meter shall also be depicted using a colour scheme. 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) 72Tracking Error & Tracking Error: Tracking Error of the Scheme based on past one year rolling data, Tracking shall be disclosed on a daily basis, on the website of AMC i.e. www.dspim.com and Difference AMFI. Tracking Difference: Tracking Difference shall be disclosed on the website of the AMC (i.e. www.dspim.com) and AMFI, on a monthly basis, for tenures 1 year, 3 year, SO No. 39 5 year, 10 year and since the date of allotment of units. Refer to AMC website (link- This being a new Scheme, this is not available, AMFI website (link- https://www.amfiindia.com/research-information/other- data/tracking_errordata ) for further details. Issuer/Group/Sect The Scheme shall disclose the following on monthly basis: or Disclosure i. Name and exposure to top 7 issuers and stocks respectively as a percentage of NAV of the scheme ii. Name and exposure to top 7 groups as a percentage of NAV of the scheme. iii. Name and exposure to top 4 sectors as a percentage of NAV of the scheme. Any change in constituents of the index, if any, shall be disclosed on the AMC website i.e. www.dspim.com on the day of change. Refer to AMC website (link- This being a new Scheme, this is not available.) for further details. Constituents and Updated constituents of the indices and methodology for the Scheme is available on Methodology of the website of AMC (i.e. www.dspim.com) under Mandatory Disclosure section. the Index Special Investor are requested to read special consideration section in SAI. Consideration SO No. 41& 42 C. Transparency/NAV Disclosure: (This is the value per unit of the Scheme on a particular day. Investors can ascertain the value of their investments by multiplying the NAV with their Unit balance) The NAVs of the Scheme/plans will be calculated by the Mutual Fund on each Business Day and will be made available by 11 p.m. of the same 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 Centers at various locations. The NAV of the Scheme will also be updated on the AMFI website www.amfiindia.com and on www.dspim.com. In case of delay, the reasons for such delay would be explained to AMFI in writing. If the NAVs of the Scheme are not available before commencement of business hours on the following day due to any reason, the Fund shall issue a press release providing reasons for the delay and explaining when the Fund would be able to publish the NAVs. Latest available NAVs shall be available to unit holders through SMS, upon receiving a specific request in this regard. Refer relevant disclosures mentioned in the SAI available on AMC website i.e. www.dspim.com. D. Transaction charges and stamp duty- Transaction charges: AMC has discontinued the payment of transaction charges to distributors effective May 01, 2023. Accordingly, no transaction charges shall be deducted from the investment amount given by the investor, for transactions / applications received through the distributors (i.e. in Regular Plan) and full investment amount will be invested in the Scheme. 73Stamp Duty: Mutual fund units issued against Purchase transactions would be subject to levy of stamp duty @ 0.005% of the amount invested. For further details, please refer SAI. E. Associate Transactions Please refer to SAI. F. 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. Equity Oriented Funds$ Particulars Resident Investors NRI/PIOs & Other Non- FPI Investors Mutual resident Investors other Fund than FPI Tax Rates TDS Tax Rates TDS Rates Tax Rates TDS Rates Tax / Rates TDS Rates Tax on Taxable at 10% i. In respect 20% (u/s 20% (u/s 20% (u/s NIL (u/s Income normal rates (under of non- 196A) or as 115AD) 196D) or 10(23D)) Distributed of tax section resident per as per by Mutual applicable 194K) non- applicable applicable Funds to the corporate DTAA DTAA assessee Taxable at whichever is whichever normal rates lower is lower 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) 74Capital Gains Long Term: 12.5% NIL 12.5% 12.5% 12.5% NIL NIL (u/s without without without without 10(23D)) indexation indexation indexation indexation on on and on redemption redemption exchange redemption of Units of Units rate of Units where STT is where STT is fluctuation where STT is payable on payable on (u/s 195) in payable on redemption redemption excess of redemption (u/s 112A) in (u/s 112A) in INR 1.25 in excess of excess of excess of l akh INR 1.25 INR 1.25 INR 1.25 l akh l akh l akh Short 20% on NIL 20% on 20% 20% on NIL NIL (u/s Term: redemption redemption (under redemption 10(23D)) of Units of Units section 195) of Units where STT is where STT is where STT is payable on payable on payable on redemption redemption redemption (u/s 111A) (u/s 111A) (u/s 111A) "$“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 exchange." #With effect from 1 April 2022 Additional Notes: 1. Income of Mutual Fund is exempt from tax as per section 10(23D) of the Act. 2. Based on the investment objectives of the scheme as defined in this document, the scheme will potentially be classified as "Equity oriented Fund" for the purpose of taxation. Accordingly, the rates covered above are as applicable to Equity Oriented Funds. 3. 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 Act) 4. Capital gains on redemption of units held for a period of more than 12 months from the date of allotment shall be treated as Gains from Long Term Capital Assets. 755. 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 Income > 50 Income > 1 > 2 cr Income > 5 cr Income Particulars lakhs and upto cr and upto and upto and upto 10 exceeding 10 1 crores(in Rs) 2 cr(in Rs) 5 cr(in cr(in Rs) cr(in Rs) Rs) Resident and Non 10% 15% 15% 15% 15% Resident Individuals / HUFs / BOIs / AOPs and Artificial juridical persons - Capital Gains Non Resident Individuals 10% 15% 25% 25%& 25%& / HUFs / BOIs / AOPs and Artificial juridical persons - Income Distribution Firms, Local authorities - 12% 12% 12% 12% Co-operative societies - 7% 7% 7% 12% Co-operative societies ++(New regime under 10% 10% 10% 10% 10% section 115BAD) Domestic Company - 7% 7% 7% 12% Domestic Company ++(New regime under 10% 10% 10% 10% 10% section 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. 6. 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 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. 76The 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; 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. 7. For detailed tax implications, please refer to 'SECTION IX– TAX & LEGAL & GENERAL INFORMATION' provided in 'Statement of Additional Information ('SAI')'. G. RIGHTS OF UNITHOLDERS Please refer to SAI for details. H. List of official points of acceptance: Website Link- 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 I. 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. Investors are requested to refer AMC website. (Link- https://www.dspim.com/mandatory- 49 & 50 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 Nifty500 Flexicap Quality 30 Index Fund, approved by them, is a new product offered by DSP Mutual Fund and is not a minor modification of any existing scheme/fund/product. DSP Nifty500 Flexicap Quality 30 Index Fund has been approved by the Trustees vide circular resolution dated April 06, 2025. Notwithstanding anything contained in this SID, the provisions of the SEBI (MF) Regulations, 1996 SO No. and the guidelines there under shall be applicable. 64 For DSP Trustee Private Limited Trustee: DSP Mutual Fund Shitin D. Desai Director Place: Mumbai Date: 77