DynaSIF Equity Long - Short Fund

INVESTMENT STRATEGYINFORMATION DOCUMENT Section I DynaSIF Equity Long - Short Fund (SO. 1) (An open ended equity investment strategy investing in listed equity and equity related instruments including limited short exposure in equity through derivative instruments) (Investment Strategy Code: To be updated at the time of launch) This product is suitable for investors who are seeking* • Long-term capital Investment Strategy Risk Band (SO. Benchmark Risk Band appreciation 3) • Investment in equity and equity- related instruments with the flexibility Risk band level 5 to take short Risk band level 5 positions through BSE 500 TRI derivatives *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. (The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the characteristic of the investment strategy 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 opens on: New Fund Offer closes on: Investment strategy re-opens on: SIF: DynaSIF Mutual Fund: 360 ONE Mutual Fund Asset Management Company: 360 ONE Asset Management Limited Trustee Company: 360 ONE Asset Trustee Limited Registered Office: 360 ONE Centre, Kamala City, S.B. Marg, Lower Parel, Mumbai – 400 013 Website: https://www.360.one/dyna-sif The particulars of the investment strategy have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Investment Strategy Information Document (ISID).The ISID sets forth concisely the information about the investment strategy that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this ISID after the date of this Document from the SIF/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 DynaSIF, 360 ONE Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on https://www.360.one/dyna-sif. SAI is incorporated by reference (is legally a part of the ISID). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website https://www.360.one/dyna-sif. The ISID (Section I and II) should be read in conjunction with the SAI and not in isolation. Investors are advised to note that investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision. This ISID is dated ____________. 2Contents Part II. INFORMATION ABOUT THE INVESTMENT STRATEGY ................................................................................................ 13 A. HOW WILL THE INVESTMENT STRATEGY ALLOCATE ITS ASSETS? .................................................................................... 13 B. WHERE WILL THE INVESTMENT STRATEGY INVEST? ........................................................................................................ 17 C. WHAT IS THE INVESTMENT APPROACH? .......................................................................................................................... 17 D. HOW WILL THE INVESTMENT STRATEGY BENCHMARK ITS PERFORMANCE? .................................................................. 20 E. WHO MANAGES THE INVESTMENT STRATEGY? ............................................................................................................... 21 F. HOW IS THE INVESTMENT STRATEGY DIFFERENT FROM EXISTING INVESTMENT STRATEGIES OF THE SIF? ................... 21 G. HOW HAS THE INVESTMENT STRATEGY PERFORMED ...................................................................................................... 22 H. ADDITIONAL INVESTMENT STRATEGY RELATED DISCLOSURES ........................................................................................ 22 Part III – OTHER DETAILS ........................................................................................................................................................ 23 A. COMPUTATION OF NAV .................................................................................................................................................... 23 B. NEW FUND OFFER (NFO) EXPENSES ................................................................................................................................. 25 C. ANNUAL INVESTMENT STRATEGY RECURRING EXPENSES................................................................................................ 25 D. LOAD STRUCTURE ............................................................................................................................................................. 28 Section II ................................................................................................................................................................................ 29 I. Introduction ...................................................................................................................................................................... 29 A. Definition/interpretation .................................................................................................................................................. 29 B. Risk Factors ....................................................................................................................................................................... 29 C. Risk Mitigation Strategies ................................................................................................................................................ 38 II. Information about the Investment Strategy ..................................................................................................................... 40 A. Where will the Investment Strategy invest ...................................................................................................................... 40 B. What are the investment restrictions? ............................................................................................................................. 42 C. Fundamental Attributes .................................................................................................................................................... 47 D. Other Investment Strategy Specific Disclosures: .............................................................................................................. 48 III. Other Details ..................................................................................................................................................................... 69 A. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report ................................................... 69 B. Scenario Analysis for Derivatives Positions ....................................................................................................................... 69 C. Liquidity risk management tools and its applicability - Not Applicable ............................................................................. 71 D. Transparency/NAV Disclosure .......................................................................................................................................... 71 E. Stamp duty ......................................................................................................................................................................... 72 F. Associate Transactions. ...................................................................................................................................................... 72 G. Taxation ............................................................................................................................................................................. 72 H. Rights of Unitholders. ....................................................................................................................................................... 73 I. List of official points of acceptance..................................................................................................................................... 73 J. Penalties, Pending Litigation or Proceedings, Findings Of Inspections Or Investigations For Which Action May Have Been Taken or is in the Process Of Being Taken By Any Regulatory Authority ............................................................................... 73 3Part I. HIGHLIGHTS/SUMMARY OF THE INVESTMENT STRATEGY Sr. No. Title Description 1. Name of the DynaSIF Equity Long - Short Fund Investment Strategy 2. Category of the Equity Long-Short Fund Investment Strategy 3. Type of Investment An open ended equity investment strategy investing in listed equity and Strategy equity related instruments including limited short exposure in equity through derivative instruments. 4. Investment Strategy <To be updated at the time of launch> (SO. 7) Code 5. Investment To generate long term capital appreciation using structural, cyclical, and Objective tactical investing opportunities in equities with optionality of hedging and shorting. There is no assurance that the investment objective of the Investment strategy will be achieved. (SO. 5) 6. Liquidity/listing Being an open-ended Investment Strategy, units may be redeemed on every business day at NAV based prices. As per the Regulations, the details Fund shall transfer to the unitholder the redemption proceeds within 3 business days (working days) of receiving the redemption request. Listing Details: Not Applicable 7. Benchmark (Total BSE 500 TRI (SO. 25) Return Index) Justification: The benchmark is suitable for evaluating the Strategy’s performance because it mirrors the Strategy’s investment style. The Strategy’s net equity exposure matches the benchmark’s equity allocation and multi-cap structure, while the arbitrage portion delivers returns similar to debt. 8. Subscription Daily (only business days) subject to the regulation as specified by SEBI Frequency from time to time. 9. Redemption Daily (only business days) Frequency 10. NAV disclosure The AMC will calculate and prominently disclose the first NAV under the Investment strategy not later than 5 business days from the date of allotment. The AMC will update the NAVs on AMFI website www.amfiindia.com before 11.00 P.M. on every business day and also on SIF website (https://www.360.one/dyna-sif). (SO. 41) For further details, please refer Section II in this ISID. 411. Applicable Timelines Timeline for: • Dispatch of Redemption proceeds - within three working days from the date of redemption or repurchase or within such timelines as may be prescribed by SEBI / AMFI from time to time in case of exceptional circumstances or otherwise. • Dispatch of IDCW - within seven working days from the record date*. *Record Date: Record date shall be two working days from the issue of public notice, wherever applicable, for the purpose of payment of dividend. Interest for the period of delay in transfer of redemption or repurchase or IDCW proceeds will be paid to unitholders at the rate of 15% per annum along with the proceeds of redemption or repurchase or IDCW. 12. Plan & Options Plans: (i) Regular Plan (ii) Direct Plan OPTIONS UNDER EACH PLAN(S): (i) Growth (ii) Income Distribution cum Capital Withdrawal (IDCW). The IDCW will be declared subject to availability and adequacy of distributable surplus. The IDCW can be distributed out of investors capital (equalization reserve), which is part of sale price that represents realized gains. Sub-options under IDCW (i) IDCW Payout (ii) IDCW re-investment. Default Option: If the applicant does not indicate the choice of Option in the Application form, the fund accepts the application as being for the Growth Option and Reinvestment of IDCW is the default sub- options of IDCW. For detailed disclosure on default plans and options, kindly refer SAI. 13. Load Structure Exit Load: 0.5% if redeemed within 3 months from the date of allotment of units No exit load is payable if redeemed after 3 months from the date of allotment. 514. Minimum • During NFO: Rs. 10,00,000/- and in multiple of Rs 1/- thereafter. • On Continuous Basis: Rs. 10,00,000/- and in multiple of Rs 1/- Application thereafter. Amount/switch in • Minimum amount for accredited investor during NFO and Continuous basis: Rs.1,00,000/- and in multiples of Re. 1/- thereafter. Note: If investment is made in only one investment strategy of DynaSIF, then minimum investment threshold is Rs. 10,00,000/- and in multiple of Rs 1/- thereafter. However, if investment is made in multiple investment strategies of DynaSIF then aggregate investment by an investor across multiple investment strategies of DynaSIF, shall not be less than 10,00,000/-. This requirement is not applicable to accredited investor. • Systematic Investment Plan (SIP) ▪ Monthly option - Rs. 20,000 per month for a minimum period of 6 months. Default date – 7th of every month ▪ Quarterly Option – Rs. 50,000 per quarter for a minimum period of 6 quarters. Default date – 7th of every quarter • Systematic Transfer Plan (STP) ▪ Monthly option - Rs. 20,000 per month for a minimum period of 6 months. Default date – 7th of every month Transfers only allowed from one Investment Strategy of DynaSIF to another. No STP will be allowed from MF to SIF or vice versa. In the case of STP, transfers will continue until the balance reaches the minimum threshold, after which the entire amount will be transferred. • Systematic Withdrawal Plan (SWP) – Not allowed Investments above the minimum amount mentioned, shall be made in multiples of Rs. 1 for all SIP irrespective of frequency of SIP or the Option. Please note that the SIP and STP facilities are available subject to the prescribed minimum limits. SIPs can be initiated only once the investment exceeds the minimum investment requirement. In the case of STP, transfers will continue until the balance reaches the minimum threshold, after which the entire amount will be redeemed. The AMC in consultation with the Trustees reserves the right to discontinue / add more plans / options at a later date subject to complying with the prevailing SEBI guidelines and Regulations. In accordance with clause 6.10 of SEBI circular dated July 27, 2024, the above provision will not be applicable for investments made in Investment Strategy. 615. Minimum Additional Rs 20,000 and in multiples of Rs 1 thereafter. Purchase Amount 16. Minimum Redemption There will be no minimum redemption amount. Redemptions/switch out amount The redemption will be subject to compliance with provisions mentioned under Minimum Investment threshold. If the balance falls below then the threshold, the entire holding will be redeemed. Switches The minimum amount in case of inter/ intra Investment Strategy (inter plan/inter option) switches shall be the minimum amount required in the respective transferee Investment Strategy/plan. In accordance with clause 6.10 of SEBI circular dated July 27, 2024, the above provision will not be applicable for investments made in Investment Strategy. 17. Notice Period Not Applicable 18. New fund offer NFO Opens on: NFO Closes on: period This is the period Investment Strategy re-opens for continuous sale & repurchase on: during which a new Investment Strategy The AMC/Trustee reserves the right to extend the closing date, subject sells its units to the to the condition that the New Fund Offer shall not be kept open for investors. more than 15 days. The AMC reserves the right to close the NFO period earlier, subject to NFO being kept open for minimum 3 working days. Any such extension/ early closure shall be announced by way of an addendum uploaded on website of the AMC. (SO. 34) 19. New fund offer price This is the price per unit that the Rs. 10 per Unit investors have to pay to invest during the NFO. 720. Segregated In case of a credit event at issuer level and to deal with liquidity risk, the Portfolio/side AMC may create a segregated portfolio of debt and money market pocketing disclosure instruments under the Investment Strategy in compliance with the clause 4.4 of SEBI Master Circular dated June 27, 2024, as amended from time to time. In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or money market instrument affected by a credit event, that has been segregated in a SIF Investment Strategy, the term ‘main portfolio’ shall mean the Investment Strategy portfolio excluding the segregated portfolio and the term ‘total portfolio’ shall mean the Investment Strategy portfolio including the securities affected by the credit event. (SO. 53) For details, kindly refer SAI. 21. Swing Pricing Not Applicable (SO. 54) Disclosure 22. Stock lending/short The Investment Strategy may engage in stock lending and short selling as selling per the regulatory requirements. For details, kindly refer SAI. 23. How to apply and The Key Information Memorandum along with application form is other details (SO. available at the Investor Service Centers (ISCs)/ Official Points of 35) Acceptance (OPAs) or may be downloaded from the website of the SIF. Please refer to the Section II for detailed procedure. 24. Investor Services • Contact details for general service request for DynaSIF: Investors may contact any of the ISCs or the AMC by calling the toll-free no. 1800-2108-606 or write to DynaSIFservices@360.one. • Contact details for complaints resolution regarding DynaSIF: Ms. Situ Tank is designated as the Investor Relations Officer. Ms. Tank can be contacted at 360 ONE Asset Management Limited, 360 ONE Centre, Kamala City, S.B. Marg, Lower Parel, Mumbai – 400 013, Tel +91 02248765172 , Email: DynaSIFservices@360.one Investors can lodge their dispute on the ODR Portal and Scores Portal through the link given below: • ODR Portal can be accessed via the following link - https://smartodr.in/. • SCOREs Portal can be accessed via the following link - https://scores.sebi.gov.in/ 825. Specific attribute of Investment Strategy (such as lock in, duration in case of Not Applicable close ended Investment Strategy) 926. Special The Special Products/ facilities available during the NFO and ongoing offer are: product/facility • Systematic Investment Plan: This facility enables investors to save available during the and invest periodically over a longer period of time. It is a NFO and on ongoing convenient way to “invest as you earn” and offers the investor an basis opportunity to enter the market regularly, thus averaging the acquisition cost of Units. SIP allows investors to invest a fixed amount of Rupees on specific dates every month or quarter by purchasing Units of the Investment Strategy at the Purchase Price prevailing at such time. Any unit holder can avail of this facility subject to certain terms and conditions contained in the Application form. The SIP payments can be made by availing the Auto Debit Facility through ECS and Direct Debit. SIP for investments is available at weekly, fortnightly, monthly and quarterly frequencies. • Systematic Transfer Plan: A unitholder may establish a Systematic Transfer Plan (STP) and choose to transfer an amount from one DynaSIF Investment Strategy (Source Investment Strategy) to another DynaSIF Investment Strategy (Target Investment Strategy) on a date/ frequency prescribed by the Investment Manager. The amount thus withdrawn by redemption shall be converted into units at the applicable NAV on the scheduled day and such units will be subtracted from the unit balance of that unitholder. The net amount will be considered for allotment in the target Investment Strategy and units will be allotted as per the applicable NAV of the target Investment Strategy. Please note that the SIP and STP facilities are available subject to the prescribed minimum limits. SIPs can be initiated only once the investment exceeds the minimum investment requirement. In the case of STP, transfers will continue until the balance reaches the minimum threshold, after which the entire amount will be redeemed. • Transactions through Stock Exchange Infrastructure: The Fund may allow subscriptions / redemption of Units by investors through Stock Exchange Mechanism in such notified Scheme(s) and on such Stock Exchanges as may be specified by the Fund from time to time in terms of clause 16.2 of SEBI Circular dated June 27, 2024 and related SEBI circulars and in accordance with the guidelines specified by the Exchange(s) from time to time. 10• Application through MF Utility: All financial and non-financial transactions pertaining to Schemes of 360 ONE Mutual Fund can be done through MFU either electronically on www.mfuonline.com as and when such a facility is made available by MFUI or physically through the authorized Points of Service (“POS”) of MFUI with effect from the respective dates as published on MFUI website against the POS locations. The list of POS of MFUI is published on the website of MFUI at www.mfuindia.com as may be updated from time to time. The Online Transaction Portal of MFU i.e. www.mfuonline.com and the POS locations of MFUI will be in addition to the existing Official Points of Acceptance (“OPA”) of the AMC. The uniform cut-off time as prescribed by SEBI and as mentioned in the SID / KIM of respective schemes shall be applicable for applications received on the portal of MFUI i.e. www.mfuonline.com. However, investors should note that transactions on the MFUI portal shall be subject to the eligibility of the investors, any terms & conditions as stipulated by MFUI / Mutual Fund/ the AMC from time to time and any law for the time being in force. Investors are requested to note that, MFUI will allot a Common Account Number (“CAN”), 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 folios, if any. Investors can create a CAN by submitting the CAN Registration Form (CRF) and necessary documents at the MFUI POS. 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. Investors are requested to visit the websites of MFUI or the AMC to download the relevant forms. For further details of above special products/facilities, kindly refer SAI. 27. Weblink TER for last 6 months, Daily TER as well as Investment Strategy factsheet shall be made available https://www.360.one/dyna-sif. (when applicable) (TER for last 6 months, Daily TER and Investment Strategy factsheet are not applicable as this is a new investment strategy) 11DUE DILIGIENCE BY THE ASSET MANAGEMENT COMPANY (SO. 55) It is confirmed that: I. The Draft Investment Strategy 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 Investment Strategy 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 Investment Strategy Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Investment Strategy. IV. The intermediaries named in the Draft Investment Strategy 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 Investment Strategy 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 Investment Strategy Information Documents and other than cited deviations/ that there are no deviations from the regulations. VII. Notwithstanding anything contained in this Draft Investment Strategy Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (SO. 63) VIII. The Trustees have ensured that the DynaSIF Equity Long - Short Fund approved by them is a new product offered by DynaSIF and is not a minor modification of any existing Investment Strategy. For 360 ONE Asset Management Limited Sd/- Place: Mumbai Name: Sonali Tendulkar Date: Designation: Compliance Officer 12Part II. INFORMATION ABOUT THE INVESTMENT STRATEGY A. HOW WILL THE INVESTMENT STRATEGY ALLOCATE ITS ASSETS? The investment policies of the Investment Strategy shall be as per SEBI (Mutual Funds) Regulations, 1996, and within the following guidelines. The asset allocation is consistent with the investment objective of the Investment Strategy and SEBI circular on Regulatory framework for Specialized Investment Funds (SIF). Under normal market circumstances, the investment range would be as follows: Indicative Allocations Instruments (% of total assets) Minimum Maximum Equity or Equity Related Instruments* 80% 100% Short exposure through unhedged derivative 0% 25% positions in equity instruments Debt and money market instruments# 0% 20% Unit issued by InVITs 0% 20% *Equity Related Instruments include convertible debentures, convertible preference shares, warrants carrying the right to obtain equity shares, units of Real Estate Investment Trust and such other instrument as may be specified by the Board from time to time. Total exposure to Equity and equity related instruments includes Cash equity, unhedged long and short derivatives, but excludes the offsetting derivatives exposure. #Money Market instruments includes commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time. This includes Liquid and Overnight mutual fund schemes, but does not include cash and cash equivalents equivalent instruments. Indicative table of percentage of investment in various securities: (SO. 18) (SO. 19) SI. Type of Instrument % of exposure Circular references no 1. Securities Lending 20% of the net assets clause 12.11 of SEBI subject to 5% cap per Master Circular dated single counter party June 27, 2024, and framework for short selling and borrowing and lending of securities notified by SEBI. 2. Derivatives for non-hedging Upto 25% of Net Assets Clause 6.1 of SEBI 13and other than for portfolio Circular dated February rebalancing purposes (SO. 20) 27, 2025 3. Foreign securities (SO. 15) (SO. Investment in Foreign Clause 12.19 of SEBI 16) Securities/ Overseas ETFs Master Circular dated shall be upto 20% of net June 27, 2024 assets in accordance with the guidelines stipulated by SEBI and RBI from time to time. Investment in Foreign Securities / Overseas ETFs would be as per SEBI Master Circular for Mutual Funds dated June 27, 2024 as may be amended from time to time. As per Clause 12.19 of SEBI Master Circular dated June 27, 2024 the scheme may invest up to US $50 million in foreign securities. As per SEBI Master Circular for Mutual Funds dated June 27, 2024 , Mutual Funds can make overseas investments subject to a maximum of US $ 1 billion per Mutual Fund within the overall industry limit of US $ 7 billion. The overall ceiling for investment in overseas ETFs that invest in securities is US$ 1 billion subject to a maximum of US$ 300 million per mutual fund. The Scheme may invest up to US $ 30 million in Overseas ETFs. Further, the above limit shall be valid for a period of six months from the date of closure of NFO. Post completion of the six months, the relevant provisions of the aforesaid clause 12.19 relating to 14‘Ongoing Schemes’ shall be applicable. The strategy will not invest in overseas derivatives. 4. Clause 1 of Seventh Tri-party repos Upto 20% of Net Assets Schedule of SEBI (Mutual Funds) Regulations, 1996 6. Mutual Fund Units of Clause 4 of Seventh Liquid and Money Market Units of Mutual Fund schemes Schedule of SEBI (MF) Funds – Upto 5% of Net Regulations Assets 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. The Investment Strategy will not invest in below securities/instruments: S. No. Securities/Instruments 1 Credit default swaps 2 Securitized debt 3 Debt instruments with special features (AT1 and AT2 Bonds) 4 Unit of Specialized Investment Fund 5 Debt Instruments with SO / CE 6 Repo/ reverse repo transactions in corporate debt securities In accordance with clause 12.24 of SEBI Master Circular dated June 27, 2024 and clause 3.2 and 6.1.5 of the SEBI Circular dated February 27, 2025, the cumulative gross exposure through equity, equity related instruments, equity derivatives, debt, foreign securities, repo transactions, InvITs, other permitted securities/assets and such other securities/assets as may be permitted by the SEBI from time to time should not exceed 100% of the net assets of the Investment Strategy. (SO. 17) Pursuant to clause 12.25 of SEBI Master Circular dated June 27, 2024 and SEBI Letter to AMFI dated November 03, 2021, Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. Cash Equivalent shall consist of the following securities having residual maturity of less than 91 days: (SO. 14) a) Government Securities; b) T-Bills; and 15c) Repo on Government securities Pending deployment of the funds as per the investment objective of the Investment Strategy, the funds of the Investment Strategy may be parked in short term deposits of the scheduled commercial banks, subject to the guidelines and limits specified by clause 12.16 and 4.5 of SEBI Master Circular dated June 27, 2024 as amended from time to time. Timelines for deployment of Funds mobilized in a New Fund Offer (NFO) The funds mobilized during the New Fund Offer (NFO) shall be deployed in accordance with the asset allocation pattern of the Investment Strategy within 30 business days from the date of allotment of units. In exceptional cases where the AMC is not able to deploy the funds within this period, the AMC shall provide an explanation, including details of the efforts made to deploy the funds, to the Investment Committee of the AMC. The Investment Committee may, if deemed necessary, shall extend the deployment timeline by an additional 30 business days, in accordance with SEBI circular dated February 27, 2025. While granting an extension, the Committee shall examine the root cause of the delay. However, an extension shall not be granted if the Investment Strategy’s assets are liquid and readily available. If the funds are not deployed as per the asset allocation specified in the Investment Strategy Information Document (ISID) within the stipulated and extended timelines, the following measures shall apply: 1. Restriction on Fresh Subscriptions: The AMC shall not accept fresh inflows into the Investment Strategy until the funds are deployed as per the ISID. 2. Waiver of Exit Load: No exit load shall be levied on investors exiting the Investment Strategy after 60 business days of non-complying with the asset allocation. 3. Investor Notification: The AMC shall inform all NFO investors about their option to exit the Investment Strategy without an exit load via email, SMS, or other appropriate communication channels. 4. Reporting to Trustees: Any deviation from the deployment timelines shall be reported to the Trustees at each stage. Rebalancing due to Short Term Defensive Consideration: (SO. 23) (SO. 24) 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 clause 1.14.1.2 (b) of SEBI Master Circular dated June 27, 2024, and the fund manager will rebalance the portfolio within 30 calendar days from the date of deviation. Rebalancing due to Passive Breaches: (SO. 22) (SO. 24) Further, as per clause 2.9 of SEBI Master Circular dated June 27, 2024 and SEBI circular dated June 26, 2025, as may be amended from time to time, in the event of deviation from mandated asset allocation due to all type of passive breaches (occurrence of instances not arising out of omission and commission of the AMC), the fund manager shall rebalance the portfolio of the Investment Strategy within 30 Business Days. In case the portfolio of the Investment Strategy is not rebalanced within the 16period of 30 Business Days, justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before the Investment Committee of the AMC. The Investment Committee, if it so desires, can extend the timeline for rebalancing up to sixty (60) Business Days from the date of completion of mandated rebalancing period. Further, in case the portfolio is not rebalanced within the aforementioned mandated plus extended timelines the AMC shall comply with the prescribed restrictions, the reporting and disclosure requirements as specified in clause 2.9 of SEBI Master Circular dated June 27, 2024. B. WHERE WILL THE INVESTMENT STRATEGY INVEST? (SO. 29) The Investment Strategy shall invest in below instruments: a. Equities and equity related instruments; b. Debt and money market instrument; (SO. 13) c. Derivatives d. Certificate of Deposit e. Commercial Paper f. Repo of Government Securities g. Treasury Bill (T-Bill) h. Tri-party repo (TREPS) i. Securities created and issued by the Central and State Governments j. Corporate Bonds k. Non-convertible debentures and bonds l. Short Term Deposits m. Units of Infrastructure Investment Trust (‘InvIT’) n. Foreign Securities o. Units of Mutual Fund Schemes. For details, please refer Section II. C. WHAT IS THE INVESTMENT APPROACH? (SO. 27) (SO. 28) The Investment Strategy primarily aims to derive its returns from equity and equity related instruments (minimum 80% exposure) and will focus on generating alpha from both long and short equity positions. Addition of a diversified derivatives portfolio can add to portfolio returns while simultaneously reducing the market risk by creating offsetting hedge or short positions. It’s an active strategy. Equity Portion: The Investment Strategy primarily aims to derive its returns from equity and equity related instruments (minimum 80% exposure). The strategy will have the flexibility to invest across large, mid and small cap segments without any sector bias. The stock selection process will involve evaluating Qualitative or Quantitative factors. Some examples of Qualitative and Quantitative Factors, are listed below. Please note that this is an illustrative list and not an exhaustive one: Qualitative List (Business & Macro Context): -Macro: Evaluates broad economic conditions that influence overall market and stock performance -Industry dynamics: Assesses competitive forces, growth drivers and trends, and structural shifts within the sector. 17-Themes: Identifies transformational trends which could rerate/derate the industry valuations. -Business strength: Tracks business moats, executions, business strategy, earnings delivery, market share gains/losses, product suite etc. Quantitative List (Numbers & Market Behavior): - Valuation: Determines whether a stock is priced attractively relative to its fundamentals or as compared to its peers. - Factor participation: Assess stock's characteristics like quality, size, value etc. and how markets are preferring these factors. - Market regimes: Analyses how the stock may perform under different market conditions like Risk-on, Risk-off, and stable conditions. - Price trend: Tracks stock price movement patterns to gauge stock sentiment and potential directional strength/weakness The strategy may exit some of these positions if the Fund Manager feels that some of these themes have adequately played out, or if the stock may need to make room for better ideas. Debt Portion: Fixed income investments may include money market instruments, T-Bills, government bonds and rated corporate bonds. Funds retain the optionality to invest in liquid/overnight schemes of mutual funds within permissible limits and guidelines. Derivative Portion: The strategy will create long and short positions through equity and index derivatives. The long positions will be for short technical and tactical opportunities. The short positions in derivatives will be used to partly hedge the existing equity portfolio and create unhedged short positions in stocks that are expected to underperform owing to various factors like business weakness, end market weakness, market share loss, value migration to other parts of business chain or excessive valuations. Index derivatives can be taken for increasing or decreasing participation in the markets. Further, the strategy will use options and futures. Options strategies can be used to earn derivatives yields or create a long/short position with a particular view on a stock, sector or index itself. The scheme intends to keep a diversified portfolio of equity and equity derivatives which should limit stock specific risk. As the scheme is sector agnostic, it is expected to be reasonably diversified with participation from multiple sectors. Further, the schemes intends to reduce the overall market risk through use of derivatives (both hedged and unhedged shorting exposure) where derivatives positions will be diversified and can be used to lower overall beta of the fund. The strategy is expected to experience high churn especially due to use of derivatives instruments which will primarily be used in the near month contracts. Some of these positions will need to be rolled over closer to the expiry of monthly derivatives contracts. Additionally, some of the ideas taken in the fund might be for short term tactical and technical plays. DERIVATIVE STRATEGIES RISK MITIGATION/MANAGEMENT I.Equity long-short (to capture both long and short alpha): •Buy the stocks expected to Limit the average single stock outperform and short the Trade may not perform as per exposures especially on the stocks expected to expectation short side well below prescribed underperform limits, to say ~5% 18•Sector long-short to capture Limit the average net sector Trade may not perform as per positive and negative view at exposure to managebale levels, expectation sector level to say ~20% Limit the average single stock exposure in the sector to well •Pairs trading; captures positive below prescribed limits, to say Trade may not perform as per and negative view on the stocks ~5%. Continuously monitor the expectation in the same sector risk reward of the pair basis cahnging fundamentals and valuations Trade may not perform in the near term and spread may Initiate the position in small •Merger arbitrage and Index diverge before converging. quantity, and gradually increase rebalancing Anticipated buying in stocks the position as the event day expected to be included in comes closer. Index may not come II. Index trading (to capture market directional trend): Use options purchase along •Directional market; Buy or sell Trade may not perform as per with futures and limit the index derivatives based on expectation combined exposure to say ~5% market view of NAV Althgough low risk trade as market directional bet (up or •Index pair trading; captures Trade may not perform as per down) is not being taken here, positive and negative view on expectation but limit the combined NIFTY50, BankNifty, Midcaps exposure to the index pairs to say ~5% of NAV III. Options trading (to capture derivatives yield and volatility dynamics): Spread the bets over multiple Stock may rise or fall stocks and limit the average •Covered calls for derivatives significantly Vs the implied single stock covered call yield volatility as determined by the expsoures well below option price prescribed limits, to say ~5% Continuously monitor and manage the delta exposure by existing the trade or further •Straddle/strangle long short Actual volatility may turn out hedging the position by using for volatility trading higher for stocks, indices. derivatives to bring down the delta of the position. Also limit the exposure of the stratgegy to single security/index position to 19say ~5% IV. Portfolio hedging (to protect the equity positions from market falls): Limit the average single stock When arbitraged through calls, •Arbitrage through stock arbitrage position using covered the stock may fall more than options and futures call well below prescribed the call yield limits, to say ~5% Tcatical hedging may not work Keep the position tactical and •Hedging using Index if market may move opposite to exit the position within the derivatives index derivative position month if it is not working 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 Investment Strategy manager to identify such opportunities. Identification and execution of the strategies to be pursued by the Investment Strategy manager involve uncertainty and decision of Investment Strategy manager may not always be profitable. No assurance can be given that the Investment Strategy 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 The Investment Strategy, being an open-ended Investment Strategy, it is expected that there would be a number of subscriptions and redemptions on a daily basis. The strategy is expected to experience high churn especially due to use of derivatives instruments which will primarily be used in the near month contracts. Some of these positions will need to be rolled over closer to the expiry of monthly derivatives contracts. Additionally, some of the ideas taken in the fund might be for short term tactical and technical plays. However, it is difficult to measure with reasonable accuracy the likely turnover in the portfolio of the Investment Strategy. The portfolio may be churned in order to take advantage of movements in the securities market and to maximize the average returns on the portfolio while maintaining a desirable risk profile and adequate liquidity. D. HOW WILL THE INVESTMENT STRATEGY BENCHMARK ITS PERFORMANCE? (SO. 25) The performance of the Investment Strategy is benchmarked against the BSE 500 TRI. Justification: The benchmark is suitable for evaluating the Strategy’s performance because it mirrors the Strategy’s investment style. The Strategy’s net equity exposure matches the benchmark’s equity allocation and multi-cap structure, while the arbitrage portion delivers returns similar to debt. 20The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the Investment Strategy from time to time, keeping in mind the investment objective of the Investment Strategy and the appropriateness of the benchmark, after obtaining relevant approval from SEBI. E. WHO MANAGES THE INVESTMENT STRATEGY? (SO. 33) (SO. 32) Name of Age Educational Tenure for Years of Experience Other Investment the Fund Qualification investment Strategy (Years) (Last 10 years) Manager strategy Managed management Mr. Harsh 47 MBA NA, since it is a Mr. Harsh Agarwal has NA Aggarwal (Symbiosis, first investment an overall experience of Pune) strategy of 18 years in “Buy side” Certified DynaSIF. research and portfolio Portfolio management in long Manager short investing with (CPM), and research firms, Certified proprietary trading Treasury Manager desks, and a domestic (CTM) from Asset management ICFAI, B.COM, company. and NISM Series XIX – C As head of Alternative Certified strategies for greater than 5 years, he designed and managed couple of long-short CATIII AIFs with Tata AMC managing peak AUM >3000crs, in which allocation were made to multiple assets and strategies such as Equities long only, Equity and commodity derivatives long short, and fixed income. F. HOW IS THE INVESTMENT STRATEGY DIFFERENT FROM EXISTING INVESTMENT STRATEGIES OF THE SIF? DynaSIF Equity Long - Short Fund is the first Investment Strategy that will be launched under Equity Investment Strategies under regulatory framework for SIF as specified by SEBI. 21G. HOW HAS THE INVESTMENT STRATEGY PERFORMED This is a new Investment Strategy under DynaSIF. H. ADDITIONAL INVESTMENT STRATEGY RELATED DISCLOSURES i. Investment Strategy’s portfolio holdings i.e, Top 10 holdings by issuer and fund allocation towards various sectors: This is a new Investment Strategy under DynaSIF. ii. Functional website link for portfolio disclosures – for Alternate Months/Half yearly: This is a new Investment Strategy under DynaSIF. https://www.360.one/dyna-sif. iii. Investment Strategy Portfolio turnover ratio: This is a new Investment Strategy under DynaSIF iv. Aggregate investment in the Investment Strategy by concerned investment strategy’s Fund Manager: This is a new Investment Strategy under DynaSIF. For any other disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard kindly refer SAI. v. Investments of AMC in the Investment Strategy – (SO. 58) The AMC reserves the right to invest its own funds in the Investment Strategy as may be decided by the AMC from time to time and in accordance with Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2021, the AMC shall invest such amount in the Investment Strategy, based on the risk associated with the Investment Strategy. As specified in the clause 6.9 of SEBI Master Circular dated June 27, 2024, the AMC shall invest minimum amount as a percentage of assets under management (‘AUM’) in their Investment Strategy (s) in line with the Clause 6.9 of SEBI Master Circular on Mutual Funds dated June 27, 2024. Such investment shall be maintained at all times and shall not be redeemed unless the Investment Strategy is wound up. For details please refer (if any) https://www.360.one/dyna-sif - Not applicable since this is a new Investment Strategy. The above investment shall be in accordance with clause 6.11 of SEBI Master Circular dated June 27, 2024 regarding minimum number of investors in the Investment Strategy/ Plan. Under the Regulations, the AMC is not permitted to charge any investment management and advisory fees. 22Part III – OTHER DETAILS A. COMPUTATION OF NAV NAV of units under the Investment Strategy shall be calculated as shown below: Market or Fair Value of Investment Strategy’s investments + Current Assets – Current Liabilities and Provision NAV (Rs.) = (including accrued expenses) No. of Units outstanding under Investment Strategy/Plan on the Valuation Date The NAV will be calculated up to four decimals. The first NAV will be calculated and announced not later than 5 workings days from the date of allotment in the NFO. Thereafter, the NAV shall be calculated for close of each working day. The computation of NAV shall be in conformity with SEBI Regulations and guidelines as prescribed from time to time. The Direct Plan under the Investment Strategy will have separate NAV. Separate NAV will be calculated and disclosed for each option. The NAVs of the growth option and the Income Distribution cum Capital Withdrawal will be different after the declaration of the first IDCW. Computation of NAV in case of investment in foreign securities: For Valuation of Foreign Currency / Securities: On the valuation day, all the assets and liabilities denominated in foreign currency will be valued in Indian Rupees. The valuation price of the security will be converted to INR based on FBIL/any other designated agency, reference rate at the close of banking hours in India. If required, the AMC may change the source of determining the exchange rate. The Fund shall value its investments according to the valuation norms (Valuation Policy includes computation of NAV in case of investment in foreign securities), as specified in the Eighth Schedule of the Regulations, or such guidelines / recommendations as may be specified by SEBI from time to time. The broad valuation norms are detailed in the Statement of Additional Information. Computation of NAV in case of investment in foreign ETFs: The closing price of the units of ETFs on overseas Stock Exchange shall be used for valuation by the Investment Strategy for such ETFs. For other details such as policies w.r.t computation of NAV, rounding off investment in foreign securities and ETF, procedure in case of delay in disclosure of NAV etc. please refer to SAI. Illustration for Computation of NAV: (SO. 42) 10,01,00,000.00 +10,00,000.00 – 10,000.00 10,10,90,000.00 1.109 = 1,00,00,000.00 1,00,00,000.00 Methodology for calculation of sale and re-purchase price of the units of SIF Investment Strategy: 23• Ongoing Price for subscription (purchase)/switch-in (from other Investment Strategy/plans of the SIF) by investors (This is the price you need to pay for purchase/ switch-in): The Sale Price for a valid purchase will be the Applicable NAV. The NAV will be calculated by rounding up to four decimal places for the Investment Strategy. Assumed NAV Rs. 11 per unit. Entry Load: NIL. Purchase Price = NAV + (Entry Load (%) * NAV) Purchase Price = 11 + (0% * 11) Purchase Price = 11 + 0 Purchase Price = Rs. 11/- Transaction charges and other charges/expenses, if any, borne by the investors have not been considered in the above illustration. • Ongoing Price for redemption (sale)/switch out (to other Investment Strategy /plans of the SIF) by investors (This is the price you will receive for redemptions/ switch-outs): The Redemption Price / Switch out price of the Units is the price at which a Unit Holder can redeem Units of a Investment Strategy. It will be calculated as described below: Assumed NAV Rs. 11.00 per unit. Exit Load: 1% Sale Price = NAV – (exit load (%) * NAV) Sale Price = 11 – (1%*11) Sale Price = 11 – 0.11 Sale Price = Rs.10.89 Redemption Price will be calculated up to four decimal places for the Investment Strategy. If the Investment Strategy has no Exit Load, the Redemption Price will be equal to the Applicable NAV. Transaction charges and other charges/expenses, if any, borne by the investors have not been considered in the above illustration. Investors may note that the AMC has a right to modify the existing Load structure in any manner or introduce/ change Exit Load or a combination of Exit Load and / or any other Load subject to a maximum as prescribed under the Regulations and with prospective effect only. The SIF will offer that the redemption price is not lower than 97% of the applicable NAV. (SO. 47) For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities, procedure in case of delay in disclosure of NAV etc. please refer to SAI. 24B. 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. All initial issue expenses pertaining to NFO will borne by the AMC. No NFO expenses will be charged to the Investment Strategy. C. ANNUAL INVESTMENT STRATEGY RECURRING EXPENSES These are the fees and expenses for operating the Investment Strategy. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below. Further, as per clause 10.1.12 (a) of SEBI Master Circular dated June 27, 2024, all Investment Strategy related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the Investment Strategy only within the regulatory limits. As per Regulation 52 (6) (c) of SEBI Regulations, the maximum annual recurring expenses of the Investment Strategy including the investment management fees that can be charged to the Investment Strategy is as follows: Daily on on the on the on the on the next On the next Rs. On balance Net the next next Rs. next Rs. Rs. 5,000 40,000 crores of of the Asset first Rs.250 1,250 3,000 crores of the the daily net assets assets s(Rs.) Rs.50 crores of crores of crores daily net 0 the daily the daily of the assets crores net assets net assets daily net assets % 2.25% 2.00% 1.75% 1.60% 1.50% Total expense ratio 1.05% per reduction of 0.05% annu for every increase m of Rs. 5,000 crores of daily net assets or part thereof In addition to total expense limits mentioned above, the AMC may charge the following in terms of Regulation 52(6A) of SEBI Regulations: a. Brokerage and transaction cost incurred for the purpose of execution of trade shall be charged to the schemes as provided under Regulation 52 (6A) (a) upto 12 bps and 5 bps for cash market transactions and derivatives transactions (if permitted under the scheme) respectively. Any payment towards brokerage and transaction costs, over and above the said 12 bps and 5 bps may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52. 25b. Expenses not exceeding 0.05% p.a. of daily net assets towards Investment Management and Advisory Fees and the various sub-heads of recurring expenses mentioned under Regulation 52 (2) and (4) respectively of SEBI (MF) Regulations. Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable. The total expenses charged to the Scheme shall not exceed the limits stated in Regulation 52 of the SEBI (MF) Regulations and as permitted under SEBI Circulars issued from time to time. Any expenditure in excess of the SEBI regulatory limits shall be borne by the AMC or by the Trustee or the Sponsor. The AMC has estimated the following annual recurring expenses on daily net assets of the Investment Strategy. Further, any change in the expense ratio will be updated on our website and the same will be communicated to investor via SMS / e-mail 3 working days prior to the effective date of change. For the actual current expenses being charged, the investor should refer to the website: https://www.360.one/dyna-sif : Expense Head % p.a. of daily Net Assets Investment Management and Advisory Fees Audit fees/fees and expenses of trustees Custodian fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling Expenses including Agents Commission and statutory advertisement Cost related to investor communications Up to 2.25% Cost of fund transfer from location to location Cost towards investor education & awareness (at least 2 bps) Brokerage & transaction cost pertaining to distribution of units Goods and Service Tax* on expenses other than investment and advisory fees Goods and Service Tax* on brokerage and transaction cost Other expenses (including listing expenses) Maximum total expense ratio (TER) permissible under Regulation Upto 2.25% $Additional expenses under regulation 52 (6A) (c) Up to 0.05% These estimates of Investment Management Fees and Expenses have been made in good faith as per the information available to the Investment Manager and are subject to change inter-se, which may be more or less than estimated above. Any expenditure in excess of the said prescribed limit shall be borne by the AMC or by the trustee or sponsor *In addition to expenses under Regulation 52 (6) and (6A) of SEBI Regulations, AMC may charge Goods and Service Tax on Investment Management and Advisory Fees, expenses other than Investment Management and Advisory Fees and brokerage and transaction cost as below: a. Goods and Service Tax on Investment Management and Advisory Fees: 26AMC may charge Goods and Service Tax on Investment Management and Advisory Fees of the Investment Strategy in addition to the maximum limit of TER as per the Regulation 52(6) and (6A) of SEBI Regulations. b. Goods and Service Tax on expenses other than Investment Management and Advisory Fees: AMC may charge Goods and Service Tax on expenses other than Investment Management and Advisory Fees of the Investment Strategy, if any within the maximum limit of TER as per the Regulation under 52(6) and (6A) of SEBI Regulations. c. Goods and Service Tax on brokerage and transaction cost: The Goods and Service Tax on brokerage and transaction costs which are incurred for the purpose of execution of trade, will be within the limit of prescribed under Regulation 52 of SEBI Regulations. $ In terms of clause 10.1.7 of SEBI Master Circular dated June 27, 2024, in case exit load is not levied / not applicable, the AMC shall not charge the said additional expenses. "Direct plan shall have a lower expense ratio excluding distribution expenses, commission etc. and no commission shall be paid from such plan.” ILLUSTRATION OF IMPACT OF EXPENSE RATIO ON INVESTMENT STRATEGY’ S RETURN: (SO. 44) Particulars Regular Plan Direct Plan Amount Invested at the beginning of 10,000,00 10,000,00 the year Returns before Expenses 1,500,00 1,500,00 Expenses other than Distribution 15,000 15,000 Expenses Distribution Expenses 5000 - Returns after Expenses at the end of 130,000 135,000 the Year The purpose of the above illustration is to explain the impact of expense ratio of the Investment Strategy. Above calculation are bases on assumed NAV and Expenses. The actual NAV, expenses and return on your investment may be more or less. All Investment Strategy related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily paid from the Investment Strategy only within the regulatory limits and not from the books of AMC, its associate, sponsor, trustees or any other entity through any route in terms of SEBI circulars, subject to the clarifications provided by SEBI to AMFI vide letter dated February 21, 2019 on implementation of clause 10.1.12 of Master Circular on Total Expense Ratio (TER) and performance disclosure for SIF. 27D. LOAD STRUCTURE (SO. 47) Exit Load is an amount which is paid by the investor to redeem the units from the Investment Strategy. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC https://www.360.one/dyna-sif or may call at toll free no. 1800-2108-606 or your distributor. Type of Load Load chargeable (as % of NAV) Exit Load 0.5% if redeemed within 3 months from date of allotment of units No exit load is payable for redemption after 3 months from the date of allotment of units. In accordance with the requirements specified by the paragraph 10.4.1(a) of SEBI Master circular dated June 27, 2024, no entry load will be charged for purchase/additional purchase/switches accepted by the SIF. Similarly, no entry load will be charged with respect to applications for registrations under the Systematic Investment Plan (SIP)/Systematic Transfer Plan (STP) accepted by the SIF. The entire exit load (net of Goods and Service Tax) received shall be credit back to the Investment Strategy. • No Exit load shall be levied for switching between Plans/Options within the Investment Strategy. • However, exit load will be applicable if the units are switched-out / redeemed from the Investment Strategy within the exit load period from the initial date of purchase. • No Exit load will be levied on Units allotted on Re-investment of Income Distribution cum Capital Withdrawal. • In case of Systematic Transactions such as Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), Exit Load, if any, prevailing on the date of registration / enrolment shall be levied. At the time of change in load structure in future, the AMC will take following steps: • The addendum detailing the changes shall be attached to ISID and Key Information Memorandum (KIM). The addendum will be circulated to all the distributors so that the same can be attached to all ISID and KIM already in stock. • Arrangements shall be made to display the changes/modifications in the ISID in the form of a notice in all investor service centres and distributors/brokers offices. • The introduction of the exit load along with the details shall be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such load. • The SIF shall display the addendum on its website https://www.360.one/dyna-sif. 28Section II I. Introduction A. Definition/interpretation For detailed description of definitions/interpretations, please visit https://www.360.one/dyna-sif. B. Risk Factors - Standard Risk Factors: • Investment in SIF involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. • As the price/value/interest rates of the securities in which the Investment Strategy invests fluctuates, the value of your investment in the Investment Strategy may go up or down depending on the factors and forces affecting the capital market/bullion market. • Past performance of the Sponsors/AMC/SIF does not guarantee the future performance of the Investment Strategy. • The name of the Investment Strategy does not in any manner indicate either the quality of the Investment Strategy or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Investment Strategy. • The present Investment Strategy is not a guaranteed or assured return Investment Strategy. - Investment Strategy Specific Risk Factors (SO. 8) Risks associated with investing in Equities and equity related instruments: a. Investments in the equity shares of the Companies are subject to price fluctuation on daily basis. The volatility in the value of equity is due to various micro and macro economic factors like economic and political developments, changes in interest rates, etc. affecting the securities markets. This may have adverse impact on individual securities/sector and consequently on the NAV of Investment Strategy. b. The NAVs of Investment Strategies investing in equity will fluctuate as the daily prices of the individual securities in which they invest fluctuate and the units when redeemed may be worth more or less than their original cost. c. The value of the Investment Strategy's 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 policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all 29sectors including equity and debt markets. Consequently, the NAV of the units of the Investment Strategy may fluctuate and can go up or down. d. Investors may note that Fund Manager's investment decisions may not always be profitable, as actual market movements may be at variance with anticipated trends. e. The sector weightage in the Investment Strategy would be different from that in the Index. Because of this the Investment Strategy returns could be divergent from the Index returns and could also under-perform if the sector calls do not go right as expected by the fund management team. Risk associated with Investing in Debt and money market instruments The performance of the Investment Strategy may be affected by changes in macroeconomic factors such as Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems. Interest Rate/Price risk: This risk is associated with movements in interest rate, which depend on various factors such as government borrowing, inflation, economic performance etc. The values of investments will appreciate/depreciate if the interest rates fall/rise. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices generally increase. The extent of fall or rise in the prices depends upon factors such as coupon, residual maturity of the security, micro and macroeconomic scenario as well as the yield level at which the security is being traded. Credit Risk/Default risk: Credit risk is the risk that the issuer of a debenture/ bond or a money market instrument may default on interest &/or principal payment obligations. This risk arises due to any uncertainty in counterparty's ability or willingness to meet its contractual obligations. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. Corporate bonds carry a higher credit risk than Government Securities. Within corporate bonds as well, there are different levels of safety. Credit risks of most issuers of debt securities are rated by independent and professionally run rating agencies. Ratings of Credit issued by these agencies typically range from “AAA” (read as “Triple A” denoting “Highest Safety”) to “D” (denoting “Default”), with about 6 distinct ratings between the two extremes. A bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. The highest credit rating (i.e. lowest credit risk) commands a lower yield for the borrower. Conversely, a lower rated credit borrower would raise funds at a relatively higher cost. On account of a higher credit risk for lower rated borrowers, lenders prefer higher rated instruments further justifying the lower yields. Re-investment Risk: Investments in fixed income securities may carry re-investment 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. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. 30Counterparty Risk: This is the risk of failure of counterparty to the transaction to deliver securities against consideration received or to pay consideration against securities delivered, in full or in part or as per the agreed specification. There could be losses to the Investment Strategy in case of counterparty default. Inflation risk: Inflation, in most basic terms, erodes the purchasing power of money and also withers the value of existing investments; in other words, it reduces the purchasing power of a bond investor’s future interest payments and principal, collectively known as “cash flows.” Inflation also leads to higher interest rates, which in turn leads to lower bond prices. Liquidity risk: The liquidity of a bond may change depending on market conditions leading to changes in the liquidity premium linked to the price of the bond. At the time of selling the security, the security can become illiquid leading to loss in the value of the portfolio. There could therefore be difficulties in exiting from corporate bonds in times of uncertainties. Liquidity in a Investment Strategy therefore may suffer. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Investment Strategy investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV. Legislative Risk: Changes in government policy in general and changes in tax benefits applicable to Mutual Funds may impact the returns to investors in the Investment Strategys. Risk of Rating Migration: It may be noted that the price of a rated security would be impacted with the change in rating and hence, there is risk associated with such migration. Risks associated with Investing/trading in Derivatives 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 the 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. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mis-pricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices, illiquidity risk whereby the Investment Strategy may not be able to sell or 31purchase derivative quickly enough at a fair price. 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. Risks associated with Securities Lending and 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 Investment Strategy 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 Investment Strategy. The key risk to the Investment Strategy 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. In case the Investment Strategy undertakes stock lending as prescribed in the Regulations, it may, at times be exposed to counter party risk and other risks associated with the securities lending. Unitholders of the Investment Strategy should note that there are risks inherent to securities lending, including the risk of failure of the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Investment Strategy and the approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities lent. The Fund may not be able to sell such lent securities, and this can lead to temporary illiquidity. Risks associated with segregated portfolio: The unit holders may note that no redemption and subscription shall be allowed in the segregated portfolio. However, in order to facilitate exit to unit holders in the segregated portfolio, the AMC shall enable listing of units of segregated portfolio on the recognized stock exchange. The risks associated in regard to the segregated portfolio are as follows: • The investors holding units of the segregated portfolio may not be able to liquidate their holdings till the time of recovery of money from the issuer. • The security comprising the segregated portfolio may not realize any value. • Listing of units of the segregated portfolio on a recognized stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units of the segregated portfolio on the stock exchange. • The trading price of units on the stock exchange may be significantly lower than the prevailing Net Asset Value (NAV) of the segregated portfolio. Risk factors associated with investment in Tri-Party Repo 32The mutual fund is a member of securities segment and Tri-party 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 counter party risks considerably for transactions in the said segments. The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL). As per the waterfall mechanism, after the defaulter’s margins and the defaulter’s contribution to the default fund have been appropriated, CCIL’s contribution is used to meet the losses. Post utilization of CCIL’s contribution if there is a residual loss, it is appropriated from the default fund contributions of the non-defaulting members. Thus the Investment Strategy 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 Tri-party 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 Investment Strategy may lose an amount equivalent to its contribution to the default fund. Risk factors associated with investing in Non- Convertible Preference Shares • Credit Risk: Credit risk is the risk that an issuer will be unable to meet its obligation of payment of dividend and/ or redemption of principal amount on the due date. Further, for non- cumulative preference shares, issuer also has an option to not pay dividends on preference shares in case of inadequate profits in any year. • Liquidity Risk: The preference shares generally have limited secondary market liquidity and thus we may be forced to hold the instrument till maturity. • Unsecured in nature - Preference shares are unsecured in nature and rank lower than secured and unsecured debt in hierarchy of payments in case of liquidation. Thus there is significant risk of capital erosion in case the company goes into liquidation. Risk associated with Investment Strategy: The primary objective of SIF Equity Long-Short Fund is to generate long-term capital appreciation by identifying and capitalizing on investment opportunities in equity and equity- related instruments while employing limited short exposure through derivatives to enhance returns and manage risk. The identification and execution of long and short strategies involve inherent uncertainties, and no assurance can be given that the Fund Manager will successfully locate profitable opportunities or accurately predict market movements. Market conditions, such as reduced volatility or limited pricing inefficiencies, may constrain the fund’s ability to 33generate alpha, potentially impacting returns. The fund’s active management approach may lead to high portfolio turnover, resulting in elevated transaction costs. Additionally, there may be instances where market liquidity is insufficient to execute trades at optimal prices, increasing the cost and risk of implementing the strategy. While the portfolio typically includes liquid equities, differences in stock liquidity can pose challenges, making the long-short strategy complex, costly, and occasionally difficult to execute effectively. Risk factors associated with potential change in tax structure: An equity oriented fund has been defined under the Income Tax Act as an investment strategy where the investible funds are invested in equity shares of domestic companies to the extent of more than 65 per cent of the total assets of such fund. The percentage of equity shareholding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures. As per the asset allocation, under normal circumstances, the Investment strategy shall invest minimum 80% of its total assets in Equity and Equity Related instruments. However, under defensive circumstances, where the debt / money market instruments offer better returns than the arbitrage opportunities available in cash and derivatives segments of equity markets, then the investment manager may choose to have a lower equity exposure for a prolonged period. In such a case, the fund may be regarded as a debt oriented fund as per extant Income Tax laws and consequently may not enjoy the favourable tax provisions available for equity oriented funds in that particular financial year. In such situation, a Unitholder who has redeemed the units during that financial year may end up paying capital gain tax as applicable to a debt fund and consequently would also not be able to derive any benefit of STT paid at the time of redemption. In view of the forgoing and individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor. Additional Risk viz. Basis Risk associated with imperfect hedging using Interest Rate Futures (IRF): The imperfect correlation between the prices of securities in the portfolio and the IRF contract used to hedge part of the portfolio leads to basis risk. Thus, the loss on the portfolio may not exactly match the gain from the hedge position entered using the IRF. Risk factors associated with Short Selling Short-selling is the sale of shares which are not owned by the seller at the time of trade. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock he shorted and returns the stock to close out the loan. If the price of the stock corrects, Short seller can buy the stock back for less than he received for selling it and earn profit (the difference between higher short sale price and the lower purchase price). If the price of stock appreciates, short selling results in loss. Thus, Short positions carry the risk of losing money and these losses may grow theoretically unlimited if the price increases without limit and shall result into major losses in the portfolio. Risk factors associated with Securities Lending: As with other modes of extensions of credit, there are risks inherent to securities lending, including the risk of failure of the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Investment strategy and the approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by 34the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The investment strategy may not be able to sell lent out securities, which can lead to temporary illiquidity & loss of opportunity. Risk factors associated with InvITs: • Price Risk: Securities/Instruments of InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. The extent of fall or rise in the prices is a fluctuation in general market conditions, factors and forces affecting capital market, Real Estate and Infrastructure sectors, level of interest rates, trading volumes, settlement periods and transfer procedures. • Interest Rate Risk: Securities/Instruments of InvITs run interest rate risk. Generally, when interest rates rise, prices of units fall and when interest rates drop, such prices increase. • Credit Risk: Credit risk means that the issuer of a InvIT security/ instrument may default on interest payment or even on paying back the principal amount on maturity. Securities/ Instruments of InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled. • Liquidity Risk: This refers to the ease with which securities/instruments of InvITs can be sold. There is no assurance that an active secondary market will develop or be maintained. Hence there would be time when trading in the units could be infrequent. The subsequent valuation of illiquid units may reflect a discount from the market price of comparable securities/instruments for which a liquid market exists. As these products are new to the market they are likely to be exposed to liquidity risk. • Reinvestment Risk: Investments in securities/instruments of InvITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or Dividend pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. • Legal and Regulatory Risk: The regulatory framework governing investments in securities/instruments of InvITs comprises a relatively new set of regulations and is therefore untested, interpretation and enforcement by regulators and courts involves uncertainties. Presently, it is difficult to forecast as to how any new laws, regulations or standards or future amendments will affect the issuers of InvITs and the sector as a whole. Furthermore, no assurance can be given that the regulatory system will not change in a way that will impair the ability of the Issuers to comply with the regulations, conduct the business, compete effectively or make distributions. Risk Associated with Investment in REIT: • Price Risk: Securities/Instruments of REITs are volatile and prone to price fluctuations on a daily basis owing to market movements. The extent of fall or rise in the prices is a fluctuation in general market conditions, factors and forces affecting capital market, Real Estate and Infrastructure sectors, level of interest rates, trading volumes, settlement periods and transfer procedures. 35• Interest Rate Risk: Securities/Instruments of REITs run interest rate risk. Generally, when interest rates rise, prices of units fall and when interest rates drop, such prices increase. • Credit Risk: Credit risk means that the issuer of a REIT security/ instrument may default on interest payment or even on paying back the principal amount on maturity. Securities/ Instruments of REITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled. • Liquidity Risk: This refers to the ease with which securities/instruments of REITs can be sold. There is no assurance that an active secondary market will develop or be maintained. Hence there would be time when trading in the units could be infrequent. The subsequent valuation of illiquid units may reflect a discount from the market price of comparable securities/instruments for which a liquid market exists. As these products are new to the market they are likely to be exposed to liquidity risk. • Reinvestment Risk: Investments in securities/instruments of REITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or Dividend pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. • Legal and Regulatory Risk: The regulatory framework governing investments in securities/instruments of REITs comprises a relatively new set of regulations and is therefore untested, interpretation and enforcement by regulators and courts involves uncertainties. Presently, it is difficult to forecast as to how any new laws, regulations or standards or future amendments will affect the issuers of REITs and the sector as a whole. Furthermore, no assurance can be given that the regulatory system will not change in a way that will impair the ability of the Issuers to comply with the regulations, conduct the business, compete effectively or make distributions. Risks associated with the Investment Strategy’s Arbitrage Strategy: The Investment Strategy may invest in equity and equity related instruments by identifying and exploiting price discrepancies in cash and derivative segments of the market. These investments by nature are volatile as the prices of the underlying securities are affected by various factors such as liquidity, time to settlement date, news flow, spreads between cash and derivatives market at different points of time, trading volumes, etc. • There is no guarantee that the Fund Manager will be able to spot investment opportunities or correctly exploit price discrepancies in the different segments of the market. • The risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. • The Investment Strategy is also expected to have a high portfolio churn, especially in a volatile market. There is an execution risk while implementing arbitrage strategies across various segments of the market, which may result in missed investment opportunities, or may also result in losses/high transaction costs. • In case of a large outflow from the Investment Strategy, the Investment Strategy may need to reverse the spot-futures transaction before the settlement of the futures trade. While reversing 36the spot-futures transaction on the Futures and Options settlement day on the exchange, there could be a risk of volume-weighted-average-price of the market being different from the price at which the actual reversal is processed resulting in basis risk. • While future market are typically more liquid than underlying cash market, there can be no assurance that ready liquidity would exists at all point in time for the Investment Strategy to purchase and close out a specific futures contract. • In case of arbitrage, if futures are allowed to expire with corresponding buy/sell in cash market, there is a risk that price at which futures expires, may/may not match with the actual cost at which it is bought/sold in the cash market in last half an hour of the expiry day (Weighted average price for buy or sell). Risks associated with Overseas Securities: (SO. 11) Subject to necessary approvals, in terms of all applicable guidelines issued by SEBI and RBI from time to time and within the investment objectives of the Investment Strategys, the Investment Strategys may invest in overseas markets and securities which carry a risk on account of fluctuations in the foreign exchange rates, nature of securities market of the country concerned, repatriation of capital due to exchange controls and political circumstances. Further, the Investment Strategy may not be able to invest in overseas markets if overseas limits as per RBI and SEBI circulars are exhausted at AMC or industry level which may negatively impact the performance of the Investment Strategys. i. Currency Risk: The Investment Strategy may invest in overseas securities and the income from those securities may be quoted in currencies which are different from the Investment Strategys base currency. The performance of the Investment Strategy may therefore be affected by movements in the exchange rate between the currencies in which the assets are held and the Investment Strategys base currency and hence there can be the prospect of additional loss or gain for the Unit Holder than what may be normally derived from the assets in which the Investment Strategy invests. The performance of the Investment Strategy fund may also be subject to exchange control regulations. Conversion into foreign currency or transfer from some markets of proceeds received from the sale of securities cannot be guaranteed. Exchange rate fluctuations may also occur between the trade date for a transaction and the date on which the currency is acquired to meet settlement obligations. Movements in currency exchange rates can adversely affect the return of your investment. ii. Risks arising from exhaustion of overseas limits as per applicable SEBI and RBI circulars: The Investment Strategys capability to invest in overseas securities is subject to the limits assigned by the SEBI & RBI from time to time basis. In case of exhaustion of the limits to invest in overseas securities is exhausted either at an individual Mutual Fund level or at Industry level or otherwise as restricted by SEBI or RBI, the Investment Strategy may not be able to allocate and invest in overseas securities and the AMC will suitably reallocate the proceeds to other investments as permissible under the asset allocation specified in the Investment Strategy document. Risks associated with investments in units of mutual funds Investment in units of Mutual Fund scheme involves investment risks including the possible loss of principal. As the price / value / interest rates of the underlying securities in which the mutual fund 37scheme invests fluctuates, the value of units of mutual fund scheme may go up or down. The value of underlying securities may be affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading volumes, settlement periods etc.. The NAV is also exposed to Price/Interest-Rate Risk and Credit Risk and may be affected inter-alia, by liquidity in the securities market. Investment in units of mutual fund scheme is also exposed to risk of suspension of subscriptions / redemptions of the units, change in fundamental attributes etc. Since the Scheme may invest in schemes of Mutual Funds, scheme specific risk factors of each such mutual fund schemes will be applicable to the Scheme portfolio. C. Risk Mitigation Strategies (SO. 9) Risk is an inherent part of the investment function. Effective Risk management is critical to fund management for achieving financial soundness. Investment by the Investment Strategy would be made as per the investment objective of the Investment Strategy and in accordance with SEBI Regulations. AMC has adequate safeguards to manage risk in the portfolio construction process. Risk control would involve managing risk in order to keep in line with the investment objective of the Investment Strategy. The risk control process would include identifying the risk and taking proper measures for the same. Further, AMC has put in place a Front Office System for managing risk. The system has incorporated the investment restrictions as per the SEBI guidelines and enables identifying and measuring the risk through various risk management tools like various portfolio analytics, risk ratios, average duration and analyses the same and acts in a preventive manner. Risk control measures with respect to investment Equity and Equity related instruments Concentration Risk: Concentration risk represents the probability of loss arising from heavy exposure to a particular group of sectors or securities. Mitigation: The Investment Strategy will try to mitigate this risk by diversifying the investment into the large number of companies and keep stock-specific concentration risk relatively low. Market Risk: Equity and Equity related securities by nature are volatile and prone to price fluctuations on a daily basis due to both macro and micro factors. Mitigation - Market risk is a risk which is inherent to an equity Investment Strategy. The Investment Strategy will try to reduce the market risk by undertaking active portfolio management as per the investment objective. Liquidity risk: The liquidity of investments made in the Investment Strategy may be restricted by trading volumes and settlement periods Mitigation- As such the liquidity of stocks that the Investment Strategy invests into could be relatively low. The Investment Strategy will try to maintain a proper asset-liability match to ensure redemption / Maturity payments are made on time. Risk control measures with respect to Debt & Money Market Instruments Market Risk / Interest Rate Risk: Changes in interest rates may affect the Investment Strategy’s Net Asset Value as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. The price movement up and down in fixed income securities will lead to possible movements in the NAV. 38Mitigation - In a rising interest rates scenario the Investment Strategy may increase its investment in money market securities whereas if the interest rates are expected to fall the allocation to debt securities with longer maturity may be increased thereby mitigating risk to that extent. 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). Mitigation- The Investment Strategy may invest in government securities, corporate bonds and money market instruments. While the liquidity risk for government securities, money market instruments and short maturity corporate bonds may be low, it may be high in case of medium to long maturity corporate bonds. Credit risk or default risk: It refers to the risk that an issuer of a fixed income security may default (i.e., will be unable to make timely principal and interest payments on the security). Normally, the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk. Mitigation–As part of the due diligence, management’s past track record will also be studied. In order to assess financial risk a detailed assessment of the issuer’s financial statements will be undertaken to review its ability to undergo stress on cash flows and asset quality. A detailed evaluation of accounting policies, off-balance sheet exposures, notes, auditors’ comments and disclosure standards will also be made to assess the overall financial risk of the potential borrower. In case of securitized debt instruments, the Investment Strategy will ensure that these instruments are sufficiently backed by assets. Risk control with respect to derivatives As and when the Investment Strategy trades in the derivatives market there are risk factors and issues concerning the use of derivatives since derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The Investment Strategy may invest in derivative for the purpose of hedging, portfolio balancing and other purposes as may be permitted under the Regulations. Mitigation- Exposure with respect to derivatives shall be in line with regulatory limits and the limits specified in the ISID. All equity derivatives trade will be done only on the exchange with guaranteed settlement. Risks control with respect to Investments in REITs : The Investment Manager endeavours to invest in REITS, where adequate due diligence and research has been performed by the Investment Manager. The Investment Manager also relies on its own research as well as third party research. This involves one-to-one meetings with the managements, attending conferences and analyst meets and also tele-conferences. The analysis will focus, amongst others, on the predictability and strength of cash flows, value of assets, capital structure, business prospects, policy environment, strength of management, responsiveness to business conditions, etc. Risks control with respect to Investments in InvITs: The Investment Manager endeavours to invest in InvITs, where adequate due diligence and research has been performed by the Investment Manager. The Investment Manager also relies on its own 39research as well as third party research. This involves one-to-one meetings with the managements, attending conferences and analyst meets and also tele-conferences. The analysis will focus, amongst others, on the predictability and strength of cash flows, value of assets, capital structure, business prospects, policy environment, strength of management, responsiveness to business conditions, etc. II. Information about the Investment Strategy: A. Where will the Investment Strategy invest – (SO. 29) (SO. 13) Investment in Equities and equity related instruments The Investment Strategy shall invest into equities and equities related instruments as per limits specified in the asset allocations subject to permissible limits laid under SEBI (MF) regulations. Investment in Debt and money market instrument: The Investment Strategy may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity requirements. The Investment Strategy may also invest in liquid / overnight schemes of 360 ONE Mutual Fund or other scheme which has objective to invest in debt and money market instruments. Money Market Instruments include but not limited to: Certificate of Deposit (CD): is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue. Commercial Paper (CP): Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. Repo of Government Securities: 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. Treasury Bill (T-Bill): Treasury Bills (T-Bills) are issued by the Government of India or State Governments to meet their short term borrowing requirements. T-Bills are issued for maturities of 91 days, 182 days and 364 days. T-Bills are issued at a discount and for a fixed period. Tri-party repo (TREPS): Tri-party repo is a type of repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities (popularly known 40as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. Non-convertible debentures and bonds: Non-convertible debentures as well as bonds are securities issued by companies / Institutions promoted /owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee, Public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. The Investment Strategy may also invest in the non- convertible part of convertible debt securities. Investment in Short Term Deposits Pending deployment of funds as per the investment objective of the Investment Strategy, the funds may be parked in short term deposits of Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. The aforementioned securities may be acquired through Initial Public Offering (IPOs), secondary market, private placement, rights offers, negotiated deals. Further investments in debentures, bonds and other fixed income securities will be in instruments which have been assigned investment grade rating by the Credit Rating Agency. Investment in unrated debt instruments shall be subject to complying with the provisions of the Regulations and within the limit as specified in Schedule VII to the Regulations. The securities / instruments mentioned above and such other securities the Investment Strategy is permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity subject to investment limits specified elsewhere in this document as prescribed under SEBI Regulations. The Fund Manager reserves the right to invest in such securities as may be permitted from time to time and which are in line with the investment objectives of the Investment Strategy. Investment in Derivatives: Derivative positions for hedging purposes shall not exceed 50% of debt portfolio. Investment in Overseas Securities as permitted by Reserve Bank of India and Securities and Exchange Board of India including overseas ETFs/index funds The Investment Strategy may also invest in below securities as per the provisions of clause 12.19.2 of Master Circular dated June 27, 2024: • ADR(s) and/or GDR(s) issued by Indian or foreign companies. • Equity of overseas companies listed on recognized Stock Exchanges overseas. • Initial and Follow on Public Offerings for listing at recognized Stock Exchanges overseas. 41• Foreign debt securities in the countries with fully convertible currencies, short term as well as long term debt instruments with rating not below investment grade by accredited/ registered credit rating agencies. • Money Market Instruments rated not below investment grade. • Repos in form of investment, where the counterparty is rated not below investment grade; repo shall not however involve any borrowing of funds by SIF. • Government securities where the countries are rated not below investment grade. • Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with underlying as securities. • Short term deposits with banks overseas where the issuer is rated not below investment grade. • Units / securities issued by overseas Mutual Funds or unit trusts registered with overseas regulators and investing in: a. Aforesaid Securities b. Real Estate Investment Trusts listed on recognized Stock Exchanges overseas or c. Unlisted overseas securities, not exceeding 10% of their net assets. Investments in units of mutual fund Scheme – The Investment Strategy may invest in other scheme managed by the AMC or in the scheme of any other mutual funds in conformity with the investment objective of the Investment Strategy and in terms of the prevailing SEBI (MF) Regulations. Unit of Infrastructure Investment Trust (‘InvIT’): InvIT of Infrastructure Investment Trust is a trust registered with SEBI to carry out the activity prescribed under SEBI (Infrastructure Investment Trusts) Regulations, 2014. An InvIT raises funds by issuing units to investors and invests those funds primarily in assets in infrastructure sector. The investment in such assets can be made directly or through SPV/Holding Company by the InvIT. Investors who hold units in an InvIT are called unit holders. The income generated from the underlying assets of the InvIT are regularly distributed to the unit holders. B. What are the investment restrictions? The following investment limitations and other restrictions, inter-alia, as contained in the Trust Deed and the Regulations apply to the Investment Strategy: • Every SIF 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 a SIF may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by the Board. • Pending deployment of the corpus of the Investment Strategy in securities in terms of investment objective, the Fund can invest the corpus of the Investment Strategy in short term deposits of scheduled commercial banks as per the guidelines given in clause 12.16 and 4.5 of SEBI master Circular dated June 27, 2024. The AMC shall not charge any investment management and advisory fees for parking of funds in such short-term deposits of scheduled commercial banks for the Investment Strategy. • The Investment Strategy shall not make any investment in: a) any unlisted security of an associate or group company of the Sponsor; or b) any security issued by way of private 42placement by any associate or group company of the Sponsor; or c) the listed securities of group companies of the Sponsor in excess of 25% of its net assets except for investments by equity oriented exchange traded funds (ETFs) and Index Funds and subject to such conditions as may be specified by SEBI. • The Investment Strategy shall not invest in any Fund of Funds Investment Strategy. • No Specialized Investment Fund under all its investment strategies should own more than fifteen per cent of any company’s paid up capital carrying voting rights or fifteen per cent of units of REITs issued by a single issuer: Provided that investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a) of sub-regulation (1) of regulation 7B: Provided further that the limit mentioned above shall be inclusive of ten per cent limit for mutual fund schemes as specified under clause 2 of Seventh Schedule. • No investment strategy of a Specialized Investment Fund shall invest more than 10 per cent of its NAV in the equity shares and equity-related instruments of any entity. • Wherever investments are intended to be of a long-term nature, the securities shall be purchased or transferred in the name of the Fund, on account of the Investment Strategy concerned. Investment restrictions relating to investment in debt and money market instruments; • As per regulation 49AA and clause 5 of SEBI Circular dated February 27, 2025, An investment strategy under SIF shall not invest more than – 20% of its NAV (or 25% of NAV with prior approval of Board of Trustees & Directors) in debt and money market securities issued by a single issuer and rated AAA or 16% in securities rated AA or 12% in securities rated A and below. These instrument limits may be extended by up to 5% of the NAV of investment strategy with prior approval of trustees of MF and board of AMC. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and triparty repo on Government securities or treasury bills: Provided further that investments within such limit can be made in mortgaged backed securitised debt which are rated not below investment grade by a credit rating agency registered with the Board: Provided further that such limit shall not be applicable for investments in case of debt exchange traded funds or such other funds as may be specified by the Board from time to time. • The Investment Strategy shall not invest in unlisted debt instruments including commercial papers, except (a) Government Securities and (b) other money market instruments which are used by SIF’s for hedging. Provided further, the Investment Strategy may invest in unlisted nonconvertible debentures (NCDs) not exceeding 10% of the debt portfolio of the Investment Strategy subject to the condition that such unlisted NCDs have a simple structure (i.e. with fixed and uniform coupon, fixed maturity period, without any options, fully paid up upfront, without any credit enhancements or structured obligations) and are rated and secured with coupon payment frequency on monthly basis. Provided further that SIF Investment Strategy shall comply with the norms under this clause within the time and in the manner as may be specified by the Board. Provided further that, investment in unrated debt and money market instruments, other than government securities, treasury bills, derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc. by SIF Investment Strategy shall be subject to the following: 43a. Investments should only be made in such instruments, including bills re-discounting, usance bills, etc., that are generally not rated and for which separate investment norms or limits are not provided in SEBI (Mutual Fund) Regulations, 1996 and various circulars issued thereunder. b. Exposure of SIF Investment Strategy in such instruments, shall not exceed 5% of the net assets of the Investment Strategy. c. All such investments shall be made with the prior approval of the Board of AMC and the Board of trustees. • An investment strategy under the SIF shall not invest more than 25% of its NAV in debt and money market securities of a particular sector. (SO. 31) • Transfer of investments from one Investment Strategy to another Investment Strategy in the same SIF, shall be allowed only if: (SO. 30) (a) such transfers are made at the prevailing market price for quoted Securities on spot basis (spot basis shall have the same meaning as specified by Stock Exchange for spot transactions). (b) the securities so transferred shall be in conformity with the investment objective of the Investment Strategy to which such transfer has been made and (c) the Transfer is in conformity with additional safeguards as prescribed by clause 12.30 of SEBI Master Circular dated June 27, 2024. • Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions as applicable for debt instruments as specified under Clause 1 and 1 A of Seventh Schedule to the Regulations. • No term loans for any purpose may be advanced by the Fund and the Fund shall not borrow except to meet temporary liquidity needs of the Investment Strategy for the purpose of repurchase, redemption of Units or payment of interest or IDCWs to Unit Holders, provided that the Fund shall not borrow more than 20% of the net assets of the Investment Strategy and the duration of such a borrowing shall not exceed a period of six months. Investment restrictions relating to derivative investments: In accordance with SEBI circulars dated February 27, 2025 and clause 12.25 of SEBI Master Circular dated June 27, 2024, the following conditions shall apply to the Investment Strategy’s participation in the derivatives market. Please note that the investment restrictions applicable to the Investment Strategy’s participation in the derivatives market will be as prescribed or varied by SEBI or by the Trustees (subject to SEBI requirements) from time to time. Clause 6 of SEBI circular dated February 27, 2025 and clause 12.25 of SEBI Master Circular dated June 27, 2024 have prescribed the following investment restrictions w.r.t. investment in derivatives: i. The investment strategies under the SIF may take exposure of up to 25% of the net assets in permissible exchange traded derivative instruments, specifically for purposes other than hedging and portfolio rebalancing. 44ii. As specified under paragraph 12.25.11.1 of the Master Circular for Mutual Funds dated June 27, 2024, the exposure to derivative contracts for the investment strategies under SIF shall be computed as follows: 1. Futures (long and short) = Futures Price * Lot Size * Number of Contracts 2. Options bought = Option premium paid * Lot size * Number of contracts 3. Options sold = Market price of the underlying * Lot size * Number of contracts 4. In case of any other derivative exposure, the exposure shall be calculated as the notional market value of the contract. iii. The total exposure at any point of time shall be the sum of exposure through instruments in both the cash market and derivatives market. iv. Offsetting of exposure at the portfolio level shall be allowed for: 1. Cash and derivative positions on the same underlying security 2. Between derivative positions on the same underlying security. Some of the examples where offsetting is allowed or disallowed have been provided in SEBI SIF Circular dated 27th February, 2025 are presented below: Offsetting Sr. No. Position 1 Position 2 allowed/not? Net exposure to be considered 1 Equity Long Futures Short Yes Equity Long only 2 Equity /Futures Long Call option Short Yes Equity /Futures Long only 3 Equity /Futures Long Put option Long Yes Equity /Futures Long only 4 Futures Short Call option Long Yes Futures Short only 5 Futures Short Put option Short Yes Futures Short only 6 Call option Long Call option Short Yes Call option Short only 7 Put option Long Put option Short Yes Put option short only 8 Equity Long Futures Long No Equity Long + Futures Long 9 Equity /Futures Long Call option Long No Equity /Futures Long + Call option Long Equity /Futures Long + Put option 10 Equity /Futures Long Put option Short No Short 11 Futures Short Call option Short No Futures short + Call option short 12 Futures Short Put option Long No Futures short + Put option Long 13 Call option Long Put option Short No Call option Long + Put option Short 14 Call option Short Put option Long No Call option Short + Put option Long 45*For offsetting of positions, the futures and options contracts shall be on the same underlying security and having same expiry date. v. The cumulative gross exposure through equity, debt and derivative positions (including fixed income derivatives), repo transactions and credit default swaps in corporate debt securities, 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 a Investment Strategy. vi. The Investment strategy shall not write options or purchase instruments with embedded written options except call options under a covered call strategy as specified in Clause 12.25 of Master Circular dated June 27, 2024 as amended from time to time. Vii. The total exposure related to option premium paid shall not exceed 20% of the net assets of the investment strategy. viii. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. ix. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. b. Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limit of cumulative gross exposure of 100%. c. Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. d.The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of the existing position against which hedge has been taken. x. In case of any other derivative exposure, the exposure shall be calculated as the notional market value of the contract. xi. The total exposure at any point of time shall be the sum of exposure through instruments in both the cash market and derivatives market. • The investment of SIF Investment Strategy in the following instruments shall not exceed 10% of the debt portfolio of the Investment Strategy and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the Investment Strategy: o Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is below investment grade and o Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above investment grade. For this purpose, a group means a group as defined under regulation 2 (mm) of the Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates Investment limits as mentioned in paragraph above shall not be applicable on investments in securitized debt instruments, as defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008. 46• The AMC shall adhere to the following limits should it engage in Stock Lending: 1. Not more than 25% of the net assets of the Investment Strategy can be deployed in Stock Lending. 2. Not more than 5% of the net assets of the Investment Strategy can be deployed in Stock Lending to any single approved intermediary, i.e the limit of 5% will be at broker level. The SIF may not be able to sell such lent out securities and this can lead to temporary illiquidity • A Specialized Investment Fund may invest in the units of InvITs subject to the following: (a) No Specialized Investment Fund under all its investment strategies shall own more than 20 per cent of units issued by a single issuer of InvIT: Provided that the limit mentioned in clause (a) of sub-regulation 4 above shall be inclusive of 10 per cent limit for mutual fund scheme as specified under clause 13 (a) of Seventh Schedule. (b) An investment strategy under Specialized Investment Fund shall not invest – (i) more than 20 per cent of its NAV in the units of InvITs; and (ii) more than 10 per cent of its NAV in the units of InvIT issued by a single issuer: Provided that the limits mentioned in sub-clauses (i) and (ii) above shall not be applicable for investments in case of index fund or sector or industry specific investment strategy pertaining to InvIT. The AMC / Trustee may alter these above stated restrictions from time to time to the extent the SEBI (MF) Regulations change, so as to permit the Investment Strategy to make its investments in the full spectrum of permitted investments for SIF to achieve its respective investment objective. The AMC/Trustee may from time to time alter these restrictions in conformity with the SEBI (MF) Regulations. Further, apart from the investment restrictions prescribed under SEBI (MF) Regulations, the Fund may follow any internal norms vis-à-vis restricting/ limiting exposure to a particular scrip or sector, etc. All investment restrictions shall be applicable at the time of making investment. C. Fundamental Attributes (SO. 59) Following are the fundamental attributes of the Investment Strategy, in terms of clause 1.14 of SEBI Master Circular dated June 27, 2024: I. Type of Investment Strategy: An open ended equity investment strategy investing in listed equity and equity related instruments including limited short exposure in equity through derivative instruments. II. Investment Objective: • Investment objective: Please refer section of ‘Investment Objective’. • Investment pattern - Please refer section of ‘Asset Allocation’. III. Terms of Issue: Terms of Issue relating to: ▪ ‘Listing, repurchase, redemption of units’: Provisions with respect to listing, repurchase, redemption of units as indicated in this Investment Strategy Information Document. ▪ ‘Aggregate fees and expenses’: Please refer Section on ‘Annual Investment Strategy Recurring Expenses’. 47▪ ‘Safety Net or Guarantee’: The Investment Strategy does not provide any guaranteed or assured return. In accordance with Regulation 18(15A) of the Regulations and Clause 1.14.1.4 of SEBI Master Circular date June 27, 2024, the Trustee shall ensure that no change in the fundamental attributes of the Investment Strategy and Plan(s)/Option(s) thereunder or the trust or fees and expenses payable or any other change which would modify the Investment Strategy and the Plan(s)/Option(s) thereunder and affect the interest of the Unit Holders will be carried out unless: • SEBI has reviewed and provided its comments on the proposal; • A written communication about the proposed change is sent to each Unit Holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a Marathi daily newspaper with wide circulation published in Mumbai (as the head office of the Fund is situated there); and • The Unit holders 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. Other Investment Strategy Specific Disclosures: Listing and Transfer of units Listing: Not Applicable The Investment Strategy is open ended and the Units are not proposed to be listed on any stock exchange. However, the DynaSIF may, at its sole discretion, list the Units on one or more Stock Exchanges at a later date, and thereupon the SIF will make suitable public announcement to that effect. Transfer of Units: The SIF will offer and redeem Units on a continuous basis during the Continuous Offer Period. The Unit holders are given an option to hold the Units by way of an Account Statement (physical form) or in Dematerialized (demat form). 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, 1996, 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. Transfer of units held in Non-Demat [Statement of Account 48(‘SOA’)] mode: As per the AMFI Guidelines Circular No. 116 /2024-25 & Circular No. 119/2025-26, the facility of transfer of units held in Non-Demat (‘SOA’) mode is extended for all investors under Resident/non- resident Individual category. Partial transfer of units held in a folio shall be allowed. However, if the balance units in the transferor’s folio falls below specified threshold / minimum number of units as specified in the ISID, such residual units shall be compulsorily redeemed, and the redemption amount will be paid to the transferor. If the request for transfer of units is lodged on the record date, the IDCW payout/ reinvestment shall be made to the transferor. Redemption of the transferred units shall not be allowed for 10 days from the date of transfer. This will enable the investor to revert in case the transfer is initiated fraudulently. Mode of submitting the Transfer Request Non-Demat (SOA) mode: The facility for transfer of units held in SoA mode shall be available only through online mode via the transaction portals of the RTAs and the MF Central, i.e., the transfer of units held in SoA mode shall not be allowed through physical/ paper-based mode or via the stock exchange platforms, MFU, channel partners and EOPs etc. For details on pre-requisites, payment of stamp duty on transfer of units please refer SAI. Dematerialization of Units (SO. Pursuant to provision no. 14.4.2 of SEBI Master Circular on Mutual 57 (a) (b) (c) ) Fund dated June 27, 2024 and further as per AMFI Circular No 35P/MEMCOR/ 35/11-12 dated Dec 23, 2011, SIF shall provide an option to investors to hold units in Demat mode. As per provision no. 14.4.4 of SEBI Master Circular on Mutual Fund dated June 27, 2024, all the units of a SIF Investment Strategy held in Demat form will be freely transferable. Minimum Target Amount (This is the minimum amount required to operate the Investment Strategy and if this The Investment Strategy seeks to collect a minimum target amount is not collected during the NFO of Rs. 10 Crore during the NFO period. period, then all the investors would be refunded the amount invested without any return.) 49Redemption and Subscription Redemption Frequency: Daily (only business days) frequency of the investment strategy Subscription Frequency: Daily (only business days) subject to the regulation as specified by SEBI from time to time. Notice Period of the investment Not Applicable strategy Maximum Amount to be raised Not Applicable (If any) IDCW Policy Growth Option: Under the Growth option, there will be no distribution of income and the return to investors will be only by way of capital gains, if any, through redemption at applicable NAV of Units held by them Income Distribution cum Capital Withdrawal: Under the Income Distribution cum Capital Withdrawal, the IDCW will be declared subject to the availability of distributable surplus calculated in accordance with SEBI (MF) Regulations. The actual declaration of IDCW and the frequency of distribution will be entirely at the discretion of the Trustees. The IDCW would be paid to the Unitholders whose names appear in the Register of Unitholders as on the record date. There is no assurance or guarantee to the Unitholders as to the rate of IDCW nor that the IDCW would be paid regularly. If the Investment Strategy declares IDCW, the NAV will stand reduced by the amount of IDCW and IDCW distribution tax (if applicable) paid. All the IDCW payments shall be in accordance and compliance with SEBI Regulations, as applicable from time to time. IDCW will be paid on the number of units held by the unit holder on the record date as per the records of CAMS (the Registrar) and /or as per the records maintained by depositories. The record date shall be announced in advance. The IDCW shall be transferred to the Unit holders within 7 working days of the record date for declaration of IDCW. In the event of failure of transferred of IDCW within the stipulated 7 working day period the AMC will pay a penalty interest rate of 15% per annum calculated from the record date. •The IDCW proceeds shall be paid by way of ECS /EFT / NEFT / RTGS / any other manner through which the investor’s bank account specified in the Registrar & Transfer Agent’s records is credited with the IDCW proceeds • In exceptional circumstances, the IDCW will be paid by warrant and payments will be made in favour of the Unit holder (registered holder of the Units or, if there is more than one 50registered holder, only to the first registered holder) with bank account number furnished to the SIF (please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI). In case the IDCW amount is less than 500 rupees then it will be compulsorily reinvested. Allotment All applicants whose amount is received towards Purchase of Units have been realized will receive full and firm allotment of Units within 5 working days, provided the Application Forms are complete in all respects and are found to be in order. The AMC/Trustee retains the sole and absolute discretion to reject any Application Form. The said discretion shall be used by the AMC/Trustee in various scenarios like receiving money from Third party or dubious sources or from clients of high risk jurisdictions. The process of allotment of Units reflecting the allotments will be completed within 5 Business Days from the date of closure of the NFO Period. (SO. 60) The investors will receive confirmation specifying the number of Units allotted by way of electronic mail and/or SMS to the investor’s registered e-mail address and/or mobile number as soon as possible but not later than five working days from the date of closure of NFO. In case of investors opting to hold the Units in physical mode, an account statement will be sent by ordinary post/courier/secured encrypted electronic mail to each Unit Holder, stating the number of Units purchased, not later than 5 Business Days (or such number of days as may be permitted under the SEBI (MF) Regulations) from the date of allotment. In case of investors opting to hold the Units in dematerialized form, an account statement could be obtained from the Depository Participants. Refund In accordance with the Regulations, if the Investment Strategy fails to collect the minimum subscription amount as specified above, the Fund shall be liable to refund the subscription money to the applicants within 5 working days of closure of NFO. In addition to the above, refund of subscription money to applicants whose applications are invalid for any reason whatsoever, will commence immediately after the allotment 51process is completed. Full amount will be refunded within 5 working days of closure of NFO. If the Fund refunds the subscription money later than 5 working days, interest @ 15% p.a. for delayed period will be paid and charged to the AMC. Refund orders will be marked ‘Account Payee only’ and drawn in the name of the applicant in the case of the sole applicant and in the name of the first applicant in all other cases. Who can invest The following persons (subject, wherever relevant, to purchase of This is an indicative list and you units being permitted under their respective constitution and relevant state regulations) are eligible to subscribe to units: are requested to consult your financial advisor to ascertain • Resident adult individuals, either singly or jointly (not exceeding three) or on anyone or Survivor basis; whether the Investment Strategy is suitable to your risk profile. • Minor (as the first and the sole holder only) through a natural guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian. There shall not be any joint holding with minor investments; • Proprietorship in the name of Sole Proprietor; • Karta of Hindu Undivided Family (HUF); • Partnership Firms including Limited Liability Partnership; • Companies/Domestic Corporate Bodies/Societies/Association of Persons/Body of individuals/Clubs/Public Sector Undertakings registered in India if authorized and permitted to under applicable laws and regulations; • Charitable or Religious Trusts authorized to invest in units of Mutual Funds; • Mutual Funds registered with SEBI; • Banks (including co-operative Banks and Regional Rural Banks), Financial Institutions and Investment Institutions incorporated in or the Indian branches of banks incorporated outside India; • Non-Resident Indians (NRIs), Persons of Indian Origin (PIO) residing abroad on full repatriation basis and on non- repatriation basis; • Foreign Portfolio Investors (FPI) registered with SEBI; • Wakf Boards or endowments and Registered Societies (including registered co-operative societies) and private trusts authorized to invest in units; • Army/Air Force/Navy/Para-military funds and other eligible institutions; • Scientific and/or Industrial Research Organizations; • Multilateral Funding Agencies or Bodies Corporate incorporated outside India with the permission of Government of India / Reserve Bank of India; • Other Investment Strategy of SIF or any other SIF subject to the 52conditions and limits prescribed by SEBI Regulations; Trustee, AMC or Sponsor or their associates may subscribe to Units under the Investment Strategy; • Provident/Pension/Gratuity/Superannuation and such other retirement and employee benefit and other similar funds; • Other Associations, Institutions, Bodies, etc. authorized to invest in the units; • Such other person as maybe decided by the AMC from time to time. This list given above is indicative and the applicable law, if any, shall supersede the list. Note: Minor Unit Holders, on becoming major, may inform the Registrar about attaining majority, and provide his specimen signature duly authenticated by his parent/ guardian, whose signature is registered in the records of the SIF/RTA (against the folio of minor unitholder)and if the parent/ guardian is unavailable or unable to attest, then by the banker as well as his details of bank account, a certified true copy of the PAN card and other documents, to enable the Registrar to update his records and allow them to operate the account in his own right. All cheques and bank drafts accompanying the application form should contain the application form number on its reverse. It is mandatory for every applicant to provide the name of the bank, branch, address, account type and number as per SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete applications will be liable to be rejected. Who cannot Invest • Any individual who is a foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999 (FEMA) except where registered with SEBI as a FPI or otherwise explicitly permitted under FEMA Act/by RBI/by any other applicable authority. • Pursuant to RBI A.P. (DIR Series) Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds. • NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to time. • A person who falls within the definition of the term “U.S. Person” under the Securities Act of 1933 of the United States, and corporations or other entities organised under the laws of the U.S. are not eligible to invest in the Investment Strategy and apply for subscription to the units of the Investment Strategy, except for lump sum subscription and switch transactions requests received from Non-resident 53Indians/Persons of Indian origin who 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 360 ONE Asset Management Limited from time to time. The AMC shall accept such investments subject to the applicable laws and such other terms and conditions as may be notified by the AMC. The investor shall be responsible for complying with all the applicable laws for such investments. The AMC reserves the right to put the transaction requests on hold/reject the transaction request/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. • A person who is resident of Canada Such other persons as may be specified by AMC from time to time. How to Apply and other details The Key Information Memorandum along with application form is (SO. 35) available at the Investor Service Centers (ISCs)/ Official Points of Acceptance (OPAs) or may be downloaded from the website of the SIF. The name, address and contact no. of Registrar and Transfer Agent (R&T), email id of R&T, website address of R&T, official point of acceptance, collecting banker details etc. are mentioned at the end of the ISID. Please refer to the SAI for detailed procedure and Application form for the instructions. Please note that it is mandatory for the unitholders to provide the bank account details as per SEBI guidelines. (SO. 61) The policy regarding reissue of Not applicable. repurchased units, including the maximum extent, the manner of reissue, the entity (the Investment Strategy or the AMC) involved in the same. Restrictions, if any, on the right Suspension of Sale and Redemption of Units: to freely retain or dispose of Suspension of Sale and Redemption of Units Suspension or units being offered. restriction of repurchase/ redemption facility under any Investment Strategy of the SIF shall be made applicable only after obtaining the approval from the Boards of Directors of the AMC 54and the Trustees. Additionally, the following requirements shall need to be observed before imposing restriction on redemptions: a) Restriction may be imposed when there are circumstances leading to a systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: i. Liquidity issues - when market at large becomes illiquid affecting almost all securities rather than any issuer specific security. ii. 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. iii. Operational issues – when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Such cases can only be considered if they are reasonably unpredictable and occur in spite of appropriate diligence of third parties, adequate and effective disaster recovery procedures and systems. b) Restriction on redemption may be imposed for a specified period of time not exceeding 10 working days in any 90 days period. c) Any imposition of restriction would require specific approval of Board of AMC and Trustees and the same should be informed to SEBI immediately. d) When restriction on redemption is imposed, the following procedure shall be applied: 1. No redemption requests up to INR 2 lakh shall be subject to such restriction. 2. Where redemption requests are above INR 2 lakh, AMCs shall redeem the first INR 2 lakh without such restriction and remaining part over and above INR 2 lakh shall be subject to such restriction. Cut off timing for subscriptions/ The Cut-off time for the Investment Strategy is 3.00 pm and the Applicable NAV will be as under: redemptions / switches Applicable NAV for Subscriptions / Switch-ins (irrespective of This is the time before which application amount): your application (complete in all 1. In respect of valid applications received upto 3.00 p.m. on a respects) should reach the Business Day at the official point(s) of acceptance and funds for the official points of acceptance entire amount of subscription/purchase (including switch ins) as per the application are credited to the bank account of the respective Investment Strategy before the cut-off time i.e., available for utilization before the cut-off time - the closing NAV of the day shall 55be applicable. 2. In respect of valid applications received after 3.00 p.m. on a Business Day at the official point(s) of acceptance and funds for the entire amount of subscription/purchase (including switch ins) as per the application are credited to the bank account of the respective Investment Strategy before the cut-off time of the next Business Day i.e., available for utilization before the cut-off time of the next Business Day - the closing NAV of the next Business Day shall be applicable. 3.Irrespective of the time of receipt of application at the official point(s) of acceptance, where funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the respective Investment Strategy before the cut- off time on any subsequent Business Day - i.e., available for utilization before the cut-off time on any subsequent Business Day - the closing NAV of such subsequent Business Day shall be applicable. 4. The aforesaid provisions shall also apply to systematic transactions i.e., Systematic Investment Plan (SIP), Systematic Transfer Plan (STP). For determining the applicable NAV for allotment of units in respect of purchase / switch-in to the Investment Strategys, the following shall be ensured: i. Application / switch-in request is received before the applicable cut-off time. ii. Funds for the entire amount of subscription / purchase as per the application / switch-in request are credited to the bank account of the respective Investment Strategy(s) before the cut-off time. iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective Investment Strategy(s). iv. In case of switch transactions from one Investment Strategy to another Investment Strategy, the allocation shall be in line with the redemption payout. For Redemption/ Switch out: In respect of valid applications accepted at an Official Point of Acceptance upto 3.00 p.m. on a Business Day, the closing NAV of the same day will be applicable; and in respect of valid applications accepted at an Official Point of Acceptance after 3.00 p.m., the closing NAV of the next Business Day will be applicable. Minimum Amount for purchase First time Purchase – INR 1000000/- and in multiples of INR 1/- /redemption / switches in an thereafter. Option of the Investment Strategy Minimum amount for accredited investor during NFO and Continuous basis: Rs.1,00,000/- and in multiples of Re. 1/- thereafter. 56Note: If investment is made in only one investment strategy of DynaSIF, then minimum investment threshold is Rs. 10,00,000/- and in multiple of Rs 1/- thereafter. However, if investment is made in multiple investment strategies of DynaSIF then aggregate investment by an investor across multiple investment strategies of DynaSIF, shall not be less than 10,00,000/-. This requirement is not applicable to accredited investor. Additional Purchase – INR 20,000 and in multiples of Rs 1 thereafter. Redemption There will be no minimum redemption amount. The redemption will be subject to compliance with provisions mentioned under Minimum Investment threshold. If the balance falls below then the threshold, the entire holding will be redeemed. Switches The minimum amount in case of inter/ intra Investment Strategy (inter plan/inter option) switches shall be the minimum amount required in the respective transferee Investment Strategy/plan. In accordance with Clause 6.10 of SEBI Master circular dated June 27, 2024 and SEBI Circular date March 21, 2025 (Alignment of interest of Designated Employees of Asset Management Companies (AMCs) with the Unitholders of the SIF Investment Strategy), the above provision will not be applicable for investments made in Investment Strategy 57Minimum threshold The AMC shall ensure that an aggregate investment by an investor across all investment strategies offered by the SIF, at the requirement and consequences Permanent Account Number (‘PAN’) level, is not less than INR 10 of non- maintenance lakh. Provided that, the above provisions shall not be applicable for mandatory investments made by AMC for designated employees under paragraph 6.10 of the Master Circular for Mutual Funds dated June 27, 2024. The AMC shall monitor compliance with the Minimum Investment Threshold on a daily basis and ensure that there are no active breaches. The AMC shall ensure that the investor's total investment value does not fall below the Minimum Investment Threshold due to redemption transactions initiated by the investor. (SO. 36) Passive breaches (occurrence of instances not arising out of omission and commission by AMC), such as those caused by a decline in Net Asset Value (NAV), shall not be treated as a violation of the Minimum Investment Threshold. However, if the total investment value falls below the threshold due to a passive breach, the investor shall only be permitted to redeem the entire remaining investment amount from the SIF. Active Breaches shall mean fall in the aggregate value of an investor’s total investment across all investment strategies of SIF, below the Minimum Investment Threshold of INR 10 lakh, on account of any transactions (i.e. redemption, transfer, sale etc.) initiated by the investor. In case of any active breach of the Minimum Investment Threshold by an investor including through transactions on stock exchanges or off-market transfers: (a) all units of such investor held across investment strategies of the concerned SIF shall be frozen for debit, and (b) a notice of 30 calendar days shall be given to such investor to rebalance the investments in order to comply with the Minimum Investment Threshold. Pursuant to the said notice issued to the investor: (i) in case investor rebalances his/her investments in SIF within the notice period of 30 calendar days, the units of SIF of such investor shall be unfreezed, and no further action shall be taken with regard to compliance with Minimum Investment Threshold. (ii) in case the investor fails to rebalance the investments within the aforesaid 30 calendar day period, the frozen units shall be automatically redeemed by the AMC, at the applicable Net Asset Value of the next immediate business day after the 30th calendar day of the notice period. Account Statements Pursuant to sub regulation (1), (2) and (4) of Regulation 36 of SEBI (Mutual Funds) Regulations, 1996 read with Clause of 5.4, 14.4, 585.8, 5.9, 5.12, 5.18 and 10.1 of SEBI Master circulars dated June 27, 2024, investors are requested to note the following regarding dispatch of account statements: • On acceptance of an application for subscription or allotment of units (including by way of SIP, STP, switch units), an allotment confirmation specifying the number of units allotted will be sent by way of an email and/or an SMS, within 5 Business Days from the date of receipt of a valid application, to the Unit holder’s registered e-mail address and/or mobile number. • Thereafter, the Unit Holder will be sent, on or before the 15th of the immediately succeeding month, by way of a mail / an e-mail, a CAS, containing the details of the transaction mentioned above as well as details of all other transactions effected by the Unit holder across Investment Strategy of all SIF during the preceding month, including his/her/its holdings at the end of the said month and details of transaction charges paid to distributors, as applicable. Investors may note that CAS will be issued on a monthly basis to all investors in whose folio’s transactions have taken place during the month concerned. • Consolidated account statement shall be issued every half yearly (September/March), on or before 21st day of succeeding month, providing the following information: - - holding at the end of the six months - The amount of actual commission paid by AMCs/SIF to distributors (in absolute terms) during the half-year period against the concerned investor’s total investments in each MF Investment Strategy. - Further, a mention may be made in such CAS indicating that the commission disclosed is gross commission and does not exclude costs incurred by distributors such as Goods and Service Tax (wherever applicable, as per existing rates), operating expenses, etc. The Investment Strategy’s average Total Expense Ratio (in percentage terms) for the half-year period for each Investment Strategy’s applicable plan (regular or direct or both) where the concerned investor has actually invested in. Such half-yearly CAS shall be issued to all MF investors, excluding those investors who do not have any holdings in MF Investment Strategys and where no commission against their investment has been paid to distributors, during the concerned half-year period. For further details, refer SAI. IDCW As per Clause 11.4 of SEBI Master Circular No. dated June 27, 2024, the IDCW shall be transfer to the Unitholders within 7 59working days from the record date. IDCW may also be paid to the Unitholder in any other manner viz., through ECS, Direct Credit or NEFT in to Bank account, RTGS facility offered RBI or through Banker's cheque, etc as the AMC may decide, from time to time for the smooth and efficient functioning of the Investment Strategy. Please note that it is mandatory for the unitholders to provide the bank account details as per SEBI guidelines. Redemption Process As per Clause 14.1 of SEBI Master Circular dated June 27, 2024, the redemption or repurchase proceeds shall be transferred to the unitholders not later than 3 working days from the date of redemption or repurchase, once the Investment Strategy opens for the same. Under exceptional circumstances, the redemption or repurchase proceeds shall be dispatched in physical form to the unitholders The Unit Holder has the option to request for Redemption either in amount in rupees or in number of Units. In case the investor mentions the number of Units as well as the amount, then the amount will be considered for processing the Redemption request. In case the investor mentions the number of units or the amount in words and figures, then the value in words will be taken for processing the Redemption request. If the redemption request amount exceeds the balance lying to the credit of the Unitholder’s said account, then the fund shall redeem the entire amount lying to the credit of the Unitholder’s account in that Investment Strategy/Option. If an investor has purchased Units on more than one Business Day, the Units purchased prior in time (i.e. those Units which have been held for the longest period of time), are deemed to have been redeemed first, i.e. on a First In First Out Basis. Where Units under a Investment Strategy are held under both Regular and Direct Plan and the redemption / Switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with the folio number), failing which the request would be processed from the Regular Plan. However, where Units under the requested Option are held only under one Plan, the request would be processed under such Plan a. Redemption through physical applications: A Transaction Slip or Common Transaction Form (CTF) can be used by the Unit Holder to request for Redemption. The requisite details should be entered in the Transaction Slip or CTF and submitted at an ISC. Transaction Slips or the CTF can be obtained from any of the 60ISCs. Payment of Proceeds Resident Investors: Redemption proceeds will be paid to the investor by way of transfer to bank account as available on the records of the Registrar. Physical despatch of redemption or repurchase proceeds shall be carried out only in exceptional circumstances as published by AMFI/ SEBI from time to time. In case of physical dispatch, the bank name and bank account number, as specified in the Registrar's records, will be mentioned in the cheque/demand draft. The redemption proceeds will be sent by courier or by postal services/UCP. The dispatch for the purpose of delivery through the courier / postal department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non- delivery or any consequences thereof, if the dispatch has been made correctly as stated in this paragraph. Note: The AMC, at its discretion at a later date, may choose to alter or add other modes of payment. The Redemption proceeds will be sent by courier or by postal service. The dispatch for the purpose of delivery through the courier / postal department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar is not responsible for any delayed delivery or non-delivery or any consequences thereof, if the dispatch has been made correctly as stated in this paragraph. Non-Resident Investors For NRIs, Redemption proceeds will be remitted depending upon the source of investment as follows: (i) Repatriation Basis: When Units have been purchased through remittance in foreign exchange from abroad or by cheque / draft issued from proceeds of the Unit Holder’s FCNR deposit or from funds held in the Unit Holder’s Non Resident (External) account kept in India, the proceeds can be remitted to the Unit Holder in foreign currency (any exchange rate fluctuation will be borne by the Unit Holder). The proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / Non-Resident (Ordinary) Account, if desired by the Unit Holder. (ii) Non Repatriation Basis: When Units have been purchased from funds held in the Unit Holder’s Non-Resident (Ordinary) Account, the proceeds will be sent to the Unit Holder’s Indian address for crediting to the Unit Holder’s Non-Resident (Ordinary) account. For FPIs, the designated branch of the authorised dealer may allow remittance of net sale / maturity proceeds (after payment of taxes) or credit the amount to the Foreign Currency account or 61Nonresident Rupee account of the FPI maintained in accordance with the approval granted to it by the RBI. The Fund will not be liable for any delays or for any loss on account of any exchange fluctuations while converting the Rupee amount in foreign exchange in the case of transactions with NRIs / FPIs. The proceeds may be paid by way of direct credit through which the investor’s bank account specified in the Registrar’s records is credited with the Redemption proceeds. The Direct Credit facility is available for specific banks with whom AMC have a tie up from time to time. Investors need to check with the AMC for an updated list of the Direct Credit Banks. Investors having bank mandates where the AMC has a Direct Credit facility will receive redemption / IDCW proceeds by way of Direct Credit only and not cheques. The Fund may make other arrangements for effecting payment of Redemption proceeds in future. 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 SIF/AMC/Registrar. Unit holders shall submit such request only through their respective Depository Participant or through stock exchange platforms. Application through Stock Exchange Infrastructure (MFSS/ BSE StAR MF Platform): Investors wishing to redeem their units held in demat mode in Scheme listed on MFSS and BSE StAR MF platform, can place their redemption request with the AMFI Certified Stock Exchange Brokers by providing Depository Instruction Slip with redemption details. The AMFI Certified Stock Exchange Broker will place the redemption order in the system and will provide a confirmation slip to the investor. The redemption proceeds will be directly credited to the investor’s bank account, as per the bank account details recorded with the Depository Participant. Application through MF Utility: All financial and non-financial transactions pertaining to Schemes of 360 ONE Mutual Fund can be done through MFU either electronically on www.mfuonline.com as and when such a facility is made available by MFUI or physically through the authorized Points of Service (“POS”) of MFUI with effect from the respective dates as published on MFUI website against the POS locations. The list of POS of MFUI is published on the website of MFUI at www.mfuindia.com as may be updated from time to time. The Online Transaction Portal of MFU i.e. www.mfuonline.com and the POS locations of 62MFUI will be in addition to the existing Official Points of Acceptance (“OPA”) of the AMC. The uniform cut-off time as prescribed by SEBI and as mentioned in the SID / KIM of respective schemes shall be applicable for applications received on the portal of MFUI i.e. www.mfuonline.com . However, investors should note that transactions on the MFUI portal shall be subject to the eligibility of the investors, any terms & conditions as stipulated by MFUI / Mutual Fund/ the AMC from time to time and any law for the time being in force. Investors are requested to note that, MFUI will allot a Common Account Number (“CAN”), 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 folios, if any. Investors can create a CAN by submitting the CAN Registration Form (CRF) and necessary documents at the MFUI POS. 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. Investors are requested to visit the websites of MFUI or the AMC to download the relevant forms. Bank Mandate As per the directives issued by SEBI, it is mandatory for applicants to mention their bank account numbers in their applications for purchase or redemption of Units. If the Unit-holder fails to provide the Bank mandate, the request for redemption would be considered as not valid and the Fund retains the right to withhold the redemption until a proper bank mandate is furnished by the Unit-holder and the provision with respect of penal interest in such cases will not be applicable/ entertained. Multiple Bank Account Registrations: In compliance with AMFI Best Practice Guidelines Circular No.17/2010-11 dated October 22, 2010 and AMFI Best Practice Guidelines Circular No. 26/2011-12 dated March 12, 2012, DynaSIF offers its investors the facility to register multiple bank accounts in their folios to receive redemption / IDCW proceeds. Registration of Multiple Bank Accounts in respect of an Investor Folio: An Investor can register with the Fund, upto 5 bank accounts in case of individuals and HUFs and upto 10 in other cases. Registering of Multiple Bank Accounts will enable the Fund to systematically validate the paying of funds and avoid acceptance of third party payments. For the purpose of registration of bank account(s), Investor should submit Bank Mandate Registration Form (available at the CSCs/ AMC Website) together with one of the following documents: a. Cancelled original cheque leaf in respect of bank account to be registered where the account number and names of the account holders are printed on the face of the 63cheque; or b. Bank statement or copy of Bank Pass Book page with the Investor's Bank Account number, name and address.; c. Bank letter / certificate on its letter head certifying the account holder’s name, account number and branch address [Such letter / certification should be certified by the Bank Manager with his / her full name, signature, employee code.] The above documents will also be required for change in bank account mandate submitted by the Investor. The AMC will register the Bank Account only after verifying that the sole/ first joint holder is the holder / one of the joint holders of the bank account. In case if a copy of the above documents is submitted, Investor shall submit the original to the AMC/ Service Centre for verification and the same shall be returned. In case of Multiple Registered Bank Account, Investor may choose one of the registered bank accounts for the credit of redemption/ IDCW proceeds (being "Pay-out bank account"). Investor may however, specify any other registered bank accounts for credit of redemption proceeds at the time of requesting for the redemption. Investor may change such Pay-out Bank account, as necessary, through written instructions. However, if request for redemption is received together with a change of bank account (unregistered new bank account) or before verification and validation of new bank account, the redemption request would be processed to the currently registered default old bank account. For further details please refer to paragraph on 'Registration of Multiple Bank Accounts in respect of an Investor Folio' in the SAI Discontinuation of Change of Bank Account Mandate along with redemption/IDCW proceeds facility: Discontinuation of Change of Bank Account Mandate along with redemption/IDCW proceeds facility. In compliance with AMFI Best Practice Guidelines Circular No.17/2010-11 dated October 22, 2010, consequent to introduction of “Multiple Bank Accounts Facility,” the existing facility of redemption/ IDCW proceeds with change of bank mandate is discontinued by the Fund w.e.f. November 15, 2010. New bank accounts can only be registered using the designated “Multiple Bank Account Registration Form”. Further please note the following important points in this regard: (i) Proceeds of any redemption/IDCW will be sent only to a bank account that is already registered and validated in the folio at the time of redemption transaction processing. (ii) Unit holder(s) may choose to mention any of the existing registered bank accounts with redemption/ IDCW payment request for receiving redemption/IDCW proceeds. If no registered 64bank account is mentioned, default bank account will be used. (iii) If unit holder(s) provide a new and unregistered bank mandate or change of bank mandate request with a specific redemption/IDCW payment request (with or without necessary supporting documents) such bank account may not be considered for payment of redemption/IDCW proceeds, or the Fund may withheld the payment for upto 10 calendar days to ensure validation of new bank mandate mentioned. Valid change of bank mandate requests with supporting documents will be processed within 10 business days of necessary documents reaching the office of RTA and any financial transaction request received in the interim will be carried based on previous details only. Delay in payment of As per Clause 14.2 of SEBI Master Circular dated June 27, 2024, the AMC shall be liable to pay interest to the unitholders at rate of 15% redemption/repurchase per annum and the interest shall be borne by the AMC proceeds Unclaimed Redemption/Income In accordance with Clause 14.3 of SEBI Master Circular dated June Distribution cum capital 27, 2024, the unclaimed Redemption amount and IDCW withdrawal (IDCW) Amount (SO. amount that are currently allowed to be deployed by the 52) Mutual Fund only in call money market or money market Instruments, shall also be allowed to be invested in a separate plan of only Overnight Investment Strategy / Liquid Investment Strategy / Money Market SIF Investment Strategy floated by DynaSIF specifically for deployment of the unclaimed amounts. Provided that such Investment Strategy where the unclaimed redemption and IDCW amounts are deployed shall be only those Liquid Investment Strategy / Money Market Mutual Fund Investment Strategy which are placed in A-1 cell (Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of Potential Risk Class matrix as per Clause 17.5 of SEBI Master Circular dated June 27, 2024. AMCs shall not be permitted to charge any exit load in this plan and TER (Total Expense Ratio) of such plan shall be capped as per the TER of direct plan of such Investment Strategy or at 50bps whichever is lower. Investors who claim these amounts during a period of three years from the due date shall be paid initial unclaimed amount along with the income earned on its deployment. Investors who claim these amounts after 3 years, shall be paid initial unclaimed amount along with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. AMC shall play a proactive role in tracing the rightful 65owner of the unclaimed amounts considering the steps suggested by regulator vide the referred circular. Disclosures w.r.t investment by As per Clause 17.6 of SEBI Master Circular dated June 27, 2024, minors (SO. 37) the following Process for Investments in the name of a Minor through a Guardian will be applicable: a. Payment for investment by any mode shall be accepted from the bank account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parents or legal guardian. For existing folios, the AMCs shall insist upon a Change of Pay-out Bank mandate before redemption is processed. Irrespective of the source of payment for subscription, all redemption proceeds shall be credited only in the verified bank account of the minor, i.e. the account the minor may hold with the parent/ legal guardian after completing all KYC formalities. b. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. No further transactions shall be allowed till the status of the minor is changed to major. c. AMCs shall build a system control at the account set up stage of Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP) on the basis of which, the standing instruction is suspended when the minor attains majority, till the status is changed to major. Please refer SAI for detailed process on investments made in the name of a Minor through a Guardian and Transmission of Units. Nomination The SEBI (Mutual Fund) Regulations notifies that the mutual fund shall provide nomination facility to the unit holders to nominate a person in whose favour the units shall be transmitted in the event of death of the unitholder. Any new investor, investing in SIF Units shall mandatorily have to provide nomination or Opt out of nomination through physical or online mode. The requirement of nomination shall be optional for jointly held folios. For detailed guidelines on Nomination please refer to SAI. KYC Rules All the prospective and existing investors / Unit holders of the Fund are requested to note that, pursuant to SEBI Master Circular on Know Your Client (KYC) norms for the securities market dated October 12, 2023 regarding uniformity in KYC process in the securities market and development of a mechanism for centralization of the KYC records, the following KYC procedure is being carried out: A) Requirement of PAN: 66• In order to strengthen the KYC norms and identify every participant in the securities market with their respective PAN thereby ensuring sound audit trail of all the transactions, PAN shall be the unique identification number for all participants transacting in the securities market, irrespective of the amount of transaction. • The following are exempted from the mandatory requirement of PAN: a.Transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc. (under the category of Government) for transacting in the securities market. b.Investors residing in the state of Sikkim. c.UN entities/multilateral agencies exempt from paying taxes/filing tax returns in India. d.SIP of Mutual Funds upto ₹50,000/- per year. B. List of Officially Valid Documents (OVDs): The aforesaid circular specifies list of documents considered as Officially Valid Documents for Proof of Identity (PoI) and Proof of Address (POA). C. Methods for completing KYC process and know your KYC status: Physical KYC process: • To bring uniformity in KYC process, SEBI has introduced a common KYC application form for all the SEBI registered intermediaries are therefore requested to use the Common KYC application form to apply for KYC and mandatorily undergo - In Person Verification (IPV) requirements. For Common KYC Application Form please visit our website. Digital KYC process: • The investor shall visit the website of the SIF and go on new investor section and fill up the required details and online KYC form and submit requisite documents. Digital KYC process will be in accordance with SEBI Master circular of KYC dated October 12, 2023. As per the KYC Guidelines, effective 01 April 2024 an Existing Customer with a Mutual fund would be able to transact freely with a “KYC Registered” status. For a new customer to a Mutual fund either Re-KYC with one of the officially valid document or Aadhar 67based KYC as a one-time activity needs to be done. Also note, if Re- KYC with any other officially valid documents apart from Aadhar will result in the customer re-doing it every time he invests with a new Mutual fund. Hence, it is recommended that you do KYC using Aadhar as a one- time activity so that you can transact freely in the mutual fund of your choice as Aadhar is the Universally accepted officially valid document. Existing investors with “KYC Registered” status can seamlessly transact with DynaSIF however new investors need to carry out a Re-KYC for investments in DynaSIF. Transactions from existing Investors as well as new investors with “KYC on Hold/Rejected” status will not be allowed to transact with DynaSIF and investors have to do Re-KYC. Any other disclosures in terms Risk Band (SO. 38) of consolidated checklist on The Band of the Investment Strategy shall be evaluated on a standard observations monthly basis and shall be disclosed on the SIF website and on AMFI website within 10 days from the close of each month. The risk level of Investment Strategy as on March 31 of every year, along with number of times the risk level has changed over the year, shall be disclosed on the SIF website and AMFI website. The Investment Strategy wise changes in Risk-o-meter shall be disclosed in Investment Strategy wise Annual Reports and Abridged summary. Investment Strategy Summary Document (SSD) In accordance with SEBI letter dated December 28, 2021 and AMFI emails dated March 16, 2022 and March 25, 2022, Investment Strategy summary document for all Investment Strategy of SIF in the requisite format (pdf, spreadsheet and machine readable format) shall be uploaded on a monthly basis i.e. 10th to 15th of every month or within 5 working days from the date of any change or modification in the Investment Strategy information on the website of DynaSIF i.e. https://www.360.one/dyna-sif , AMFI i.e. www.amfiindia.com and Registered Stock Exchanges i.e. National Stock Exchange of India Limited and Bombay Stock Exchanges Limited. 68III. Other Details A. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report Alternative Monthly and Half Yearly disclosure of Investment Strategy’s Portfolio: The SIF shall disclose portfolio (along with ISIN), including derivative instruments, as on the last day of every alternate month (i.e. as on the end of May, July, September, November, January and March) for all its investment strategies (including debt based investment strategies) on the respective SIF website https://www.360.one/dyna-sif and on the website of AMFI within 10 days from the close of such month in a user friendly nd downloadable spreadsheet format. All other provisions regarding portfolio disclosure applicable to Mutual Fund scheme, shall also be applicable to the investment strategies under the SIF. Further, AMC shall publish an advertisement in an all India edition of one national English daily newspaper and one Hindi newspaper, every half year, disclosing the hosting of the half-yearly statement of its investment strategies’ portfolio on the website of the SIF and AMFI and the modes through which unitholder(s) can submit a request for a physical or electronic copy of the statement of investment strategy portfolio. Half Yearly disclosure of Un-Audited Financials: The SIF shall within one month from the close of each half year (i.e. on 31st March and on 30th September) host a soft copy of the unaudited financial results of the Investment Strategy on the website of the SIF. Also, an advertisement disclosing the hosting of the unaudited financial results of the Investment Strategy on the website (https://www.360.one/dyna-sif) will be published, in atleast one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in language of the region where the Head Office of the SIF is situated. Annual Report The Investment Strategy wise annual report and abridged summary thereof shall be hosted on the website of the SIF (https://www.360.one/dyna-sif) and AMFI (www.amfiindia.com) not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year) and link for the same will be displayed prominently on the website of the SIF (https://www.360.one/dyna-sif). B. Scenario Analysis for Derivatives Positions The following table shows the performance of Nifty 50 index and potential performance of funds sector agnostic long and unhedged short portfolio (25% exposure) % alpha generated on both long and short portfolios With 0% With 5% alpha alpha With -3% alpha Nifty50 10.00% 10.00% 10.00% Funds' Stocks (long) portfolio 10% 15% 7.00% 69Fund's Stocks short portfolio 10% 5% 13.00% Nifty50 -10.00% -10.00% -10.00% Funds' Stocks (long) portfolio -10% -5% -13.00% Fund's Stocks short portfolio -10% -15% -7.00% Total AUM of Investment Strategy ₹ 10,00,00,000 Scenario 1: Without any unhedged short derivative exposure and 0% alpha Weight Net Asset PnL (Nifty Portfolio (NAV/Total PnL (Nifty down by 10%) Value(NAV) up by 10%) NAV) Equity 95.0% ₹9,50,00,000 ₹95,00,000 ₹ -95,00,000 Cash 5.0% ₹50,00,000 - - Total ₹10,00,00,00 ₹95,00,000 ₹ -95,00,000 100.0% 0 9.50% -9.50% Scenario 2: With 25% short exposure and zero alpha Weight Net Asset PnL (Nifty Portfolio (NAV/Total PnL (Nifty down by 10%) Value(NAV) up by 10%) NAV) Equity 70.0% ₹7,00,00,000 ₹70,00,000 ₹-70,00,000 Unhedged Futures Short 25.0% ₹2,50,00,000 ₹-25,00,000 ₹25,00,000 Cash 5.0% ₹50,00,000 - - ₹45,00,000 ₹ -45,00,000 ₹10,00,00,00 Total 100.0% 0 4.50% -4.50% Scenario 3: With 25% short exposure and 5% alpha Weight Net Asset PnL (Nifty Portfolio (NAV/Total PnL (Nifty down by 10%) Value(NAV) up by 10%) NAV) ₹1,05,00,00 Equity 70.0% ₹7,00,00,000 0 ₹-35,00,000 Unhedged Futures Short 25.0% ₹2,50,00,000 ₹-12,50,000 ₹ 37,50,000 Cash 5.0% ₹50,00,000 - - 7092,50,000 ₹2,50,000 ₹10,00,00,00 Total 100.0% 0 9.25% 0.25% Scenario 4: With 25% short exposure and 3% negative alpha Weight Net Asset PnL (Nifty Portfolio (NAV/Total PnL (Nifty down by 10%) Value(NAV) up by 10%) NAV) Equity 70.0% ₹7,00,00,000 ₹49,00,000 ₹-91,00,000 Unhedged Futures Short 25.0% ₹2,50,00,000 ₹-32,50,000 ₹17,50,000 Cash 5.0% ₹50,00,000 - - ₹16,50,000 ₹-73,50,000 ₹10,00,00,00 Total 100.0% 0 1.65% -7.35% Note: 1 Unhedged Short Derivatives may include exchange traded Futures and Options on equity securities 2 NAV is representative of the market value at the asset level and aggregates to 100% at the fund level. Note Unhedged Derivatives short portfolio is ledger entry which gets included in exposure calculation C. Liquidity risk management tools and its applicability - Not Applicable D. Transparency/NAV Disclosure (SO. 41) The NAV will be calculated by the AMC for each Business Day. The first NAV shall be calculated and declared within 5 business days from the date of allotment. The SIF will update the NAVs on AMFI website www.amfiindia.com on or before 11.00 P.M. on the same business day and also on its website (https://www.360.one/dyna-sif ). In case of any delay, in uploading of NAV on AMFI Website, the reasons for such delay would be explained to AMFI in writing. If the NAV is not available before the commencement of Business Hours on the following day due to any reason, SIF shall issue a press release giving reasons and explaining when the SIF would be able to publish the NAV. Further the SIF will extend facility of sending latest available NAVs of the Investment Strategy to the Unit holders through SMS upon receiving a specific request in this regard. Also, information regarding NAVs can be obtained by the Unit holders / Investors by calling or visiting the nearest ISC. 71The SIF shall disclose portfolio (along with ISIN) including derivative instruments of the Investment Strategy as on the last day of the every alternate month on website of SIF (https://www.360.one/dyna- sif ) and AMFI (www.amfiindia.com) within 10 days from the close of such month respectively in a user friendly and downloadable spreadsheet format. In case of Unitholders whose e-mail addresses are registered, the SIF shall send via e-mail both the alternative month and half-yearly statement of Investment Strategy portfolio within 10 days from the close of each alternative month/ half-year respectively. Further, the SIF shall publish an advertisement in the all India edition of at least two daily newspapers, one each in English and Hindi every half-year disclosing the hosting of the half-yearly statement of the Investment Strategy portfolio on the website of the SIF (https://www.360.one/dyna-sif) and on the website of AMFI (www.amfiindia.com) and the modes such as SMS, telephone, email or written request (letter) through which a unitholder can submit a request for a physical or electronic copy of the statement of Investment Strategy portfolio. The SIF shall provide a physical copy of the statement of Investment Strategy portfolio, without charging any cost, on specific request received from a unitholder. The AMC will make available the Annual Report of the Investment Strategy within four months of the end of the financial year. E. Stamp duty Pursuant to Notification No. S.O. 4419(E) dated December 10, 2019, notification no. G.S.R. 19 (E) dated the January 8, 2020, Notification No. G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019, a stamp duty @ 0.005% of the transaction value would be levied on SIF transactions including switches(excluding redemptions), with effect from July 01, 2020. For further details, please refer SAI. F. Associate Transactions - Please refer to Statement of Additional Information (SAI). G. Taxation For details on taxation please refer to the clause on Taxation in the Investment Strategy Additional Information (SAI) apart from the following: 72Tax* Resident Investors Non-resident Investors Specialized Investment Fund Tax on dividend Taxable at income 20% / Taxable at Nil slab rates income slab rates# Capital Gain Long-term (held for more than 12.5% 12.5% Nil 12 months) for transfer on or after July 23, 2024^ Short-term (held for 12 months 20% 20% Nil or less) for transfer on or after July 23, 2024 1) *These should be increased by the surcharge as applicable and health & education cess @ 4%. 2) # 20% rate is applicable for (i) FPIs and (ii) units purchased in foreign currency. For other non-resident investor, such income is taxable as per applicable rate in India. 3) ^Any long-term capital gains arising on transfer of unit of an equity oriented mutual fund will be taxable without indexation benefit and on capital gains in excess of Rs. 1,25,000/-. This limit includes capital gains from listed equity shares and/or units of listed InvITs. Grandfathering benefit should also be available in certain cases. 4) Equity scheme will also attract securities transaction tax (STT) at applicable rates and the beneficial rate discussed above is subject to payment of STT. 5) Mutual Funds are required to deduct TDS @ 10% on IDCW payment (above Rs 5000) for resident unitholders and @ 20% (plus applicable surcharge and cess) for non-resident unitholders. No tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gain in the hands of resident unitholder and FPIs. For other non-resident unitholders, tax shall be deducted as per applicable rates. Tax treaty benefit, if any, should be provided to non-resident unitholders subject to providing certain information/documents as required (especially, tax residency certificate and Form 10F). 6) In certain cases, higher TDS may be applicable as per section 206AA (relating to non-furnishing of PAN). H. Rights of Unitholders - Please refer to SAI for details. I. List of official points of acceptance: please visit https://www.360.one/dyna-sif for list of official points of acceptances. J. Penalties, Pending Litigation or Proceedings, Findings Of Inspections Or Investigations For Which Action May Have Been Taken or is in the Process Of Being Taken By Any Regulatory Authority: (SO. 48) 731. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed. - Not Applicable 2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to share holders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed: None 3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. - None 4. Any pending material civil or criminal litigation incidental to the business of the SIF to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. - None 5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the ISID, or which has been notified by any other regulatory agency, shall be disclosed. – None Please visit https://www.360.one/dyna-sif for most updated details of penalties, pending litigation or proceedings. Notes: The Trustees have approved this Investment Strategy Information Document on September 05, 2025 and have ensured that the Investment Strategy is a new product offered by DynaSIF and is not a minor modification of the existing Investment Strategies. (SO. 65) (SO. 66) Notwithstanding anything contained in this Investment Strategy Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (SO. 63) For and behalf of 360 ONE Asset Management Limited Sd/- Place: Mumbai Date: Chief Executive Officer 74Where can you submit the filled up applications: DynaSIF Registrar and Transfer Agent CMS Collection Bankers 360 one Asset Management Computer Age Management HDFC Bank Limited Limited Services Limited (CAMS) Registered Office: Registered Office:360 ONE Registered Office: HDFC Bank House, Senapati Centre, Kamala City, New No. 10, Old No. 178, M.G.R. Bapat Marg, S.B. Marg, Lower Parel, Mumbai Salai, Nungambakkam, Chennai - Lower Parel, Mumbai - 400 013 - 400 013 600 034 www.hdfcbank.com India https://www.360.one/dyna-sif Contact Number: 1800 419 2267 Email id: enq_if@camsonline.com www.camsonline.com 75