LIC MF Technology Fund

DRAFT SCHEME INFORMATION DOCUMENT SECTION I Consolidate d Std. Obs. LIC MF Technology Fund 1 and 2 (An open-ended equity scheme investing in technology & technology-related companies) This product is suitable for Scheme Riskometer# Benchmark Riskometer investors who are seeking*: (as applicable)# As per AMFI Tier 1 Benchmark • Capital appreciation over Riskometer i.e. long term BSE TECk (TRI) • Investment in equity and equity related instruments of technology and technology related companies. Consolidated Std. Obs. 3 *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 scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. The Benchmark Riskometer is based on the evaluation of constituents of the Benchmark as on xxxxx. 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: XXXX New Fund Offer Closes on: XXXX Scheme re-opens on: XXXX Name of the Sponsor : Life Insurance Corporation of India (LIC) Name of Mutual Fund : LIC Mutual Fund Name of Asset Management Company : LIC Mutual Fund Asset Management Limited Name of Trustee Company : LIC Mutual Fund Trustee Private Limited 1Addresses, Website of the entities Mutual Fund: Asset Management Company: Trustee Company: LIC Mutual Fund LIC Mutual Fund Asset Management LIC Mutual Fund Trustee Limited Private Limited Registered Office: 4th Floor, Industrial Registered Office: Registered Office: Assurance Building, Opp. 4th Floor, Industrial Assurance Building, 4th Floor, Industrial Assurance Churchgate Station, Opp. Churchgate Station, Mumbai - Building, Opp. Churchgate Mumbai - 400 020. 400 020. Station, Mumbai - 400 020. CIN No: U67190MH1994PLC077858 CIN No: U65992MH2003PTC139955 Website: www.licmf.com The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of LIC Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.licmf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated xx January 2026. 2Index Sr. No. Particulars Page no. SECTION I I. HIGHLIGHTS/SUMMARY OF THE SCHEME 04 II. INFORMATION ABOUT THE SCHEME A. How will the Scheme allocate its assets? 11 B. Where will the Scheme invest? 15 C. What are the Investment Strategies? 15 D. How will the Scheme benchmark its performance? 23 E. Who manages the Scheme? 23 F. How is the Scheme different from existing Schemes of the Mutual Fund? 24 G. How has the Scheme performed? 25 H. Additional Scheme related disclosures 25 III OTHER DETAILS A. Computation of NAV 26 B. New Fund Offer (NFO) Expenses 27 C. Annual Scheme Recurring Expenses 27 D. Load Structure 31 SECTION II I. INTRODUCTION A. Definitions/Interpretation 33 B. Risk Factors 33 C. Risk Mitigation Strategies 48 II. INFORMATION ABOUT THE SCHEME A. Where will the Scheme Invest? 50 B. What are the investment restrictions? 52 C. Fundamental attributes 57 D. Index Methodology (For Index, ETFs and FOFs having one underlying domestic 58 ETF) E. Principles of incentive structure for market makers (for ETFs) 58 F. Floor and ceiling within a range of 5% of the intended asse allocation (only for 58 close ended debt Schemes) G. Other Scheme Specific Disclosures 58 III. OTHER DETAILS A. Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, 71 Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund (Applicable to Fund of Fund Schemes) B. Periodic Disclosure 71 C. Transparency/NAV disclosure 72 D. Transaction charges and stamp duty 72 E. Associate Transaction 73 F. Taxation 73 G. Rights of Unitholders 73 H. List of Official Points of Acceptance 73 I. Penalties, Pending Litigation or Proceedings, Findings of Inspections or 73 Investigations for which action may have been taken or is in the process of being 3taken by any Regulatory Authority 4Part I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the scheme LIC MF Technology Fund II. Category of the Scheme Thematic Fund III. Scheme type An open-ended equity scheme investing in technology & technology-related companies. IV. Scheme code The Scheme code shall be obtained at the time of launch. Consolid V. Investment objective The investment objective of the Scheme is to achieve long term ated Std. capital appreciation by predominantly investing in equity and equity Obs. 7 related instruments of technology & technology-related companies. Consolidated Std. There is no assurance that the investment objective of the Scheme will Obs.5 be achieved. VI. Liquidity/listing details Units can be purchased or redeemed at NAV related prices, subject to applicable Loads (if any), on every Business Day on an ongoing basis. Under normal circumstances, the AMC will dispatch Redemption proceeds within three working days from the date of Redemption request. In case of exceptional situations/circumstances listed in AMFI Circular No. AMFI/35P/MEM-COR/74/2022-23 dated 16th January 2023, redemption payment would be made within the permitted additional timelines. For details, please refer Statement of Additional Information (SAI). The Asset Management Company shall be liable to pay interest to the unitholders at 15% per annum rate as specified in paragraph 14.2 of SEBI Master Circular for Mutual Funds or such other rate as may be specified by SEBI from time to time, for the period of such delay. For details, please refer Statement of Additional Information (SAI). The units of the Scheme are not listed on any Stock Exchange. VII. Benchmark (Total BSE TECk TRI (Total Return Index) Return Index) The performance will be benchmarked to the Total Returns Variant of the Index. Justification for use of Benchmark: The benchmark of the Scheme has been selected in accordance with paragraph 1.9 of SEBI Master Consolidated Circular for Mutual Funds, from amongst those notified by AMFI as Std. Obs. 25 the first tier benchmark and the same is reflective of the category of the Scheme. About BSE TECk TRI: The BSE TECk index comprises constituents of the BSE 500 that are classified as members of the media & publishing, information technology & telecommunications sectors as defined by the BSE industry classification system. 5The composition of the aforesaid first tier benchmark is such that it is most suited for comparing the performance of the Scheme. The Trustee reserves the right to change the benchmark for evaluation of performance of the Scheme from time to time in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (Mutual Funds) Regulations, and other prevailing guidelines, if any. VIII. NAV disclosure The AMC will calculate and disclose the first NAV(s) of the Scheme not later than 5 (five) Business days from the date of allotment. Thereafter, the AMC shall update the Net Asset Value (NAV) of the Scheme on the website of LIC Mutual Fund (www.licmf.com) and on the website of Association of Mutual Funds in India (AMFI) (www.amfiindia.com) by 11.00 p.m. on every Business Day. For further details, please refer Section II. IX. Applicable timelines Redemption proceeds: Under normal circumstances, the AMC will dispatch Redemption proceeds within three working days from the date of Redemption request. In case of exceptional situations/circumstances listed in AMFI Circular No. AMFI/35P/MEM-COR/74/2022-23 dated 16th January 2023, the redemption payment would be made within the permitted additional timelines. For details, please refer SAI. Income Distribution cum Capital Withdrawal (IDCW) Proceeds: The payment of IDCW to the unitholders shall be made within seven working days from the record date. X. Plans and Options The Scheme has the following two plans: Plans/Options and sub options under the Scheme 1. Regular Plan is for investors who wish to route their investment through any distributor 2. Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Mutual Fund or through Registered Investment Advisor (RIA) and is not available for investors who route their investments through a Distributor The Regular and Direct plan will have a common portfolio. The Scheme has the following Options: 1. Growth Option 2. Income Distribution cum Capital Withdrawal (IDCW) Option IDCW Sub Options are: 1. Reinvestment of Income Distribution cum Capital Withdrawal Option. 2. Payout of Income Distribution cum Capital Withdrawal Option 6Default Option/ Sub option - Growth Option (In case Growth Option or IDCW Option/ Sub option is not indicated) *Amounts under IDCW option can be distributed out of investors capital (equalization reserve), which is part of sale price that represents realized gains. However, investors are requested to note that amount of distribution under IDCW option is not guaranteed and subject to availability of distributable surplus. For detailed disclosure on default plans and options, kindly refer SAI. XI. Load Structure Exit Load: 1. If units of the Scheme are redeemed / switched-out within 90 days from the date of allotment: a. Upto 12% of the units: No exit load will be levied b. Above 12% of the units: exit load of 1% will be levied 2. If units of the Scheme are redeemed / switched-out after 90 days from the date of allotment: No exit load will be levied. Load shall be applicable for switches between eligible Schemes of LIC Mutual Fund as per the respective prevailing load structure, however, no load shall be charged for switches between plans/options within the Schemes of LIC Mutual Fund. Pursuant to Paragraph 10.6 of SEBI Master Circular for Mutual Funds, no exit load shall be charged in respect of units allotted on reinvestment of Income Distribution cum Capital Withdrawal. In accordance with Paragraph 10.3.4 of SEBI Master Circular for Mutual Funds, the exit load, if any, charged by the Scheme shall be credited back to the Scheme after debiting applicable Goods and Service Tax, if any. The Trustees shall have a right to modify the exit load structure with prospective effect subject to a maximum prescribed under the Regulations. XII. Minimum Application During New Fund Offer: Amount/switch in Application Amount/Switch in – Rs.1,000/- and in multiples of Re.1 thereafter. SIP* Amount – 1. Daily – Rs. 100/- and in multiples of Re.1/- thereafter. 2. Monthly – Rs. 200/- and in multiples of Re.1/- thereafter. 3. Quarterly – Rs. 1,000/- and in multiples of Re.1/- thereafter *SIP Start date shall be after re-opening date of the scheme. On an ongoing basis: Application Amount/Switch in (Other than fresh purchase through 7SIP) – Rs.1,000/- and in multiples of Re.1 thereafter. SIP Amount – 1. Daily – Rs. 100/- and in multiples of Re.1/- thereafter. 2. Monthly – Rs. 200/- and in multiples of Re.1/- thereafter. 3. Quarterly – Rs. 1,000/- and in multiples of Re.1/- thereafter Note: Minimum Investment amount is not applicable in case of investments made by Designated Employees of the AMC pursuant to paragraph 6.10 of SEBI Master Circular for Mutual Funds. XIII. Minimum Additional Additional Purchase – Rs.500/- and in multiples of Re.1/- thereafter Purchase Amount Note: Minimum Investment amount is not applicable in case of investments made by Designated Employees of the AMC pursuant to paragraph 6.10 of SEBI Master Circular for Mutual Funds. XIV. Minimum Redemption Amount – Rs. 500/- and in multiples of Re.1/- thereafter Redemption/switch out or account balance whichever is lower (except demat units). amount XV. New Fund Offer Period NFO opens on: XXXX This is the period during NFO closes on: XXXX which a new scheme sells its units to the investors. The New Fund Offer of the Scheme shall remain open for minimum 3 working days and will not be kept open for more than 15 calendar days. Consolidated Std. Any changes in dates will be published through a Notice cum Obs. 34 Addendum on the website of LIC Mutual Fund i.e. www.licmf.com. XVI. New Fund Offer Price: Rs. 10 per unit This is the price per unit that the investors have to pay to invest during the NFO. XVII. Segregated portfolio/side The Scheme may create segregated portfolio of debt and money market pocketing disclosure instruments in case of a credit event and to deal with liquidity risk in line with regulatory guidelines. (Consolidated Std. Obs. Please refer SAI for the detailed procedure for creation of the 53) segregated portfolio and related disclosures. XVIII. Swing pricing disclosure Not Applicable XIX. Stock lending/short selling The Scheme will not engage in Short Selling. However, the Scheme may engage in Securities Lending and borrowing in accordance with the framework specified by SEBI. For details, please refer Statement of Additional Information. XX. How to Apply and other Application form and Key Information Memorandum may be details obtained from the offices of the AMC or Investor Services Centers of Consolid the RTA or downloaded from www.licmf.com. ated Std. Obs. 35 For further details, please refer paragraph “How to apply?” in section II. 8XXI. Investor Services Contact details for general service requests: For enquiries/service requests etc. the investors may contact: Phone: Toll Free number: 1800-258-5678 (Monday to Saturday, 9.00 am to 6.30 pm) or send an e-mail to: service_licmf@kfintech.com. Contact details for complaint resolution: For Feedback/Complaints/Grievances, you can email us at our email ID - redressal@licmf.com. If you are not satisfied with the resolution that you have received, you may contact our Investor Relations Officer at the below mentioned address: Ms. Srividya Baliga, Investor Relations Officer 4th Floor, Industrial Assurance Building, Opp. Churchgate Station, Mumbai – 400 020. Email: redressal@licmf.com Toll Free Number - 1800 258 5678 XXII Specific attribute of the Not applicable scheme (such as lock in, duration in case of target maturity scheme/close ended schemes) (as applicable) XXIII. Special product/facility SPECIAL PRODUCTS: available during the NFO • Systematic Investment Plan (including SIP Pause*, SIP Step up & on ongoing basis Facility, Micro SIP, Pocket SIP) • Systematic Transfer Plan (Fixed Systematic Transfer Plan and Capital Appreciation STP facility) * • Systematic Withdrawal Plan* (Monthly, Quarterly, Half Yearly and Yearly Option) • Automatic withdrawal of Capital Appreciation* *Available only during Ongoing Offer Period. The Investors will have an option to cancel the SIP, STP/SWP during the ongoing offer period, for details in this regard, please refer Statement of Additional Information. Note: The SIP start date in case of NFO registration shall be after the Scheme reopening date. SPECIAL FACILITIES: • Facility to transfer Dividend (IDCW) • Auto Switch Facility* • Acceptance of Transactions through Online platforms viz., o AMC Website – www.licmf.com o MF Central o MF Utilities 9o Stock Exchanges (NSE/ BSE) o Registrar and Transfer Agent platforms *Available only during New Fund Offer Period. For further details of above special products / facilities, kindly refer SAI. XXIV Weblink The Scheme being a new Scheme, the Total Expense Ratio and the Factsheet shall be available after the allotment of the units under the Scheme at the below mentioned links: ➢ Weblink of the Total Expense Ratio of the Scheme (Daily TER and last 6 months TER): https://www.licmf.com/sid- disclosure Weblink of the Factsheet: https://www.licmf.com/sid-disclosure XXV Application Support Block Investors also have an option to subscribe to units during the New Account (ASBA) Fund Offer period under the ASBA facility, which would entail blocking of funds in the investor’s Bank account, rather than transfer of funds, on the basis of an authorization given to this effect at the time of submitting the ASBA application form. The AMC shall allot Units within 5 business days from the date of closure of the NFO period. Units will be allotted in whole figure. For complete details on ASBA process, please refer SAI. 10Consolidate DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY d Std. Obs. 55 It is confirmed that: (i) The draft Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. (ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) The AMC has complied with the compliance checklist applicable for Scheme Information Consolidat Document and that there are no deviations from the regulations. ed Std. (vii) Notwithstanding anything contained in this Scheme Information Document, the provisions Obs. 63 of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. Consolidat (viii) The Trustees have ensured that the LIC MF Technology Fund approved by them is a new ed Std. product offered by LIC Mutual Fund and is not a minor modification of any existing Obs. 65 Scheme/fund/product. LIC Mutual Fund Asset Management Limited sd/- Place: Mumbai Mayank Arora Date: xxx2026 Chief Compliance Officer & Company Secretary 11Part II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation of the Scheme would be as follows: Indicative allocations (% of total assets) Instruments Minimum Maximum Equity and Equity related instruments of 80 100 technology and technology related companies Equity and Equity related instruments of other 0 20 than above companies Debt and Money market instruments 0 20 Units issued by Infrastructure Investment Trusts 0 10 (InvITs) The Cumulative gross exposure through equity, debt, derivatives positions,Infrastructure Investment Consolid Trusts (InvITs), Repo in Corporate Debt Securities and other permitted securities/assets and such ated Std. other securities/assets as may be permitted by SEBI from time to time will not exceed 100% of the Obs. 17 net assets of the Scheme in accordance with paragraph 12.24 of SEBI Master Circular for Mutual Funds. Consolid Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any ated Std. exposure. SEBI vide letter dated 3rd November 2021 has clarified that Cash Equivalent shall consist Obs. 14 of Government Securities, T-Bills and Repo on Government Securities having residual maturity of less than 91 days. Indicative Table Sl. No. Type of Instrument Percentage of exposure Circular references (Consolidated Std. Obs. 19) 1. Securities Lending 1. Not more than 20% of the net assets of Paragraph 12.11 of SEBI a Scheme can generally be deployed in Master Circular for Stock Lending. Mutual Funds 2. Not more than 5% of the net assets of a Scheme can generally be deployed in Stock Lending to any single counter party. 2. Derivatives (Equity) The Scheme may invest up to 50% of Paragraph 7.5 and 12.25 of Equity Assets of the Scheme into equity SEBI Master Circular for (Investment in derivatives instruments. Mutual Funds Consoli derivatives shall be for dated hedging, portfolio Std. balancing, non-hedging Obs. 20 purposes and such other purposes as may be permitted from time to time) 12Sl. No. Type of Instrument Percentage of exposure Circular references (Consolidated Std. Obs. 19) 3. Securitized Debt 0% - 4. Overseas Securities, 0% - ADRs/GDRs 5. InVITs The mutual fund under all its schemes Clause 13 of seventh shall not own more than 10% of units Schedule of SEBI (Mutual issued by a single issuer of InvITs. Funds) Regulations, 1996 read with Paragraph 12.21 The Scheme shall invest not more than: of SEBI Master Circular for Mutual Funds • 10% of its NAV in the units of InvITs; and • 5% of its NAV in the units of InvITs issued by a single issuer 6. AT1 and AT2 Bonds The Scheme may invest not more Paragraph 12.2 of SEBI than: Master Circular for Mutual • 10% of its NAV of the debt Funds portfolio of the scheme in such instruments; and • 5% of its NAV of the debt portfolio of the scheme in such instruments issued by a single issuer. 7. Any other instrument Triparty Repo (TREPS) As per the asset allocation pattern - Mutual Fund units The Scheme may invest in another Clause 4 of Seventh scheme (except fund of funds Schemes) Schedule of SEBI (Mutual under the AMC or any other mutual fund Funds) Regulations, 1996 without charging any fees, provided that the aggregate inter-scheme investment made by all Schemes under the same management or in Schemes under the management of any other asset management company shall not exceed 5% of the Net Asset Value of the Mutual Fund. Repo/ Reverse Repo The gross exposure to repo transactions Paragraph 12.18 of SEBI transactions in corporate in corporate debt securities shall not be Master Circular for Mutual debt securities more than 10% of the net assets of the Funds. Scheme. Further, the amount lent to counter-party under repo transaction in corporate debt securities will be included in single issuer debt instrument limit. Short Term Deposits of The Scheme shall park not more than Paragraph 12.16 of SEBI Scheduled Commercial 15% of their net assets in short-term Master Circular for Mutual Banks – pending deposits of all scheduled commercial Funds. deployment banks put together. This limit, however, 13Sl. No. Type of Instrument Percentage of exposure Circular references (Consolidated Std. Obs. 19) may be raised to 20% with prior approval of the Trustees. Further, the parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of the total deployment by the Mutual Fund in short term deposits. The Scheme shall park not more than 10% of the net assets in short term deposits with any one scheduled commercial bank including its subsidiaries. Debt Instruments with 0% - Structured Obligations / Credit Enhancement Covered call option The Scheme may write call options only Paragraph 12.25.8 of SEBI under a covered call strategy for Master Circular for Mutual constituent stocks of NIFTY 50 and BSE Funds SENSEX, and any other stock as and when allowed by SEBI, subject to the following: A) The total notional value (taking into account strike price as well as premium value) of call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme. B) The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances Credit Default Swaps 0% - The Scheme does not intend to invest in the following instruments: Conso Sr. No. Type of the Instruments lidated 1. Overseas Securities, ADRs/GDRs Std. 14 Obs. 182. Debt Instruments with Structured Obligations / Credit Enhancement 3. Credit Default Swaps 4. Debt/ Fixed Income Derivatives 5. Unrated Debt instruments 6. Securitized Debt Portfolio rebalancing due to passive breaches: As per Paragraph 2.9 of SEBI Master Circular for Mutual Funds, in the event of any deviation from Consol the mandated asset allocation due to passive breaches (occurrence of instances not arising out of idated omission and commission of the AMC), the Investment Manager shall rebalance the portfolio Std. within 30 business days from the date of said deviation. Where the portfolio is not rebalanced within Obs. 30 business days, justification in writing including details of efforts taken to rebalance the portfolio 22 & shall be placed before the Investment Committee. The Investment Committee, if so desires, can 24 extend the timelines up to 60 business days from the date of completion of mandated rebalancing period. In case the portfolio of the scheme is not rebalanced within the aforementioned mandated plus extended timelines, AMC shall not be permitted to launch any new scheme till the time the portfolio is rebalanced. The AMC shall not levy exit load, if any, on the investors exiting such scheme. The AMC will comply with the reporting and disclosure requirements as stated in Paragraph 2.9 of SEBI Master Circular for Mutual Funds, and other applicable guidelines and circulars issued from time to time. Short Term Defensive Consideration: Consoli As per Paragraph 1.14.1.2 of SEBI Master Circular for Mutual Funds, the asset allocation pattern dated given above may be altered by the Investment Manager for a short-term period on defensive Std. considerations. In the event of any deviations, the Investment Manager shall rebalance the portfolio Obs. 23 within 30 calendar days from the date of said deviation. Timelines for deployment of Funds mobilized in a New Fund Offer (NFO) as per asset allocation of the scheme: In terms of SEBI Circular dated 27th February 2025, AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. The Investment Committee may extend the timeline by 30 business days, while also making recommendations on how to ensure deployment within 30 business days going forward and monitoring the same. The Investment Committee shall examine the root cause of the delay in deployment before granting approval for part or full extension. The Investment Committee shall not ordinarily give part or full extension where the assets for any scheme are liquid and readily available. Trustees shall monitor the deployment of funds collected in NFO and take steps, as may be required, to ensure that the funds are deployed within a reasonable timeframe. The Mutual Fund/AMC shall make investment out of the NFO proceeds only on or after the closure of the NFO period. The Mutual Fund/ AMC can however deploy the NFO proceeds in Tri-Party Repo before the closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on funds deployed in Tri-party Repo during the NFO period. The appreciation received from investment in Tri-Party Repo shall be passed on to investors. 15B. WHERE WILL THE SCHEME INVEST? Consolidated Std. Obs. 29 The objective of the investment scheme is to achieve long-term capital appreciation by predominantly investing in equity and equity related instruments of technology & technology-related companies. There can be no assurance that the investment objective of the scheme will be achieved. A. Equity & equity related instruments including REITs and Derivatives (for hedging, portfolio rebalancing, non hedging purpose and such other purposes as may be permitted by SEBI from time to time). Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals. B. Debt 1. Government Debt including Treasury Bills and Securities created and issued by the Central and State Governments 2. Certificate of Deposit (CD) 3. Triparty Repo (TREPS) 4. Commercial Paper (CP) 5. Non-Convertible Debentures and Bonds 6. Floating Rate Bonds 7. Repo/ Reverse Repo 8. ATI and AT2 bonds 9. Short Term deposit of Scheduled Commercial Banks (pending deployment) as per applicable guidelines. 10. Repo/Reverse Repo in Corporate Debt Securities 11. Non-Convertible Preference Shares C. Mutual Fund Units D. Units issued by InvITS Such other securities/assets as may be permitted by SEBI from time to time. Consolidate The Scheme may undertake interscheme transfers subject to compliance of the provisions of d Std. Obs. Paragraph 12.30 of SEBI Master Circular for Mutual Funds. 30 Investments in Instruments stated above will be as per the limits specified in the asset allocation table as mentioned subject to restrictions / limits laid under SEBI (Mutual Funds) Regulations 1996 mentioned under section 'WHAT ARE THE INVESTMENT RESTRICTIONS?' C. WHAT ARE THE INVESTMENT STRATEGIES? Consolidated Std. Obs. 27 & 28 The objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of technology & technology-related companies. Further, the Scheme shall follow an active investment strategy. India is undergoing a rapid digital transformation, driven by technology adoption across 16businesses and consumers. Factors such as increasing internet penetration, smartphone usage, cloud migration, automation, and the rise of e-commerce and fintech are reshaping the economic landscape. Technology is no longer a standalone sector; it is becoming the backbone of every industry, enabling efficiency, scalability, and innovation. Over the past decade, technology and digital platforms have evolved from being support functions to becoming core drivers of growth. Businesses are leveraging data, artificial intelligence, and automation to enhance productivity and customer experience. Consumers, on the other hand, are embracing digital services for shopping, payments, entertainment, and communication. This structural shift is creating long-term opportunities for companies that build, enable, or benefit from technology and digitization. This investment strategy aims to capture these opportunities by investing predominantly in equity and equity-related securities of companies which are a part of Technology, Internet and Digital, Data Centers and ancillary and E-commerce/Q-commerce (T.I.D.E.). The Scheme will allocate 80–100% of the portfolio to such businesses, while retaining flexibility to invest up to 20% of the scheme's assets outside the primary technology theme. Portfolio construction will be market-cap agnostic, combining bottom-up stock selection (based on quality, growth prospects, management strength, and valuations) with top-down thematic views on digital adoption and technology cycles. The emphasis will be on companies with robust business models, strong competitive positions, and high governance standards. Indicative Investment Universe The Scheme will invest across businesses that are part of or benefit from technology and digitization, including but not limited to: • IT Services, Consulting & Outsourcing • Software & Platforms (SaaS (Software as a Service), PaaS (Platform as a Service), DaaS (Desktop/Data as a Service) and DBaaS (Database as a Service)) • IT Products & Hardware; Semiconductors; Electronics & Components • Internet Companies; E-Commerce; Consumer Tech; Fintech; Digital Service Providers; IoT • Telecom Services & Equipment; Networking; Digital Infrastructure & Data Centers • Media & Information Services; Data Analytics; Automation; AI; Cloud Computing; Robotics • Consumer Services where technology is an integral part. • Any other industry/sector that forms part of the benchmark index. Please note: The above list is indicative. The Fund Manager may add other businesses that fall within the Technology sector or benefit from digitization. Portfolio Construction & Selection • Research Framework: Rigorous fundamental analysis of management quality, business competitiveness, governance, growth prospects, track record, and valuations. • Thematic Filters: Focus on companies driving or benefiting from digital transformation. • Market Cap Allocation: Market-cap agnostic—exposure across large-cap, mid-cap, and small-cap companies to capture growth opportunities at different stages. Further, for determining list of the companies eligible under technology theme the AMC will consider the basic Industry list published by BSE Indices for BSE TECk Index. Please refer link https://www.bseindices.com/indices-details/code/45/” for current index methodology document published by BSE Indices. 17The Scheme will invest across market capitalization. The portfolio will be built utilising a combination of top-down and bottom-up stock selection process supported by in-house research. Essentially, the focus would be on fundamentally strong companies with scope for growth over time. The AMC, in selecting the scrips, would focus on the fundamentals of the business, the industry structure, the quality of management sensitivity to economic factors, the financial strength of the company and the key earning drivers. Investment in Equity Derivatives The Fund's trading in derivatives would be in line that is permitted by SEBI Regulations from time to time. The Mutual Fund may use various derivatives and hedging products/ techniques, in order to seek to generate better returns for the Scheme. Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index. The Scheme while investing in equities shall transact in exchange traded equity derivatives only and these instruments may take the form of Index Futures, Index Options, Futures and Options on individual equities/securities and such other derivative instruments as may be appropriate and permitted under the SEBI Regulations and guidelines from time to time. Advantages of Trading in Derivatives Advantages of derivatives are many. The use of derivatives provides flexibility to the Schemes to hedge whole or part of the portfolio. The following section describes some of the more common derivatives transactions along with their benefits: Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the value of an underlying primary financial instrument, commodity or index, such as interest rates, exchange rates, commodities and equities. Futures A futures contract is a standardized contract between two parties where one of the parties commits to sell, and the other to buy, a stipulated quantity of a security at an agreed price on or before a given date in future. Currently, futures contracts have a maximum expiration cycle of 3 months. Three contracts are available for trading, with 1 month, 2 months and 3 months expiry respectively. A new contract is introduced on the next trading day following the expiry of the relevant monthly contract. Basic Structure of an Index Future The Stock Index futures are instruments designed to give exposure to the equity markets indices. The Stock Exchange, Mumbai (BSE) and The National Stock Exchange (NSE) have trading in index futures of 1, 2 and 3 month maturities. The pricing of an index future is the function of the underlying index and short-term interest rates. Index futures are cash settled, there is no delivery of the underlying stocks. Example using hypothetical figures: 1 month ABC Index Future If the Scheme buys 2,000 futures contracts, each contract value is 50 times the futures index price. 18Purchase Date: March 01, 2022 Spot Index:10,200.00 Future Price:10,300.00 Date of Expiry :March 20, 2022 Margin:10% Assuming the exchange imposes a total margin of 10%, the Investment Manager will be required to provide a total margin of approx. Rs. 103,000,000 (i.e. 10%*10300*2000*50) through eligible securities and cash. Assuming on the date of expiry, i.e. March 20, 2022, ABC Index closes at 10,350, the net impact will be a profit of Rs. 5,000,000 for the Scheme, i.e. (10,350-10,300) * 2000 * 50 (Futures price = Closing spot price = Rs. 10,350.00) Profits for the Scheme = (10,350-10,300) * 2000*50 = Rs. 5,000,000. Please note that the above example is given for illustration purposes only. Some assumptions have been made for the sake of simplicity. The net impact for the Scheme will be in terms of the difference of the closing price of the index and cost price. Thus, it is clear from the above example that the profit or loss for the Scheme will be the difference between the closing price (which can be higher or lower than the purchase price) and the purchase price. The risks associated with index futures are similar to those associated with equity investments. Additional risks could be on account of illiquidity and potential mis-pricing of the futures. Basic Structure of a Stock Future A futures contract on a stock gives its owner the right and obligation to buy or sell stocks. Single Stock Futures traded on NSE (National Stock Exchange) are cash settled; there is no delivery of the underlying stocks on the expiration date. A purchase or sale of futures on a security gives the trader essentially the same price exposure as a purchase or sale of the security itself. In this regard, trading stock futures is no different from trading the security itself. Example using hypothetical figures: The Scheme holds shares of ABC Ltd., the current price of which is Rs. 500 per share. The Scheme sells one month futures on the shares of ABC Ltd. at the rate of Rs. 540. If the price of the stock falls, the Mutual Fund will suffer losses on the stock position held. However, in such a scenario, there will be a profit on the short futures position. At the end of the period, the price of the stock falls to Rs. 450 and this fall in the price of the stock results in a fall in the price of futures to Rs. 470. There will be a loss of Rs. 50 per share (Rs. 500 - Rs. 450) on the holding of the stock, which will be offset by the profits of Rs. 70 (Rs. 540 - Rs. 470) made on the short futures position. Please note that the above example is given for illustration purposes only. Some assumptions have been made for the sake of simplicity. Certain factors like margins and other related costs have been ignored. The risks associated with stock futures are similar to those associated with equity investments. Additional risks could be on account of illiquidity and potential mis- pricing of the futures. 19Options An option gives a person the right but not an obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee. The premium is the price negotiated and set when the option is bought or sold. A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option. An option contract may be of two kinds: a) Call option An option that provides the buyer the right to buy is a call option. The buyer of the call option can call upon the seller of the option and buy from him the underlying asset at the agreed price. The seller of the option has to fulfil the obligation upon exercise of the option. b) Put option The right to sell is called a put option. Here, the buyer of the option can exercise his right to sell the underlying asset to the seller of the option at the agreed price. Option contracts are classified into two styles: (a) European Style In a European option, the holder of the option can only exercise his right on the date of expiration only. (b) American Style In an American option, the holder can exercise his right anytime between the purchase date and the expiration date. Basic Structure of an Equity Option In India, options contracts on indices are European style and cash settled whereas, option contracts on individual securities are American style and cash settled. Example using hypothetical figures: Market type : N Instrument Type : OPTSTK Underlying : ABC Ltd.(ABC) Purchase date : March 1, 2022 Expiry date : March 20, 2022 Option Type : Put Option (Purchased) Strike Price : Rs. 8,750.00 Spot Price : Rs. 8,800.00 Premium : Rs. 200.00 Lot Size : 100 No. of Contracts : 50 Say, the Mutual Fund purchases on March 1, 2022, 1 month Put Options on ABC Ltd. (ABC) on the NSE i.e. put options on 5000 shares (50 contracts of 100 shares each) of ABC. 20As these are American style options, they can be exercised on or before the exercise date i.e. March 20, 2022. If the share price of ABC Ltd. falls to Rs. 8,500/- on March 20, 2022, and the Investment Manager decides to exercise the option, the net impact will be as Follows: Premium Expense = Rs. 200 * 50 * 100 =Rs. 10,00,000/- Option Exercised at = Rs. 8,500/- Profits for the Mutual Fund = (8,750.00 - 8,500.00) * 50 * 100= Rs. 12,50,000/- Net Profit = Rs. 12,50,000 - Rs. 10,00,000 = Rs. 2,50,000/- In the above example, the Investment Manager hedged the market risk on 5000 shares of ABC Ltd. by purchasing put options. Please note that the above example is given for illustration purposes only. Some assumptions have been made for the sake of simplicity. Certain factors like margins have been ignored. The purchase of Put Options does not increase the market risk in the Mutual Fund as the risk is already in the Mutual Fund’s portfolio on account of the underlying asset position (in his example shares of ABC Ltd.). The Premium paid for the option is treated as an expense and added to the holding cost of the relevant security. Additional risks could be on account of illiquidity and potential mis-pricing of the options. Presently, the position limits for trading in derivatives by Mutual Fund are as follows: Position Limits The position limits for trading in derivatives by Mutual Funds specified by clause 12.25 of the Master Circular read with SEBI circular No. SEBI/HO/MRD/MRD-PoD- 2/P/CIR/2024/140 dated October 15, 2024 and SEBI circular No. SEBI/HO/MRD/TPD- 1/P/CIR/2025/79 dated May 29, 2025 are as follows: i) Position limit for Mutual Funds in index options contracts a) The Mutual Fund position limit in all index options contracts on a particular underlying index shall be INR 500 crore or 15% of the total open interest of the market in index options, whichever is higher, per Stock Exchange. b) This limit would be applicable on open positions in all options contracts on a particular underlying index. (ii) Position limit for Mutual Funds in index futures contracts a) The Mutual Fund position limit in all index futures contracts on a particular underlying index shall be INR ,500 crore or 15% of the total open interest of the market in index futures, whichever is higher, per Stock Exchange. b) This limit would be applicable on open positions in all futures contracts on a particular underlying index. (iii) Additional position limit for hedging In addition to the position limits at point (i) and (ii) above, Mutual Funds may take exposure in equity index derivatives subject to the following limits: 1. Short positions in index derivatives (short futures, short calls and long puts) shall not exceed (in notional value) the Mutual Fund’s holding of stocks. 212. Long positions in index derivatives (long futures, long calls and short puts) shall not exceed (in notional value) the Mutual Fund’s holding of cash, government securities, T-Bills and similar instruments. (iv) Position limit for Mutual Funds for stock based derivative contracts The Mutual Fund position limit in a derivative contract on a particular underlying stock, i.e. stock option contracts and stock futures contracts will be as follows :- - The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL). (v) Position limit for each scheme of a Mutual Fund The scheme-wise position limit requirements shall be: a) For stock option and stock futures contracts, the gross open position across all derivative contracts on a particular underlying stock of a scheme of a mutual fund shall not exceed the higher of: 1. 1% of the free float market capitalization (in terms of number of shares). Or 2. 5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of contracts). b) This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange. c) For index based contracts, Mutual Funds shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index. Further, the exposure limits for trading in derivatives by Mutual Fund specified under Paragraph 12.25 of SEBI Master Circular for Mutual Funds, are as follows: 1. The cumulative gross exposure through equity, debt and derivative positions should not exceed 100% of the net assets of the scheme. 2. Mutual Funds shall not write options or purchase instruments with embedded written options except for the covered call strategy. 3. The total exposure related to option premium paid must not exceed 20% of the net assets of the scheme. 4. Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. 5. Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: • Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. • Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under limits mentioned in Point 1 • Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. • 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. 6. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point 1 above. 227. Definition of Exposure in case of derivatives positions: Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows: Position Exposure Long Future Futures Price * Lot Size * Number of Contracts Short Future Futures Price * Lot Size * Number of Contracts Option bought Option Premium Paid * Lot Size * Number of Contracts. Covered call strategy The Scheme may write call options only under a covered call strategy for constituent stocks of NIFTY 50 and BSE SENSEX, and any other stock as and when allowed by SEBI, subject to the following: a) The total notional value (taking into account strike price as well as premium value) of call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme. b) The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances. c) At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph (a) and (b) above. In case of any passive breach of the requirement at paragraph (a), the respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing period, no additional call options can be written in the said scheme. d) In case a Mutual Fund Scheme needs to sell securities on which a call option is written under a covered call strategy, it must ensure compliance with paragraphs (a) and (b) above while selling the securities. e) In no case, a scheme shall write a call option without holding the underlying equity shares. A call option can be written only on shares which are not hedged using other derivative contracts f) The premium received shall be within the requirements prescribed in terms of Paragraph 12.25 of SEBI Master Circular for Mutual Funds i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets of the scheme. g) The exposure on account of the call option written under the covered call strategy shall not be considered as exposure in terms of Paragraph 12.24.1 of SEBI Master Circular for Mutual Funds. h) The call option written shall be marked to market daily and the respective gains or losses factored into the daily NAV of the Scheme until the position is closed or 23expired. Benefits of using Covered Call Strategy in Mutual Funds: The covered call strategy can help in earning income and hedging risk and subsequently result in better risk adjusted returns for the Scheme. Following are the benefits offered by this strategy: a. Hedge against market risk - Since the fund manager sells a call option on a stock already owned by the mutual fund scheme, the downside from fall in the stock price would be lower to the extent of the premium earned from the call option. b. Generating additional returns in the form of option premium in a range bound market. Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in the right direction Example of Covered Call Illustrations: Buy 100 stocks of Company A at Rs 1000 and write (sell) call options of the company A for the same month, with a strike price of Rs 1050. Assume the said option is trading at Rs 10. Thus, the total premium received for selling the call option is Rs 1000 (Rs 10*100 lot size). On the day of expiration of options contract: Scenario 1: Markets goes up and the stock price of company A goes upto Rs 1030 a) Gain on stock is Rs 3000. b) The call option will expire worthless (strike price is Rs 1050 and underlying price is Rs 1030). Thus, as a writer (seller) of call option, we can keep the premium of Rs 1000. c) Thus, net gain is Rs 4000 (Rs 3000 on underlying stock and Rs 1000 premium collected) Scenario 2: Markets goes up and the stock price of company A goes upto Rs 1100 a. Gain on stock is Rs 10000 b. The call option is in the money by Rs 50 (strike price is Rs 1050 and underlying price is Rs 1100). Thus, as a writer (seller) of call option we must pay Rs 5000 to option buyer (Rs 50) and we would receive option premium of Rs. 1000 (Rs. 10*100), thus, the total loss would be Rs. 4000 (Rs. 5000 – Rs. 1000 received as the option premium). c. Thus, net gain is Rs 6000 (Rs 10000 on underlying stock and Rs 4000 loss on option position) Scenario 3: markets goes down and the stock price of company A goes down to Rs 950 a) Loss on stock is Rs 5000 b) The call option will expire worthless (strike price is Rs 1050 and underlying price is Rs 950). Thus, as a writer (seller) of call option, we can keep the premium of Rs 1000. c) Thus, net loss is Rs 4000 (Rs 5000 on underlying stock and Rs 1000 premium collected) 24For detailed derivative strategies, please refer to SAI. PORTFOLIO TURNOVER: Portfolio Turnover is defined as the lower of the value of purchases or sales as a percentage of the average corpus of the Scheme during a specified period of time. Generally, the AMC encourages a low portfolio turnover rate. A high portfolio turnover may result in an increase in transaction, brokerage costs. However, a high portfolio turnover may also be representative of the arising trading opportunities to enhance the total return of the portfolio. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? BSE TECk TRI (Total Return Index) Consolidat Justification for use of Benchmark: The benchmark of the Scheme has been selected in ed Std. accordance with paragraph 1.9 of SEBI Master Circular for Mutual Funds from amongst those Obs. 25 notified by AMFI as the first tier benchmark and the same is reflective of the category of the Scheme. About BSE TECk TRI: The BSE TECk index comprises constituents of the BSE 500 that are classified as members of the media & publishing, information technology & telecommunications sectors as defined by the BSE industry classification system. The composition of the aforesaid first tier benchmark is such that it is most suited for comparing the performance of the Scheme. The Trustee reserves the right to change the benchmark for evaluation of performance of the Scheme from time to time in conformity with the investment objectives and appropriateness of the benchmark subject to SEBI (MF) Regulations, and other prevailing guidelines, if any. E. WHO MANAGES THE SCHEME? The following are the details of the fund manager within the AMC who will manage the investments of the Scheme:- Consolida ted Std. Obs. 33 Name and Age Educational Experience for the last 10 Name of other Schemes of the Fund Qualifications years managed by the Fund Manager Manager Over 11 years of experience in the Mr. Karan Doshi, • MMS (Finance) • LIC MF Midcap Fund Financial Services Industry. Fund Manager (36 Years) • Bachelor of • LIC MF Healthcare Fund • Fund Manager - Equity - LIC Engineering. (E.X.T.C) Mutual Fund Asset • LIC MF Dividend Yield Fund 25Management Ltd. (From May • LIC MF Unit Linked 2019) (Last position held Insurance Scheme (ULIS) Fund Manager - Equity & [Tenure for which (Equity Portion) Senior Equity Research the Fund Manager Analyst) has been • LIC MF Flexi Cap Fund managing the Scheme: Not • Co-Fund Manager - Equity & • LIC MF Children’s Fund applicable as it is Equity Analyst - LIC Mutual (Equity Portion) a New Scheme] Fund Asset Management Ltd. • LIC MF Conservative (January 2021 – 6th Hybrid Fund (Equity September 2021) Portion) • Equity Analyst - LIC Mutual • LIC MF Aggressive Fund Asset Management Ltd. Hybrid Fund (Equity (May 2019 – December Portion) 2020) • LIC MF Consumption Fund • Equity Analyst – Subhkam Ventures Pvt. Limited. (September 2013 – April 2019) Mr. Jaiprakash has overall 17 years Mr. Jaiprakash • CFA – CFA • LIC MF Banking & of experience in the Financial Toshniwal Fund Institute, USA Financial Services Fund Services Industry. Manager, (40 Years) • MS Finance (CFA) • LIC MF Flexi Cap Fund • Fund Manager – Equity – LIC - ICFAI, India Mutual Fund Asset Management • LIC MF Focused Fund • B.com – Gujarat Limited (From 24th July 2024) • LIC MF Multi Asset [Tenure for which University Allocation Fund (Equity the Fund Manager • Senior Equity Research Analyst & Portion) has been managing Fund Manager - LIC Mutual Fund the Scheme: Not Asset Management Ltd. (6th • LIC MF Balanced applicable as it is a September 2021 – 24th July 2024) Advantage Fund (Equity New Scheme] Portion) • Senior Equity Research Analyst - LIC Mutual Fund Asset Management Ltd. (28th January 2021 - 5th September 2021) • Equity Research Analyst - India First Life Insurance (16th August 2011 - 27th January 2021) • Equity Research Analyst - Taurus Mutual Fund (December 2009 - August 2011) F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? The detailed comparison of the Scheme with other Equity Schemes (list given below) of LIC Mutual 26Fund shall be available at the below-mentioned link after allotment of units under the Scheme: Weblink: https://www.licmf.com/sid-disclosure List of existing Equity Schemes: 1. LIC MF Large Cap Fund 2. LIC MF Large & Midcap Fund 3. LIC MF Mid cap Fund 4. LIC MF Small Cap Fund 5. LIC MF Multicap Fund 6. LIC MF Flexi Cap Fund 7. LIC MF ELSS Tax Saver 8. LIC MF Banking & Financial Services Fund 9. LIC MF Dividend Yield Fund 10. LIC MF Focused Fund 11. LIC MF Healthcare Fund 12. LIC MF Value Fund 13. LIC MF Unit Linked Insurance Scheme 14. LIC MF Infrastructure Fund 15. LIC MF Manufacturing Fund 16. LIC MF Consumption Fund G. HOW HAS THE SCHEME PERFORMED (if applicable) This Scheme is a new scheme and does not have any performance track record. H. ADDITIONAL SCHEME RELATED DISCLOSURES i. Scheme’s portfolio holdings: The Scheme is a new scheme and hence the same is not applicable. ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of debt and equity ETFs/index– Not applicable as LIC MF Technology Fund would be an active Scheme. iii. Functional website link for Portfolio Disclosure – The Scheme being a new Scheme the portfolio disclosure shall be made after the allotment of units under the Scheme at the below mentioned links: Sr. Frequency of Weblink No. Disclosure 1. Fortnightly Portfolio Not applicable as the Scheme is an equity Scheme. 2. Monthly Portfolio https://www.licmf.com/sid-disclosure 3. Half Yearly Portfolio https://www.licmf.com/sid-disclosure iv. Portfolio Turnover Rate: The Scheme is a new scheme and hence the same is not applicable. v. Aggregate investment in the Scheme by: Sr. Category of Persons Net Value Market Value 27No. (Fund Manager) Units NAV per unit The scheme being a new scheme and hence the same is not applicable Please refer Statement of Additional Information, for disclosure with respect to investments by key personnel and AMC directors. vi. Investments of AMC in the Scheme Consolidat ed Std. The AMC shall invest in the Scheme in accordance with SEBI (Mutual Funds) obs. 58 Regulations, 1996 as amended from time to time and shall not be entitled to charge any fees on such investment. The AMC shall invest such amounts in such schemes of the mutual fund, based on the risks associated with the schemes, as may be specified by SEBI from time to time. As per the existing SEBI (Mutual Funds) Regulations, 1996 the AMC will not charge Investment Management and Advisory fee on the investment made by it in the Scheme(s). In accordance with Paragraph 6.9 of SEBI Master Circular for Mutual Funds, the sponsor or asset management company shall invest in the growth option of the Scheme on the basis of risk value assigned to the scheme in terms of Paragraph 17.4 of SEBI Master Circular for Mutual Funds. During NFO, AMC’s investment shall be made during the allotment of units and shall be calculated as a percentage of the final allotment value excluding AMC’s investment. The investment shall be maintained at all points of time till the completion of tenure of the scheme or till the scheme is wound up. The AMC shall conduct a quarterly review to ensure compliance with the requirement of investment of minimum amount in the scheme which may change either due to change in value of the AUM or in the risk value assigned to the scheme. Further, based on review of quarterly average AUM, shortfall in value of the investment in scheme, if any, shall be made good within 7 days of such review. The AMC shall have the option to withdraw any excess investment than what is required pursuant to such review. In addition to mandatory investments under Regulation 25(16A) of the Regulations, the AMC may invest in the Scheme during NFO or during the continuous offer period subject to the SEBI (MF) Regulations. As per the existing SEBI (MF) Regulations, the AMC will not charge investment management and advisory fees on the investment made by it in the Scheme. Part III- OTHER DETAILS A. COMPUTATION OF NAV The Net Asset Value (NAV) per unit of the Scheme will be computed by dividing the net assets of the Scheme by the number of units outstanding under the Scheme on the valuation date. The Mutual Fund will value its investments according to the valuation Consolidated norms, as specified in Schedule VIII of the SEBI (Mutual Funds) Regulations, 1996 or Std. Obs. 42 such norms as may be specified by SEBI from time to time. NAV of units under Scheme shall be calculated as shown below: 28Market or Fair Value of the Scheme’s Investments + Current Assets – Current Liabilities and Provisions NAV per unit = --------------------------------------------------------------------------------------- No. of Units outstanding under the Scheme The NAV of the Scheme will be calculated and disclosed at the close of every Business Day. Separate NAV will be calculated and announced for each of the Options of the respective Plan(s) at the close of every Business Day. The NAVs will be calculated upto 4 decimals. Units will be allotted upto 3 decimals. Illustration of NAV: If the net assets of the Scheme, after considering applicable expenses, are Rs.10,05,55,700 and units outstanding are 1,00,00,000 then the NAV per unit will be computed as follows: 10,05,55,700 / 1,00,00,000 = Rs. 10.0556 per unit (rounded off to four decimals). a) Methodology of calculating sale/repurchase price The price or NAV a unitholder is charged while investing in Scheme is called sale or Consolida subscription price. Pursuant to paragraph 10.4.1.a of SEBI Master Circular for Mutual ted Std. Funds, no entry load will be charged by the Scheme to the unitholders. Obs. 47 Therefore, Sale or Subscription price = Applicable NAV – Statutory levies applicable, if any. For Example: An investor invests Rs. 20,000/- and the current NAV is Rs. 20/- (assuming there is no statutory levy) then the sale/subscription price will be Rs. 20/- and the investor will receive 20000/20 = 1000 units. b) Methodology of calculating repurchase price Repurchase or redemption price is the price or NAV at which scheme purchases or redeems its units from the Unitholders. It may include exit load, if applicable. The exit load, if any, shall be charged as a percentage of Net Assets Value (NAV) i.e. applicable load as a percentage of NAV will be deducted from the “Applicable NAV” to calculate the repurchase price. Therefore, Repurchase or Redemption Price = Applicable NAV *(1- Exit Load, if any). For example, If the Applicable NAV of the Scheme is Rs.10 and the Exit Load applicable at the time of investment is 2% if redeemed before completion of 1 year from the date of allotment of units and the unitholder redeems units before completion of 1 year, then the repurchase or redemption price will be: Rs. 10 * (1-0.02) =Rs.9.80. Consolida While determining the price of the units, the mutual fund will ensure that the repurchase ted Std. price of an open ended scheme is not lower than 97 per cent of the Net Asset Value. Obs. 47 Please refer Statement of Additional Information for details such as policies with respect to computation of NAV, rounding off, procedure in case of delay in disclosure of NAV etc. B. NEW FUND OFFER (NFO) EXPENSES 29These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid, marketing and advertising, registrar expenses, printing and stationary, bank charges etc. The entire NFO expenses will be borne by the AMC. C. RECURRING EXPENSES These are the fees and expenses for operating the scheme. 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: The AMC has estimated that upto 2.25% of the daily net assets of the Scheme will be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the AMC. Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fee Upto 2.25% Audit fees/fees and expenses of trustees Custodial Fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling Expenses including Agents Commission and statutory advertisement Costs related to investor communications Costs of fund transfer from location to location Cost towards investor education & awareness (2 bps) Brokerage & transaction cost (inclusive of GST) over and above 12 bps and 5 bps for cash and derivative market trades respectively Goods & Services Tax on expenses other than investment and advisory fees** Goods & Services Tax on brokerage and transaction cost Other Expenses (As per Reg 52 of SEBI (Mutual Funds) Regulations) Maximum Total expenses ratio (TER) permissible under Regulation 52 Upto 2.25% (6) (c) Additional expenses under Regulations 52(6A)(c)$ Upto 0.05% *Direct Plan under the aforementioned Scheme shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid / charged under the Direct Plan. ** Mutual funds /AMCs may charge GST on investment and advisory fees to the scheme in addition to the maximum limit of TER as prescribed in regulation 52 of the SEBI (Mutual Funds) Regulations, 1996 $ In terms of paragraph 10.1.7 of SEBI Master Circular for Mutual Funds, in case exit load is not levied/not applicable, the AMC shall not charge the said additional expenses. Consolidated The above indicative expenses would be applicable to the respective plans as mentioned in the above table. Std. Obs. 46 30The purpose of the above table is to assist the investor in understanding the various costs & expenses that the investor in the Schemes will bear directly or indirectly. The AMC shall update the current expense ratios on the website (www.licmf.com) at least three working days prior to the effective date of the change. The exact web link for TER is https://www.licmf.com/downloads/total-expense-ratio. The recurring expenses of the Scheme (including the Investment Management and Advisory Fees) shall be as per the maximum permissible limits prescribed under the SEBI (MF) Regulations. These are as follows: Slab Rates As a % of daily net Daily Net Assets assets (per annum) On the first Rs. 500 crore 2.25% On the next Rs. 250 crore 2.00% On the next Rs. 1,250 crore 1.75% On the next Rs. 3,000 crore 1.60% On the next Rs. 5,000 crore 1.50% On the next Rs. 40,000 crores Reduction of 0.05% for every increase of Rs.5,000 crores of daily net assets or part thereof. Balance of assets over and above Rs. 50,000 crores 1.05% The total expenses of the Scheme(s) including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (Mutual Funds) Regulations, 1996. Additional expenses incurred towards different permissible heads under sub- regulation 52(2) & 52(4), not exceeding 0.05 percent of daily net assets of the concerned scheme. Provided that such additional expenses shall not be charged to the schemes where the exit load is not levied or applicable. In Addition to expenses under Regulation 52 (6) and (6A), AMC may charge GST on investment and advisory fees, expenses other than investment and advisory fees and brokerage and transaction cost as below: a. GST on investment and advisory fees: AMC may charge GST on investment and advisory fees of the scheme in addition to the maximum limit of TER as per the Regulation 52(6). b. GST on expenses other than investment and advisory fees: AMC may charge GST on expenses other than investment and advisory fees of the scheme, if any within the maximum limit of TER as per the Regulation under 52(6). c. GST on brokerage and transaction cost: The GST on brokerage and transaction costs which are incurred for the purpose of execution of trade, will be within the limit of TER as per the Regulation 52(6). Further, it is clarified that the brokerage and transaction cost incurred for the purpose of execution of trade shall be charged to the Scheme upto 12 bps and 5 bps 31for cash market transactions and derivatives transactions (if permitted under the scheme) respectively. Any payment towards brokerage and transaction cost, over and above the said 12 bps cash market transactions may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations. At least 2 bps on daily net assets within the maximum limit of overall expense Ratio shall be annually set apart for investor education and awareness initiatives. These estimates have been made in good faith by the AMC and are subject to change inter-se. The total recurring expenses that can be charged to the Scheme will be subject to limits prescribed from time to time under the SEBI Regulations. Any other expenses that are directly attributable to the Scheme, and permissible under SEBI (Mutual Funds) Regulations, 1996 from time to time, may be charged within the overall limits as specified in the Regulations. The Scheme shall strive to reduce the level of these expenses so as to keep them well within the maximum limits currently allowed by SEBI and any revision in the said expenses limits by SEBI would be applicable. All scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not from the books of the Asset Management Companies (AMC), its associate, sponsor, trustee or any other entity through any route. Illustration of impact of expense ratio on scheme’s returns: Conso lidated Std. Obs. 44 Particulars Regular Plan Direct Plan Amount invested at the beginning of the year 20,000 20,000 (in Rs.) Returns before expenses (in Rs.) 2000 2000 Returns before expenses (%) 10% 10% Expenses other than Distribution 200 200 commission (in Rs.) Distribution Commission (in Rs.) 100 - Returns after expenses at the end of the Year 1700 1800 (in Rs.) Returns after expenses at the end of the Year 8.5% 9% (%) D. LOAD STRUCTURE Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of LIC Mutual Fund (www.licmf.com) or may call at (toll free no. 1800 258 5678) or at Official Point of Acceptance for Schemes of LIC Mutual Fund. (List of Official Point of Acceptance available on the website i.e. www.licmf.com). 32Type of Load Load chargeable (as %age of NAV) Exit 1. If units of the Scheme are redeemed / switched-out within 90 days Consolida from the date of allotment: ted Std. c. Upto 12% of the units: No exit load will be levied Obs. 47 d. Above 12% of the units: exit load of 1% will be levied 2. If units of the Scheme are redeemed / switched-out after 90 days from the date of allotment: No exit load will be levied. a. No exit load shall be levied for switching between Plans/Options within the Scheme. b. However, any subsequent switch-out or redemption of such investment from the Scheme shall be subject to exit load based on the original date of investment in the Scheme. c. No exit load will be levied on Bonus Units and Units allotted on Reinvestment of Income Distribution cum capital withdrawal option. Consol idate d. While determining the price of the units, the mutual fund will ensure that the repurchase d Std. Obs. price of an open ended scheme is not lower than 97 per cent of the Net Asset Value. 47 Under the Scheme, the Trustee reserves the right to modify / change the Load structure depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under the SEBI (MF) Regulations Exit load charged, if any, shall be credited to the Scheme. The investor is requested to check the prevailing load structure of the Scheme before investing. Any imposition or enhancement of Exit Load shall be applicable on prospective investments only. However, AMC shall not charge any load on issue of bonus units and units allotted on Reinvestment of Income Distribution cum Capital Withdrawal for existing as well as prospective investors. For any change in load structure AMC will issue an addendum and display it on the website/Investor Service Centres. In case of changes in load structure the addendum carrying the latest applicable load, structure shall be attached to all KIM and SID already in stock till it is updated. The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis). 33Section II I. Introduction A. Definitions/interpretation Definitions Definitions pertaining to the Scheme are available at the below link: https://www.licmf.com/sid- disclosure Interpretation For all purposes of the SID, except as otherwise expressly provided or unless the context otherwise requires: • All references to the masculine shall include the feminine and all references, to the singular shall include the plural and vice-versa. • All references to "Rs" refer to Indian Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand". • All references to timings relate to Indian Standard Time (IST). Consolidated Std. Obs. 8 B. RISK FACTORS: RISK ASSOCIATED WITH INVESTMENT IN EQUITIES: The scheme proposes to invest in technology & technology-related companies. By nature, Equity instruments are volatile and prone to price fluctuations on a daily basis due to both micro and macro factors. Given that the Scheme seeks to invest in equity/equity related instruments of the Companies engaged in technology space, the concentration is likely to be high. Further, the volatility and/or adverse performance of the concerned sectors and/or of the scrips belonging to these sectors would have a material adverse bearing on the performance of the Scheme. The following are other risks related to investing in equities: Market risk: Refers to any type of risk due to the market conditions such as volatility in the capital markets, interest rates, changes in Government policies, taxation laws etc. that may negatively affect the prices of the securities invested in by the scheme. Business risk: Risk related to uncertainty of income due to the nature of a company’s business. Government policy regarding implementation of international treaties like WTO etc. could affect the fortunes of many of the related companies where the scheme may invest. Imposition of tariff / non - tariff barriers and restrictions on labour by countries in the target markets may impact corporate earnings. Liquidity risk related to equity instruments: The liquidity risk is more prominent in 34case of sectoral securities. However the ability to sell these investments is limited by the overall trading volume on the stock exchanges. Securities that are unlisted carry a higher liquidity risk compared to listed securities. Settlement Risk: Trading volumes, settlement periods and transfer procedures may restrict the liquidity of these investments. Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities. Concentration risk: This risk arises from over exposure to few securities/issuers/sectors. Performance Risk: Performance of the Scheme may be impacted with changes in factors which affect the capital market. Risk Factors associated with Thematic Schemes: The scheme shall seek to generate capital appreciation by investing in a diversified portfolio of technology & technology-related companies. Investing in a thematic fund is based on the premise that the Fund will seek to invest in companies belonging to specific theme. This will limit the ability of the Fund to invest in other sectors. The portfolio consisting of technology & technology-related companies may result in higher levels of volatility vis-à-vis other diversified equity-oriented schemes. Since the scheme will predominantly be invested in technology & technology-related companies it is expected to have higher market liquidity risk compared to a regular diversified equity scheme. Also, in case of equity investing, there is the risk that companies in that specific sectors will not achieve its expected earnings results, or that an unexpected change in the market (due to Government Policies or Macro Economic factors) or within the company may occur, both of which may adversely affect investment results. Thus, investing in a thematic specific fund could involve potentially greater volatility and risk. RISK ASSOCIATED WITH INVESTMENT IN DERIVATIVE INSTRUMENTS: Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon Consoli the ability of the fund manager to identify such opportunities. Identification and execution dated of the strategies to be pursued by the fund manager involve uncertainty and decision of Std. fund manager may not always be profitable. No assurance can be given that the fund Obs. 28 manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are may be different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The Scheme may invest in derivative instruments. The derivatives will entail a counter- party risk to the extent of amount that can become due from the party. The cost of hedge can be higher than adverse impact of market movements. An exposure to derivatives in excess of the hedging requirements can lead to losses. An exposure to derivatives can also limit the profits from a genuine investment transaction. Efficiency of a derivatives market depends on the development of a liquid and efficient market for underlying securities and 35also on the suitable and acceptable benchmarks. RISKS ASSOCIATED WITH WRITING COVERED CALL OPTIONS FOR EQUITY SHARES In addition to the risks associated with derivative instruments, listed below are the risks associated with writing covered call options: • Market Risk: Appreciation in the underlying equity shares could lead to loss of opportunity in case of writing of covered call option. In case if the appreciation in equity share price is more than the option premium received, the appreciation in the scheme would be capped. • Liquidity Risk: This strategy of writing covered call in a scheme will be used, provided the scheme has adequate number of underlying equity shares as per regulatory requirement. Subsequently, the scheme will have to set aside a portion of investment in the underlying equity shares. Further, in case the covered call options are sold to the maximum extent as allowed under the purview of regulations, the scheme would be unable to sell the shares of the respective stock, to the extent that would be blocked under the covered call. Hence, if the call option contracts which have been written become illiquid, it may lead to a loss of opportunity or can cause exit issues • As a result, it may happen that the scheme is not able to sell the underlying equity shares immediately, which can lead to temporary illiquidity of the underlying equity shares and may result in loss of opportunity. RISK ASSOCIATED WITH INVESTMENT IN DEBT SECURITIES: 1. All debt securities are exposed to interest rate risks, credit risks and reinvestment risk. Different types of securities in which the scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly, the scheme's risk may increase or decrease depending upon its investment pattern e.g. corporate bonds carry a higher amount of risk than government securities. Further even among corporate bonds, bonds which are AAA rated are comparatively less risky than bonds which are AA rated. 2. Liquidity of scheme’s investment may be inherently restricted by trading volumes and settlement periods. The inability to sell the money market or debt securities held in the scheme’s portfolio due to the absence of a well-developed and liquid secondary market for such securities may result, at times in losses to the scheme, in case of subsequent decline in the value of such securities. RISK ASSOCIATED WITH INVESTMENTS IN REPO OF CORPORATE DEBT SECURITIES: COUNTERPARTY RISK: The Scheme may be exposed to counter-party risk in case of repo lending transactions in the event of the counterparty failing to honor the repurchase agreement. However, in repo lending transactions, the collateral may be sold and a loss is realized only if the sale value of the collateral is less than the repo amount. The risk may be further mitigated through over-collateralization (the value of the collateral being more than the repo amount). 36Further, the liquidation of underlying securities in case of counterparty default would depend on liquidity of the securities and market conditions at that time. It is endeavored to mitigate the risk by following an appropriate counterparty selection process, which include their credit profile evaluation and over- collateralization to cushion the impact of market risk on sale of underlying security. COLLATERAL RISK: Collateral risk arises when the market value of the underlying securities is inadequate to meet the repo obligations or there is downward migration in rating of collateral. Further if the rating of collateral goes below the minimum required rating during the term of repo or collateral becomes ineligible for any reason, counterparty will be expected to substitute the collateral. In case of failure to do so, AMC will explore the option for early termination of the repo trade. SETTLEMENT RISK: Corporate Debt Repo (CDR) shall be settled between two counterparties in the OTC segment unlike in the case of Government securities repo transactions where CCIL stands as central counterparty on all transactions which neutralizes the settlement risk. However, the settlement risk pertaining to CDRs shall be mitigated through Delivery versus Payment (DvP) mechanism which is followed by all clearing members. RISK FACTORS ASSOCIATED WITH INSTRUMENTS HAVING SPECIAL FEATURES (AT1 AND AT2 BONDS): If the Scheme invests in debt instruments having special features, the following risks associated with debt instruments having special features will be applicable. The risk factors stated below for investment in debt instruments having special features are in addition to the risk factors associated with Fixed Income Securities/Bonds stated above: i. The Scheme may invest in certain debt instruments with special features which may be subordinated to equity and thereby such instruments may absorb losses before equity capital. The instrument may also be convertible to equity upon trigger of a pre- specified event for loss absorption. Additional Tier I bonds and Tier 2 bonds issued under Basel III framework are some instruments which may have above referred special features. The debt instruments having such special features as referred above, would be treated as debt instruments until converted to equity. ii. The instruments may be subject to features that grant the issuer a discretion in terms of writing down the principal/coupon, to skip coupon payments, to make an early recall etc. Thus debt instruments with special features are subject to “Coupon Discretion”, “Loss Absorbency”, “Write down on Point of Non-Viability (PONV) trigger event” and other events as more particularly described as per the term sheet of the underlying instruments. iii. The instruments are also subject to Liquidity Risk pertaining to how saleable a security is in the market. The particular security may not have a market at the time of sale due to uncertain/insufficient liquidity in the secondary market, then the scheme may have to bear an impact depending on its exposure to that particular security. RISK ASSOCIATED WITH FLOATING RATE SECURITIES: The fund may invest in floating rate instruments. These instruments' coupon will be reset periodically in line with the benchmark index movement. The changes in the prevailing 37rates of interest will affect the value of the Plan's holdings and thus the value of the Plan's Units. The fund could be exposed to the interest rate risk (i) to the extent of time gap in resetting of the benchmark rates, and (ii) to the extent the benchmark index fails to capture the interest rate movement. Though the basis (i.e. benchmark) gets readjusted on a regular basis, the spread (i.e. mark-up) over benchmark remains constant. This can result in some volatility to the holding period return of floating rate instruments. If the floating rate asset is created by swapping the fixed return to a floating rate return then there may be an additional risk of counter-party who will pay floating rate return and receive fixed rate return. Due to the evolving nature of the floating rate market, there may be an increased degree of liquidity risk in the portfolio from time to time. RISK FACTORS ASSOCIATED WITH INVESTMENTS IN REITS AND INVITS • Market Risk: REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. Investors may note that AMC/Fund Manager’s investment decisions may not always be profitable, as actual market movements may be at variance with the anticipated trends. The NAV of the Scheme is vulnerable to movements in the prices of securities invested by the scheme, due to various market related factors like changes in the general market conditions, factors and forces affecting capital market, level of interest rates, trading volumes, settlement periods and transfer procedures. • Liquidity Risk: As the liquidity of the investments made by the Scheme(s) could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for liquidating the investments in the scheme may be high in the event of immediate redemption requirement. Investment in such securities may lead to increase in the scheme portfolio risk. • Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or IDCW pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that a Scheme’s investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. RISK ASSOCIATED WITH STOCK LENDING Risks associated with stock lending may include counter party risk, liquidity risk and other market risks. At present, there is no significant activity in the Securities Borrowing and Lending market. The Mutual Fund has so far not participated in Securities Lending market. However, we understand the risks associated with the securities lending business and the AMC will have appropriate controls (including limits) before initiating any such transactions. Risks associated with investing in TREPS Segments The mutual fund is a member of securities and TREPS segments of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in TREPS segments are settled centrally through the infrastructure and settlement systems provided by CCIL; thus reducing the settlement and counterparty risks considerably for transactions in the said segments. 38The 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). The mutual fund is exposed to the extent of its contribution to the default fund of CCIL at any given point in time. In the event that the default waterfall is triggered and the contribution of the mutual fund is called upon to absorb settlement/default losses of another member by CCIL, the scheme may lose an amount equivalent to its contribution to the default fund allocated to the scheme on a pro-rata basis. C. Risk Mitigation Strategies Consolidated Std. Obs. 9 Some of the risks and the corresponding risk mitigating strategies are listed below: •Risks associated with Equity and Equity related instruments Risk Risk Mitigation Strategy Market Risk Endeavour to have a well-diversified portfolio of good companies with the ability to use cash/derivatives for hedging. (The risk of losses due to adverse movements in overall market prices.) Business Risk Portfolio companies carefully selected to include those with (Risk associated to the nature of the perceived good quality of earnings. business of the Issuer Company) Derivatives Risk Endeavour to have a well-diversified portfolio by constructing appropriate derivative strategies and continuous monitoring of the (The risk associated with the use of derivatives positions and strict adherence to the regulations. derivatives due to complexity of these instruments.) Concentration Risk The Scheme shall endeavor to ensure diversification by investing across the spectrum of securities/issuers in technology & technology- (The risk arising from a large related space. Further, the fund will also endeavor to diversify by allocation to a single asset, sector ensuring investment in a mix of sub-sectors/allied sectors within the which can lead to significant losses technology & technology-related space, to reduce the concentration if that concentrated area risk. underperforms) Liquidity Risk Periodic Monitoring of portfolio liquidity. (The risk that an equity asset cannot be sold quickly without significantly affecting its price) Performance Risk Endeavour to have a well-diversified portfolio of good companies, (Risk arising due to change in carefully selected to include those with perceived good quality of factors affecting the market) earnings. •Risks associated with Debt and money market securities Risk Risk Mitigation Strategy Interest Rate Risk Active duration management strategy; control portfolio duration and actively evaluate the portfolio structure with respect to existing interest (The risk that changes in interest rate scenario. 39rates will affect the value of debt securities.) Market Risk/Volatility Risk There is risk of volatility in markets due to external factors like liquidity flows, changes in the business environment, economic policy (Risk arising due to vulnerability etc. The Scheme will manage volatility risk through diversification. to price fluctuations and volatility, having material impact on the overall returns of the scheme.) Concentration Risk Diversification by investing across the spectrum of issuers or sectors. (The risk of loss due to a large exposure to a single issuer, sector, or type of security.) Liquidity Risk Periodic Monitoring of portfolio liquidity. (The risk that a debt instrument cannot be sold quickly enough without a significant price concession.) Credit Risk Investment universe carefully defined to include issuers with high credit quality; critical evaluation of credit profile of issuers on an on- (The risk that the issuer of a debt going basis security will default on its payment obligations or the credit rating of the issuer gets downgraded.) •Risks associated with REITS/ INVITS: Risk Risk Mitigation Strategy Market Risk The valuation of the REIT/InvIT units may fluctuate based on economic (Risk arising due to conditions, fluctuations in markets (eg. real estate) in which the REIT/InvIT vulnerability to price operates and the resulting impact on the value of the portfolio of assets, fluctuations and regulatory changes, force majeure events etc. REITs & InvITs may have volatility, having volatile cash flows. Exposure to REITs and InvITs is capped as per SEBI material impact on the norms. The regulatory limits thus defined will be monitored and complied with overall returns of the to reduce risks inherent to these securities. scheme.) Liquidity Risk This refers to the ease with which REIT/InvIT units can be sold. There is no (The risk that an assurance that an active secondary market will develop or be maintained. instrument cannot be Hence there would be times when trading in the units could be infrequent. The sold quickly enough subsequent valuation of illiquid units may reflect a discount from the market without a significant price of comparable securities for which a liquid market exists. Regular price concession.) monitoring of the REITs and InvITs liquidity/ trading volume & changes in market conditions/ regulatory changes will help mitigate the same. Interest Rate Risk Generally, there would be an inverse relationship between the interest rates and (The risk that changes in the price of units. Regular monitoring and evaluating the portfolio structure interest rates will affect with respect to changing interest rate scenario. the value of the securities.) 40II. Information about the scheme: Consolidated Std. A. Where will the scheme invest? Obs. 29 The investment objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of technology & technology- related companies There is no assurance that the investment objective of the Scheme will be achieved. a. Equity & equity related instruments including REITs and Derivatives (for hedging, portfolio rebalancing, non hedging purpose and such other purposes as may be permitted by SEBI from time to time). Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals. b. Debt 1. Government Debt 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. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government Securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. 2. Certificate of Deposit (CD) Certificate of Deposit (CD) is a negotiable money market instrument issued by Scheduled Commercial Banks (SCBs) and select All India Financial Institutions (FIs) that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the SCBs is between 7 days to 1 year, whereas, in case of FIs, maturity is 1 year to 3 years from 47 the date of issue. CDs also are issued at a discount to face value and can be traded in secondary market. 3. Triparty Repo (TREPS) Tri-party Repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. The Scheme shall undertake Tri-party Repo transactions in Government Securities. 4. Commercial Paper (CP) 41Commercial 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. CP can be issued for maturities between a minimum of 15 days and a maximum up to 1 year from the date of issue. 5. Non Convertible Debentures and Bonds Non-convertible debentures as well as bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee, public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. The Scheme may also invest in the non-convertible part of convertible debt securities. 6. Floating rate Bonds Floating rate debt instruments are instruments issued by Central / State Governments, corporates, PSUs, etc. with interest rates that are reset periodically. 7. Repo/Reverse Repo Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, Central Government Securities, State Government securities, T-Bills and corporate debt securities are eligible for Reverse Repo. The Scheme intends to participate in Reverse Repo in Central Government Securities, State Government securities, T-Bills. The Scheme also intends to participate in repo transactions in corporate debt securities. 8. AT1 & AT2 Bonds (Debt with Special Features) The Scheme may invest in Additional Tier I bonds and Tier 2 bonds issued under Basel III framework in accordance with paragraph 12.2 of SEBI Master Circular for Mutual Funds. 9. Short Term Deposit of Scheduled Commercial Banks (pending) as per applicable guidelines Pending deployment of funds as per the investment objective of the Scheme, and for margin purposes, the funds may be parked in short term deposits of Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI from time to time. a) Mutual Fund Units The Scheme may also invest in other schemes managed by the AMC or in the schemes of any other mutual funds (without charging any fees) in conformity with the investment objective of the Scheme and in the terms of the prevailing SEBI (Mutual Funds) Regulations,1996. Provided the aggregate interscheme investment made by all the schemes under the same management or in schemes under management of any other asset management company shall not exceed 5% of the Net Asset Value of the Mutual Fund. 42b) Units issued by InvITs “InvIT” or “Infrastructure Investment Trust” shall have the meaning assigned in clause (za) of sub- regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 As per SEBI (Infrastructure Investment Trusts) Regulations, 2014, InvIT is defined as: “InvIT” or “Infrastructure Investment Trust” shall mean the trust registered as such under these regulations. Such other securities/assets as may be permitted by SEBI from time to time. Consolidat The Scheme may undertake interscheme transfers subject to compliance of the provisions of ed Std. Paragraph 12.30 of SEBI Master Circular for Mutual Funds. Obs. 30 Investments in Instruments stated above will be as per the limits specified in the asset allocation table as mentioned subject to restrictions / limits laid under SEBI (Mutual Funds) Regulations 1996 mentioned under section 'WHAT ARE THE INVESTMENT RESTRICTIONS?' Consolidated Std. Obs. 19 B. WHAT ARE THE INVESTMENT RESTRICTIONS? Investment restrictions as contained in the Seventh Schedule to SEBI (Mutual Funds) Regulations, 1996 and circulars issued thereunder and applicable to the Scheme have been given below: – 1) The Scheme shall not invest more than 10% of its NAV in the equity shares or equity related instruments of any entity. Provided that the limit of 10 per cent shall not be applicable for investment in case of index fund or exchange traded fund or sector or industry specific scheme. In case of sector or industry specific scheme, the upper ceiling on investments may be in accordance with the Weightage of the scrips in the representative sectoral index or sub index as disclosed in the SID or 10% of the NAV of the scheme, whichever is higher. The Scheme being thematic fund, pursuant to SEBI letter dated June 10, 2022, the upper ceiling on investment will be the weightage of scrip in the sectoral index or 10% of NAV of the Scheme, whichever is higher. 2) The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. Such investment limit may be extended to 12% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of the 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. 43Further, the Scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit. 3) Transfer of investments from one Scheme to another Scheme in the Mutual Fund shall be allowed only if: (i) such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall have the same meaning as specified by a stock exchange for spot transactions) (ii) the securities so transferred shall be in conformity with the investment objective & policies of the Scheme to which such transfer has been made. The interscheme transfer shall be done in compliance with paragraph 12.30 of SEBI Master Circular for Mutual Funds, as amended from time to time. 4) The Schemes may invest in another scheme (except fund of funds Schemes) under the AMC or any other mutual fund without charging any fees, provided that the aggregate inter-scheme investment made by all Schemes under the same management or in Schemes under the management of any other asset management company shall not exceed 5% of the Net Asset Value of the Mutual Fund. No investment management fees shall be charged for investing in other schemes of the fund or in the schemes of any other Mutual Fund. 5) The Mutual Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights or ten per cent of units of REITs issued by a single issuer, as the case may be. Provided that the Sponsor of the Fund, its associate or group company including the asset management company of the Fund, through the Scheme(s) of the Fund or otherwise, individually or collectively, directly or indirectly, shall not have 10% or more of the share- holding or voting rights in the asset management company or the trustee company of any other mutual fund. Provided further that in the event of a merger, acquisition, scheme of arrangement or any other arrangement involving the sponsors of the mutual funds, shareholders of the asset management companies or trustee companies, their associates or group companies which results in the incidental acquisition of shares, voting rights or representation on the board of the asset management companies or trustee companies beyond the above specified limit, such exposure may be rebalanced within a period of one year of coming into force of such an arrangement. 6) The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: 44Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. Provided that the Mutual Fund 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. Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by the Board. 7) The Mutual Fund shall get the securities purchased or transferred in the name of the Mutual Fund on account of the concerned Scheme, wherever the instruments are intended to be of a long term nature. 8) The Mutual Funds having an aggregate of securities worth Rs.10 crore or more as on the latest balance-sheet date, shall subject to such instructions as may be issued from time to time by SEBI, settle their transactions only through dematerialised securities. The Mutual Fund shall enter into transactions relating to Government Securities only in dematerialised form. 9) Pending deployment of funds of the Schemes in terms of the investment objective and policies of the Schemes, the Mutual Fund may invest the fund of the scheme in short term deposits of scheduled commercial banks subject to the guidelines as applicable from time to time. The Scheme(s) shall abide by the following guidelines for parking of funds in short term deposits: i. "Short Term" for parking of funds shall be treated as a period not exceeding 91 days. ii. Such short-term deposits shall be held in the name of the Scheme. iii. The Scheme(s) shall not park more than 15% of the net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee. iv. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. v. The Scheme(s) shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. vi. The Scheme(s) shall not park funds in short-term deposit of a bank, which has invested in the Scheme. vii. The AMC will not charge any investment management and advisory fees for funds under a Plan parked in short term deposits of scheduled commercial banks The aforesaid limits shall not be applicable to term deposits placed as margins for trading in cash and derivatives market. 10) The Scheme shall not make any investment in: (i) any unlisted security of any associate or group company of the Sponsor; or (ii) any security issued by way of private placement by an associate or group company 45of the Sponsor; or (iii) the listed securities of group companies of the Sponsor, which is in excess of 25% of the net assets of the scheme except for investments by equity-oriented exchange traded funds and index funds and subject to such conditions as may be specified by SEBI from time to time. 11) The Schemes shall not make any investment in any fund of funds scheme. 12) All Investments in derivative instruments shall be subject to the limits mentioned in SEBI circular as specified from time to time. 13) All investments by the Scheme shall be made only in listed or to be listed equity shares and equity related instruments. 14) No term loans for any purpose may be advanced by the Mutual Fund and the Mutual Fund shall not borrow except to meet temporary liquidity needs of the Schemes for the purpose of repurchase, redemption of Units or payment of interest or Income Distribution cum capital withdrawal to Unit Holders, provided that the Mutual Fund shall not borrow more than 20% of the net assets of each of the Schemes and the duration of such borrowing shall not exceed a period of six months. 15) The Scheme will comply with following exposure limits while participating in repo in corporate debt securities or such other limits as may be prescribed by SEBI from time to time: • The gross exposure to repo transactions in corporate debt securities shall not be more than 10% of the net assets of the scheme. Further the amount lent to counter-party under repo transaction in corporate debt securities will be included in single issuer debt instrument limit. • The cumulative gross exposure through repo transactions in corporate debt securities along with debt, equity and derivatives shall not exceed 100% of the net assets of the Scheme. • In case the Scheme borrows under repo in corporate debt securities, then such borrowing together with any other borrowing shall not exceed 20% of the net asset of that Scheme and tenor of borrowing shall not exceed six months. 16) The Scheme shall not invest in unlisted debt instruments including commercial papers, other than Government Securities, other money market instruments and derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc. which are used for hedging. Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by Board from time to time*: Provided further that mutual fund schemes shall comply with the norms under this clause within the time and in the manner as may be specified by the Board: Provided further that the norms for investments by mutual fund schemes in unrated debt instruments shall be specified by the Board from time to time#. * As per paragraph 12.1 of SEBI Master Circular for Mutual Funds, the Schemes may 46invest in unlisted Non-Convertible Debentures (NCDs) not exceeding 10% of the debt portfolio of the scheme 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. # As per paragraph 12.1.5 of SEBI Master Circular for Mutual Funds, 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 mutual fund schemes shall be subject to the following: a. Investments shall 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 Funds) Regulations, 1996 and various circulars issued thereunder. b. Exposure of the Scheme in such instruments, shall not exceed 5% of the net assets of the Scheme. c. All such investments shall be made with the prior approval of the Board of AMC and the Board of trustees. d. The single issuer limit and the group exposure limit shall be calculated at the issuing bank level as BRDS are issued with recourse to the issuing bank. 17) Mutual Fund may lend and borrow securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. 18) The Mutual Fund shall enter into transactions relating to Government Securities only in dematerialised form. 19) The investment manager may, from time to time invest its own funds in the scheme at its discretion. However, the investment manager shall not be entitled to charge any fees on its investments in the scheme. 20) The mutual fund under all its schemes shall not own more than 10% of units issued by a single issuer of InvITs. The Scheme shall invest not more than: • 10% of its NAV in the units of InvITs; and • 5% of its NAV in the units of InvITs issued by a single issuer These investment limitations/parameters as expressed (linked to the Net Asset/Net Asset Value/capital) shall, in the ordinary course, apply as at the date of the most recent transaction or commitment to invest, and changes do not have to be effected merely Consolidat because, owing to appreciation or depreciation in value or by reason of the receipt of any ed Std. Obs. 19 rights, bonuses or benefits in the nature of capital or of any Scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Mutual Fund, any such limits would thereby be breached. If these limits are exceeded for reasons beyond its control, the AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unit Holders. Further, apart from the investment restrictions prescribed under SEBI (MF) 47Regulations, the Fund may follow any internal norms vis-à-vis restricting/limiting exposure to a particular scrip or sector, etc. The Trustee /AMC may alter the above stated limitations from time to time, and also to the extent the SEBI (MF) Regulations change, so as to permit the Schemes to make their investments in the full spectrum of permitted investments in order to achieve their investment objective. All the investment restrictions shall be applicable at the time of making investments. C. Fundamental Attributes Consolidated Following are the Fundamental Attributes of the Scheme, in terms of paragraph 1.14 of SEBI Std. Obs. 59 Master Circular for Mutual Funds: (i) TYPE OF A SCHEME An open-ended equity scheme investing in technology & technology-related companies (ii) INVESTMENT OBJECTIVE Main Objective: The investment objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of technology & technology-related companies. There is no assurance that the investment objective of the Scheme will be achieved. Investment Pattern: The indicative portfolio break-up with minimum and maximum asset allocation is detailed in the section “HOW WILL THE SCHEME ALLOCATE ITS ASSETS?”. The fund manager reserves the right to alter the asset allocation for a short-term period on defensive considerations. (iii) TERMS OF ISSUE • Liquidity provisions such as listing, repurchase, redemption - Repurchases shall be allowed on all business days an ongoing basis from the date of allotment. The units of Consolida the scheme are not listed on any Stock Exchange. Units of the schemes held in demat ted Std. form shall be freely transferable, in order to facilitate transferability of units held in one Obs. 57 demat account to another demat account, pursuant to Paragraph 14.4.4 of SEBI Master Circular for Mutual Funds. The units of the Scheme held in Statement of Account mode are transferable subject to compliance of provisions prescribed in this regard in the Statement of Additional Information. • Aggregate fees and expenses charged to the scheme: The aggregate fees and expenses charged to the Scheme will be in line with the limits defined in the SEBI (MF) Regulations as amended from time to time. The aggregate fee and expenses to be charged to the Scheme is detailed in Section IV of this document. • Any safety net or guarantee provided: The Scheme does not provide any safety net or guarantee, nor does it provide any 48assurance regarding the realization of the investment objective of the scheme or in respect of declaration of Income Distribution cum capital withdrawal. Changes in Fundamental Attributes In accordance with Regulation 18 (15A) of the SEBI (MF) Regulations, and clause 1.14.1.4 of Master Circular, the trustees shall ensure that no change in the fundamental attributes of any scheme, the fees and expenses payable or any other change which would modify the scheme and affect the interest of the unit holders is carried out by the asset management company, unless: (i) it complies with sub-regulation (26) of regulation 25 of these regulations; (ii) SEBI has reviewed and provided its comments on the proposal Further, in accordance with Regulation 25 (26); the asset management company shall ensure that no change in the fundamental attributes of any scheme or the trust, fees and expenses payable or any other change which would modify the scheme and affect the interest of unit holders, shall be carried out unless, — (i) a written communication about the proposed change is sent to each unit holder and an advertisement is issued in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the mutual fund is situated; and (ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit load. D. Index methodology (for index funds, ETFs and FOFs having one underlying domestic ETF) - Not Applicable E. Principles of incentive structure for market makers (for ETFs) - Not Applicable F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per clause 13.6.2 of SEBI master circular for mutual funds (only for close ended debt schemes) - Not Applicable G. Other Scheme Specific Disclosures: Listing and transfer of units The units of the Scheme are not listed on any Stock Exchange. Consoli Units of the Schemes held in demat form shall be freely transferable, dated in order to facilitate transferability of units held in one demat Std. account to another demat account, pursuant to Paragraph 14.4.4 of Obs. 57 SEBI Master Circular for Mutual Funds. The units of the Scheme held in Statement of Account mode are transferable subject to compliance of provisions prescribed in this regard in the Statement of Additional Information. Dematerialization of units The Unit holders would have an option to hold the Units in demat Consoli form or account statement (non-demat) form. Units held in Demat dated Form are freely transferable. The Applicant intending to hold Units Std. in demat form will be required to have a beneficiary account with a Obs. 57 49Depository Participant (DP) of the NSDL/ CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units. Minimum Target amount Rs. 10 crores (Rupees Ten Crores) (This is the minimum amount required to operate the scheme and if this is not collected during the NFO period, then all the investors would be refunded the amount invested without any return.) Maximum Amount to be Not applicable raised (if any) Dividend Policy (IDCW) Under the Income Distribution cum capital (IDCW) withdrawal option, the Trustee will have the discretion to declare the Income Distribution cum capital withdrawal as per the specified frequencies, subject to availability of distributable surplus calculated in accordance with the Regulations. The actual declaration of Income Distribution cum capital withdrawal and frequency will inter-alia, depend on availability of distributable surplus calculated in accordance with SEBI (MF) Regulations and the decisions of the Trustee shall be final in this regard. There is no assurance or guarantee to the Unit holder as to the rate of Income Distribution cum capital withdrawal nor that the Income Distribution cum capital withdrawal will be paid regularly. The amounts can be distributed out of investor’s capital (Equalization Reserve), which is a part of sale price of the units that represents realized gains. The AMC/Trustee reserves the right to change the frequency of declaration of Income Distribution cum capital withdrawal or may provide for additional frequency for declaration of Income Distribution cum capital withdrawal. Income Distribution cum capital withdrawal (IDCW) Procedure In accordance with Paragraph 11.6.1 of SEBI Master Circular for Mutual Funds, the procedure for Income Distribution cum Capital Withdrawal would be as under: 1. The Trustees shall decide the quantum of IDCW and the record date in their meeting. IDCW so decided, shall be paid, subject to availability of distributable surplus. 2. Within one calendar day of the decision by the trustees, AMC shall issue notice to the public communicating the decision including the record date. The record date shall be two working days from the date of publication in at least one English newspaper or in a newspaper published in the language of the region where the Head Office of the mutual 50fund is situated, whichever is issued earlier. 3. Record date shall be the date which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of unit holders for receiving dividends. The NAV shall be adjusted to the extent of dividend distribution and statutory levy, if applicable, at the close of business hours on record date. 4. The notice will, in font size 10, bold, categorically state that pursuant to payment of IDCW, the NAV of the Scheme would fall to the extent of payout and statutory levy (if applicable). 5. Before the issue of such notice, no communication indicating the probable date of Income Distribution cum capital withdrawal declaration in any manner whatsoever will be issued by Mutual Fund. Amounts under IDCW option can be distributed out of investors capital (equalization reserve), which is part of sale price that represents realized gains. However, investors are requested to note that amount of distribution under IDCW option is not guaranteed and subject to availability of distributable surplus. Allotment (Detailed Procedure) All applicants whose cheques/payment for purchase of Units have realized will receive a full and firm allotment of Units, provided also the applications are complete in all respects and are found to be in order. Subject to the SEBI Regulations, the AMC / Trustee may reject any application received in case the application is found invalid/incomplete. The process of allotment of Units and sending of an allotment confirmation, specifying the number of Units allotted to the applicant by way of e-mail and/or SMS to the applicant’s registered e-mail address and/or mobile number will be completed within 5 (five) Business Days from the date of closure of the NFO Period. Account Statements • On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of e- mail and/or SMS within 5 business days from the date of closure of NFO period will be sent to the Unit Holders registered e-mail address and/or mobile number. • In case of Unit Holders holding units in the dematerialized mode, the Fund will not send the account statement to the Unit Holders. The statement provided by the Depository Participant will be equivalent to the account statement. • For those unit holders who have provided an e-mail address, the AMC will send the account statement by e-mail. • Unit holders will be required to download and print the documents after receiving e-mail from the Mutual Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to 51make the delivery through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents and contents of the documents becoming known to third parties. • The Unit holder may request for a physical account statement by writing/calling the AMC/ISC/RTA. In case of specific request received from the Unit Holders, the AMC/Fund will provide the Account Statement to the Investors within 5 business days from the receipt of such request. Consolidated Accounts statements Pursuant to Regulation 36 of SEBI (Mutual Funds) Regulations, 1996 and amendments thereto, read with Paragraph 14.4 of SEBI Master Circular for Mutual Funds, the investor whose transaction has been accepted by the AMC, shall receive a confirmation by way of email and /or SMS within 5 Business Days from the date of receipt of valid application/ transaction, same will be sent to the Unit holders registered e-mail address and/or mobile number. In view of the said requirements the account statements for transactions in units of the Fund by investors will be dispatched to investors in following manner: Investors who do not hold Demat Account: Consolidated account statement^, based on PAN of the holders, shall be sent by AMC/ RTA to investors not holding DEMAT account, for each calendar month on or before 15th day of the succeeding month to the investors in whose folios transactions have taken place during that month. Consolidated account statement shall be sent by AMC/RTA every half yearly (September/ March), on or before 21st day of succeeding month, detailing holding at the end of the six month, to all such investors in whose folios there have been no transactions during that period . ^Consolidated account statement sent by AMC/RTA is a statement containing details relating to all financial transactions made by an investor across all mutual funds viz. purchase, redemption, switch, payout of IDCW, reinvestment of IDCW, systematic investment plan, systematic withdrawal plan, systematic transfer plan, bonus etc., and holding at the end of the month. Investors who hold Demat Account: Consolidated Account Statement, based on PAN of the holders, shall be sent by Depositories to investors holding DEMAT account. If there is any transaction in any of the demat accounts of the investor or in any of the mutual fund folios, then CAS shall be sent to that investor on monthly basis. The depositories shall dispatch the 52CAS to investors that have opted for delivery via electronic mode, within twelve (12) days from the month end and to investors that have opted for delivery via physical mode, within fifteen (15) days from the month end. In case there is no transaction in any of the mutual fund and demat accounts then CAS with holding details shall be sent to the investors on half yearly basis. The depositories shall dispatch the CAS to investors that have opted for delivery via electronic mode, on or before the eighteenth (18th) day of April and October and to investors that have opted for delivery via physical mode, on or before the twenty-first (21st) day of April and October. In case of DEMAT accounts with nil balance and no transactions in securities and in mutual fund folios, the depository shall send account statement in terms of regulations applicable to the depositories. CAS shall not be sent to the Unit holders for the folio(s) wherein the PAN details are not updated. The Unit holders are therefore requested to ensure that the folio(s) are updated with their PAN, email ID and mobile number to prevent fraudulent transactions. Refund The Fund will refund the application money to applicants whose applications are found to be incomplete, invalid or have been rejected for any other reason whatsoever. Refund instruments will be dispatched within 5 business days of the closure of NFO period. In the event of delay(s) beyond 5 business days, the AMC shall be liable to pay interest at 15% per annum or such other rate of interest as maybe prescribed from time to time. Who can invest The following persons are eligible and may apply for subscription to the Units of the Scheme. (subject, wherever relevant, to This is an indicative list and purchase of units of Mutual Funds being permitted under investors shall consult their respective constitutions and relevant statutory regulations) financial advisor to ascertain whether the scheme is suitable 1. Resident adult individuals either singly or jointly (not to their risk profile. exceeding three) or on an Anyone or Survivor basis; 2. Hindu Undivided Family (HUF) through Karta; 3. Minor through parent / legal guardian; 4. Partnership Firms; 5. Proprietorship in the name of the sole proprietor; 6. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.), Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860(so long as the purchase of Unit is permitted under the respective constitutions; 7. Banks (including Co-operative Banks and Regional Rural Banks), Insurance companies and Financial Institutions; 8. Mutual Fund schemes registered with SEBI. 539. Trusts including, Religious and Charitable Trusts, Waqfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private trusts authorized to invest in mutual fund schemes under their trust deeds; 10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs)residing abroad on repatriation basis or on non- repatriation basis; 11. Foreign Portfolio Investors (FPIs) / Foreign Institutional Investors (FIIs) and their subaccounts registered with SEBI on repatriation basis; 12. Army, Air Force, Navy and other para-military units and bodies created by such institutions; 13. Scientific and Industrial Research Organizations; 14. Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI 15. Provident/ Pension/ Gratuity Fund to the extent they are permitted; 16. Other schemes of LIC Mutual Fund or any other Mutual Fund subject to the conditions and limits prescribed by SEBI Regulations; 17. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme. 18. Such other categories of investors permitted by the Mutual Fund from time to time, in conformity with the SEBI Regulations. The list given above is indicative and the applicable law, if any, shall supersede the list. Who cannot invest • United States Person (U.S. Person), corporations and other entities organized under the applicable laws of the U.S. and Residents of Canada as defined under the applicable laws of Canada cannot invest in units of Scheme. • Persons residing in the Financial Action Task Force (FATF) Non Compliant Countries and Territories (NCCTs). • Such other persons as may be specified by Mutual Fund from time to time. How to Apply (and other details) Application forms shall be available at either the Investor Service Centers (ISCs)/Official Points of Acceptance (OPAs) of AMC or Consolid may be downloaded from the website of AMC (www.licmf.com). ated Std. Obs. 35 List of official points of acceptance shall be available at https://www.licmf.com/sid-disclosure. Details of the Registrar and Transfer Agent (RTA), official points of acceptance, etc. are available on back cover page. Transactions through online facilities/electronic modes: 54Investors may undertake transactions viz. purchase / redemption / switch through the online/electronic modes/ sources like its official website - www.licmf.com, through email (Only for Non individual Investor)* etc. and may also submit transactions in electronic mode offered by specified banks, financial institutions, distributors etc., with whom AMC has entered or may enter into specific arrangements including through secured internet sites operated by RTA (KFin Technologies Limited. Accordingly, the servers (maintained at various locations) of the AMC and RTA will be the official point of acceptance for all such online / electronic transaction facilities offered by the AMC. The time of receipt of funds in the scheme’s collection account and the time of receipt of application with all the correct details at AMC’s /RTA server shall be taken into consideration for the purpose of NAV applicability. * ACCEPTANCE OF FINANCIAL TRANSACTIONS THROUGH ELECTRONIC MAIL FROM NON- INDIVIDUAL INVESTORS: In line with AMFI Best Practice Guidelines No. 118/2024-25 dated January 31, 2025 and AMFI email dated February 27, 2025, the practice to accept financial transactions has been standardized and the following requirements will be applicable w.e.f. May 1, 2025 for financial transactions received from Non-Individual Investors in schemes of LIC Mutual Fund. The Mutual Fund / AMC / Trustee Company / Registrar or any other agents or representatives of the Mutual Fund / AMC / Trustee Company / Registrar (“Receiver”) may accept Financial Transaction Request through Electronic Mail (Email) from Non - Individual Investor (“Sender / Entity”), as may be permitted by the AMC from time to time and subject to the Sender fulfilling applicable terms and conditions as may be stipulated / prescribed in the Scheme Information Document(s) of the scheme and by the AMC from time to time: A. The Entity shall provide a copy of the Board resolution or an authority letter on the Entity's letter head, granting appropriate authority to the designated officials of the Entity. The board resolution/ authority letter shall explicitly mention the following: a. List of approved authorized officials who are authorized to transact on behalf of non - individual investors along with their designation and email IDs. 55b. An undertaking that the instructions for any financial transactions sent by email by the authorized officials shall be binding upon the entity as if it were a written agreement. B. In case the document is executed electronically with a valid Digital Signature Certificate (DSC) or through Aadhaar based e-signature by the authorized official/s, the same shall be considered as valid and acceptable, and shall be binding on the non-individual investor even if the transaction request is not received from the registered email id. of the authorized official/s. However, in such cases, the domain name of the email ID should be from the same organization's official domain name. C. The Financial Transaction request with requisite information and complete in all respects shall be required to be sent to the designated email address only as may be notified by the AMC at the time of permitting the use of this facility, post completion of the requisite process. D. In addition to the acceptance of financial transactions via email, scanned copy of duly signed transaction form/request letter bearing wet signatures of the authorized signatories of the entity, received from some other official / employee of the non- individual investor will be accepted, and shall be binding on the Entity provided – a. The email is also CC'd (copied) to the registered email ID of the authorized official / signatory of the non-individual unitholder; and b. The domain name of the email ID of the sender of the email is from the same organization's / Entity official domain name. E. No non-financial transactions including but not limited to change in bank details or addition of bank account of the entity etc., shall be allowed / accepted via email. F. Request for change in bank details or addition of bank account of the Entity shall be submitted by the Entity using the prescribed service request form duly signed by the Entity's authorized signatories. G. Further, any change in the registered email address / contact details of the Entity shall be accepted only through a physical letter (including scan copy thereof) with wet signature of the designated authorized officials of the Entity, duly supported by copy of the board resolutions/authority letter on the Entity's letter head. H. In addition to the acceptance of financial transactions via email, scanned copies of signed transaction form/request letter bearing wet signatures of the authorized signatories of the Entity, received from the registered mutual fund distributor of 56the Entity or a third party duly authorized by the Entity will be accepted subject to fulfilment of the following requirements: a. Authorization letter from the non-individual unitholder authorizing the MFD/person to send the scanned copies of signed transaction form/request letter on behalf of the Entity. b. In such cases, the non-individual unitholder's registered email ID shall also be copied in the email sent by the MFD/person sending the scanned copies of the duly signed transaction form/request letter. I. For the purpose of determining the applicable NAV the system recorded date and time of the Email received by the Server of the AMC / Registrar will be considered subject to the entire amount of subscription / purchase as per the request are credited to the bank account of the scheme and are available for utilization before the cut-off timing. J. The Sender / Entity agrees and acknowledges and is aware that there may be delays in delivery / difference in the date and time of the email received at the server of the AMC/Receiver and the date and time of the server through which investor has sent the email and also the AMC / Receiver server may not receive / reject the email sent by the Sender at all. The transaction receipt time will be the date and time of the email received at the server of the AMC/ receiver. All other terms and conditions of NAV applicability will be as per the applicable regulatory guidelines. K. The Sender / Entity shall retain records of transactions submitted through email in line with the applicable laws / regulations. L. The AMC shall collect the board resolution or an authority letter or an undertaking from existing Non-Individual Investors if the same are not available in its records. All the terms and conditions specified in the Statement of Additional Information with respect to acceptance of transactions through electronic mode shall be applicable to this Facility. Transactions through MF Utility portal & MFUI Points of Services pursuant to appointment of MF Utilities India Pvt. Ltd. Investors may be provided facility to subscribe to Units of the Scheme through MF Utility (“MFU”) - a shared services initiative of various Asset Management Companies, which acts as a transaction aggregation portal for transacting in multiple Schemes of various Mutual Funds with a single form and a single payment 57instrument. The AMC reserves the right to discontinue the facility(ies) at any point of time. Transactions through MFCentral Platform In line with paragraph 16.6 of SEBI Master Circular for Mutual Funds, on RTA inter-operable Platform for enhancing investors’ experience in Mutual Fund transactions / service requests, the QRTA’s, KFin Technologies Limited (Kfintech) and Computer Age Management Services Limited (CAMS) have jointly developed MFCentral – A digital platform for Mutual Fund investors. MFCentral has been created with an intent to be a one stop portal / mobile app for all Mutual fund investments and service related needs that significantly reduces the need for submission of physical documents by enabling various digital / physical services to Mutual fund investors across fund houses subject to applicable T&Cs of the Platform. MFCentral can be accessed using https://mfcentral.com/ and as a Mobile App. Any registered user of MFCentral, requiring submission of physical document as per the requirements of MFCentral, may do so at any of the designated Investor Service centres or collection centres of Kfintech or CAMS. Transaction through Stock Exchange Infrastructure: The investor can also subscribe to the Units of the Scheme through Mutual Fund Services System (MFSS) of the National Stock Exchange of India Ltd. (NSE) and through BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds (BSE StAR MF System) of BSE Limited. For more information on this facility, please refer to SAI. Please refer to the SAI and Application form for further details and the instructions. The policy regarding reissue of Not Applicable repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the Units in dematerialized form are freely transferable. The units of the right to freely retain or dispose Scheme held in Statement of Account mode are transferable subject to of units being offered. compliance of provisions prescribed in this regard in the Statement of Additional Information. 58Restriction on Redemption in Mutual Funds In accordance with paragraph 1.12 of SEBI Master Circular for Mutual Funds, the AMC reserves the right to impose restriction on redemptions subject to certain conditions as specified in the Statement of Additional Information under the heading ‘Suspension of redemption of Units’. Cut off timing for In accordance with provisions of Paragraph 8.4 of SEBI Master subscriptions/ redemptions/ Circular for Mutual Funds, the following cut-off timings shall be switches. observed by Mutual Fund in respect of purchase/ redemption/ switches of units of the scheme, and the following NAVs shall be This is the time before which applied in each case: your application (complete in all respects) should reach the i. APPLICABLE NAV FOR SUBSCRIPTIONS/ PURCHASE official points of INCLUDING SWITCH-IN OF UNITS acceptance. • In respect of valid applications received upto 3.00 p.m. and where the funds for the entire amount are available for utilization before the cut-off time i.e. credited to the bank account of the Scheme before the cut-off time - the closing NAV of the same Business Day shall be applicable. • In respect of valid applications received after 3.00 p.m. and where the funds for the entire amount are credited to the bank account of the Scheme either on the same day or 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. • Irrespective of the time of receipt of application, where the funds for the entire amount are credited to the bank account of the Scheme 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. For determining the applicable NAV for allotment of units in respect of purchase / switch-in in the Scheme, it shall be ensured that: • Application is received before the applicable cut-off time (i.e. 3.00 pm). • Funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the Scheme before the cut-off time (i.e. 3.00 pm). • The funds are available for utilization before the cut-off time (i.e. 3.00 pm) without availing any credit facility whether intra-day or otherwise, by the respective scheme. ii. APPLICABLE NAV FOR REDEMPTIONS INCLUDING SWITCH-OUTS 59• In respect of valid applications received up to 3.00 p.m., the closing NAV of the day on which the application is received; • In respect of valid applications received after 3.00 p.m., the closing NAV of the next business day. The aforesaid provisions shall also be applicable to systematic transactions like Systematic Investment Plan, Systematic Transfer Plan, etc. The above-mentioned cut-off timing shall also be applicable to transactions through the online trading platform. Minimum amount for During New Fund Offer: purchase/redemption/switche s. Application Amount/Switch in – Rs.1,000/- and in multiples of Re.1 thereafter. SIP* Amount – 1. Daily – Rs. 100/- and in multiples of Re.1/- thereafter. 2. Monthly – Rs. 200/- and in multiples of Re.1/- thereafter. 3. Quarterly – Rs. 1,000/- and in multiples of Re.1/- thereafter *SIP Start date shall be after re-opening date of the scheme On an ongoing basis: Application Amount/Switch in (Other than fresh purchase through SIP) – Rs.1,000/- and in multiples of Re.1 thereafter. SIP Amount – 1. Daily – Rs. 100/- and in multiples of Re.1/- thereafter. 2. Monthly – Rs. 200/- and in multiples of Re.1/- thereafter. 3. Quarterly – Rs. 1,000/- and in multiples of Re.1/- thereafter Additional Purchase – Rs.500/- and in multiples of Re.1/- thereafter. Redemption Amount – Rs.500/- and in multiples of Re.1/- thereafter or account balance whichever is lower (except demat units). In case the investor specifies the number of units and amount to be redeemed, the number of units shall be considered for redemption. In case the unit holders do not specify the number of units or amount to be redeemed, the redemption request will not be processed. The AMC reserves the right to change the minimum amounts for various purchase/ redemption/ switch. Such changes shall only be applicable to transactions on a prospective basis. Note: Minimum Investment/Redemption amount is not applicable in case of Designated Employees of the AMC wherein a part of the compensation of such Designated Employees is ‘mandatorily invested 60in units’ of the Scheme. Account Statements The AMC shall send an allotment confirmation specifying the units Consolida allotted by way of email and/or SMS within 5 working days of receipt ted Std. of valid application/transaction to the Unit holders registered e-mail Obs. 60 address and/ or mobile number (whether units are held in demat mode or in account statement form). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds and holdings at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month on registered email address on or before 12th of the succeeding month and by 15th of the succeeding month for those who have opted for physical copy. Half-yearly CAS shall be issued to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable, at the end of every six months (i.e. September/ March) on or before 18th day of succeeding month on registered email address and 21st day of succeeding month through physical copy for those who do not have registered email addresses. For further details, refer SAI. Dividend/ IDCW The payment of IDCW (dividend) to the unitholders shall be made within 7 working days from the record date, subject to availability of Distributable surplus on the record date. Redemption Under normal circumstances, the redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. In case of exceptional situations/ circumstances listed in AMFI Circular No. AMFI/35P/MEM-COR/74/2022-23 dated 16th January 2023, redemption payment would be made within the permitted additional timelines prescribed. For details, please refer SAI. Bank Mandate In order to protect the interest of Unit holders from fraudulent encashment of redemption / Income Distribution cum capital Consolid withdrawal cheques, SEBI has made it mandatory for investors to ated Std. provide their bank details viz. name of bank, branch, address, account Obs. 61 type and number, etc. to the Mutual Fund. Applications without complete bank details shall be rejected. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques / warrants and / or any delay / loss in transit. For further details please refer to the SAI. 61Delay in payment of The Asset Management Company shall be liable to pay interest to the redemption / repurchase unitholders at 15% per annum rate as specified vide paragraph 14.2 proceeds/dividend of SEBI Master Circular for Mutual Funds or such other rate as may be specified by SEBI from time to time, for the period of such delay. Unclaimed Redemption and Necessary forms / documents required for claiming unclaimed Consoli Income redemption and IDCW (dividend) amounts are available on the dated Distribution cum Capital website of LIC Mutual Fund. Further, the information on unclaimed Std. Withdrawal Amount amount along-with its prevailing value (based on income earned on Obs. 52 deployment of such unclaimed amount), shall be separately disclosed to investors through the periodic statement of accounts / Consolidated Account Statement sent to the investors. Please refer SAI for disclosures pertaining to treatment of unclaimed redemption and IDCW (dividend) amounts in terms of paragraph 14.3 of SEBI Master Circular for Mutual Funds. Disclosure w.r.t investment by Process for Investments made in the name of a Minor through a minors Guardian: As per Paragraph 17.6 of SEBI Master Circular for Mutual Funds, the Consolidated Std. Obs. following Process for Investments in the name of a Minor through a 37 Guardian will be applicable: 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 parent or legal guardian. Irrespective of the source of payment for subscription, all redemption /Income Distribution cum Capital Withdrawal proceeds shall be credited only in the verified bank account of the minor (i.e., bank account of the minor or minor’s joint bank account with parent/legal guardian). Investors are requested to update the minor’s bank account details in the respective folios by submitting the mandatory documents for receiving redemption/ IDCW payout. Minor Unit Holder on becoming Major may inform the RTA about attaining Majority Age and provide his specimen signature duly authenticated by his banker as well as his details of bank account and PAN (if required) and other necessary details as required as per Paragraph 17.6 of SEBI Master Circular for Mutual Funds to enable the RTA to update their records and allow him to operate the Account in his own right. The account shall be frozen for operation by the guardian on the day the minor attains the age of majority and no transactions shall be permitted till the documents for changing the status is received. Any other disclosure in terms of Minimum balance to be maintained and consequences of non Consolidated Checklist on maintenance: Standard Observations There is no minimum balance requirement. Consolidated Std. Obs. 36 Requirement of minimum In accordance with paragraph 6.11 of SEBI Master Circular for investors in the scheme Mutual Funds, the Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of 62the Scheme. In case the Scheme does not have a minimum of 20 investors, the provisions of Regulation 39(2)(c) of the SEBI (Mutual Funds) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over 25% limit. Failure on the part of the said investor to redeem his exposure over 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. 63III. Other Details A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund– Not Applicable B. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report Disclosures: Portfolio The Mutual Fund/AMC will disclose portfolio of the Scheme (along with ISIN) as (Monthly and Half Yearly) on the last day of the month/ half year for all their schemes in the format prescribed by SEBI on its website (www.licmf.com) and on the website of AMFI (www.amfiindia.com) within 10 days from the close of each month/ half year respectively in a user-friendly and downloadable spreadsheet format. In case of Unitholders whose e-mail addresses are registered, the Mutual Funds/ AMC shall send via email both the monthly and half-yearly statement of scheme portfolio within 10 days from the close of each month/ half-year respectively. Mutual Fund/ AMC shall publish an advertisement every half-year disclosing the hosting of the half-yearly statement of its Schemes portfolio on their respective website and on the website of AMFI. Such advertisement shall be published in all India edition of at least two daily newspapers, one each in English and Hindi. Mutual Funds/AMCs shall provide a physical copy of the statement of it scheme portfolio without charging any cost, on specific request received from a Unitholder. Half Yearly Results Mutual Fund / AMC shall within one month from the close of each half year, (i.e. 31st March and on 30th September), host a soft copy of its unaudited financial results on its website (www.licmf.com). Further, the Mutual Fund / AMC shall publish an advertisement disclosing the hosting of such unaudited half yearly financial results on their website, in at least one national English daily newspaper and a regional newspaper published in the language of the region where the Head Office of the Mutual Fund is situated. Annual Report or The Scheme wise annual report or an abridged summary thereof shall be provided Abridged Annual Report to all Unit holders not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e., 31st March each year). Scheme wise annual report shall be displayed on the website of the AMC (www.licmf.com) and Association of Mutual Funds in India (www.amfiindia.com). In case of unitholders whose email addresses are available with the Mutual Fund, the scheme annual reports or abridged summary would be sent only by email. The unitholders whose e-mail addresses are not registered with the Fund are requested to update / provide their email address to the Fund for updating the database. Physical copy of scheme wise annual report or abridged summary shall be provided to investors who have opted to receive the same. The full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. The AMC shall publish an advertisement every year, in all India edition of at least two daily newspapers, one each in English and Hindi, disclosing the hosting of the scheme wise annual report on the AMC website (www.licmf.com) and on the website of AMFI (www.amfiindia.com). 64Product Labeling/ Risk-o- In terms of Paragraph 17.4 of SEBI Master Circular for Mutual Funds, the Mutual meter Fund/AMC shall evaluate the Risk-o-meter of the Scheme and its Benchmarks on a monthly basis and shall disclose the same along with portfolio disclosure of the (Consolidated Std. Obs. 38) Scheme on its website viz. www.licmf.com and on the website of AMFI viz. www.amfiindia.com within 10 days from the close of each month. Further, any change in Risk-o-meter of the Scheme and/or Benchmark shall be communicated by way of Notice-cum-Addendum and by way of an e-mail or SMS to unitholders of the Scheme. The risk level of the Scheme as on March 31 of every year, along with the number of times the risk level has changed over the year shall be disclosed on its website and AMFI website. Risk-o-meter details shall also be disclosed in scheme-wise Annual Reports and Abridged summary. Scheme Summary In accordance with SEBI letter No. SEBI/HO/OW/IMD-II/DOF3/P/397002021 Document (SSD) dated 28th December 2021 and AMFI emails dated 16th March 2022 and 25th March 2022, Scheme summary document for all schemes of LIC Mutual Fund in the (Consolidated Std. Obs. 38) requisite format (pdf, spreadsheet and machine readable format) shall be uploaded on a monthly basis or on changes in any of the specified fields, whichever is earlier. on the website of: • LIC Mutual Fund i.e. www.licmf.com, • AMFI (https://www.amfiindia.com/research-information/other-data/scheme- details) • National Stock Exchange of India Limited (https://www.nseindia.com/market- data/securities-available-for-trading) • BSE Limited (https://www.bseindia.com/Static/Markets/MutualFunds/listOfAmc.aspx). Risk Adjusted Return – As required under SEBI Circular dated 17th January 2025 (SEBI/HO/IMD/IMD- Information Ratio (IR) PoD-2/P/CIR/2025/6), the Mutual Fund/AMC shall disclose the IR of the Scheme portfolio on its website along with performance disclosures, on a daily basis. Please refer https://www.licmf.com/statutory-disclosure to access the IR details. For detailed explanation of IR, its uses and method of calculation of IR, please visit: https://www.amfiindia.com/information-ratio Product Dashboard The AMC shall have a dashboard on their website (www.licmf.com) providing performance and key disclosures pertaining to the schemes managed by AMC. The Dashboard shall include information such as the scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance, among others. The Dashboard shall be provided in a comparable, downloadable (spreadsheet) and machine-readable format. C. Transparency/NAV Disclosure Consolidate The AMC will calculate and disclose the first NAV(s) of the Scheme not later than 5 (five) d Std. Obs. Business days from the date of allotment. Thereafter, the Mutual Fund / AMC shall update the 41 NAVs on the website of LIC Mutual Fund (www.licmf.com) and on the website of Association of Mutual Funds in India - hereinafter referred to as AMFI (www.amfiindia.com) by 11.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI in writing. If the NAVs are not available before commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAVs. The NAV shall be calculated on all business days. Investor may write to AMC for availing 65the facility of receiving the latest NAVs through SMS. D. Transaction charges and stamp duty. • Transaction Charges Pursuant to SEBI circular reference no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/115 dated August 08, 2025 payment of transaction charges to distributors have been discontinued. • Stamp Duty Pursuant to part I of Chapter IV of the Notification dated 21st February 2019, issued by the Legislative Department, Ministry of Law and Justice, Government of India, on the Finance Act, 2019, read with subsequent notifications dated 10th December 2019 and 30th March 2020 issued by Department of Revenue, Ministry of Finance, Government of India, Paragraph 2.9 of SEBI Master Circular for Mutual Funds, stamp duty @0.005% of the transaction value would be levied on applicable mutual fund transactions. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including Income Distribution cum Capital Withdrawal (IDCW) reinvestment and Switch in) to the unitholders would be reduced to that extent. E. Associate Transactions- Please refer to Statement of Additional Information (SAI) F. Taxation- For details on taxation please refer to the clause on Taxation in the SAI apart from the following: Income Resident Investors Foreign Portfolio Mutual Fund (Individuals/Hindu Investors (FPI) (as investor) Undivided Family/Association of Persons/Body of Individuals/ Domestic Companies) Tax on dividend Taxed in the hands of 20% NIL unitholders at applicable rate under the provisions of the Income-tax Act $ Capital Gain Long Term (holding period more than 12 12.5%^ 12.5%^ NIL months) Short Term (holding period upto 12 20% 20% NIL months) All tax rates mentioned above are base rates and will be increased by applicable surcharge and cess. $ Tax not deductible if Dividend in respect of units of a mutual fund is below Rs. 10,000 in a financial year. ^Finance Bill, 2018 proposes levy of income-tax at the rate of 10% (without indexation benefit) on long-term capital gains exceeding Rs. 1.25 lakh provided transfer of such units is subject to STT. 66G. Rights of Unitholders- Please refer to SAI for details. H. List of official points of acceptance: Please refer Link for complete List of Official Points of Acceptance at https://www.licmf.com/sid-disclosure I. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations Consoli for which action may have been taken or is in the process of being taken by any dated Regulatory Authority - Please refer the link https://www.licmf.com/sid-disclosure Std. Obs. 48 Notes: Consolidat The Scheme under this Document has been approved by the Trustees on ______________ The ed Std. Trustees have ensured that LIC MF Technology Fund approved by them is a new product offered Obs. 65 by LIC Mutual Fund and is not a minor modification of its existing Schemes. Consolidat ed Std. Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in Obs. 62 India. Statements in this Scheme Information Document are, except where otherwise stated, based on the law, practice currently in force in India, and are subject to changes therein. Consolidat Notwithstanding anything contained in this Scheme Information Document, the provisions of ed Std. the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under and guidelines and Obs. 63 directives issued by SEBI from time to time shall be applicable. For and on behalf of the Board of Directors of LIC Mutual Fund Asset Management Limited Sd / - Date: ____________January 2026 Place: Mumbai Ravi Kumar Jha Managing Director & Chief Executive Officer 67