The Wealth Company Liquid Fund

Scheme Information Document Con. Std. Obs. 1 THE WEALTH COMPANY LIQUID FUND (An open ended liquid scheme. A relatively low interest rate risk and relatively moderate credit risk) Con. Std. Obs. 2 Risk-o-meter and Product Label Potential Risk Class (PRC) Matrix Con. Std. Obs. 3 Con. Std. Obs. 4 This Product is suitable Scheme Riskometer Benchmark Riskometer for Credit Risk Relativel Moderat Relativel investors who are seeking*: y Low e (Class y High (Class A) B) (Class C) Interest Rate • Income over short term. Risk • Investment in debt and money market instruments Relatively Low B-I with maturity up to 91 days. Investors (Class I) understand that As per AMFI Tier I Benchmark Moderate *Investors should consult their the principal will be i.e. NIFTY Liquid Index A-I (Class II) financial advisers if in doubt at low to moderate about whether the product is Risk. The risk of the benchmark is Relatively suitable for them. low to moderate High (Class III) Note: The above product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made Offer of Units of Rs. 1000/- each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices New Fund Offer Opens on: _______ New Fund Offer Closes on: ______ Scheme Re-opens on: _________ NAME OF THE NAME OF MUTUAL FUND NAME OF TRUSTEE COMPANY ASSET MANAGEMENT COMPANY The Wealth Company Mutual Fund Wealth Company Asset Management Holdings Pantomath Trustee Private Limited Private Limited (The AMC) Pantomath Nucleus House, Saki Vihar Pantomath Nucleus House, Saki Vihar Road, Andheri East, Mumbai, Pantomath Nucleus House, Saki Vihar Road, Road, Andheri East, Mumbai, Maharashtra 400072. Andheri East, Mumbai, Maharashtra 400072. Phone: 022-65786200 Maharashtra 400072. Phone: 022-65786200 Website: www.wealthcompanyamc.com Phone: 022-65786200 Website: www.wealthcompanyamc.com E-mail: investorcare@wealthcompany.in Website: www.wealthcompanyamc.com E-mail: investorcare@wealthcompany.in E-mail: investorcare@wealthcompany.in CIN: U64300MH2025PTC438726 CIN: U67200MH2018PTC314896 The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (hereinafter 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 The Wealth Company Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.wealthcompanyamc.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 Mutual fund investments are subject to market risk, read all schemes related documents carefullyTHE WEALTH COMPANY MUTUAL FUND TABLE OF CONTENTS Sr. No. Particulars Page No. SECTION – I I. HIGHLIGHTS/SUMMARY OF THE SCHEME HIGHLIGHTS/SUMMARY OF THE SCHEME 3 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY 10 II. INFORMATION ABOUT THE SCHEME 11 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? 11 B. WHERE WILL THE SCHEME INVEST? 13 C. WHAT ARE THE INVESTMENT STRATEGIES? 14 D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? 16 E. WHO MANAGES THE SCHEME? 16 F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? 17 G. HOW HAS THE SCHEME PERFORMED? 17 H. ADDITIONAL SCHEME RELATED DISCLOSURES 17 III. OTHER DETAILS A. COMPUTATION OF NAV 18 B. NEW FUND OFFER (NFO) EXPENSES 19 C. ANNUAL SCHEME RECURRING EXPENSES 19 D. LOAD STRUCTURE 20 SECTION – II I. INTRODUCTION A. DEFINITIONS/INTERPRETATION 22 B. RISK FACTORS 25 C. RISK MITIGATION STRATEGIES 30 II. INFORMATION ABOUT THE SCHEME A. WHERE WILL THE SCHEME INVEST? 34 B. WHAT ARE THE INVESTMENT RESTRICTIONS? 35 C. FUNDAMENTAL ATTRIBUTES 39 D. OTHER SCHEME SPECIFIC DISCLOSURES 39 III. OTHER DETAILS A. IN CASE OF FUND OF FUNDS 50 B. PERIODIC DISCLOSURES 50 C. TRANSPARENCY/NAV DISCLOSURE 50 D. STAMP DUTY 51 E. ASSOCIATE TRANSACTIONS 51 F. TAXATION 51 G. RIGHTS OF UNITHOLDERS 52 H. LIST OF OFFICIAL POINTS OF ACCEPTANCE 52 I. PENALTIES, PENDING LITIGATION OR PROCEEDINGS 52 2SCHEME INFORMATION DOCUMENT (SID) PART I: HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the Scheme The Wealth Company Liquid Fund II. Category of the Scheme Liquid Fund (Debt Scheme) III. Scheme Type An open ended liquid scheme. A relatively low interest rate risk and relatively moderate credit risk IV. Scheme Code Will be provided at the time of final filing Con. Std. Obs. 7 V. Investment Objective The investment objective of the scheme is to provide opportunity to invest in a portfolio of money market and debt securities having maturity of up to 91 days only. Con. Std. Obs. 5 However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns. VI. Liquidity/listing details The Scheme is open to Subscription/Switch-in and Redemption/Switch-out of Units on every Business Day on an ongoing basis. As per SEBI Regulations, the Mutual Fund shall dispatch redemption proceeds within 3 working days of receiving a valid Redemption request. However, in case of exceptional circumstances mentioned in para 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024, redemption or repurchase proceeds will be transferred to investors within the timeframe prescribed for such exceptional circumstances Please refer to the section on ‘Redemption’ which is provided in the later part of the SID. Listing: As the units of the Scheme will be offered for subscription and redemption at NAV based prices on all Business Days on an ongoing basis providing the required liquidity to investors, units of the Scheme are not proposed to be listed on any stock exchange. However, the Trustee reserves the right to list the units of the Scheme on any stock exchange(s) at its sole discretion at a later date. VII. Benchmark (Total Return NIFTY Liquid Index A-I Index) Benchmark Selection Rationale: The scheme is benchmarked to Nifty Liquid Index A-I as the index constituents reflect the underlying Con. Std. Obs. 25 fund’s universe in the best possible manner. The composition of the benchmark is such that it is most suited for comparing the performance of the Scheme. The Board of AMC and Trustee will review the performance of the Scheme in comparison to the benchmark. Total Return variant of the index (TRI) will be used for performance comparison. Tier II benchmark: Not applicable The Trustee/AMC may change the benchmark in future, if a benchmark better suited to the investment objective of the Scheme is available, subject to SEBI (MF) Regulations, Circulars and any other prevailing guidelines, as applicable from time to time. VIII. NAV Disclosure The NAV will be calculated and disclosed for every Business Day. The NAVs of the Scheme will be calculated up to four decimals. The AMC shall update the NAV on the AMFI website (www. Amfiindia.com) and on the website of the Mutual Fund (www.wealthcompanyamc.com) by 11.00 pm on the day of declaration of the NAV/business day. Con. Std. Obs. 41 For Further details on NAV disclosure, please refer Section II of the SID. IX. Applicable timelines • Dispatch of redemption proceeds As per SEBI Regulations, the Mutual Fund shall dispatch redemption proceeds within 3 working days of receiving a valid Redemption request. However, under normal circumstances, the Mutual Fund will endeavor to dispatch the Redemption proceeds within 1 – 3 working days from the acceptance of a valid redemption request. In the event of failure to dispatch the redemption proceeds within the above time, the AMC shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay (presently @15% per annum). It may be noted that AMFI vide circular dated January 16, 2023, has provided list of exceptional instances wherein additional time has been allowed for payment of redemption proceeds. For further information, please refer to the SAI. Please refer to the section on ‘Redemption’ which is provided in the later part. • Dispatch of IDCW (if applicable) The warrants/cheque/demand draft issued under IDCW option shall be dispatched to the Unit Holders within 7 working days from the record date. In the event of failure to dispatch the warrants/cheque/demand draft within the stipulated 7 working days period, the AMC shall be liable to pay interest @15 percent per annum for the delayed period, to the Unit holders. For exceptional circumstances, the timelines to transfer the IDCW amount might differ and shall comply with the AMFI guidelines issued in this regard from time to time. The proceeds under the IDCW option will be paid by way of ECS/EFT/NEFT/RTGS/Direct credits/any other electronic manner if sufficient banking details are available with the Mutual Fund for the Unitholder. 3THE WEALTH COMPANY MUTUAL FUND In case of specific request for payouts by warrants/ cheques/ demand drafts or unavailability of sufficient details with the Mutual Fund, the payout under IDCW option will be paid by warrant/ cheques/demand drafts and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the first registered holder) with bank account number furnished to the Mutual Fund. X. Plans and Options under The Scheme offers Regular Plan and Direct Plan. the Scheme 1. Regular Plan: This Plan is for investors who wish to route their investment through any distributor. 2. Direct Plan: This Plan is for investors who invest directly without routing the investments through any distributor. Direct Plan has a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid/charged under the Direct Plan. Both the Plans will have a common portfolio and separate NAVs. Both Regular and Direct Plan(s), offer the below options/sub-options/facilities: Sub- Frequency of Options Record Date* options/Facilities Issuance* Growth Nil NA NA Daily (IDCW All days for which Daily reinvestment) NAV is published Income distribution Weekly (IDCW Weekly Every Monday cum Capital reinvestment)# Withdrawal (IDCW) Monthly (IDCW reinvestment and Monthly 25th of each month IDCW payout) *or immediately succeeding Business Day if that is not a Business Day. The Trustee/AMC reserves the right to change the frequency/ record date from time to time. #Please note that where the Unitholder has opted for “IDCW Payout Option” and in case the amount payable to the Unitholder is Rs. 100/- or less under a Folio, the same will be compulsorily reinvested in the Scheme. Investors subscribing under Direct Plan of a Scheme will have to indicate “Direct Plan” in the application form e.g. “The Wealth Company Liquid Fund – Direct Plan”. Investors should also indicate “Direct” in the ARN column of the application form. The Trustee may decide to distribute by way of IDCW option, the surplus by way of realized profit, dividends and interest, net of losses, expenses and taxes, if any, to Unit Holders in the IDCW option of the Scheme if such surplus is available and adequate for distribution in the opinion of the Trustee. The IDCW will be due to only those Unit Holders whose names appear in the register of Unit Holders in the IDCW option of the Scheme on the record date. Default Option: Growth option In case of valid application received without indicating choice between options under the scheme, the same shall be considered as Growth Option and processed accordingly. Income Distribution cum Capital Withdrawal (IDCW) Option: IDCW Payout and IDCW Re-investment options are available. Default Facility under IDCW Option- If the investor selects IDCW Option but fails to mention the facility, it will be deemed that the investor has opted for IDCW – Reinvestment Default Plan: Investors are requested to note the following scenarios for the applicability of “Direct Plan or Regular Plan” for valid applications received under the Scheme. Scenario Broker (ARN) Code Plan mentioned by Default plan to be mentioned by the investor the investor captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not mentioned Regular Plan For detailed disclosure on default plans and options, kindly refer to SAI. 4SCHEME INFORMATION DOCUMENT (SID) XI. Load Structure Entry Load: Nil (Consolidated Std. Obs, 47) Exit Load: Units Redeemed/Switched-Out Within Exit Load as a % of Redemption Proceeds “X” Days from the date of allotment Day 1 (Refer Note below) 0.0070% Day 2 0.0065% Day 3 0.0060% Day 4 0.0055% Day 5 0.0050% Day 6 0.0045% Day 7 onwards Nil For the purpose of levying exit load: • If a subscription (application & funds) is received within the cut-off time on a day, Day 1 shall be considered the same day. • Otherwise, the day after the date of allotment of units shall be considered as Day 1. The Scheme will not levy an exit load if the portfolio rebalancing timelines stated in the SEBI Master Circular for Mutual Funds dated Jun 27, 2024, are not complied with. Pursuant to Para 10.6 titled ‘No Load on Bonus Units and Units allotted on Reinvestment of Dividend’ of the SEBI Master Circular, no entry load or exit load shall be charged in respect of bonus units and units allotted on IDCW reinvestment. The AMC/Trustee reserves the right to change / modify the Load structure of the Scheme prospectively, subject to maximum limits as prescribed under the Regulations. XII. Minimum Application During NFO: Amount/ Switch-in Minimum initial investment in the scheme / plan / option: Rs. 1,000/- and in multiples of Re. 1/- thereafter As per Para 6.10 of the Master Circular on ‘Alignment of interest of Designated Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes’ read with SEBI Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/36 dated March 21, 2025, SEBI has, inter alia mandated that a part of compensation (net of income tax and any statutory contributions) of the Designated Employees of the AMCs shall be invested in units of the scheme(s) of the Fund in which they have a role/oversight. In accordance with the regulatory requirement, the minimum application amount specified in the SID of the Fund will not be applicable for investments made in schemes of the Fund in compliance with the aforesaid circular(s). Further, the minimum application amount wherever specified in the SID will not be applicable for auto or systematic transfer of funds from any other Scheme (transferor scheme) of Wealth Company Mutual Fund to this Scheme (transferee scheme). On a continuous basis: Purchase (Incl. Switch-in) Minimum of Rs. 1,000/- and in multiples of Rs.1/- thereafter • Weekly SIP: Rs. 250/- (and in multiples of Rs. 1/-) Minimum installments: 12 • Fortnightly SIP: Rs. 250/- (and in multiples of Rs. 1/-) Minimum installments: 12 • Monthly SIP: Rs. 250/- (and in multiples of Rs.1/-) Minimum instalments: 12 • Quarterly SIP: Rs. 250/- (and in multiples of Rs.1/-) Minimum instalments: 12 The applicability of the minimum amount of instalments mentioned is at the time of registration only. There is no minimum balance requirement. XIII. Minimum Additional Minimum of Rs. 1,000/- and in multiples of Rs.1/- thereafter Purchase Amount Subject to the provisions of SEBI (Mutual Funds) Regulations, 1996, as amended from time to time and circulars issued thereunder, the AMC reserves the right to change the minimum additional application amount from time to time. XIV. Minimum Redemption/ ‘Any amount’ or ‘any number of units’ as requested by the investor. Switch-out Amount The Redemption would be permitted to the extent of credit balance in the Investor’s account of the Scheme (subject to release of pledge / lien or other encumbrances). As per Para 6.10 of the Master Circular on ‘Alignment of interest of Designated Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes’ read with SEBI Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/36 dated March 21, 2025, SEBI has, inter alia mandated that a part of compensation (net of income tax and any statutory contributions) of the Designated Employees of the AMCs shall be invested in units of the scheme(s) of the Fund in which they have a role/oversight. In accordance with the regulatory requirement, the minimum application amount specified in the SID of the Fund will not be applicable for investments made in schemes of the Fund in compliance with the aforesaid circular(s). 5THE WEALTH COMPANY MUTUAL FUND XV. New Fund Offer Period NFO opens on: This is the period during NFO closes on: which a new scheme sells Minimum duration to be 3 working days and will not be kept open for more than 15 days its units to the investors. Any changes in dates will be published through addendum on AMC website i.e. Con. Std. Obs. 34 www.wealthcompanyamc.com XVI. New Fund Offer Price The units being offered will have a face value of Rs. 1,000 /- 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 has enabling provisions to create a Segregated Portfolio under certain circumstances. For Pocketing Disclosure further details, kindly refer to the SAI. Con. Std. Obs. 53 XVIII Swing Pricing Disclosure Pursuant to clause 4.10 of SEBI Master Circular for Mutual Funds date June 27, 2024, the Scheme has enabled the provision for mandatory swing pricing. Swing pricing framework is applicable for Liquid Funds For further details, kindly refer to the SAI Con. Std. Obs. 54 XIX. Stock Lending/ The scheme may engage in stock lending activities as permitted under SEBI (MF) regulations from time Short Selling to time. The scheme will not engage in short selling of securities. For further details, kindly refer to the SAI. XX. How to Apply and Investors can obtain application forms and Key Information Memorandum from the Official Points of Other Details Acceptance (OPAs) of AMC and RTA’s (Kfin) branch office. Investors can also download application form / Key Information Memorandum or apply through the website of AMC viz. www.wealthcompanyamc.com Applications for purchase/redemption/switches to be submitted at any of the Designated Investor Con. Std. Obs. 35 Service Centers (DISC) mentioned in this Scheme Information Document or any other location designated as such by the AMC, at a later date. The addresses of the DISC are given at the end of this Scheme Information Document and also on the website, www.wealthcompanyamc.com Investors in cities other than where the DISC are located, may forward their application forms to any of the nearest DISC, or apply online on our website www.wealthcompanyamc.com Applications for subscription/ redemption/ switches can also be submitted on platforms of various channel partners like MF Central. For further details, please refer to Section II of the SID. XXI. Where can applications for Applications for purchase/redemption/switches be submitted at any of the Designated Investor Service subscription/ redemption/ Centres (DISC) mentioned in this Scheme Information Document or any other location designated as switches be submitted such by the AMC, at a later date. The addresses of the DISC are given at the end of this Scheme Information Document and also on the website www.wealthcompanyamc.com Investors in cities other than where the DISC are located, may forward their application forms to any of the nearest DISC, accompanied by Demand Draft/s payable locally at that DISC or apply online on our website www.wealthcompanyamc.com Applications for subscription/ redemption/ switches can also be submitted on platforms of various channel partners like MF Central. For further details, please refer Section II of the SID. 6SCHEME INFORMATION DOCUMENT (SID) XXII. Investor Services Contact details for general service requests & complaint resolution: Investors may contact at toll free number 1800 267 3454 Email: investorcare@wealthcompany.in Investor Relations Officer: Mr. Sachin Shah Wealth Company Asset Management Holdings Private Limited Pantomath Nucleus House, Saki Vihar Road, Andheri East, Mumbai – 400072 Email: investorcare@wealthcompany.in The AMC will at all times endeavor to handle transactions efficiently and to resolve any investor grievances promptly. For any grievances with respect to transactions through Stock Exchange Platform for Mutual Funds, the investors should approach either the stockbroker or the investor grievance cell of the respective stock exchange. It may be noted that all grievances/ complaints with regard to demat mode of holding shall be routed only through the DP/NSDL/CDSL. Please refer to the Investor Charter on our Website for more and latest information about Grievance Redressal Mechanism, Service Standards, etc. Investors also have an option to approach SEBI, by logging a complaint on SEBI’s complaints redressal system (SCORES 2.0), the website address is: https://scores.sebi.gov.in. In addition to SCORES, investors can go for online dispute resolution (ODR) mechanism https://smartodr.in/login, which includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the SEBI. XXIII Specific attribute of the Not applicable scheme (such as lock in, duration in case of target maturity scheme/ close ended schemes) (as applicable) 7THE WEALTH COMPANY MUTUAL FUND XXIV Special Product/ Facility Systematic Investment Plan (SIP) / Systematic Withdrawal Plan (SWP) / Systematic Transfer Plan available during the NFO (STP) facilities would be available to the investors. For further details of the above special products / and on Ongoing Basis facilities, investors/ unit holders are kindly requested to refer SAI. Systematic Transfer Plan (STP) STP is a facility wherein unitholders can opt to transfer a fixed amount at regular intervals to another designated open-ended scheme of The Wealth Company Mutual Fund. STP facility will only be available on an on-going basis and will not be available during the NFO period. The minimum amount per STP installment and minimum number of installments under all frequencies of STP are as follows: Frequency under STP Facility Minimum Installments Minimum Amount and in multiples of Daily 6 Rs. 100 and in multiples of Re. 1/- thereafter Weekly 6 Rs. 100 and in multiples of Re. 1/- thereafter Monthly 6 Rs. 100 and in multiples of Re. 1/- thereafter Quarterly 6 Rs. 100 and in multiples of Re. 1/- thereafter Systematic Withdrawal Plan (SWP) Investors of the Scheme have the facility of enrolling themselves in a Systematic Withdrawal Plan (SWP). The SWP facility allows the investor to withdraw a specified sum of money periodically from their investments in the scheme. An SWP is ideal for investors seeking a regular inflow of funds for their needs. A fixed sum will be paid to the investor from their investments and the remaining part of the corpus will continue to earn returns. SWP facility will only be available on an on-going basis and will not be available during the NFO period. The minimum amount per SWP installment and minimum number of installments under all frequencies of SWP are as follows: Frequency under SWP Minimum Installments Minimum Amount and in Facility multiples of Weekly 6 Rs. 500 and in multiples of Re. 1/- thereafter Monthly 6 Rs. 500 and in multiples of Re. 1/- thereafter Quarterly 6 Rs. 500 and in multiples of Re. 1/- thereafter Stock Exchange Infrastructure Facility: Transactions through Stock Brokers / Clearing Members/ Depository Participants: The facility enables an applicant to purchase/ redeem units through the Stock Exchange Infrastructure. Transactions through Mutual Fund Distributors: SEBI, vide its Circulars no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and CIR/MRD/DSA/33/2014 dated December 9, 2014, read with Clause 16.2.7 and 16.2.10 of SEBI Master Circular for Mutual Funds dated June 27, 2024 has permitted Mutual Fund Distributors to use recognized Stock Exchange infrastructure to purchase/redeem units directly from Mutual Fund/Asset Management Companies on behalf of their clients. The Mutual Fund may (at its sole discretion and without being obliged in any manner to do so and without being responsible and /or liable in any manner whatsoever), allow subscriptions of Units by electronic mode (web/ electronic transactions) including subscriptions through the various web sites with which the AMC would have an arrangement from time to time Registration of Multiple Bank Accounts in respect of an Investor Folio (non-demat mode): Individuals and HUF investors can register up to 5 bank accounts and non-individuals can register up to 10 bank accounts with the Fund. Facility will not be available under demat mode of holding units. Facility to transact through MFCentral Platform: Pursuant to Clause 16.6 of SEBI Master Circular for Mutual Funds dated June 27, 2024, on ‘Registrar & Transfer Agents (RTA) interoperable Platform for enhancing investors’ experience in Mutual Fund transactions / service requests, the Qualified RTAs, Kfin Technologies Limited (Kfin) and Computer Age Management Services Limited (CAMS) have jointly developed MFCentral – A digital platform for Mutual Fund investors (the Platform). The investors can submit both financial and non-financial transactions through the said Platform. Transactions through execution-only platforms (EOPs): Under Chapter 16B of SEBI Master Circular for Mutual Funds dated June 27, 2024, SEBI has issued regulatory framework for “Execution Only Platforms” (“EOPs”) for facilitating transactions in direct plans of schemes of Mutual Funds. Under this facility, investors can submit transactions such as 8SCHEME INFORMATION DOCUMENT (SID) subscription, redemptions, switch etc. through these EOPs. These platforms shall also support non- financial transactions including change of email id or contact number or bank account details on its platform with respect to Mutual Funds. SIP Top-Up Facility: • Under this facility, the investor can increase the SIP instalment at pre-defined intervals. This aims to provide the investor with a simplified method of aligning SIP instalment amounts with an increase in the investor’s earnings over the tenure of SIP. This facility is available for all investors. • Investors can opt for SIP Top-up facility by specifying an amount or percentage along with the frequency of top-up. Frequency and Mode of SIP Top-Up: Investors can choose to increase their SIP instalments either by a fixed amount , to be applied after a set frequency: Half-Yearly Top-Up: Applicable after every 6 SIP instalments. Yearly Top-Up: Applicable after every 12 SIP installments. (Only yearly frequency is allowed for quarterly SIPs.) • Minimum Top-Up Amount: Rs.100 and in multiples of Rs.1. • If the investor fails to specify either the frequency or amount , it shall be deemed as Yearly Top-Up of Rs. 100. • If both are not specified, the application may be processed as a normal SIP, subject to all other details being complete. Top-Up Cap amount: Investor has an option to freeze the SIP Top-Up amount once it reaches a fixed predefined amount. The fixed pre-defined amount should be lower than or equal to the maximum amount mentioned by the investor in the OTM / bank mandate. In case of difference between the Cap amount and the maximum amount mentioned in the mandate, then the amount which is lower of the two amounts shall be considered as the default amount of SIP Cap amount. Where Top-Up Cap amount is not provided, the Top-Up would be capped at the maximum amount mentioned in the OTM / bank mandate. SIP Top-Up facility shall not be available in case of Micro-SIP. SIP Pause facility: • SIP Pause facility allows investors to pause their existing SIP for a temporary period, without discontinuing the existing SIP and SIP would restart from the immediate next installment after completion of the pause period specified by the investor. SIP Pause can be for a minimum period of 1 month to a maximum period of 6 months. • The minimum gap between the pause request and next SIP instalment date should be at least 10 calendar days (excluding the request date and the next SIP instalment date). XXV. Weblink The Total Expense Ratio (TER) shall be made available to the investors on the website of the AMC at www.wealthcompanyamc.com/downloads/statutory-disclosure/total-expense-ratio The Scheme factsheet shall be made available to the investors on the website of the AMC at www.wealthcompanyamc.com/downloads/factsheet 9THE WEALTH COMPANY MUTUAL FUND B. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY Con. Std. Obs. 55 It is confirmed that: i. The Scheme Information Document submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. ii. All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority on 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 Documents and other than cited deviations/ that there are no deviations from the regulations. vii. Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines thereunder shall be applicable. Con. Std. Obs. 63 viii. The Trustees have ensured that The Wealth Company Liquid Fund, approved by them, is a new product offered by The Wealth Company Mutual Fund and is not a minor modification of any existing scheme/fund/product. Con. Std. Obs. 65 For Wealth Company Asset Management Holdings Private Limited (Asset Management Company to The Wealth Company Mutual Fund) Sd/- Madhu Lunawat Managing Director & CEO Date: Place: Mumbai 10SCHEME INFORMATION DOCUMENT (SID) PART II: INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? The below mentioned table provides a broad classification of assets and indicative exposure level in percentage terms for the asset allocation. Indicative allocations (% of total assets) Instruments Minimum Maximum Debt* & money market instruments^ (having maturity up to 91 days only) 0 100 Investment in the above securities shall be restricted to securities with maturity or residual maturity of 91 days only (see additional notes and explanation below). ^Money market instruments would include certificate of deposits, commercial papers, T-bills, reverse repos and TREP, bill rediscounting, bills of exchange / promissory notes and government securities with maturity of upto 91 days only and such other instruments as eligible from time to time with maturity of upto 91 days only. *Debt instruments would include all debt securities issued by entities such as banks, companies, public sector undertakings, body corporates, central government securities, state development loans and UDAY bonds, recapitalization bonds, municipal bonds and G-Sec repos and any other instruments as permitted by regulators from time to time. Investment in Debt derivatives shall be up to 50% of the net assets of the scheme. Con. Std. Obs. 20 As per para 12.25.3 of the SEBI Master Circular Dated June 27. 2024, Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. SEBI vide letter dated November 3, 2021, has clarified that cash equivalents shall consist of government securities, T-bills and repo on government securities having residual maturity of less than 91 days. Con. Std. Obs. 14 The Scheme may undertake a) Repo/reverse repo transactions in corporate debt securities; b) Credit Default Swaps (CDS), and such other transactions in accordance with guidelines issued by SEBI from time to time. In addition to the instruments stated before, the Scheme may enter repos/reverse repos as may be permitted by RBI. From time to time, the Scheme may hold cash. A part of the net assets may be invested in the Tri-party repos on government securities or treasury bills (TREPS) or repo or in an alternative investment as may be provided by RBI to meet the liquidity requirements, subject to approvals, if any. Indicative Table (Actual instrument / percentages may vary subject to applicable SEBI circulars) Con. Std. Obs. 18 and 19 Sl. Type of Instrument Percentage of Exposure Circular References No. Securities lending up to 20% of net assets. Not more Securities lending with maximum 5% of the net assets of the scheme will Clause 12.11 of the SEBI Master 1 be deployed with any single intermediary in accordance Circular with Securities Lending Scheme, 1997 Clause 12.15 of the SEBI Master Securitized Debt 2 Up to 50% Circular Gross Exposure to Repo of Clause 12.18 of the SEBI Master 3 Corporate Debt Securities Up to 10% of total assets Circular Investments in derivatives for the purpose of hedging and Clause 12.25 of the SEBI Master 4 portfolio balancing purposes Up to 50% of the net assets of the scheme Circular Con. Std. Obs. 20 Scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter-scheme investments made by Units of Mutual Fund Clause 4 of schedule 7 read with 5 all schemes under the same management or in regulation 44(1) schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund Clause 12.28 of SEBI Master Circular Should not exceed 10% of the AUM of the scheme dated June 27, 2024, read with SEBI 6 Credit Default Swaps and shall be within overall limits of derivative Circular No. exposure SEBI/HO/IMD/PoD2/P/CIR/2024/125 dated September 20, 2024 25 bps of AUM in the units of the Corporate Debt Regulation 43A of SEBI (Mutual Market Development Fund (CDMDF). Further, an Funds) Regulations, 1996 read incremental contribution to CDMDF shall be made with Chapter 16A of SEBI Master 7 Units of CDMF every six months within 10 working days from the Circular dated June 27, 2024 end of half-year to ensure 25 bps of scheme AUM is invested in units of CDMDF Liquid Assets (Cash, Clause 4.5.1 of SEBI Master Government Securities, T-bills At least 20% of the net assets of the scheme Circular for Mutual Funds dated 8 and Repo on Government June 27, 2024) Securities) Con. Std. Obs. 13 Clause 12.25.9 of SEBI Master Interest Rate Futures (imperfect Up to 20% of the net assets of the scheme Circular for Mutual Funds dated 9 hedging) June 27, 2024 11THE WEALTH COMPANY MUTUAL FUND Additional Notes: • The Scheme may invest in derivatives up to 50% of the total assets of the Scheme for the purpose of hedging and portfolio balancing purposes. These may include instruments such as interest rate swaps, interest rate futures, credit default swaps, forward rate agreements, etc. • The scheme will undertake repo and stock lending transactions. • Pursuant to para 12.6 of the SEBI Master Circular, the Scheme shall not invest in/purchase debt and money market securities having a maturity of more than 91 days. Explanation: • In the case of securities where the principal is to be repaid in a single payout, the maturity of the securities shall mean unexpired maturity. • In case the principal is to be repaid in more than one payout, the maturity of the securities shall be calculated based on the weighted average maturity of the security. • In case of securities with put and call options (daily or otherwise), the unexpired maturity of the securities shall not be greater than 91 days. • In case the maturity of the security falls on a non-business day, then the settlement of securities will take place on the next business day. • Inter-scheme transfers of securities held in other schemes shall be permitted in the Liquid Schemes, provided the unexpired maturity of securities so transferred does not exceed 91 days. Other Important Information: • The cumulative gross exposure through repo transactions in corporate debt securities along with debt and derivatives shall not exceed 100% of the net assets of the scheme as per clause 12.24 of SEBI Master Circular for Mutual Funds dated 27 June 2024. Con. Std. Obs. 17 • Investments will be made in line with the asset allocation of the scheme and the applicable SEBI and/or AMFI guidelines as specified from time to time. • The limits mentioned above are subject to modifications; any increase or decrease in investment limits based on regulatory guidelines shall be implemented based on such amendments. Pursuant to SEBI Master Circular for Mutual Funds dated May 19, 2023 read with AMFI Best Practices Guidelines circular ref. no. 135/BP/93/2021-22 dated July 24, 2021, the Scheme shall hold- (i) at least 20%of its net assets in liquid assets; OR (ii) liquid assets basis Liquidity Ratio based on 30 – day Redemption at Risk (i.e LR – RaR), whichever is higher. For this purpose, “liquid assets” shall include Cash, Government Securities, T-bills and Repo on Government Securities. For ensuring liquidity the scheme will undertake the investment in liquid assets as per SEBI (Mutual Funds) Regulations, 1996. Con. Std. Obs. 13 In addition, to the above the Scheme shall also maintain the Liquidity ratio based on 30–day Conditional Redemption at Risk (LR-CraR) in ‘eligible assets’ for LR-CraR, in accordance with the guidelines / computation methodology (including definition of eligible assets for this purpose), as provided in the AMFI Best Practices Guidelines circular dated July 24, 2021. It shall be ensured that the liquid assets / eligible assets are maintained to the extent of the LR-RaR and LR-CraR ratios. In case, the exposure in such liquid assets / eligible assets falls below the prescribed threshold levels of net assets of the Scheme, the AMC shall ensure that the LR- RaR and LR-CraR ratios are restored to 100% of the required level(s) by ensuring that the net inflows (through net subscription/accruals/maturity & sale proceeds) into the Scheme are used for restoring the ratios before making any new purchases outside ‘Liquid Assets / Eligible Assets’ as specified in the above referred circular(s). The scheme will not invest in the following securities Con. Std. Obs. 18 Sr. Securities No. 1 Equity & Equity related instruments and equity derivatives 2 REIT and InvIT 3 Debt securities with special features (AT1 and AT2 bonds) Debt securities having structured obligations (SO rating) and/or credit enhancements (CE rating) except those with government 4 guarantee Unrated debt instruments except instruments like bills rediscounting, usance bills etc that are generally not rated. Exposure to such 5 instruments would not be more than 5% of the net assets. 6 Short Term Deposits of Scheduled Commercial Banks 7 Short selling of securities 8 Overseas securities The Scheme shall not park its funds which are pending for deployment in short term deposits of scheduled commercial banks. As per clause 4 of Seventh Schedule of SEBI (Mutual Funds) Regulations 1996, the scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that 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. The cumulative gross exposure through debt, money market instruments, fixed income derivatives, repo transactions in corporate debt securities and such other securities/assets as may be permitted by the Board from time to time should not exceed 100% of the net assets of the scheme in accordance with para 12.24.1 of the SEBI Master Circular for Mutual Funds dated Jun 27, 2024 Con. Std. Obs. 17 12SCHEME INFORMATION DOCUMENT (SID) Investment in Tri-party Repo before the closure of NFO: The Mutual Fund/AMC shall make investment out of the NFO proceeds in various securities only on or after the closure of the NFO period. However, Mutual Funds/AMC are allowed to deploy the NFO proceeds in triparty repo on Government securities or treasury bills before the closure of NFO period. However, AMC shall not charge any investment management and advisory fees on funds deployed in triparty repo on Government securities or treasury bills during the NFO period. The appreciation received from investment in triparty repo on Government securities or treasury bills shall be passed on to investors. Further, in case the minimum subscription amount is not garnered by the scheme during the NFO period, the interest earned upon investment of NFO proceeds in triparty repo on Government securities or treasury bills shall be returned to investors, in proportion of their investments, along-with the refund of the subscription amount. Deployment of funds collected during NFO period The AMC shall deploy the funds garnered in an NFO within 30 business days from the date of allotment of units. In an exceptional case, if the AMC is not able to deploy the funds in 30 business days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. Basis root cause analysis, the Investment Committee may extend the timeline by 30 business days, while also making recommendations on how to ensure deployment within 30 business days going forward and monitoring the same. Trustees shall also need to monitor the deployment of funds collected in NFO and take steps, as may be required, to ensure that the funds are deployed within a reasonable timeframe. In case the funds are not deployed as per the asset allocation mentioned in the SID as per the aforesaid mandated plus extended timelines, AMC shall: i. not be permitted to receive fresh flows in the same scheme till the time the funds are deployed as per the asset allocation mentioned in the SID. ii. not be permitted to levy exit load, if any, on the investors exiting such scheme(s) after 60 business days of not complying with the asset allocation of the scheme. iii. inform all investors of the NFO, about the option of an exit from the concerned scheme without exit load, via email, SMS or other similar mode of communication. iv. report deviation, if any, to Trustees at each of the above stages. Portfolio Rebalancing & Change in Investment Pattern Con. Std. Obs. 22 and 24 In accordance with SEBI Master Circular for Mutual Funds dated Jun 27, 2024 (para 2.9), in the event of asset allocation falling outside the limits specified in the asset allocation table mentioned above, due to passive breaches (occurrence of instances not arising out of omission and commission of the AMC), the fund manager will review and rebalance the same within 30 business days from the date of such deviation. In case the portfolio is not rebalanced within the period of 30 business days, justification in writing for the same including efforts taken to rebalance the portfolio shall be placed before the Investment Committee. The Investment Committee, if so desires, can extend the timelines upto 60 business days from the date of completion of the mandated rebalancing period. In case the scheme is not rebalanced within the aforementioned mandate plus extended timelines: a.) The AMC shall not be permitted to launch any new scheme till the time the portfolio is rebalanced. b.) The AMC shall not levy any exit load, (if any), on the investor exiting the Scheme. In case the AUM of the deviated portfolio is more than 10% of the AUM of the main portfolio of the scheme (para 2.9.4) i) The AMC shall immediately communicate the same to the investors of the scheme after the expiry of the mandated rebalancing period (i.e. 30 Business Days) through SMS and email/ letters including details of portfolio not rebalanced. ii) The AMC shall also immediately communicate to the investors through SMS and email/letter when the portfolio is rebalanced. iii) The AMC shall disclose scheme wise deviation of the portfolio (beyond aforesaid 10% limit) from the mandated asset allocation beyond 30 business days, on the AMC ‘s website. The AMC shall also disclose any deviation from the mandated asset allocation to investors along with periodic portfolio disclosures as specified by SEBI from the date of lapse of mandated plus extended rebalancing timelines. All of the Scheme’s assets will be invested in transferable securities. The corpus of the Scheme shall not in any manner be used in option trading, short selling or carry forward transactions as stipulated in SEBI Regulations and amended from time to time. Short Term Defensive Considerations Con. Std. Obs. 23 and 24 Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and defensive considerations as per Clause 1.14.1.2.b of SEBI Master Circular dated June 27, 2024. In the event of the asset allocation falling outside the limits specified in the asset allocation table, the Scheme will rebalance the portfolio within 30 calendar days. Con. Std. Obs. 23 B. WHERE WILL THE SCHEME INVEST? Con. Std. Obs. 9 The Scheme will invest the entire corpus in debt and money market securities. There will be no investment in equity and equity-related products. The instruments listed below could be listed, unlisted, privately placed, secured, unsecured, rated or unrated acquired through primary or secondary market through stock exchanges, over the counter or any other dealing mechanisms. Coupon bearing (fixed or floating), zero-coupon discounted instruments or any other type. Weights in the portfolio may not have any correlation to the order of listing. Subject to the regulations and prevailing laws as applicable, the portfolio will consist of permissible domestic fixed income instruments, most suitable to meet the investment objectives The following investment categories are likely to cover most of the available investment universe. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities as permitted by SEBI/ 13THE WEALTH COMPANY MUTUAL FUND RBI from time to time: • Treasury Bills (T-Bills) • Certificate of Deposits (CD) • Commercial Paper (CP) • Bills Rediscounting (BRD) • Repos/Reverse Repo • Securities 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) • “Tri-party repo” • Money market instruments permitted by SEBI / RBI, and including but not limited to Commercial Paper, Certificate of Deposits, T-Bills, Repo, Reverse repo, Bills Rediscounting, Tri-party repo, Repo/reverse repo in government securities, call or notice money, Usance bills, and any other short term instruments allowed under the Regulations. • Investment in repo transactions on Corporate Debt Securities. • Securitized Debt • Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central / State Government guarantee. • Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips etc. • The non-convertible part of convertible securities – Convertible securities are securities that can be converted from Debt to Equity shares. • Investments in units of mutual fund schemes. • Debt Derivative Instrument like Interest Rate Swaps, Forward Rate Agreement and such other derivative instruments as permitted by SEBI/RBI. • Credit Default Swaps • Investment in units of Corporate Debt Market Development Fund. • Cash and cash equivalents • Any other like instruments as may be permitted by RBI/SEBI/ such other Regulatory Authority from time to time Note: The securities/debt instruments mentioned above could be listed or unlisted, secured or unsecured, rated or unrated and of varying maturity and other terms of issue. The securities may be acquired through Initial Public Offerings (IPOs), secondary market operations, private placement, rights offer or negotiated deals. The inter scheme transfer of investments shall be in accordance with the provisions contained in Clause 12.30 of the Master Circular dated June 27, 2024, pertaining to inter scheme transfer of investments. Con. Std. Obs. 30 C. WHAT ARE THE INVESTMENT STRATEGIES? Con. Std. Obs. 27 For Debt Segment: The Scheme would strive to provide steady income and high liquidity through an optimal mix of money market instruments and debt instruments. The maturity of debt and money market instruments would be up to 91 days. The Fund management team will endevour to maintain a consistent performance by maintaining a balance between safety, liquidity and return parameters of various investments. The scheme is intended to be an investment option for investors with a short investment horizon and hence the predominant allocation will be to high rated and liquid instruments. The maturity profile of the scheme (within 91 days regulatory limit) and actual percentage of investment in various fixed income instruments from time to time will be decided based on the analysis of the following factors including but not limited to: growth prospects of the economy, inflation, interest rate, market conditions, external conditions, systemic liquidity, quality of security/instrument, maturity profile of the instrument, liquidity of the security and Fund Manager views. The Fund Management team may utilize various quantitative tools/techniques etc. in different combinations from time to time to develop, analyze, validate and reassess the investment decisions. The credit research team will undertake credit risk assessment of companies for potential investment in the scheme; The credit risk evaluation would mainly consider the following factors: • Company background • Promoter background/strength • Management quality • Overall financial strength • Ratings from external rating agencies would be one of the inputs for credit evaluation. The Fund would predominantly invest in securities carrying high investment grade external ratings. Con. Std. Obs. 28 For Derivatives Segment: The Scheme may take derivatives position based on the opportunities available subject to the guidelines issued by SEBI from time to time and in line with the overall investment objective of the Scheme. These may be taken to hedge the portfolio, rebalance the same or to undertake any other strategy as permitted under the SEBI Regulations. The margin money deployed on derivative positions would be included in Debt & Money Market Instruments. The cumulative gross exposure 14SCHEME INFORMATION DOCUMENT (SID) through debt and derivative positions shall not exceed 100% of the net assets of the scheme. For detailed derivative strategies, please refer to SAI Portfolio Turnover: “Portfolio Turnover” is the term used by any Mutual Fund for measuring the amount of trading that occurs in a Fund’s portfolio during the given period. As the scheme is an open-ended debt scheme, it is expected that there would be several subscriptions and repurchase on a daily basis. Also, with the average maturity of the scheme being low, the portfolio turnover ratio may be high. Consequently, it is difficult to estimate with any reasonable measure of accuracy the likely turnover in the portfolio. However, being a fixed income-oriented scheme, a high portfolio turnover would not significantly affect the brokerage and transaction costs. Additionally, Portfolio turnover in the scheme would be a function of market opportunities. The Fund Management team would strive to optimize portfolio turnover to optimize risk adjusted return keeping in mind the costs associated with it. A high portfolio turnover is not necessarily a drag on portfolio performance and may be representative of investment opportunities that exist in the market. Consequently, the scheme has no specific target relating to portfolio turnover. Stress Testing: As per AMFI Best practice guidelines circular No. 103/2022-23 dated October 12, 2022, on stress testing, a common methodology has been prescribed across the industry with a common outcome (i.e., impact on NAV) as a result of the stress testing carried out by AMCs. As per the new methodology, AMC and AMFI both need to specify a Threshold Portfolio and also AMC’s Threshold Portfolio need to adhere to the respective PRC (Potential Risk Class) buckets of the scheme. If the NAV impact on Actual Portfolio is greater than the NAV impact on Threshold Portfolio (AMFI or AMC), AMC would require initiating remedial action. The stress test analysis report is to be reviewed by the Investment Committee and breaches of the thresholds (AMFI/AMC), if any, are to be given a cure period of 30 days. Such a curing period can be extended by up to 30 days basis written justification. The AMC will conduct periodic stress testing and shall ensure the reporting of the details to the Board of Directors and SEBI in line with guidelines prescribed by SEBI and AMFI in this regard. The AMC will conduct periodic stress testing and shall ensure the reporting of the details to the Board of Directors and SEBI in line with guidelines prescribed by SEBI and AMFI in this regard. RISK MEASUREMENT / CONTROL: Risk is an inherent part of the investment function. Effective risk management is critical to fund management for achieving financial soundness. Investments by the Scheme shall be made as per the investment objectives of the Scheme and provisions of SEBI regulations. AMC has incorporated adequate safeguards to manage risk in the portfolio construction process. Risk control would involve managing risk in order to keep it in line with the investment objective of the Scheme. The Investment Committee may from time to time define internal investment norms for the scheme. Derivatives Risk: The fund will endeavor to maintain adequate controls to monitor the derivatives transactions entered. Risk Mitigants: Investment Risk The Fund Management team will perform the following actions to manage investment risk: • Only those securities that form a part of the Investment Universe can be added to the portfolio • Controlled Issuer/sector concentration limits • Fund may take offsetting hedges (including use of fixed income derivatives, floating rate instruments, cash levels etc.) to control the interest rate risk in the portfolio • Scenario analysis to evaluate portfolio sensitivity to interest rate changes • Ladder portfolio to mitigate risks associated with interest rate volatility • Monitoring issuer/sector level concentration • Monitoring investor concentration along with flows Credit Risk • In-house credit risk assessment before inclusion of securities in the investment universe and on a regular basis thereafter • Analysis/evaluation of external credit rating agencies’ ratings as well as other buy/sell side research reports • Use of early warning signals basis yield/price signals and/or any adverse news or rumors in the media • Concentration limits on issuer/group/sectoral basis Liquidity Risk • Liability side analysis • Portfolio diversification • Ladder portfolio • Portfolio liquidity Overview of Debt Market in India: The instruments available in the Indian Debt Market are classified into two categories, namely Government and Non – Government debt. Activity in the Primary and Secondary Market is dominated by Central Government Securities including Treasury Bills. 15THE WEALTH COMPANY MUTUAL FUND Mutual Funds, Pension Funds, Insurance companies has led to higher participation by issuers in debt markets which was earlier dominated by banks. The key instruments available for investment are Government securities, Corporate Bonds, Treasury Bills, Commercial Papers, Certificate of Deposits, Government guaranteed bonds, etc. Brief details about the instruments are given below as on June 30, 2025: Instruments Current Yield Range Liquidity Risk Profile Central Government Securities 5.25% - 7.25% High Low Corporate Debentures/ PSU Bonds 5.75% - 7.15% Moderate Medium CDs (Short Term) 5.50% - 6.35% High Low Commercial Paper (CP) 5.60% - 6.80% High Low Call Money 5.25% - 5.50% High Low *Current Yield Range for G-SEC and PSU is between 1 year and 15 years A brief description about yields presently available on Central Govt. Securities/ Bonds & Debentures of various maturities is as follows: Annualised yields (as on June 30, 2025) are: Years =< 1yr 1yr – 5yr 5yr – 10 yr 10 yr – 30 yrs Central Government Securities 5.25% - 5.60% 5.60% - 6.10% 6.10% - 6.40% 6.40% - 7.00% Debentures/Bonds (AAA rated) 5.75% - 6.45% 6.45% - 6.80% 6.45% - 7.05% 7.05% - 7.15% The price and yield on various debt instruments fluctuate from time to time depending upon the macro-economic situation, inflation rate, overall liquidity position, foreign exchange scenario, etc. Also, the price and yield vary according to maturity profile, credit risk etc. Con. Std. Obs. 28 INVESTMENT IN DERIVATIVES The scheme may use derivative instruments like Interest rate swaps, Interest Rate Futures, Forward rate agreements or such other derivative instruments as may be introduced from time to time for the purpose of hedging/non-hedging, portfolio balancing and other purposes as may be permitted under the Regulations and Guidelines from time to time. Such exposure to derivative instruments will be in line with the investment objective and overall strategy of the scheme. The sum total of derivative contracts outstanding shall not exceed 50% of the net assets of the scheme. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identify such opportunities. Identification and execution of the strategies to be pursued by the Fund Manager involves uncertainty and the decision of the Fund Manager may not always be profitable. No assurance can be given that the Fund Manager will be able to identify or execute such strategies. The risks associated with derivatives are different or possibly greater than the risks associated with investing directly in securities and other traditional instruments. For detailed derivative strategies, please refer SAI. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? Con. Std. Obs. 25 The performance of the scheme will be benchmarked to the performance of the NIFTY Liquid Index A-I, AMFI prescribed Benchmark. The NIFTY Liquid Index A-I Index reflects the fund’s risk/return profile and is a measure for performance evaluation. The Scheme intends to invest in a portfolio of securities and the risk/return profile which is best captured by the following selected benchmark. NIFTY Liquid Index A-I Index fulfills the above criteria’s and hence is considered best suited as a benchmark for the Scheme for performance evaluation. The above benchmark is in accordance with clause 1.9 of SEBI Master Circular for Mutual Funds dated June 27, 2024, on “Guiding principles for bringing uniformity in Benchmark of Mutual Fund Schemes” and the list published by AMFI in this regard on Tier I benchmark for debt schemes. The Trustee reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, subject to the compliance with Regulations/ circulars issued by SEBI and AMFI in this regard from time to time. E. WHO MANAGES THE SCHEME? Con. Std. Obs. 33 Name of the Fund Age Educational Type and Nature of past experience Tenure as Fund Name of the Manager Qualification including assignments held during Manager of the Other Scheme the past 10 years Scheme managed Mr. Umesh 47 years CA, CS, CFA Mr. Umesh Sharma has over two From the inception No other Scheme Sharma decades of experience, including the has been launched last 14 years at Franklin Templeton of The Wealth Mutual Fund.. Prior to Franklin Company Mutual Templeton, he has worked at Invesco Company Mutual Fund, ICICI Bank, JM Financial Mutual Fund, and UTI Mutual Fund. Mr. Varun 31 years B.COM and Chartered Credit rating of Large Corporate Group From the inception No other Scheme Nanavati Accountant – Crisil Ratings Ltd (2022 – 2025) has been launched of The Wealth Credit rating of Large Corporate Group Company Mutual (EMEA) – Citi (2021 – 2022) Company Internal & Risk Audit – KPMG India (2018 – 2021) 16SCHEME INFORMATION DOCUMENT (SID) F. HOW IS THE SCHEME DIFFERENT FROM THE EXISTING SCHEMES OF THE MUTUAL FUND? Currently, The Wealth Company Mutual Fund does not have any scheme in the open-ended debt category. G. HOW HAS THE SCHEME PERFORMED? Not applicable as it is a new scheme. However, appropriate disclosures in this respect will be available at www.wealthcompanyamc.com/downloads H. ADDITIONAL SCHEME RELATED DISCLOSURES i. Scheme’s portfolio holdings: Scheme’s portfolio holdings (including top 10 holdings by issuer and fund allocation towards various sectors including detailed description) Not applicable since this is a new Scheme However, appropriate disclosures in this respect will be available at www.wealthcompanyamc.com/downloads Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of Debt and Equity ETFs/index funds including detailed description. Not applicable ii. Functional website link for Portfolio Disclosure – Fortnightly/Monthly/Half-Yearly. The fortnightly, monthly and half-yearly portfolio of the scheme will be available on the weblink: www.wealthcompanyamc.com/downloads/portfolio iii. Portfolio Turnover Rate: Not applicable iv. Aggregate investment in the Scheme by: Sr. No. Category of Persons Net Value 1 Concerned scheme’s Fund Manager Units NAV Per Unit Not Applicable The above disclosures are not applicable since this scheme is a new scheme and does not contain any details. For any other disclosure w.r.t investments by key personnel and AMC directors including regulatory provisions in this regard, kindly refer the SAI. v. Investments of AMC in the Scheme: AMC shall invest in the scheme based on the risk associated with the scheme as specified in para 6.9 of SEBI Master Circular for Mutual Funds dated June 27, 2024, read with AMFI Best Practice Guidelines Circular 135/BP/100/2022-23 dated April 26, 2022, and any other circulars issued there under, from time to time. During the NFO period, 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 pursuant to this circular. In line with SEBI Regulations and circulars issued by SEBI from time to time, the AMC may invest its own funds in the scheme(s). Further, AMC shall not charge any fees on its investment in the Scheme (s), unless allowed to do so under SEBI Regulations in the future. Further, the details of investment of AMC in the scheme can been viewed on the weblink: www.wealthcompanyamc.com/downloads/statutory- disclosure Con. Std. Obs. 58 17THE WEALTH COMPANY MUTUAL FUND PART III: OTHER DETAILS A. COMPUTATION OF NAV Con. Std. Obs. 42 The Net Asset Value (NAV) of the Units will be determined daily or as prescribed by the Regulations. The NAV shall be calculated in accordance with the following formula, or such other formula as may be prescribed by SEBI from time to time. NAV= Market/Fair value of Scheme’s Investments + Current Assets - Current Liabilities and Provisions Number of units outstanding under Scheme/ Plan Illustration: Assumptions - on the day of calculation of NAV: Market or Fair Value of the Scheme’s Investments = 10600 Current Assets = 250 Current Liabilities & provisions = 150 No of units outstanding in the plan = 10 NAV = (10600+250-150)/10 = 1070.0000 Methodology of calculating the sale price: The price or NAV an investor is charged while investing in an open-ended scheme is called sale / subscription price. Pursuant to clause 10.4.1.a of the SEBI Master circular for Mutual Funds dated June 27, 2024, no entry load will be charged by the Scheme to the investors. Therefore, Sale / Subscription price = Applicable NAV Methodology of calculating the repurchase price Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the investors. 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 / Redemption Price = Applicable NAV *(1 – Exit Load, if any) For example, If the Applicable NAV of the Scheme is Rs. 1000 and the Exit Load applicable at the time of investment is 1% if redeemed before completion of 1 year from the date of allotment of units and the investor redeems units before completion of 1 year, then the repurchase/redemption price will be: = Rs. 1000*(1-0.01) = Rs. 990.0000 Rounding off policy for NAV: Net Asset Value of the Units in the Scheme is calculated in the manner provided in this Scheme Information Document or as may be prescribed by Regulations from time to time. The NAV will be computed up to four decimal places. Con. Std. Obs. 42 The Fund will ensure that the Redemption Price is not lower than 95% of the NAV Con. Std. Obs. 47 18SCHEME INFORMATION DOCUMENT (SID) B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, registrar expenses, printing and stationery, bank charges etc. NFO expenses shall be borne by the AMC and will not be charged to the scheme. C. ANNUAL SCHEME 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 and other expenses as given in the table below. The AMC has estimated that the following % of the daily net assets of the scheme will be charged to the scheme as expenses. The AMC would update the current expense ratios on the website of the mutual fund at least three working days prior to the effective date of the change. Further Actual Expense ratio will be disclosed at the following weblink: www.wealthcompanyamc.com/downloads/statutory-disclosure/total-expense-ratio Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fees (AMC Fees) 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 Up to 2.00% Costs of fund transfer from location to location Cost towards investor education & awareness Brokerage & transaction cost pertaining to distribution of units Goods & Services Tax on expenses other than investment and advisory fees Goods & Services Tax on brokerage and transaction cost Other Expenses (to be specified as per Reg 52 of SEBI MF Regulations) Maximum Total Expenses Ratio (TER) permissible under Regulation 52 (6) (C) Up to 2.00% Additional expenses under Regulations 52 (6A) (C) Up to 0.05% Additional expenses for gross new inflows from specified cities under Regulation 52 (6A) (b) to Up to 0.30% improve the geographical reach of scheme. Impact of TER on returns of both Direct plan and Regular plan is provided in an illustration below: Con. Std. Obs. 44 Illustration – Impact of Expense Ratio on the Returns Particulars Regular Plan Direct Plan Amount Invested at the beginning of the year 10,000 10,000 Returns before Expenses 1,500 1,500 Expenses other than Distribution Expenses 150 150 Distribution Expenses 50 – Returns after Expenses at the end of the Year 1,300 1,350 The purpose of the above table is to assist the investor in understanding the various costs and expenses that an investor in the scheme will bear directly or indirectly. The above estimates for recurring expenses are for indicative purposes only and have been made in good faith as per the information available to the AMC based on past experience 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 (MF) Regulations. Notes: a. The TER of the Direct Plan will be lower to the extent of the distribution expenses/ commission, which is charged in the Regular Plan. No commission for distribution of Units will be paid/charged under Direct Plan. All fees and expenses charged in a direct plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in a regular plan. b. The AMC shall not charge additional expenses under Regulation 52(6A) (c) in case the exit load is not levied/not applicable. c. In terms of Para 10.1.16 related to ‘Investor Education and Awareness’ of the SEBI Master Circular, the AMC/Mutual Fund shall annually set apart at least 2 basis points (i.e. 0.02%) on daily net assets of the scheme within the maximum limit of Total Expense Ratio as per Regulation 52 of the SEBI (MF) Regulations for investor education and awareness initiatives. Con. Std. Obs. 43 d. Pursuant to Para 10.1.14 of the SEBI Master Circular, Brokerage and transaction cost incurred for the purpose of execution shall be charged to the schemes as provided under Regulation 52 (6A) (a) up to 12 bps and 5 bps for cash market transactions and derivatives transactions respectively. Any payment towards brokerage & transaction costs, over and above the said 12 bps and 5 bps for cash market transactions and derivatives transactions respectively, may be charged to the Scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (Mutual Finds) Regulations, 1996. e. The expense of 30 bps shall be charged if the new inflows from B30 cities from retail investors as specified from time to time are at least (i) 30 percent of gross new inflows in the scheme, or (ii) 15 percent of the average assets under management (year to date) of the scheme, whichever is higher. Provided that if inflows from B30 cities from retail investors cities is less than the higher of sub-clause (i) or sub- clause (ii) such expenses on daily net assets of the scheme shall be charged on a proportionate basis. 19THE WEALTH COMPANY MUTUAL FUND Provided further that expenses charged under this clause shall be utilized for distribution expenses incurred for bringing inflows from B30 cities from retail investors. Provided further that amount incurred as expense on account of inflows from B30 cities from retail investors shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment. f. In case inflows from retail investors from beyond top 30 cities is less than the higher of (i) or (ii) above, additional TER on daily net assets of the scheme shall be charged as follows: Daily net assets X 30 basis points X New inflows from individuals from beyond top 30 cities 365* X Higher of (i) or (ii) above * 366, wherever applicable. For the above purposes, ‘B30 cities’ shall be beyond Top 30 cities as at the end of previous financial year as communicated by AMFI. Retail investors would mean individual investors from whom inflows into the Scheme would amount up to Rs. 2,00,000/- per transaction. Note: Pursuant to AMFI email dated March 2, 2023, with respect to keeping the B-30 incentive structure in abeyance, the AMC will not charge an additional 30 bps on new inflows garnered from retail investors from B-30 cities till further notice. g. In terms of Para 10.3 on ‘Restriction on charging Goods & Service Tax’ of the SEBI Master Circular, AMC may charge GST on following Fees and expenses as below: • Investment Management and Advisory Fees: AMC may charge GST on investment management and advisory fees to the scheme in addition to the maximum limit of Total Expense Ratio as prescribed under Regulation 52 of the SEBI (MF) Regulations • Other than Investment Management and Advisory Fees: AMC may charge GST on expenses other than investment management and advisory fees to the scheme within the maximum limit of Total Expense Ratio as prescribed under Regulation 52 of the SEBI (MF) Regulations. Further, GST on Brokerage and transaction cost incurred for execution of trades, will be within the maximum limit of Total Expense Ratio as prescribed under Regulation 52 of the SEBI (MF) Regulations. h. As per Regulation 52(6) (c) of SEBI (MF) Regulations, the total expenses of the scheme, including Investment Management and Advisory Fees, shall be subject to the following limits as specified below: Assets Under Management Slab (In Rs. Crore) Total Expense Ratio Limits on the first Rs. 500 crores of the daily net assets 2.00% on the next Rs. 250 crores of the daily net assets 1.75% on the next Rs. 1,250 crores of the daily net assets 1.50% on the next Rs. 3,000 crores of the daily net assets 1.35% on the next Rs. 5,000 crores of the daily net assets 1.25% On the next Rs. 40,000 crores of the daily net assets TER reduction of 0.05% for every increase of Rs. 5,000 crores of daily Net assets or part thereof. On balance of the assets 0.80% Maximum Permissible Expense: The said maximum TER shall either be apportioned under various expense heads as enumerated above, without any sub limit or allocated to any of the said expense head(s) at the discretion of AMC. Also, the types of expenses charged shall be as per the SEBI (MF) Regulations. The total expenses of the scheme including investment management and advisory fee shall not exceed beyond the limits as prescribed under clause 52(6) of SEBI (Mutual Funds) Regulations, 1996. D. LOAD STRUCTURE: Con. Std. Obs. 47 Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC (www.wealthcompanyamc.com) or may call at toll free 1800 267 3454 or your distributor. Type of Load Load Chargeable (as % of NAV) Entry Load Nil Exit Load Investors exit upon Exit load as a % of redemption subscription proceeds (including systematic transactions) Up to Day 1 0.0070% Day 2 0.0065% Day 3 0.0060% Day 4 0.0055% Day 5 0.0050% Day 6 0.0045% Day 7 onwards Nil Please note that no Exit Load shall be levied for switching between Plans within the said Scheme. Units issued on Re-investment of Income Distribution cum capital withdrawal shall not be subject to exit load. The AMC reserves the right to introduce a load structure, levy a different load structure or remove the load structure in the scheme at any time after giving notice to that effect to the investors. Goods & Service tax on exit load shall be paid out of the exit load proceeds and exit load net of goods & service tax 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 in the load shall be applicable on prospective investments only. At the time of changing the load 20SCHEME INFORMATION DOCUMENT (SID) structure, the mutual fund may consider the following measures to avoid complaints from investors about investment in the schemes without knowing the loads: i. The AMC shall be required to issue an addendum and display the same on its website immediately ii. The addendum shall be circulated to all the distributors/brokers/Investor Service Centre (ISC) so that the same can be attached to all KIM and SID already in stock till it is updated. iii. The latest applicable addendum shall be a part of KIM and SID. (E.g. 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). iv. Further, the account statements shall continue to include applicable load structure v. In accordance with SEBI Regulations, the repurchase price will not be lower than 95% of the NAV. Con. Std. Obs. 47 vi. The investor is requested to check the prevailing load structure of the Scheme before investing. 21THE WEALTH COMPANY MUTUAL FUND SECTION - II I. INTRODUCTION A. DEFINITIONS/INTERPRETATION The definitions are mentioned on the website link: www.wealthcompanyamc.com In this Scheme Information Document, the following words and expressions shall have the meaning specified below, unless the context otherwise requires: Aadhaar Aadhaar number issued by the Unique identification Authority of India (UIDAI) Allotment of Units For Subscriptions received at the DISC’s within the cut-off timings and considered accepted for that day, the units will be allotted on the T Day. Where the T Day is the transaction day, provided the application is received within the cut-off timings for the transaction day. Applicable Net Asset Value Applicable NAV is the Net Asset Value per Unit at the close of the Business Day on which the application (NAV) for purchase or redemption/switch is received at the designated investor service centre and is considered accepted on that day. An application is considered accepted on that day, subject to it being complete in all respects and received prior to the cut-off time on that Business Day. AMFI Association of Mutual Funds in India, the apex body of all the registered AMCs incorporated on August 22, 1995, as a non-profit organization. ARN AMFI Registration Number Asset Management Wealth Company Asset Management Holdings Private Limited, the Asset Management Company Company (AMC)/ incorporated under the Companies Act, 2013, and authorized by SEBI to act as the Investment Manager Investment Manager to the Schemes of The Wealth Company Mutual Fund. Business Day/ Working A Business Day/Working Day means any day other than: Day 1. Saturday and Sunday; or 2. a day on which The Bombay Stock Exchange, Mumbai or National Stock Exchange Limited or Reserve Bank of India or Banks in Mumbai are closed; or 3. a day on which there is no RBI clearing/settlement of securities; or 4. a day which is a public and /or bank Holiday at an Investor Service Centre/Official Point of Acceptance where the application is received; 5. a day on which the sale and/or redemption and /or switches of Units is suspended by the Trustees or AMC or 6. a book closure period as may be announced by the Trustees/Asset Management Company or 7. a day on which normal business could not be transacted due to storms, floods, or bandhs, strikes or any other events as the AMC may specify from time to time. The AMC reserves the right to declare any day as a Business Day or otherwise at any or all DISC. Business Hours Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as may be applicable from time to time. CDSL Central Depository Services (India) Limited Collecting Bank Branches of Banks for the time being authorized to receive application(s) for units, as mentioned in this document. Continuous Offer Offer of the Units when the scheme becomes open-ended after the closure of the New Fund Offer. Consolidated Account Consolidated Account Statement contain details relating to all Purchases, redemptions, switches, “IDCW Statement (“CAS”) Payouts”, “IDCW Reinvestments”, SIPs, SWPs and STPs (“Transactions”) carried out by the investor across all schemes of all mutual funds during the month and holding at the end of the month including transaction charges paid to the distributor. Custodian Custodian means a person who has been granted a certificate of registration to carry on the Business of custodian of securities under the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996. Presently, HDFC Bank, registered vide registration number IN/CUS/001 is appointed as Custodian of securities for all the schemes of The Wealth Company Mutual Fund, or any other custodian as may be appointed by the Trustees. Depository Depository as defined in the Depositories Act, 1996 (22 of 1996). Designated Investor Service Any location as may be defined by the Asset Management Company from time to time, where investors Centres (DISC)/ (Official can tender the request for subscription, redemption or switching of units, etc. point of acceptance for transaction) Income Distribution cum Income distributed by the Scheme on the Units. Capital Withdrawal (IDCW) DP Depository Participant means a person registered as such under sub-regulation (1A) of section 12 of SEBI Act, 1992 (15 of 1992). Entry Load Load on subscriptions/switch in. 22SCHEME INFORMATION DOCUMENT (SID) Exit Load Load on redemptions/switch out. InvITs or Infrastructure InvITs are companies that own infrastructure assets. Investment Trust Investment Management The Agreement entered into between Trustee Company and AMC has been appointed the Investment Agreement (IMA) Manager for managing the funds raised by The Wealth Company Mutual Fund under the various Schemes and all amendments thereof. Instant Access Facility (IAF) The IAF facilitates credit of redemption proceeds into the bank account of the investor instantly through Immediate Payment Service (IMPS) at any time or day of the week. KIM Key Information Memorandum as required in terms of clause 29(4) of SEBI (MF) Regulation. Load A charge that may be levied as a percentage of NAV at the time of entry into the scheme/plans or at the time of exiting from the scheme/ plans. Local Cheque A Cheque handled locally and drawn on any bank, which is a member of the banker’s clearing house located at the place where the application form is submitted. Money Market Instruments As per Clause 45 U.(b) of RBI Act, 1934, “money market instruments” include call or notice money, term money, repo, reverse repo, certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of original or initial maturity up to one year as the Bank may specify from time to time Net Asset Value (NAV) Net Asset Value of the Units in each plan of the Scheme is calculated in the manner provided in this Scheme Information Document or as may be prescribed by Regulations from time to time. The NAV will be computed up to four decimal places. No Load Scheme A Scheme where there is no initial Entry or Exit Load. NRI Non-Resident Indian. Person resident outside India who is either a citizen of India or a Person of Indian Origin. NSDL The National Securities Depository Limited PIO Person of Indian Origin. A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b). Purchase Price/ Purchase Price to the investor of Units of any of the plans computed in the manner indicated in this Subscription Price Scheme Information Document. Rating An opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999 as may be amended from time to time. Redemption Price Redemption Price to the investor of Units of any of the plans computed in the manner indicated in this Scheme Information Document. “REIT” or “Real Estate “REIT” or “Real Estate Investment Trust” shall have the meaning assigned in clause (zm) of sub- Investment Trust” regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014. Registrar KFin Technologies Limited (KFin), who has been appointed as the Registrar or any other Registrar who is appointed by AMC. Reserve Bank of India (RBI) Reserve Bank of India, established under the Reserve Bank of India Act, 1934. Scheme The Wealth Company Liquid Fund Scheme Information Scheme Information Document issued by The Wealth Company Mutual Fund, offering units of The Document (SID) Wealth Company Liquid Fund for Subscription. Statement of Additional Statement of Additional Information, the document issued by The Wealth Company Mutual Fund Information (SAI) containing details of The Wealth Company Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document. SEBI (Mutual Funds) Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time Regulations/ SEBI (MF) and such other regulations (including the Rules, Guidelines or Circulars) as may be in force from time to Regulations time to regulate the activities of Mutual Funds. SEBI Master Circular SEBI Master Circular for Mutual Funds dated June 27, 2024, which is a consolidated compendium of all circulars issued by SEBI till March 31, 2024. (referred to as the SEBI Master Circular) Sponsor Sponsor of The Wealth Company Mutual Fund i.e. Pantomath Capital Advisors Private Limited Switching Option Investors may opt to switch Units between the IDCW Plan and Growth Plan of the Scheme at NAV based prices after completion of lock in period, if any. Switching will also be allowed into/from any other eligible open- ended Schemes of the Fund either currently in existence or a Scheme(s) that may be launched/ managed in future, as per the features of the respective scheme. Tri-party repo Tri-party repo is a type of repo contract where a third entity (apart from the borrower and lender), called a Tri- Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. Trustee/Trustee Company Pantomath Trustee Private Limited, a Company incorporated under the Companies Act, 2013, and authorized by SEBI and by the Trust Deed to act as the Trustee of The Wealth Company mutual fund. 23THE WEALTH COMPANY MUTUAL FUND Mutual Fund/ the Fund The Wealth Company Mutual Fund, a Trust under Indian Trust Act, 1882 and registered with SEBI. Trust Deed The Trust Deed entered into between the Sponsor and the Trustee, and all amendments thereof. Trust Fund The corpus of the Trust, unit capital and all property belonging to and/or vested in the Trustee. Unit The interest of the investors in any of the plans, of the scheme which consists of each Unit representing one undivided share in the assets of the corresponding plan of the scheme. Unitholder A person who holds Unit(s) under the scheme. Unitholders Record Unitholders whose names appear on the unitholders register of the concerned plan/(s) on the date of determination of IDCW option, subject to realization of the cheque. Website Website of The Wealth Company Mutual Fund namely www.wealthcompanyamc.com Words and Expressions used in this Scheme Information Document and not defined would have the same meaning as in Regulations. INTERPRETATION: For all purposes of this Scheme Information Document, 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 "dollars" or "$" refer to United States Dollars and "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). • References to a day are to a calendar day including a non-business Day 24SCHEME INFORMATION DOCUMENT (SID) ABBREVIATIONS Act The Income Tax Act, 1961 AMC Asset Management Company AMFI Association of Mutual Funds in India ARN AMFI Registration Number AOP Association of Persons BSE BSE Limited BSE Star MF System BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds Units. CAGR Compound Annual Growth Rate CAS Consolidated Account Statement CDSL Central Depository Services (India) Limited DP Depository Participant ECS Electronic Clearing System EFT Electronic Fund Transfer EOP Execution Only Platform FATCA Foreign Account Tax Compliance Act FATF Financial Action Task Force FCNR A/c Foreign Currency (Non-Resident) Account FPI Foreign Portfolio Investors (erstwhile FII’s – Foreign Institutional Investors) GST Goods and Service Tax HUF Hindu Undivided Family IDCW Income Distribution cum Capital Withdrawal IFSC Indian Financial System Code IPO Initial Public Offering ISC Investor Service Centre KIM Key Information Memorandum KRA KYC Registration Agency KYC Know Your Customer MFSS Mutual Fund Services System of the National Stock Exchange of India Ltd. MIBOR Mumbai Inter Bank Offer Rate NAV Net Asset Value NECS National Electronic Clearing Service NEFT National Electronic Funds Transfer NFO New Fund Offer NRE A/c Non-Resident (External) Rupee Account NRI Non-Resident Indian NRO A/c Non-Resident Ordinary Rupee Account NSDL National Securities Depositories Limited NSE National Stock Exchange of India Limited PAN Permanent Account Number PEKRN PAN Exempt KYC Reference Number PEP Politically Exposed Person PIO Person Of Indian Origin POA Power Of Attorney RBI Reserve Bank of India Rs. Indian Rupee (s) RIA SEBI Registered Investment Advisor RTA Registrar and Transfer Agent RTGS Real Time Gross Settlement SAI Statement of Additional Information SEBI Securities and Exchange Board of India SID Scheme Information Document SIP Systematic Investment Plan STP Systematic Transfer Plan SWP Systematic Withdrawal Plan TREPS Tri-Party Repos 25THE WEALTH COMPANY MUTUAL FUND Con. Std. Obs. 8 B. RISK FACTORS 1. STANDARD RISK FACTORS i. Mutual Funds and securities investments are subject to market risks such as trading volumes, settlement risk, liquidity risk, and default risk including the possible loss of principal and there is no assurance or guarantee that the objectives of the Scheme will be achieved. ii. As the price/value/interest rate of the securities in which the scheme invests fluctuates, the value of your investment in the Scheme may go up or down depending on the factors and forces affecting the capital markets. iii. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee the future performance of the Scheme. iv. The Wealth Company Liquid Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, or its future prospects and returns. v. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs.1 lakh towards the setting up of the Mutual Fund and such other accretions and additions to the corpus. vi. The present scheme is not a guaranteed or assured return scheme. vii. The Mutual Fund is not guaranteeing or assuring any payout under the IDCW option. The Mutual Fund is also not assuring that it will make periodical distributions, though it has every intention of doing so. All distributions are subject to the availability of distributable surplus of the scheme. viii. The Wealth Company Liquid Fund is the first scheme which is launched in the Debt Fund category, the fund house does not have any prior experience. Please refer to SAI for details. 2. SCHEME SPECIFIC RISK FACTORS 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. Some of the specific risk factors related to the scheme include, but are not limited to the following: Con. Std. Obs. 8 a. Risks associated with investing in debt and/or Money Market Securities: The following are the risks associated with investment in debt and Money Market securities: Interest Rate Risk: As with all debt securities, changes in interest rates may affect the Scheme's Net Asset Value as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of long-term securities generally fluctuate more in response to interest rate changes than short-term securities do. Indian debt markets can be volatile leading to the possibility of price movements up or down in fixed income securities and thereby to possible movements in the NAV. Re-investment Risk: Investments in fixed income securities may carry re-investment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate. Spread Risk: Yield Spreads between fixed income securities might change. Example: Corporate Bonds are exposed to the risk of widening of the spread between corporate bonds and gilts. Prices of corporate bonds tend to fall if this spread widens, which might adversely affect the NAV of the scheme. Similarly, in case of floating rate securities, where the coupon is expressed in terms of a spread or mark up over the benchmark rate, widening of the spread results in a fall in the value of such securities. Liquidity Risk: This risk pertains to how saleable a security is in the market or the ease at which a security can be sold at or close to its true value. Trading volumes, settlement periods and transfer procedures may restrict the liquidity of some of the investments. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. The liquidity of debt securities may change, depending on market conditions. At the time of selling the security, the security can become less liquid (wider spread) or illiquid, leading to a loss in value of the portfolio. Securities that are unlisted generally carry a higher liquidity risk compared to listed securities. Money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring mark-to-market losses and losses when the security is finally sold. Liquidity risk is greater for thinly traded securities, lower-rated bonds, bonds that were part of a smaller issue, bonds that have recently had their credit rating downgraded or bonds sold by an infrequent issuer may be relatively illiquid. Bonds are generally the most liquid during the period right after issuance when the bond typically has the highest trading volume. Credit Risk/Default Risk: Credit risk is the risk that the issuer of a debenture/ bond or a money market instrument may default on interest and /or principal payment obligations and/or on violation of covenant(s) and/or delay in scheduled payment(s). Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. Government Security is a sovereign security, and the default risk is considered to be the least. Corporate bonds carry a higher credit risk than Government Securities and among corporate bonds there are different levels of safety. Credit risks of most issuers of debt securities are rated by independent and professionally run rating agencies. Ratings of Credit issued by these agencies typically range from “AAA” (read as “Triple A” denoting “Highest Safety”) to “D” (denoting “Default”). A bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Counterparty Risk: This is the risk of failure of the counterparty to the transaction to deliver securities against consideration received or to pay consideration against securities delivered, in full or in part or as per the agreed specification. There could be losses to the Scheme in case of counterparty default. Settlement Risk: Different segments of the Indian financial markets have different settlement periods, and such periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make purchases in intended securities due to settlement problems could cause the Scheme to miss certain investment opportunities. Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV. Duration Risk: The modified duration of a bond is a measure of its price sensitivity to interest rates movements, based on the average time to maturity of its interest and principal cash flows. Bond portfolio managers increase average duration when they expect rates to decline, to get the most benefit, and decrease average duration when they expect rates to rise, to minimize the negative impact. If rates move in a direction contrary to their expectations, they lose. Inflation Risk: Inflation causes tomorrow’s currency to be worth less than today’s; in other words, it reduces the purchasing power of a bond investor’s future interest payments and principal, collectively known as “cash flows.” Inflation also leads to higher interest rates, which in turn leads to lower bond prices. Inflation-indexed securities such as Treasury Inflation Protection Securities (TIPS) are structured to remove inflation 26SCHEME INFORMATION DOCUMENT (SID) risk. Selection Risk: This is the risk that a security chosen will underperform the market for reasons that cannot be anticipated. Timing Risk: It is the risk of transacting at a price based on erroneous future price predictions resulting to losses. Timing risk explains the potential for missing out on beneficial movements in price due to an error in timing. This could lead to purchasing too high or selling too low. Call Risk: Some corporate, municipal and agency bonds have a “call provision” entitling their issuers to redeem them at a specified price on a date prior to maturity. Declining interest rates may accelerate the redemption of a callable bond, causing an investor’s principal to be returned sooner than expected. In that scenario, investors have to reinvest the principal at the lower interest rates. (See also Reinvestment risk.) Concentration Risk: This is the risk arising from over exposure to few securities/issuers/sectors. The Scheme intends to invest substantially in Tri-Party Repo. For risks relating to investments in Tri-Party Repo, please refer to the section on ‘Risks associated with investing in Securities Segment and Tri-party Repo trade settlement’ herein below in this document. Legislative Risk: This is the risk that a change in the tax code could affect the value of taxable or tax- exempt interest income. Basis Risk (Interest - rate movement): During the life of a floating rate security or a swap, the underlying benchmark index may become less active and may not capture the actual movement in interest rates or at times the benchmark may cease to exist. These types of events may result in loss of value in the portfolio. Other Risk: In case of downward movement of interest rates, floating rate debt instruments will give a lower return than fixed rate debt instruments. b. Risks associated with Securities Lending: Engaging in securities lending is subject to risks related to fluctuations in collateral value and settlement / liquidity and counterparty risks. The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Mutual Fund may not be able to sell such lent securities, and this can lead to temporary illiquidity. c. Risks associated with investing in Unrated Securities: Investing in unrated securities is riskier compared to investing in rated instruments due to the non-availability of third-party assessment on the repaying capability of the issuer. In addition, unrated securities are more likely to react to general developments affecting the market than rated securities, which react primarily to movements in the general level of interest rates. Unrated securities also tend to be more sensitive to economic conditions than higher-rated securities. d. Trading through mutual fund trading platforms of BSE and/or NSE: In respect of a transaction in Units of the Scheme through BSE and/or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing/settlement by BSE and/ or NSE and their respective clearing corporations on which the Mutual Fund has no control. e. Risks Factors Associated with Investments in Repo Transactions in Corporate Bonds: In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at a later date. The repurchase price should be greater than the original sale price, the difference effectively representing interest. A repo is economically similar to a secured loan, with the buyer receiving corporate debt securities as collateral to protect against default. The Scheme may invest in repo of corporate debt securities which are subject to the following risks: Counterparty Risk related to the repo: This refers to the inability of the seller to meet the obligation to buy back securities at the contracted price on the contracted date. The Investment Manager will endeavour to manage counterparty risk by dealing only with counterparties, having strong credit profiles, approved by our credit risk analysis team. The exposure to each counterparty will be within the overall approved credit limits. Also, the counterparty risk is to an extent mitigated by taking collateral equivalent in value to the transaction after knocking off a minimum haircut on the intrinsic value of the collateral. In the event of default by the repo counterparty, the scheme shall have recourse to the corporate debt securities. Collateral Risk: Collateral risk arises when the market value of the securities is inadequate to meet the repo obligations. This risk is mitigated by restricting participation in repo transactions with collateral bearing a minimum rating as prescribed by the regulators (currently AA or equivalent and above rated money market and corporate debt securities). Any rating downgrade will tantamount to either an early termination of the repo agreement or a call for fresh margin to meet the minimum haircut requirement. In addition, the Investment manager may apply a higher haircut on the underlying security than mentioned above to adjust for the illiquidity and interest rate risk on the underlying instrument. The adequacy of the collateral will be monitored on a daily basis by considering the daily market value & applying the prescribed haircut. In the event of a shortfall in the collateral, the counterparty shall be asked to replenish the same. If the counterparty is not able to top-up either in the form of cash/collateral, it shall tantamount to early termination of the repo agreement. Settlement Risk: Corporate Bond Repo 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. f. Risks associated with Investing in Tri-party Repo Trade Settlement: The mutual fund is a member of securities segment and Tri-party Repo trade settlement of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in Tri-party Repo trades are settled centrally through the infrastructure and settlement systems provided by CCIL; thus, reducing the settlement and counterparty risks considerably for transactions in the said segments. The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL). CCIL shall maintain two separate Default Funds in respect of its Securities Segment, one with a view to meeting losses arising out of any default by its members from outright and repo trades and the other for meeting losses arising out of any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to the default fund of CCIL at any given point in time i.e. 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. g. Performance Risk: The Scheme’s performance can decrease or increase, depending on a variety of factors, which may affect the values and income generated by the Scheme’s portfolio of securities. The returns of the Scheme’s investments are based on the current yields of the securities, which may be affected generally by factors affecting markets such as price and volume, interest rates, currency exchange rates, changes in government and Reserve Bank of India policy and taxation, political, economic or other developments. Investors should understand that the investment pattern indicated for the Scheme, in line with prevailing market conditions, is only a hypothetical example as all investments involve risk and there can be no assurance that the Scheme’s investment objective will be attained nor will the Scheme be in a position to maintain the model percentage of investment pattern/ composition particularly under exceptional circumstances so that the interest of the unit 27THE WEALTH COMPANY MUTUAL FUND holders are protected. A change in the prevailing rates of interest is likely to affect the value of the Scheme’s investments and thus the value of the Scheme’s Units. The value of money market instruments held by the Scheme generally will vary inversely with the changes in the prevailing interest rates. h. Changes in Government Regulations: The businesses in which companies operate are exposed to a range of government regulations, related to tax benefits, liberalization, provision of infrastructure and the like. Changes in such regulations may affect the prospects of companies. i. Risks Associated with Segregated Portfolio • Liquidity risk Investors holding units of a segregated portfolio may not be able to liquidate their holding till the time recovery of money from the issuer. Listing of units of segregated portfolio in recognised stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV. • Credit risk Security comprises of a segregated portfolio may not realise any value. j. Changes in Government Regulations: The businesses in which companies operate are exposed to a range of government regulations, related to tax benefits, liberalization, provision of infrastructure and the like. Changes in such regulations may affect the prospects of companies. k. Risk Associated with Investing in Derivatives • Valuation Risk The risk in valuing the debt & equity derivative products due to inadequate trading data with good volumes. Derivatives with longer duration would have higher risk vis-à-vis the shorter duration derivatives. • Mark to Market Risk The day-to-day potential for an investor to experience losses from fluctuations in underlying stock prices and derivatives prices. • Systematic Risk The risks inherent in the capital market due to macro-economic factors like inflation, GDP and global events. • Liquidity Risk The risks stemming from the lack of availability of derivatives products across different maturities and with various risk appetite. • Implied Volatility The estimated volatility in an underlying security’s price and derivative price. • Interest Rate Risk The risk stemming from the movement of Interest rates in adverse direction. As with all the debt securities, changes in the interest rates will affect the valuation of the portfolios. • Counterparty Risk (Default Risk) Default risk is the risk that losses will be incurred due to the default by the counterparty for over-the-counter derivatives. • System Risk The risk arising due to failure of operational processes followed by the exchanges and OTC participants for the derivatives trading. l. Risk attached with the use of Derivatives: As and when the Scheme trades in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and the decision of the fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than the risks associated with investing directly in securities and other traditional investments. This also includes the risk associated with imperfect hedging. (Consolidated Std. Obs. 28). m. Risk associated with Backstop facility in form of Investment in Corporate Debt Market Development Fund (CDMDF): CDMDF is set up as a scheme of the Trust registered as an Alternative Investment Fund (‘AIF’) in accordance with the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”). The objective of the CDMDF is to help to develop the corporate debt market by providing backstop facility to instill confidence amongst the market participants in the corporate debt/bond market during times of market dislocation and to enhance the secondary market liquidity. In times of market dislocation, CDMDF shall purchase and hold eligible corporate debt securities from the participating investors (i.e., specified debt-oriented MF schemes to begin with) and sell as markets recover. The CDMDF will thus act as a key enabler for facilitating liquidity in the corporate debt market and to respond quickly in times of market dislocation. The trigger and period for which the backstop facility will be open shall be as decided by SEBI. Thus, this backstop facility will help fund managers of the aforementioned Schemes to better generate liquidity during market dislocation to help the schemes fulfill liquidity obligations under stress situation. In accordance with the requirement of regulation 43A of SEBI (Mutual Funds) Regulations, 1996 read with SEBI circular no. SEBI/HO/ IMD/ PoD2/P/CIR/2023/129 dated July 27, 2023 on Investment by Mutual Fund Schemes in units of Corporate Debt Market Development Fund, the aforementioned schemes shall invest 25 bps of its AUM as on December 31, 2022 in the units of the Corporate Debt Market Development Fund (‘CDMDF’). An incremental contribution to CDMDF shall be made every six months to ensure 25 bps of scheme AUM is invested in units of CDMDF. However, if AUM decreases there shall be no return or redemption from CDMDF. Contribution made to CDMDF, including the appreciations on the same, if any, shall be locked-in till winding up of the CDMDF. We would further like to bring to the notice of the investors that investments in CDMDF units shall not be considered as violation while 28SCHEME INFORMATION DOCUMENT (SID) considering maturity restriction as applicable for various purposes (including applicable Investment limits) and the calculations of Potential Risk Class (PRC) Matrix, Risk-o-meter, Stress testing and Duration for various purposes shall be done after excluding investments in units of CDMDF. Investors are requested to read details disclosure on investment of the schemes in the CDMDF as listed in Section I - Part I - 'B. How will the Scheme Invest'. The risks associated with CDMDF are given below: Default Risk: CDMDF invests in corporate debt, which exposes it to the risk of issuer defaults and credit downgrades. In periods of market dislocation, the fund may hold distressed or lower rated debt, increasing the potential for credit losses. Liquidity Risk: The Fund’s ability to provide liquidity support during market stress may be constrained Borrowing and leverage Risk: CDMDF may borrow from financial institutions to finance its corporate debt purchases. This leverage amplifies potential risks, particularly if market conditions deteriorate further. Loss absorption: Mutual funds selling to CDMDF bear the risk of first loss, as per the prescribed loss absorption mechanism. This could result in losses for the MF scheme involved, particularly during severe market dislocations. n. Risk Associated with Investment in Securitized Debt Instruments: Liquidity risk: There is no assurance that a deep secondary market will develop for the instrument. This could limit the ability of the investor to resell them. Limited Recourse: The instruments represent an undivided beneficial interest in the underlying receivables and do not represent an obligation of either the Issuer or the Seller or the Originator, or the parent or any associate of the Seller, Issuer and Originator. No financial recourse is available to the buyer of the security against the Investors’ Representative. Risks due to possible prepayments: Full prepayment of a contract may lead to an event in which investors may be exposed to changes in tenor and yield. Bankruptcy of the Originator or Seller: If the service provider becomes subject to bankruptcy proceedings and the court in the bankruptcy proceedings concludes that either the sale from each Originator was not a sale then an Investor could experience losses or delays in the payments due under the instrument. o. Risk associated with investing in Mutual Fund Schemes Investing in Mutual Funds involves risks, including the potential impact of fluctuations in the Net Asset Value (NAV) of the underlying Funds on the Scheme’s performance. Changes in the investment strategies, objectives or fundamental attributes of these funds can also affect the performance of the Scheme. Additionally, any redemptions from these funds can also affect the performance of the Scheme. Additionally, any redemptions from these funds may be subject to exit loads, which could further impact returns. Furthermore, the underlying funds may carry specific risks related to their own portfolios, such as market, credit or liquidity risks, which may indirectly affect the Scheme’s overall risk profile. p. Risk associated with investment in Credit Default Swaps Mutual Funds can buy Credit Default Swap (CDS) to hedge credit risk of corporate bond holdings in the portfolio. The following risks are associated with CDS: Counterparty Risk: This is the risk that the seller of the CDS might default on their obligation. If the counterparty fails to pay in the event of default by the bond issuer, the scheme could face significant losses. Market Liquidity Risk: The CDS market can become illiquid during periods of financial stress. This means that the scheme might find it difficult to buy or sell CDS contracts at favorable prices when required. Regulatory Risk: SEBI has specific guidelines for mutual fund schemes participating in buying/selling CDS. Any change in these regulations could impact the scheme’s ability to effectively use CDS for hedging. Credit risk of the CDS seller: The credit worthiness of the CDS seller may deteriorate. If the seller’s credit rating is impacted negatively, the protection offered by the CDs might become less reliable. q. Risk associated with investment in Interest Rate Futures Basis Risk: The risk arises when the price movements in derivative instruments used to hedge the underlying assets do not match the price movements of the underlying assets being hedged. Such differences may potentially amplify the gains or losses, thus adding to the risk in the portfolio. Price Risk: The risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with the underlying assets, rates and indices. Risk of mismatch between the instruments: The risk arises when there is a mismatch between the price movement in derivative instrument used to hedge, compared to the price movement of the underlying assets being hedged. For example, when interest rate futures which has government security as underlying is used, to hedge a portfolio that comprises corporate bond securities. Correlation weakening and consequent risk of regulatory breach: SEBI regulation mandates minimum correlation criterion of 0.9 (calculated on a 90 days basis) between the portfolio being hedged and the derivative instrument used for hedging. In case where the correlation falls below 0.9, a rebalancing period of 5 business days has been permitted. Inability to satisfy this requirement to restore the correlation level to the stipulated level, within the stipulated period, due to difficulties in rebalancing would lead to a lapse of the exemption in gross exposure computation. The entire derivative exposure would then need to be included in the gross exposure, which may result in gross exposure in excess of 100% of the net asset value. r. Other Scheme Specific Risk Factors: i) The liquidity of the Scheme’s investments may be inherently restricted by trading volumes, settlement periods and transfer procedures. In the event of an inordinately large number of redemption requests, or of a re-structuring of the Scheme’s investment portfolio, these periods may become significant. Please read the Sections of this Scheme Information Document entitled “Special Considerations” and “Right to Limit Redemptions” thereunder. ii) Although the objective of the Fund is to generate optimal returns, the objective may or may not be achieved. The investors may note that if the AMC/Investment Manager is not able to make the right decision regarding the timing of increasing exposure in debt securities in times of falling equity market, it may result in negative returns. Given the nature of the scheme, the portfolio turnover ratio may be on the higher side commensurate with the investment decisions and Asset Allocation of the Scheme. At times, such churning of the portfolio may lead to losses due to subsequent negative or unfavourable market movements. iii) Credit And Rating Downgrade Risk, Prepayment and Foreclosures Risk for Senior PTC Series, Prepayment and Foreclosures Risk for Senior PTC Series, Servicing Agent Risk, Co-mingling Risk, and Bankruptcy of the Seller. 29THE WEALTH COMPANY MUTUAL FUND iv) The NAV of the scheme to the extent invested in Debt and Money market securities are likely to be affected by changes in the prevailing rates of interest and are likely to affect the value of the Scheme’s holdings and thus the value of the Scheme’s Units. v) The AMC may, considering the overall level of risk of the portfolio, invest in lower-rated/unrated securities offering higher yields. This may increase the risk of the portfolio. vi) Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. The AMC may choose to invest in unlisted securities that offer attractive yields. This may increase the risk of the portfolio. vii) While securities that are listed on the stock exchange carry a lower liquidity risk, the ability to sell these investments is limited by the overall trading volume on the stock exchanges. Money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. viii) The tax benefits available under the scheme are as available under the present taxation laws and are available only to certain specified categories of investors and that is subject to fulfillment of the relevant conditions. The information given is included for general purposes only and is based on advice that the AMC has received regarding the law and the practice that is currently in force in India and the investors and the Unitholders should be aware that the relevant fiscal rules and their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Investor/Unitholder is advised to consult his/her own professional tax advisor. RISK MITIGATION STRATEGIES Con. Std. O bs. 9 Securitized Debt Risk Mitigation Strategies for Investments with each kind of originator: An analysis of the originator/Issuer is especially important in case of retail loans as the size and reach affects the credit quality and servicing of the securitized instrument. In case of securitization involving single loans or a small pool of loans, the credit risk of the underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at seasoning (i.e. how long the loan has been with the originator before securitization) as one way of evaluating the performance potential of the PTC. Securitization transactions may include some risk mitigants (to reduce credit risk). These may include interest subvention (difference in interest rates on the underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC continues to remain protected), presence of an equity/ subordinated tranche (issue of PTCs of differing seniority when it comes to repayment - the senior tranches get paid before the junior tranche) and/or guarantees. Investments in securitized debt will be done based on the assessment of the originator which is carried out by the Fixed Income team. In order to mitigate the risk at the issuer/ originator level, the Fixed Income team will consider various factors which will include: • size and reach of the issuer/ originator • Set up of the organization structure of the issuer/ originator • the infrastructure and follow-up mechanism of the issuer/ originator • the issuer/ originator’s track record in that line of business • quality of information disseminated by the issuer/ originator; and • the Credit enhancement for different type of issuer/ originator 30SCHEME INFORMATION DOCUMENT (SID) Table 1: illustrates the framework that will be applied while evaluating investment decision relating to a securitization transaction: Characteristics/ Mortgage Commercial CAR 2 Wheelers Micro Personal Single Loan/ Type of Pool Loan Vehicle and Finance Loans Sell Downs/ Construction Others Equipment Approximate Up to 180 Up to 60 Up to 60 Up to 60 Up to 12 Up to 36 Average Maturity Months or Months or Months or Months or Months or Months or (Months) lower lower lower lower lower lower Collateral Margin In excess of (Including cash, In excess of 5% In excess of In excess of In excess In excess of guarantees, excess 3 % 5% 5% of 10% 10% Any Single interest spread, Loan sell subordinate tranche) Downs/other class of 85% or 100% or Average Loan to 95% or securitized debt lower lower 95% or lower Unsecured Unsecured value ratio lower would be evaluated on a Minimum average case-by-case seasoning of the 3 months 3 months 3 months 3 months 3 months 3 months basis pool Maximum single 5% 5% 1% 1% <1% <1% exposure range Average single <5% <5% <1% <1% <1% <1% exposure range Note: The information contained herein is based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy, risk mitigation measures and other information contained herein may change in response to the same. The level of diversification with respect to the underlying assets, and risk mitigation measures for less diversified investments: In retail securitized debt investments, the AMC will invest majorly in asset-backed pools such as Medium and Heavy Commercial Vehicles, Light Commercial Vehicles (LCV), Cars, and Construction Equipment etc. Where the AMC invests in Single Loan Securitization, as the credit is on the underlying issuer, it focuses on the credit review of the borrower. A credit analyst sets up limits for various issuers based on independent research considering their historical track record, prevailing rating and current financials. In addition to the framework as per the table above, we also take into account the following factors which are analyzed to ensure the diversification of risk and measures identified for less diversified investments: • Size of the loan: In retail loans securitization, the major risk diversification is achieved on account of granularity i.e. higher number of contracts available. However, excessive reliance on very small ticket sizes should be avoided as it may result in difficult and costly recoveries. • Original maturity of the pool: Ideal original maturity of the contract varies for different retail loans. For Cars/Commercial Vehicles/ Construction Equipment, it lies around 60 months while for mortgage, it lies around 240 months. For microfinance loans, it lies around 12 months. Lower original maturity for asset backed retail loans means faster buildup of borrowers’ equity into the asset as well as his higher borrowing capacity. • Loan to Value Ratio: Loan to Value ratio means value of the loan taken compared to value of the assets offered as security. In case of secured loan, higher Loan to Value ratio means higher probability of losses in case asset is repossessed and sold in case of delinquency. We prefer contracts with lower loan to value ratio than higher loan to value ratio. • Seasoning of the pool: Higher the time period the contracts have remained with the originator/issuer, the lower is the default risk on such contracts. This is because of the higher buildup of borrower’s equity into the asset as the time gradually passes. We prefer higher seasoned contracts than lower seasoned contracts. • Current performing pools: It is generally ensured that majority of the contracts in the pools are current to reduce the default rate. The rationale here being, as against current performing contract, the overdue contracts are certainly in the higher risk category. • Geographical Distribution: Regional/state/ branch distribution is preferred to avoid concentration of assets in a particular region/state/ branch. Default Rate Distribution: We prefer branches/ states where default rate is less than branches/ states where the default rates are high to avoid concentration of assets from poor performing regions. • Risk Tranching: Typically, we would avoid investing in mezzanine debt or equity of Securitized debt in the form of subordinated tranche, • without specific risk mitigant strategies/additional cash/security collaterals/ guarantees, etc. Credit Enhancement Facility: We prefer credit enhancement which is in the form of cash/bank guarantee than in the form of overcollateralization of the pool/excess interest spread available in the pool. The rationale here being, as against cash collateral, excess interest spread/over- collateralization collateral fluctuate in line with performance of the pool. When the performance of the pool deteriorates, there is lesser current collateral available on account of over-collateralization of the pool/excess interest spread available than the original envisaged one. Liquid Facility: In many retail asset classes like commercial vehicles, there can be some delays in payment from the borrower due to pressure on its working capital. However, this delay usually does not go beyond 5-6 months as in the meantime he receives payment from his customers and clears his overdue portion of the loan. In that kind of asset class, we prefer pools with liquid facilities as it balances the intermittent liquidity requirement of the pool. Structure of the Pool: Structure of a transaction can either be at par or at a premium, depending on whether the pool principal is sold at par or at a premium to investors. We prefer a pool where it is sold on a par basis. Minimum retention period of the debt by originator prior to securitization: For investments in PTCs, where the assets have been pooled, the minimum retention period for each of the contracts should be 1 month with an average tenor of up to 24 months and 2 months for contracts with an average tenor of more than 2 years. For overall minimum retention period, please refer to Table 1. 31THE WEALTH COMPANY MUTUAL FUND Minimum retention percentage by originator of debts to be securitized: Please refer to Table 1 which illustrates additional collaterals taken against each type of asset class, which is preferred over the minimum retention percentage by the originator of the loan. The rationale is that collateral is available at all points of time and is available at all point of time in case of any fructification of any probable losses where retention percentage keeps running down as time passes and may not be fully available in case of any fructification of any probable losses. The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of an originator and the originator in turn makes investments in that particular scheme of the fund: Investments made by the scheme in any asset are done based on the requirements of the scheme and are in accordance with the investment objectives and the asset allocation pattern of a fund. All Investments are made entirely at an arm’s length basis with no consideration of any existing/consequent investments by any party related to the transaction (originator, issuer, borrower etc.). The robust credit process ensures that there is no conflict of interests when a scheme invests in securitized debt of an originator and the originator in turn makes an investment in that particular scheme. There might be instances of the Originator investing in the same scheme, but both the transactions are at arm’s length and avoid any conflict of interest. In addition to internal controls in the fixed income investment process, there is regular monitoring by the risk management group and investment committee. Normally the issuer who is securitizing instrument is in need of money and is unlikely to have a long-term surplus to invest in a mutual fund scheme. Furthermore, there is clear cut segregation of duties and responsibilities with respect to Investment function and Sales function. Investment decisions are being taken independently based on the above-mentioned parameters and investment by the originator in the fund is based on their own evaluation of the fund vis-a-vis their investment objectives. In general, the resources and mechanism of individual risk assessment with the AMC for monitoring investment in securitized debt: The risk assessment process for securitized debt, as detailed in the preceding paragraphs, is the same as any other credit. The investments in securitized debt are done after appropriate research by credit analysts. The ongoing performance of the pool is monitored to highlight any deterioration in its performance. The resources for and mechanisms of individual risk assessment with the AMC for monitoring investment in securitized debt are as follows: • Fixed Income Team - Risk assessment and monitoring of investment in Securitized Debt is done by a team comprising of Credit Analyst, and CIO – Fixed Income. • In addition to internal controls in the fixed income investment process, there is regular monitoring by the risk management group and investment committee. • Ratings are monitored for any movement - Based on the interaction with the credit rating agency and their performance report, ratings are being monitored accordingly. • Wherever the funds portfolio is disclosed, the AMC may give a comprehensive disclosure of Securitised debt instruments held in line with SEBI requirement. Note: The information contained herein is based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy, risk mitigation measures and other information contained herein may change in response to the same. Other Risk mitigation strategies: The strategies for risk management to mitigate various risks are listed below: Risk Risk Mitigation Strategy Interest Rate Risk An active duration management strategy is employed by Security price volatility due to movements in interest rate. Since controlling the portfolio’s duration and continuously evaluating its Macaulay Duration of the portfolio will be managed within a structure in the context of the prevailing interest rate environment. specified range, the Scheme will be subject to interest rate risk on The scheme will have regular stress tests run on the portfolio that an ongoing basis simulate various interest rate risk related scenarios to provide the fund manager insight into how to best handle interest rate risk in adverse scenarios. Credit Risk Investment universe is carefully defined to include issuers with Risk that the issuer may default on interest and/or principal high credit quality, critical evaluation of credit profile of issuers on payment obligations an on-going basis. Securities held in the portfolio shall be analyzed by the Credit Team to ascertain creditworthiness, rating migration to mitigate the risk of a default occurring in the scheme's holdings. Liquidity Risk Liquidity risk is managed at the portfolio construction stage by Risk associated with saleability of portfolio securities strategically allocating investments in securities that have high liquidity. The scheme will have regular stress tests run on the portfolio that simulate various liquidity-related scenarios to provide the fund manager insight into how to best handle liquidity crunches, allowing them to make changes to the portfolio to better protect investors against illiquidity scenarios. Reinvestment Risk Reinvestment risk is limited to the relatively small portion of the Risk that future cash flows (like coupon payments) will be portfolio comprising coupon payments from debt instruments. This reinvested at a lower interest rate than the original investment risk is mitigated by investing in securities that offer interest rates aligned with the portfolio’s investment objective and strategy. Volatility Risk The scheme will endeavor to reduce volatility risk by diversifying Risk that the market value of the debt securities may fluctuate due investments to reduce the chance of fluctuation in any security's to changes in interest rates, credit spreads, or liquidity conditions price affecting the fund's NAV substantially. Derivative Risk The Scheme has provision for using derivative instruments for Various inherent risks arising as a consequence of investing in hedging purposes and portfolio balancing. Interest rate swaps will derivatives be done with approved counter parties under pre-approved ISDA agreements. Mark-to-Market of swaps, netting off of cash flow and default provision clauses will be provided as per international best practice on a reciprocal basis. Interest rate swaps and other derivative instruments including Credit Default Swap (CDS) will be used as per SEBI/RBI regulatory guidelines. 32SCHEME INFORMATION DOCUMENT (SID) Con. Std. Obs. 12 Liquidity Risk Management Framework The Scheme adopts the Liquidity Risk Management Framework (LRM) as mandated by AMFI and SEBI, which requires Scheme Portfolio to maintain certain portion of their investments in liquid assets. This portion as required to be kept, is ascertained basis the scheme’s liability profile, i.e. investor profile. This framework seeks to estimate a likely quantum of redemption that the scheme is expected to face over the subsequent 30-day period and requires the scheme to maintain liquid assets to that extent as a minimum requirement. The Framework also enumerates corrective actions to be taken in the event of any shortfall owing to higher redemption than estimated. The Investment Manager also has in place an Asset Liability Mismatch (ALM) Framework which monitors similar aspects. Potential Risk Matrix and Risk-o-meter The maximum risk that a scheme will run as per design and a measurement of that risk on a regular basis. Remedial measures are also in place in case any of the design boundaries are breached. Swing Pricing Pursuant to clause 4.10 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the AMC has a Swing Pricing policy in place to help in case of severe liquidity stress at an AMC level or a severe dysfunction at market level, the Swing Pricing offers the contingency plan in case of extreme exigencies. Investors are suggested to read the detailed disclosure pertaining to this policy under “Swing Pricing’’ section in SAI. In case of severe liquidity stress at an AMC level or a severe dysfunction at the market level, the Swing Pricing guidelines get triggered which offers the contingency plan in case all else fails. Con. Std. Obs. 12 Stress Testing Stress testing in open-ended debt schemes addresses the asset side risk from an Interest Rate Risk, Credit Risk & Liquidity Risk perspective at an aggregate portfolio level in terms of its impact on Net Asset Value of the scheme. The AMC conducts stress tests on the portfolio, focusing on key risks such as interest rate risk, credit risk, and liquidity risk to better understand the risks exposure of the portfolio. These tests are performed at the aggregate portfolio level to assess the potential impact on NAV from each risk. The resulting NAV impact figures are then compared against thresholds set by both the AMC and AMFI for monitoring and, if necessary, corrective action. The stress tests are carried out according to the methodology and frequency mandated by AMFI in consultation with SEBI, subject to updates and revisions over time. Backstop Facility in Form of Investment in CDMDF CDMDF is set up as a scheme of the Trust registered as an Alternative Investment Fund (‘AIF’) in accordance with the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”). The objective of the CDMDF is to help to develop the corporate debt market by providing backstop facility to instill confidence amongst the market participants in the corporate debt/bond market during times of market dislocation and to enhance the secondary market liquidity. In times of market dislocation, CDMDF shall purchase and hold eligible corporate debt securities from the participating investors (i.e., specified debt-oriented MF schemes) and sell as markets recover. The CDMDF will thus act as a key enabler for facilitating liquidity in the corporate debt market and to respond quickly in times of market dislocation. The trigger and period for which the backstop facility will be open shall be as decided by SEBI. Thus, this backstop facility will help fund managers of the aforementioned Schemes to better generate liquidity during market dislocation to help the schemes fulfill liquidity obligations under stress situation. In accordance with the requirement of regulation 43A of SEBI (Mutual Funds) Regulations, 1996 read with SEBI circular no. SEBI/HO/IMD/PoD2/P/CIR/2023/129 dated July 27, 2023, on Investment by Mutual Fund Schemes in units of Corporate Debt Market Development Fund, the aforementioned schemes shall invest 25 bps of its AUM as on December 31, 2022 in the units of the Corporate Debt Market Development Fund (‘CDMDF’). An incremental contribution to CDMDF shall be made every six months to ensure 25 bps of scheme AUM is invested in units of CDMDF. However, if AUM decreases there shall be no return or redemption from CDMDF. Contribution made to CDMDF, including the appreciations on the same, if any, shall be locked-in till winding up of the CDMDF. Investments in CDMDF units shall not be considered as violation while considering maturity restriction as applicable for various purposes (including applicable Investment limits) and the calculations of Potential Risk Class (PRC) Matrix, Risk-o-meter, Stress testing and Duration for various purposes shall be done after excluding investments in units of CDMDF. While all measures mentioned above are expected to largely mitigate the risks (as mentioned in the Risk factors), there can be no assurance that these risks would be entirely eliminated. The measures mentioned above are based on current market conditions and may change from time to time based on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our risk mitigation measures, and other information contained herein may change in response to the same. 33THE WEALTH COMPANY MUTUAL FUND II. INFORMATION ABOUT THE SCHEME: A. WHERE WILL THE SCHEME INVEST? Con. Std. Obs. 29 The Scheme will invest the entire corpus in debt and money market securities. There will be no investment in equity and equity-related products. The instruments listed below could be listed, unlisted, privately placed, secured, unsecured, rated or unrated acquired through primary or secondary market through stock exchanges, over the counter or any other dealing mechanisms. Coupon bearing (fixed or floating), zero-coupon discounted instruments or any other type. Weights in the portfolio may not have any correlation to the order of listing. Subject to the regulations and prevailing laws as applicable, the portfolio will consist of permissible domestic fixed income instruments, most suitable to meet the investment objectives. The following investment categories are likely to cover most of the available investment universe. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities as permitted by SEBI/ RBI from time to time: 1. Treasury Bills (T-Bills) issued by the Government of India to meet their short-term borrowing requirements. 2. Certificate of Deposits (CD) – CD is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in the case of FIs, maturity is between one year to 3 years from the date of issue. CDs may be issued at a discount to face value. 3. Commercial Paper (CP) - 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. They are issued at a discount to the face value as may be determined by the issuer. CP is traded in the secondary market and can be freely bought and sold before maturity. 4. Bills Rediscounting (BRD) – BRD is the rediscounting of trade bills that have already been purchased by/discounted with the bank by the customers. These trade bills arise out of the supply of goods/services. 5. Repos/Reverse Repo: Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, corporate debt securities, Government Securities, State Government Securities and T-Bills are eligible for Repo/Reverse Repo. The Scheme may undertake repo or reverse repo transactions in accordance with the directions issued by RBI and SEBI from time to time. 6. Securities 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). Central Government securities are sovereign debt obligations of the Government of India issued on its behalf by RBI. They form a part of the Government’s annual borrowing programme and are used to fund the fiscal deficit along with other short-term and long-term requirements. Such securities could be fixed-rate, fixed interest rate with put/call option, zero-coupon bond, floating-rate bonds, capital indexed bonds, fixed interest security with staggered maturity payment etc. State Government securities are issued by the respective State Government in co- ordination with the RBI. 7. "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. 8. Money market instruments permitted by SEBI/RBI, having maturities of up to 91 business days and shall include CP, CD, T-Bills, Repo, Reverse repo, BRDS, etc. 9. In line with the terms of Para 12.18 of the SEBI Master Circular titled "Participation of Mutual funds in repo transactions on Corporate Debt Securities", investments in corporate bond repo shall be made basis the policy approved by the Board of AMC and Trustee Company. The significant features are as follows: i. The Mutual Funds can participate in repos on the following corporate debt securities: a. Listed AA and above rated corporate debt securities. b. Commercial Papers (CPs) and Certificate of Deposits (CDs). c. For the purpose of consideration of credit rating of exposure on repo transactions for various purposes including for Potential Risk Class (PRC) matrix, liquidity ratios, Risk-o-meter etc., the same shall be as that of the underlying securities, i.e., on a look through basis. ii. For transactions where settlement is guaranteed by a Clearing Corporation, the exposure shall not be considered for the purpose of determination of investment limits for single issuer, group issuer and sector level limits. iii. The Gross exposure of the scheme to repo transactions in corporate debt securities shall not be more than 10% of the net asset scheme. iv. The cumulative gross exposure through repo transactions in corporate debt securities along with corporate debt and money market instruments and derivative positions shall not exceed 100% of the net assets of the scheme. v. In terms of Regulation 44 (2) of the SEBI (MF) Regulations, the scheme shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months. vi. The Mutual Fund shall ensure compliance with the Seventh Schedule of the SEBI (MF) Regulations about restrictions on investments, wherever applicable, with respect to repo transactions in corporate debt securities. 10. Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State Government guarantee – These are instruments that are issued by various government agencies and bodies. They can be issued at a discount, par or premium. 11. Corporate debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes, Strips etc. These are instruments issued by corporate entities for their business requirements. They are generally rated by credit rating agencies, the higher the rating, the lower the risk of default. 12. Money market instruments permitted by SEBI/RBI, having maturities up to 1 business day, in Collateralized Borrowing and Lending Obligations (CBLO)/Tri-Party repo market or in alternative investment for the CBLO/Tri-Party repo market as may be provided by the RBI to meet the short-term liquidity requirements. 13. The non-convertible part of convertible securities – Convertible securities are securities that can be converted from Debt to Equity shares. The non-convertible part cannot be converted into Equity shares and work like a normal debt instrument. 34SCHEME INFORMATION DOCUMENT (SID) 14. Investments in units of mutual fund schemes – The Scheme may invest in units of mutual fund schemes in conformity with the investment objective of the Scheme and in terms of the prevailing SEBI (MF) Regulations and in line with the disclosure made in this Scheme Information Document. 15. The scheme may engage in stock lending activities as permitted under SEBI (MF) Regulations from time to time. 16. Derivative Instrument like Interest Rate Swaps, Forward Rate Agreement and such other derivative instruments as may be permitted under the Regulations. a) Interest Rate Swap - An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified period. Such contracts generally involve an exchange of a “fixed to floating” or “floating to fixed-rate” of interest. Accordingly, on each payment date that occurs during the swap period, cash payments based on fixed/ floating and floating rates are made by the parties to one another. b) Forward Rate Agreement - A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange interest payments for a ‘notional principal’ amount on the settlement date, for a specified period from the start date to the maturity date. Accordingly, on the settlement date, cash payments based on contract (fixed) and the settlement rate, are made by the parties to one another. The settlement rate is the agreed benchmark/ reference rate prevailing on the settlement date. c) Interest Rate Futures - A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a financial instrument in a designated future month at a market-determined price (the futures price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest Rate Future is a futures contract with an interest-bearing instrument as the underlying asset. Characteristics of Interest Rate Futures ● Obligation to buy or sell a bond at a future date. ● Standardized contract. ● Exchange traded. ● Physical/ Cash settlement. ● Daily mark to market. 17. Investment in CDMDF In accordance with the requirement of regulation 43A of SEBI (Mutual Funds) Regulations, 1996 read with SEBI circular no. SEBI/ HO/ IMD/PoD2/P/CIR/2023/129 dated July 27, 2023, on Investment by Mutual Fund Schemes and AMCs in units of Corporate Debt Market Development Fund, scheme shall invest 25 bps of its AUM. 18. CDMDF Framework: CDMDF shall comply with the Guarantee Scheme for Corporate Debt (GSCD) as notified by Ministry of Finance vide notification no. G.S.R. 559(E) dated July 26, 2023 and SEBI circular no. SEBI/HO/IMD/PoD2/P/CIR/2023/128 dated July 27, 2023 and circulars / guidelines/ Letters issued by SEBI and AMFI from time to time, which includes the framework for corporate debt market development fund. The framework will be inclusive of following points - a. The CDMDF shall deal only in the following securities during normal times: • Low duration Government Securities • Treasury bills Tri-party Repo on G-sec • Guaranteed corporate bond repo with maturity not exceeding 7 days b. The fees and expenses of CDMDF shall be as follows: • During Normal times: (0.15% + tax) of the Portfolio Value charged on daily pro-rata basis. • During Market stress: (0.20% + tax) of the Portfolio Value charged on a daily pro-rata basis. • Portfolio Value” means the aggregate amount of portfolio of investments including cash balance without netting off of leverage undertaken by the CDMDF. c. CDMDF during market dislocation includes listed money market instruments. The long-term rating of issuers shall be considered for the money market instruments. However, if there is no long-term rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long-term ratings, the most conservative long-term rating shall be taken for a given short- term rating. d. CDMDF shall follow the Fair Pricing document, while purchase of corporate debt securities during market dislocation as specified in SEBI circular no. SEBI/HO/IMD/PoD2/P/CIR/2023/128 dated July 27, 2023, and circulars / guidelines/ Letters issued by SEBI and AMFI from time to time. e. CDMDF shall follow the loss waterfall accounting and guidelines w.r.t. purchase allocation and trade settlement of corporate debt securities bought by CDMDF, specified in SEBI circular no. SEBI/HO/IMD/PoD2/P/CIR/2023/128 dated July 27, 2023, and circulars / guidelines/ Letters issued by SEBI and AMFI from time to time. 19. Any other like instruments as may be permitted by RBI/SEBI/ such other Regulatory Authority from time to time. Investments in Debt and Money Market Instruments will be as per the limits specified in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. For applicable regulatory investment limits, please refer to paragraph "Investment Restrictions”. The Fund Manager reserves the right to invest in such securities as may be permitted from time to time and which are in line with the investment objectives of the Scheme. For applicable regulatory investment limits, please refer to the paragraph "Investment Restrictions”. Details of various derivative strategies/ examples of the use of derivatives have been provided under the section “Derivatives Strategy”. The Fund Manager reserves the right to invest in such securities as may be permitted from time to time and which are in line with the investment objectives of the Scheme. For the purpose of further diversification and liquidity, the Scheme may invest in another scheme managed by the same AMC or by the AMC of any other Mutual Fund without charging any fees on such investments, provided that aggregate inter-scheme investment made by all schemes managed by the same AMC or by the AMC of any other Mutual Fund shall not exceed 5% of the net asset value of the Fund. B. WHAT ARE THE INVESTMENT RESTRICTIONS? As per the Trust Deed read with the Regulations, the following investment restrictions apply in respect of the Scheme at the time of making investments. However, all investments by the Scheme will be made in accordance with the investment objective, investment strategy and 35THE WEALTH COMPANY MUTUAL FUND investment pattern described previously Further, the Trustee Company/AMC may alter the above restrictions from time to time, and also to the extent the Regulations change and as permitted by RBI, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve its investment objectives. 1. As per the current regulations, a mutual fund scheme shall not invest more than 10% of its NAV in debt and money market securities issued by a single issuer which are rated AAA. Such an 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 directors of the asset management company. Similarly, for an issuer with debt and money market securities rated AA, the single issuer exposure limit shall be 8% of the NAV (extendable up to 10% of the NAV with prior approval of the Board of Trustees and the Board of directors of the asset management company). Similarly, for an issuer with debt and money market securities rated A and below, the single issuer exposure limit shall be 6% of the NAV (extendable up to 8% of the NAV with prior approval of the Board of Trustees and the Board of directors of the asset management company). Provided that the above is subject to compliance with the overall 12% single issuer exposure limit (with prior approval from the Board of Trustees and the Board of Directors of the asset management company) and such other regulatory requirements specified by SEBI in this regard. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and Tri-Party Repo on Government Securities, treasury bills. Provided further that investment 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. 2. Mutual Funds/AMCs shall ensure that total exposure of debt schemes of mutual funds in a group (excluding investments in securities issued by Public Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of the net assets of the scheme. Such investment limit may be extended to 25% of the net assets of the scheme with the prior approval of the Board of Trustees. For this purpose, a group means a group as defined under regulation 2(mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates. 3. 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: • Investments should only be made in such instruments, including bills re-discounting, usance bills, etc., that are generally not rated, and for which separate investment norms or limits are not provided in SEBI (Mutual Fund) Regulations, 1996 and various circulars issued thereunder. • Exposure of mutual fund schemes in such instruments, shall not exceed 5% of the net assets of the schemes. • All such investments shall be made with the prior approval of the Board of AMC and the Board of trustees. • For the purpose of investment in Bills Re Discounting Scheme (BRDS), the single issuer limit and the group exposure limit shall be calculated at the issuing bank level as it is issued with recourse to the issuing bank. 4. Transfers of investments from one scheme to another scheme in the Mutual Fund shall be allowed only if: (Consolidated Std. Obs. 30) a. Such transfers are made at the prevailing market price for quoted instruments on spot basis; b. The securities so transferred shall be in conformity with the investment objectives & policies of the Scheme to which such transfer has been made. Further, Para 12.30 of the SEBI Master Circular, has prescribed elaborate guidelines for Inter Scheme Transfer of Securities (IST). The key extracts are as follows: • IST shall be permitted only if other resources such as cash and cash equivalent, market borrowing, and selling securities in the market are exhausted. • ISTs will be permitted for rebalancing of portfolio only if there is a passive breach of regulatory limits or where duration, issuer, sector, and group rebalancing are required in both the transferor and transferee schemes. • No inter-scheme transfer of a security shall be allowed, if there is negative news or rumors in the mainstream media or an alert is generated about the security, based on internal credit risk assessment. • If the security gets downgraded within a period of four months following such a transfer, the fund manager of the buying scheme will have to provide detailed justification to the trustees for buying such a security. 5. The Scheme may invest in another scheme being managed by the same investment manager or in any other mutual fund without charging any fees, provided the aggregate inter scheme investments made by the Scheme under the same management or in schemes under the management of any other AMC shall not exceed 5% of NAV of the Scheme. [Provided that clause shall not apply to any fund of funds scheme.] 6. The fund may buy and sell securities on the basis of deliveries and shall in all cases of purchase, take delivery of relative securities and in all cases of sale deliver the securities: Provided that a 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 that a mutual fund may enter into derivatives transactions in a recognised stock exchange, subject to such Guidelines as may be specified by the Board. Provided 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. 7. The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned scheme, wherever investments are intended to be of a long-term nature. 8. The fund’s schemes shall not make any investment in: a. Any unlisted security of an associate or group company of the sponsor b. Any security issued by way of private placement by an associate or group company of the sponsor c. The listed securities of group companies of the sponsor which is in excess of 25 % of the net assets. d. The investments by debt mutual fund schemes in debt and money market instruments of group companies of both the sponsor and 36SCHEME INFORMATION DOCUMENT (SID) the asset management company shall not exceed 10% of the net assets of the scheme. Such an investment limit may be extended to 15% of the net assets of the scheme with the prior approval of the Board of Trustees. For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (Mutual Funds) Regulations, 1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its associates. 9. The Scheme shall not invest in a fund of funds scheme. 10. No term loans for any purpose will be advanced by the Scheme. 11. Transactions in government securities can only be undertaken in dematerialized form. 12. The AMC may invest in the Scheme either in the initial offer or subsequently. However, it shall not charge any investment management fee on such amounts invested by it. 13. The scheme may engage in stock lending only to the extent of 20% of its total net assets. 14. The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of repurchase/Redemption of Units or payment of interest and payout under IDCW option to the Unitholders. Provided that the Fund shall not borrow more than 20% of the net assets of any individual Scheme and the duration of the borrowing shall not exceed a period of 6 months. In case of borrowing through repo transactions the tenor of such a transaction shall not exceed a period of six months 15. The scheme shall participate in Repo in corporate debt securities in accordance with Para 12.18 of the SEBI Master Circular, and such other directions issued by RBI and SEBI from time to time. • The Gross exposure of the scheme to repo transactions in corporate debt securities shall not be more than 10% of the net asset of the scheme. • The cumulative gross exposure through repo transactions in corporate debt securities along with debt and derivative positions shall not exceed 100% of the net assets of the scheme or guidelines as may be specified by SEBI from time to time. • It shall participate in repo transactions only in AA and above-rate corporate debt securities. 16. All the Schemes investment will be in transferable securities (whether in capital markets or money markets or in privately placed debentures or securitized debts or bank deposits or money at call). 17. The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in the encumbering of its assets in any way so as to expose them to unlimited liability. 18. Total exposure of the scheme in a particular sector (excluding investments in Bank CDs, Tri-Party Repo, G-Secs, T-Bills and AAA rated securities issued by Public Financial Institutions and Public Sector Banks and such other instruments if any, as may be specified by SEBI from time to time) shall not exceed 20% or such other percentage of the net assets of the scheme, as prescribed by SEBI from time to time, unless the scheme has specifically been exempted from the requirement by SEBI. An additional exposure to the financial services sector (over and above the limit of 20%) not exceeding 10% of the net assets of the scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) rated AA and above and registered with National Housing Bank (NHB). Further, an additional exposure of 5% of the net assets of the scheme has been allowed for investments in securitized debt instruments based on retail housing loan portfolio and/or affordable housing loan portfolio. However, such total investment/ exposure in HFCs shall not exceed 20% of the net assets of the scheme or such other percentage of the net assets of the scheme, as prescribed by SEBI from time to time. Con. Std. Obs. 31 In order to clarify, the Investment in BRDS by the scheme shall be considered as exposure to financial services sector for the purpose of sector exposure limits. 19. The scheme shall not invest in unlisted debt instruments including commercial papers (CPs), 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 by mutual funds for hedging. However, the scheme may invest 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. (listed debt instruments shall include listed and to be listed debt instruments.) • Liquid Funds shall not invest in debt securities having structured obligations (SO rating) and/or credit enhancements (CE rating). However, debt securities with government guarantee shall be excluded from such restrictions. Further, such restrictions shall not be applicable on investment in securitized debt instruments, as defined in SEBI (Public offer and listing of Securitized Debt Instruments) Regulations, 2008. 20. Mutual funds shall participate in CDS transactions only as users (protection buyer). a. Exposure to a single counterparty in CDS transactions shall not exceed 10% of the net assets of the scheme. b. The total exposure related to premium paid for all derivative positions, including CDS, shall not exceed 20% of the net assets of the scheme. 21. The Scheme will invest minimum 20% in liquid assets like Cash, Government Securities, T-bills and Repo on Government Securities. 22. The cumulative gross exposure through debt, derivative positions (including commodity and fixed income derivatives), repo transactions and credit default swaps in corporate debt securities, Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), other permitted securities/assets and such other securities/assets as may be permitted by the Board from time to time should not exceed 100% of the net assets of the scheme. Con. Std. Obs. 17 Investments in Derivatives shall be in accordance with the guidelines as stated under Para 7.5, 7.6 and 12.25 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, as may be amended from time to time. • As per Para 12.25 of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, on “Review of norms for investment and disclosure by Mutual Funds in derivatives”, the limits for exposure towards derivatives are as under: 37THE WEALTH COMPANY MUTUAL FUND i) The cumulative gross exposure through debt, derivative positions (including fixed income derivatives), repo transactions in corporate debt securities, other permitted securities/assets and such other securities/assets as may be permitted by the Board from time to time should not exceed 100% of the net assets of the scheme. ii) Mutual Funds shall not write options or purchase instruments with embedded written options. iii) The total exposure related to the option premium paid must not exceed 20% of the net assets of the scheme. iv) Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. v) Exposure due to hedging positions may not be included in the above-mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on an existing position in securities and till the existing position remains. b. Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall have to be added and treated under the limits mentioned in Point 1. c. Any derivative instrument used to hedge has the same underlying security as the existing position being hedged. d. The quantity of underlying associated with the derivative position taken for hedging purposes does not exceed the quantity of the existing position against which hedge has been taken. vi) The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. However, if the Scheme is transacting in IRS through an electronic trading platform offered by the Clearing Corporation of India Ltd. (CCIL) and CCIL is the central counterparty for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not be applicable. vii) 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. viii) Exposure in derivative positions shall be computed as follows: Position Exposure Long Future Futures Price * Lot Size * Short Future Number of Contracts Option bought Futures Price * Lot Size * • As and when SEBI notifies amended limits in position limits for exchange traded derivative contracts in future, the aforesaid position limits, to the extent relevant, shall be read as if they were substituted with the SEBI amended limits. • The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. The counterparty in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. Exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. However, if the Mutual Fund is transacting in interest rate swaps through an electronic trading platform offered by the Clearing Corporation of India Ltd. (CCIL) and CCIL is the central counterparty for such transactions guaranteeing settlement, the single counterparty limit of 10% shall not be applicable. • Exposure limit for participating in Interest Rate Futures - In addition to the existing provisions of SEBI Master Circular for Mutual Funds dated June 27, 2024, the following are prescribed: To reduce interest rate risk in a debt portfolio, mutual funds may hedge the portfolio or part of the portfolio (including one or more securities) on weighted average modified duration basis by using Interest Rate Futures (IRFs). The maximum extent of short position that may be taken in IRFs to hedge interest rate risk of the portfolio or part of the portfolio, is as per the formula given below Portfolio Modified Duration * Market Value of the Portfolio) (Futures Modified Duration * Future Price/ PAR) In case the IRF used for hedging the interest rate risk has different underlying security(s) than the existing position being hedged, it would result in imperfect hedging. Imperfect hedging using IRFs may be considered to be exempted from the gross exposure, up to a maximum of 20% of the net assets of the scheme, subject to the following: - Exposure to IRFs is created only for hedging the interest rate risk based on the weighted average modified duration of the bond portfolio or part of the portfolio. - Mutual Funds are permitted to resort to imperfect hedging without it being considered under the gross exposure limits if and only if the correlation between the portfolio or part of the portfolio (excluding the hedged portions, if any) and the IRF is at least 0.9 at the time of initiation of hedge. In case of any subsequent deviation from the correlation criteria, the same may be rebalanced within 5 working days and if not rebalanced within the timeline, the derivative positions created for hedging shall be considered under the gross exposure computed in terms of SEBI Master Circular for Mutual Funds dated June 27, 2024. The correlation should be calculated for a period of last 90 days. Explanation: If the fund manager intends to do imperfect hedging up to 15% of the portfolio using IRFs on weighted average modified duration basis, either of the following conditions need to be complied with: i. The correlation for the past 90 days between the portfolio and the IRF is at least 0.9 or ii. The correlation for the past 90 days between the part of the portfolio (excluding the hedged portions, if any) i.e. at least 15% of the net asset of the scheme (including one or more securities) and the IRF is at least 0.9. • At no point of time, the net modified duration of part of the portfolio being hedged should be negative. • The portion of imperfect hedging in excess of 20% of the net assets of the scheme should be considered as creating exposure and shall be included in the computation of gross exposure in terms of SEBI Master Circular for Mutual Funds dated June 27, 2024. • The basic characteristics of the scheme should not be affected by hedging the portfolio or part of the portfolio (including one or more securities) based on the weighted average modified duration. The interest rate hedging of the portfolio should be in the interest of the investors 23. 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. Changes do not have to be effected merely because of appreciation or 38SCHEME INFORMATION DOCUMENT (SID) depreciation in value or by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Fund, any such limits would thereby be breached. If these limits are exceeded for reasons beyond its control, AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unitholders. 24. The Trustee Company in consultation with AMC may alter these above stated limitations from time to time, and also to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments in order to achieve its investment objectives & policies. As such, all investments of the Scheme will be made in accordance with the Regulations including Schedule VII thereof and the Fundamental Attributes of this Scheme. 25. The Scheme will comply with any other regulations applicable to the investments of mutual funds from time to time. All investment restrictions stated above shall be applicable at the time of making an investment. Currently, the AMC shall follow only the said investment restrictions and not any other internal norms. Con. Std. Obs. 19 C. FUNDAMENTAL ATTRIBUTES: Con. St d. Obs. 59 The following are the Fundamental Attributes of the scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations: 1. Type of scheme: An open-ended liquid scheme. A relatively low interest rate risk and relatively moderate credit risk scheme. 2. Investment Objectives: i. Main Objective: Refer to Section I - Part I - Highlights/ Summary of the Scheme - Investment Objective. ii. Investment Pattern: Refer to Section I - Part II – Section A: How will the Scheme allocate its assets? 3. Terms of Issue: i. Liquidity provisions such as Listing, Repurchase, Redemption: Being an open-ended scheme, the units are not proposed to be listed on any stock exchange. However, the Trustee reserves the right to list the units as and when open-ended Schemes are permitted to be listed under the Regulations, and if the Trustee considers it necessary in the interest of unitholders of the Scheme. Under normal circumstances, the redemption or repurchase proceeds shall be dispatched to the unit holders within 3 Business Days from the date of redemption or repurchase. However, on exceptional circumstances, timelines may get extended as specified in the AMFI guidelines. The Scheme will offer Subscription/ Switch-in and Redemption/Switch-out of Units on every Business Day on an ongoing basis. ii. Aggregate fees and expenses charged to the scheme: a. New Fund Offer (NFO) Expenses: Refer to Section I - Part III - B. New Fund Offer (NFO) Expenses. b. Annual Scheme Recurring Expenses: Refer to Section I - Part III – Section C: Annual Scheme Recurring Expenses. iii. Any safety net or guarantee provided: Not Applicable In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and as amended, and Para 1.14 related to 'Fundamental attributes' of the SEBI Master Circular, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s)/Option(s) there under or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s)/Option(s) there under and affect the interests of Unitholders is carried out unless: SEBI has reviewed and provided its comments on the proposal • a written communication about the proposed change is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the mutual fund is situated; and • The unitholders are given an option to exit at the prevailing Net Asset Value without any exit load for a period of at least 30 days. D. OTHER SCHEME SPECIFIC DISCLOSURES: Listing and transfer of units Listing: Being an open-ended scheme, the Units of the Scheme will not be listed on any stock exchange, at present. The AMC may, at its sole discretion, cause the Units under the Scheme to be listed on one or more Stock Exchanges. Notification of the same will be made through Customer Service Centers of the AMC and as may be required by the respective Stock Exchanges. Transfer & Transmission of Units The Unit holders are given an option to hold the Units by way of an Account Statement (physical form) or in Dematerialized (demat form). Transfer of units held in Demat mode: Units held in Demat form are transferable (subject to lock-in period, if any and subject to lien, if any marked on the units) in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 2018, as may be amended from time to time. Transfer can be made only in favor of transferees who are capable of holding Units and having a Demat Account. The delivery instructions for transfer of Units will have to be lodged with the DP in requisite form as may be required from time to time and transfer will be effected in accordance with such rules / regulations as may be in force governing transfer of securities in dematerialized mode. Further, for the procedure of release of lien, the investors shall contact their respective DP. Since any addition/deletion of name(s) from a folio is deemed as transfer of Units, additions/deletions of names are not allowed in any folio(s) of any Scheme offered by the Mutual Fund. However, a person becoming entitled to hold the Units in consequence of the death, insolvency, or winding up of the sole holder or the survivors of joint holders, upon producing evidence and documentation to the satisfaction of the Fund and upon executing suitable indemnities in favor of the Fund and the AMC, shall be registered as a Unit holder if the transferee is otherwise eligible to hold the Units. 39THE WEALTH COMPANY MUTUAL FUND Transfer of units held in non-Demat [Statement of Account (‘SoA’)] mode: For units held in paper / physical form, if an applicant so desires to transfer units, the same can be done post conversion of units from paper / physical form to demat form. The AMC, upon submission of documents which will be prescribed from time to time, shall issue units in dematerialized form to a unit holder in a scheme within two working days of the receipt of request from the unitholder. In addition, pursuant to AMFI Best Practices Guidelines Circular No.135/BP/116/2024-25 dated August 14, 2024, read with AMFI Best Practice Guidelines Circular No. 119/2024-25 dated May 08, 2025, on ‘Standard Process for Transfer of Units held in Non-Demat [Statement of Account (‘SoA’)] mode’ all investors under Resident /non- resident Individual category can transfer units through online mode via the transaction portals of the RTA and the MF Central. The facility for transfer of units held in SoA mode shall be available only through online mode via the transaction portals of the RTA and the MF Central, i.e., the transfer of units held in SoA mode shall not be allowed through physical/ paper-based mode or via the stock exchange platforms, MFU, channel partners and EOPs etc. Partial transfer of units held in a folio shall be allowed. If the request for transfer of units is lodged on the record date, the IDCW payout/ reinvestment shall be made to the transferor. In order to mitigate the risk, redemption under the transferred units shall not be allowed for 10 days from the date of transfer. This will enable the investor to revert in case the transfer is initiated fraudulently. For details on pre-requisites, payment of stamp duty on transfer of units please refer the section ‘Transfer of units held in Non-Demat [Statement of Account (‘SOA’)] mode’ in SAI. Processing of Transmission-cum-transaction requests: If an investor submits either a financial or non-financial transaction request along with a transmission request, then such transaction requests will be processed after the Units are transferred in the name of new unit holder and only upon subsequent submission of fresh request from the new unit holder post transmission. Under normal circumstances, the Fund will endeavor to process the transmission request within 10 business days, subject to receipt of complete documentation as applicable. Subject to the provisions of SEBI (Mutual Funds) Regulations, 1996 as amended from time to time and circulars issued thereunder, the AMC reserves the right to insist on transmission along with redemption request by the claimant at any point deemed necessary. For further details, please refer to SAI. Dematerialization of units a. The Unit holders are given an Option to hold the units by way of an Account Statement (Physical form) or in Dematerialized (Demat’) form. b. Unit holders opting to hold the units in Demat form must provide their valid Demat Account details in the specified section of the application form. Con. Std. Obs. 57 (a) and (b) c. The Applicant intending to hold the units in Demat form are required to have a valid and active beneficiary account with a Depository Participant (DP) registered with NSDL/ CDSL, KYC compliant (as per DP records) and will be required to indicate in the application the DP’s name, DP ID Number and the Beneficiary Account Number of the applicant held with the DP at the time of purchasing Units. Unitholders are requested to note that request for conversion of units held in Account Statement (non-demat) form into Demat (electronic) form or vice versa should be submitted to their Depository Participants. d. In case, Unit holders do not provide their demat account details or the demat details provided in the application form are incomplete/ incorrect or do not match with the details with the Depository records, the Units will be allotted in account statement mode provided the application is otherwise complete in all respect and accordingly, an account statement shall be sent to them. e. Further, investors also have an option to convert their physical holdings into the dematerialized mode at a later date. f. Each Option under each Plan under the Scheme held in the dematerialized form shall be identified on the basis of an International Securities Identification Number (ISIN) allotted by National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). The ISIN No. details of the respective option under the respective Plan can be obtained from your Depository Participant (DP) or you can access the website link www.nsdl.co.in or www.cdslindia.com.The holding of units in the dematerialized mode would be subject to the guidelines/ procedural requirements as laid by the Depositories viz. NSDL/CDSL from time to time. g. Conversion of Units from Physical mode to Dematerialized mode: If the Unit holder desires to convert the Units in a dematerialized form at a later date, the unitholder will be required to have a beneficiary account with a DP of the NSDL/CDSL and will have to submit the account statement along with a request form viz. Conversion Request Form (CRF)/ Demat Request Form (DRF) to the DP asking for the conversion of units into demat form. It may be noted that it is necessary to mention ISIN No. of the respective Option under the respective Plan on the CRF/ DRF. Re-materialization process: Re-materialization of Units will be in accordance with the provisions of SEBI (Depositories & Participants) Regulations, 1996 as may be amended from time to time. Minimum Target Amount Rs. 20,00,00,000/- (Indian rupees twenty 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 There is no upper limit on the total amount to be collected in the New Fund Offer. raised (if any) 40SCHEME INFORMATION DOCUMENT (SID) Dividend Policy (IDCW) The Trustee will endeavor to declare the IDCW as per the specified frequencies, subject to availability of distributable surplus calculated in accordance with the SEBI (Mutual Funds) Regulations, 1996 (SEBI (MF) Regulations’). The actual declaration of pay-out under IDCW 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 holders as to the rate of pay-out under IDCW nor the payout will be paid regularly. When units are sold, and sale price (NAV) is higher than the face value of the unit, a portion of the sale price that represents realized gains is credited to an Equalization Reserve Account which can be used to IDCW payout. The amounts can be distributed out of investors’ capital (Equalization Reserve), which is part of the sale price that represents realized gains. The quantum of IDCW and the record date may be fixed by the Trustee in their meeting. IDCW so decided shall be paid subject to availability of distributable surplus. Record date is the date that will be considered for the purpose of determining the eligibility of investors whose name appears on the register of unitholders. The AMC shall issue a notice to the public communicating the decision of IDCW declaration including the record date, within one calendar day of the decision of the Trustee, in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated. 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 fund is situated, whichever is issued earlier. The investors should note that the Fund does not assure or guarantee declaration of IDCW under the Income Distribution cum Capital Withdrawal Option. The actual declaration of IDCW, frequency and the rate of IDCW 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 unitholders as to the rate of IDCW nor that the IDCW will be paid regularly. Post declaration of IDCW, the NAV of the Units under the Income Distribution cum Capital Withdrawal Option will stand reduced by the amount of IDCW declared and applicable statutory levy. Even though the asset portfolio will be common at the scheme level, the NAVs of the growth option and Income Distribution cum Capital Withdrawal Option in each respective Plan under the Scheme will be distinctly different after declaration of the first IDCW to the extent of distributed income, applicable tax and statutory levy, if any, and expenses relating to the distribution of the IDCW. Please note that it is mandatory for the unitholders to provide the bank account details as per SEBI guidelines. The warrants/cheque/demand draft issued under IDCW option shall be dispatched to the Unit Holders within 7 working days. from the record date. In the event of failure to dispatch the warrants/cheque/ demand draft within the stipulated 7 working days period, the AMC shall be liable to pay interest @ 15 percent per annum for the delayed period, to the Unit holders. The proceeds under IDCW option will be paid by way of ECS/EFT/NEFT/RTGS/Direct credits/any other electronic manner if sufficient banking details are available with the Mutual Fund for the Unitholder. In case of specific request for payouts by warrants/cheques/demand drafts or unavailability of sufficient details with the Mutual Fund, the payout under IDCW option will be paid by warrant/cheques/demand drafts and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the first registered holder) with bank account number furnished to the Mutual Fund. In case of Units under the Income Distribution cum Capital Withdrawal Option held in dematerialized mode, the IDCW pay-out will be credited to the bank account of the investor, as per the bank account details recorded with the DP. Pursuant to Para 14.2 of the SEBI Master Circular, in the event of failure to dispatch - a. Redemption or repurchase proceeds within three working days from the date of receipt of such requests and/ or b. Dividend within the stipulated seven working days period. Interest for the period of delay in transfer of redemption or repurchase or IDCW shall be payable to unitholders at the rate of 15% per annum along with the proceeds of redemption or repurchase or IDCW, as the case may be. However, under exceptional circumstances where the schemes would be unable to transfer the redemption / repurchase / IDCW proceeds to investors within the time as stipulated above, the redemption/ repurchase / IDCW proceeds shall be transferred to unitholders within such time frame, as prescribed by AMFI, in consultation with SEBI. For further details in this regard, please refer to the Statement of Additional Information (SAI). However, the AMC shall not be liable to pay any interest or compensation in case of any delay in processing the redemption application beyond 3 Business Days (in case of IDCW beyond 7 working days), in case of any deficiency in the redemption application or if the AMC/RTA is required to obtain from the Investor/Unit holders any additional details for verification of identity or bank details or such additional information under applicable regulations or as may be requested by a Regulatory Agency or any government authority, which may result in delay in processing the application. Allotment (Detailed procedure) Subject to the receipt of the minimum subscription amount, allotment would be made to all the valid applications of the Unitholders received during the New Fund Offer (NFO) period. Full allotment will be made to all valid applications received during the New Fund Offer Period, subject to realization of funds. Con. Std. Obs. 60 Allotment of Units shall be completed not later than 5 business days after the close of the New Fund Offer Period. 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 Unitholders/ investors registered email address and/or mobile number. An applicant in a scheme whose application has been accepted shall have the option either to receive the statement of accounts or to hold the units in dematerialized form and the asset management company shall issue to such applicant, a statement of accounts specifying the number of units allotted to the applicant or issue units in the dematerialized form as soon as possible but not later than five working days from the date of closure of the initial subscription list or from the date of receipt of the application. 41THE WEALTH COMPANY MUTUAL FUND In cases where the email does not reach the Unitholder/investor, the Fund/its Registrar & Transfer Agents will not be responsible, but the Unitholder/investor can request for fresh statement/ confirmation. The Unitholder/ investor shall from time to time intimate the Fund/its Registrar & Transfer Agents about any changes in his e-mail address. The Trustee reserves the right to recover from an investor any loss caused to the Scheme on account of dishonour of cheques issued by the investor for purchase of Units of the Scheme. Applicants under both the Direct and Regular Plan(s) offered under the Scheme will have an option to hold the Units either in physical form (i.e. account statement) or in dematerialized form. Where investors/Unitholders have provided an email address, an account statement reflecting the units allotted to the Unitholder shall be sent by email on their registered email address. However, in the 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. All Units will rank pari passu, among Units within the same Option in the Scheme concerned as to assets, earnings and the receipt of IDCW distributions, if any, as may be declared by the Trustee. Units in dematerialised form: Unit holders will have an Option to hold the units by way of an Account Statement or in Dematerialized (Demat’) form. Unit holders opting to hold the units in Demat form must provide their Demat Account details in the specified section of the application form. The Applicant intending to hold the units in Demat form are required to have a beneficiary account with a Depository Participant (DP) registered with NSDL / CDSL and will be required to indicate in the application the DP’s name, DP ID Number and the Beneficiary Account Number of the applicant held with the DP at the time of purchasing Units. Unitholders are requested to note that request for conversion of units held in Account Statement (non-demat) form into Demat (electronic) form or vice versa should be submitted to their Depository Participants. In case Unit holders do not provide their demat account details or the demat details provided in the application form are incomplete / incorrect or do not match with the details with the Depository records, the Units will be allotted in account statement mode provided the application is otherwise complete in all respect and accordingly an account statement shall be sent to them. Post NFO allotment: All Applicants whose cheques/payments towards purchase of Units have been realised will receive a full and firm allotment of Units, provided that the applications are complete in all respects and are found to be in order. Pursuant to to Clause 8.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, in respect of purchase of units of the Scheme, including switch-in and systematic transactions (Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs)), the closing NAV of the day is applicable on which 53 the funds are available for utilization irrespective of the size and time of receipt of such application with effect from February 01, 2021. For further details, refer provisions specified under “Cut off timing for subscriptions/redemptions/switches” in this SID. Any redemption or switch out transaction in the interim is liable to be rejected at the sole discretion of the AMC. Subject to the SEBI Regulations, the AMC / Trustees may reject any application received in case the application is found invalid/incomplete or for any other reason in their sole discretion. The Mutual Fund reserves the right to recover from an investor any loss caused to the Scheme on account of dishonour of cheques issued by him/her/it for purchase of Units. No unit certificates will be issued. Refund The AMC will refund the application money to applicants whose applications are found to be incomplete, invalid or have been rejected for any other reason whatsoever. The Refund proceeds will be paid by way of NEFT/RTGS/ Direct credits/IMPS/any other electronic manner if sufficient banking details are available with the Mutual Fund for the Unitholder or else through dispatch of Refund instruments within 5 business days of the closure of the NFO period. In absence of the required banking details to process the refund through electronic manner, the refund instruments will be dispatched within 5 business days of the closure of NFO period. If there are delays in ascertainment of credits, the refunds are made within 5 business day from the date of ascertaining the credit to the scheme/AMC account or matching of transaction whichever is later. In the event of delays beyond 5 business days, the AMC shall be liable to pay interest at 15% per annum or such other rate of interest as may be prescribed from time to time. Refund orders will be marked “A/c Payee only” and drawn in the name of the applicant (in the case of a sole applicant) and in the name of the first applicant in all other cases, or by any other mode of payment as authorised by the applicant. All refund orders will be sent by registered post or as permitted by Regulations. Who can Invest This is an indicative list, and prospective investors are advised to satisfy themselves that they are not prohibited by any law governing them and any Indian law from investing in the Scheme and are This is an indicative list, and authorized to purchase units of mutual funds as per their respective constitutions, charter documents, investors shall consult their corporate/other authorizations and relevant statutory provisions. financial advisor to ascertain 1. Indian Resident adult individuals either singly or jointly (not exceeding three) or on an Anyone or whether the scheme is suitable to Survivor basis their risk profile. 2. Hindu Undivided Family (HUF) through Karta 3. Minor through parent/legal guardian 4. Partnership Firms including limited liability 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 7. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions 8. Mutual Funds registered with SEBI 9. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as “Public Securities” 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) registered with SEBI 42SCHEME INFORMATION DOCUMENT (SID) 12. Army, Air Force, Navy and other paramilitary 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 The Wealth Company 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. NPS Trust 19. Non-Profit Organization (NPO) / Non-Government Organization (NGO) / FCRA 20. Such other person/entity/institution as be decided by the AMC from time to time. 21. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, PAN details as mentioned under the paragraph “Anti Money Laundering and Know Your Customer”, updated bank account details including cancelled original cheque leaf of the new account and his specimen Signature duly authenticated by his banker. No further transactions shall be allowed till the status of the minor is changed to major. Pursuant to clause 17.6 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD- 1/P/CIR/2024/90 dated June 27, 2024, investors are required to note that the minor shall be the sole unit holder in a folio. Joint holders will not be registered. Note: Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad / FPIs have been granted a general permission by Reserve Bank of India under Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 for investing in / redeeming units of the mutual funds subject to conditions set out in the aforesaid regulations. It is expressly understood that at the time of investment, the investor/unitholder has the express authority to invest in units of the Scheme and AMC / Trustee / Mutual Fund will not be responsible if such investment is ultravires the relevant constitution. Subject to the Regulations, the Trustee may reject any application received in case the application is found invalid/ incomplete or for any other reason in the Trustee's sole discretion. Dishonoured cheques are liable not to be presented again for collection, and the accompanying application forms are liable to be rejected. For subscription in the Scheme, it is mandatory for investors to make certain disclosures like bank details etc., and provide certain documents like PAN copy etc. (for details please refer SAI) without which the application is liable to be rejected. Pursuant to Clause 17.6 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the following process shall be applicable for investments made in the name of a minor through a guardian: a. Payment for investment by any mode shall be accepted from the bank account of the minor, parent or legal guardian of the minor, or from a joint account of the minor with parent or legal guardian. For existing folios, the AMCs shall insist upon a Change of Pay-out Bank mandate before redemption is processed. Irrespective of the source of payment for subscription, all redemption proceeds shall be credited only in the verified bank account of the minor, i.e. the account the minor may hold with the parent/ legal guardian after completing all KYC formalities. b. Upon the minor attaining the status of major, the minor in whose name the investment was made, shall be required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. This in regard, the investors are required to submit the ‘Minor attaining majority – request form to change status’ available on the AMC’s website www.wealthcompanyamc.com. Upon the minor attaining the status of major, no further transactions shall be allowed till the status of the minor is changed to major. c. Any instructions registered for Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) shall be suspended when the minor attains majority, till the status is changed to major. b. Subject to the SEBI (MF) Regulations, any application for units of this Scheme may be accepted or rejected in the sole and absolute discretion of the Trustee/AMC. The Trustee/AMC may inter-alia reject any application for the purchase of units if the application is invalid or incomplete or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its unitholders to accept such an application. For further details, please refer to SAI. Who cannot Invest It should be noted that the following persons cannot invest in the Scheme: 1. Any individual who is a foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or otherwise explicitly permitted under FEMA Act/ by RBI/ by any other applicable authority, or as stated in the exception in point no. 5 here under. 2. Pursuant to RBI A.P. (DIR Series) Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds. 3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to time. 4. Residents of Canada as defined under the applicable laws of Canada. 5. U.S. Person* (including all persons residing in U.S., U.S. Corporations or other entities organized under the laws of U.S), except lump sum subscription and switch transaction requests received from Non- resident Indians/Persons of Indian origin who at the time of such investment, are physically present in India and submit only a physical transaction request along with such documents/ undertakings, etc. 43THE WEALTH COMPANY MUTUAL FUND as may be prescribed by the AMC/Mutual Fund from time to time, and subject to compliance with all applicable laws and regulations prior to investing in the Scheme, and provided that such persons shall not be eligible to invest through the SIP route/systematic transactions. *The term “U.S. Person” means any person that is a U.S. Person within the meaning of Regulations under the Securities Act of 1933 of the United States or as defined by the U.S. Commodity Futures Trading Commission or as per such further amended definitions, interpretations, legislations, rules etc., as may be in force from time to time. The physical application form(s) for transactions (in non-demat mode) from such U.S. persons will be accepted only at the AMC official points of acceptance of transactions of the Fund in India. Additionally, such transactions in physical application form(s) will also be accepted through Distributors of the AMC and other platforms in India, subject to receipt of such additional documents/undertakings, etc., as may be stipulated by the AMC/ Trustee from time to time. The investor shall be responsible for complying with all applicable laws for such investments. The AMC/ Trustee reserves the right to put the application form/transaction request on hold/reject the subscription/ transaction request and redeem the units, if already allotted, as the case may be, as and when identified by the AMC that the same is not in compliance with the applicable laws, the terms and conditions stipulated by the AMC/Trustee from time to time and/or the documents/undertakings provided by such investors are not satisfactory. Such redemption will be processed at the applicable Net Asset Value and subject to applicable taxes and exit load, if any. If an existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada or having tax residency in these countries, then such Unit Holder(s) will not be able to purchase any additional Units in any of the Schemes of the Fund except in the manner stated in point no. 5 above. The Mutual Fund reserves the right to include/exclude new/existing categories of investors to invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any. The Mutual Fund/Trustee/ AMC may redeem Units of any Unitholder in the event it is found that the Unitholder has submitted information either in the application or otherwise that is false, misleading or incomplete or Units are held by any person in breach of the SEBI Regulations, any law or requirements of any governmental, statutory authority. If an existing Unit Holder(s) subsequently becomes a U.S. Person or Resident of Canada, then such Unit Holder(s) will not be able to purchase any additional Units in any of the Schemes of the Fund except in the manner stated in point no. 5 above. The Mutual Fund reserves the right to include/exclude new/existing categories of investors to invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any. The Mutual Fund/Trustee/ AMC may redeem Units of any Unitholder in the event it is found that the Unitholder has submitted information either in the application or otherwise that is false, misleading or incomplete or Units are held by any person in breach of the SEBI Regulations, any law or requirements of any governmental, statutory authority. How to Apply and Investors can obtain application forms and Key Information Memorandum from the Official Points of Other Details Acceptance (OPAs) of AMC and RTA’s (KFin) branch office. Investors can also download application form / Key Information Memorandum or apply through the website of AMC viz. www.wealthcompanyamc.com Con. Std. Obs. 35 Applications for purchase/redemption/switches to be submitted at any of the Designated Investor Service Centers (DISC) mentioned in this Scheme Information Document or any other location designated as such by the AMC, at a later date. The addresses of the DISC are given at the end of this Scheme Information Document and also on the website, www.wealthcompanyamc.com Investors in cities other than where the DISC are located, may forward their application forms to any of the nearest DISC, or apply online on our website www.wealthcompanyamc.com Applications for subscription/ redemption/ switches can also be submitted on platforms of various channel partners like MF Central. For further details, please refer to Section II of the SID. 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 The Units of the Schemes held in demat and non-demat mode may be transferable in line with applicable right to freely retain or dispose statutory requirements. of units being offered In view of the same, additions/deletions of names will not be allowed under any folio of the scheme. However, the said provisions will not be applicable in case a person (i.e. a transferee) becomes a holder of the units by operation of law or upon enforcement of pledge, then the AMC shall, subject to production of satisfactory evidence and submission of such documents, proceed to effect the transfer, if the intended transferee is otherwise eligible to hold the units of the scheme. The said provisions in respect of deletion of names will not be applicable in case of death of a unit holder (in respect of joint holdings) as this is treated as transmission of units and not transfer. RIGHT TO RESTRICT REDEMPTION AND/OR SUSPEND REDEMPTION OF THE UNITS: The Fund at its sole discretion reserves the right to restrict Redemption (including switch out) of the Units (including Plan/Option) of the Scheme of the Fund upon occurrence of the below mentioned events for a period not exceeding ten (10) working days in any ninety (90) days period subject to approval of the Board of Directors of the AMC and the Trustee. The restriction on Redemption (including switch-out) shall be applicable where the Redemption (including switch-out) request is for a value above Rs.2,00,000/- (Rupees Two Lakhs). Further, no restriction shall be applicable to the Redemption/switch-out request upto Rs. 2,00,000/- (Rupees 44SCHEME INFORMATION DOCUMENT (SID) Two Lakhs). It is further clarified that, in case of redemption request beyond Rs. 2,00,000/- (Rupees Two Lakhs), no restriction shall be applicable on first Rs. 2,00,000/- (Rupees Two Lakhs). The Trustee/AMC reserves the right to restrict Redemption or suspend Redemption of the Units in the Scheme of the Fund on account of circumstances leading to a systemic crisis or event(s) that severely constrict market liquidity or the efficient functioning of the markets. A list of circumstances under which the restriction on Redemption or suspension of Redemption of the Units in the Scheme of the Fund may be imposed are as follows: 1. Liquidity issues-when the market at large becomes illiquid affecting almost all securities rather than any issuer specific security; or 2. Market failures/Exchange closures; or 3. Operational issues; or 4. If so, directed by SEBI. It is clarified that since the occurrence of the above mentioned eventualities have the ability to impact the overall market and liquidity situation, the same may result in exceptionally large number of Redemption requests being made and in such a situation the indicative timelines (i.e. within 1-4 Business Days) mentioned by the Fund in the scheme offering documents, for processing of requests for Redemption may not be applicable. Any restriction on Redemption or suspension of Redemption of the Units in the Scheme of the Mutual Fund shall be made applicable only after specific approval of the Board of Directors of the AMC and Trustee Company and thereafter, immediately informing the same to SEBI. The AMC/Trustee reserves the right to change/modify the provisions of right to restrict Redemption and/ or suspend Redemption of the Units in the Scheme of the Fund. Right to Limit Fresh Subscription The Trustees reserves the right at its sole discretion to withdraw / suspend the allotment / Subscription of Units in the Scheme temporarily or indefinitely, at the time of NFO or otherwise, if it is viewed that increasing the size of such Scheme may prove detrimental to the Unit holders of such Scheme. An order to Purchase the Units is not binding on and may be rejected by the Trustees or the AMC unless it has been confirmed in writing by the AMC and/or payment has been received. Such restrictions can be placed by the Trustees or the AMC for any other exceptional circumstances which may be deemed fit for the purpose of national/investor safety, calamities beyond imagination, subject to SEBI (MF) Regulations / guidelines issued from time to time. Cut off timing for In accordance with provisions of Para 8.4 titled 'Uniform Cut off Timings for applicability of Net Asset Subscriptions/ Redemptions/ Value of Mutual Fund scheme(s) and/ or plan(s)' of the SEBI Master Circular, the following cut-off timings Switches shall be observed by Mutual Fund in respect of purchase/ redemption/ switches of units of the scheme, and the following NAVs shall be applied in each case: I. APPLICABLE NAV FOR SUBSCRIPTIONS/ PURCHASE INCLUDING SWITCH-IN OF UNITS: • Where the application is received up to 1.30 p.m. on a day and funds are available for utilization before the cut-off time – the closing NAV of the day immediately preceding the day of receipt of application; • Where the application is received after 1.30 p.m. on a day and funds are available for utilization on the same day – the closing NAV of the day immediately preceding the next business day ; and • Irrespective of the time of receipt of application, where the funds are not available for utilization before the cut-off time – the closing NAV of the day immediately preceding the day on which the funds are available for utilization. II. APPLICABLE NAV FOR REDEMPTIONS INCLUDING SWITCH-OUTS: • In respect of valid applications received upto 3.00 p.m. – the closing NAV of the day immediately preceding the next Business Day; and • In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next Business Day shall be applicable. The above-mentioned cut-off timing shall be applicable to transactions through the online trading platform. The Date of Acceptance will be reckoned as per the date & time; the transaction is entered into stock exchange‘s infrastructure for which a system generated confirmation slip will be issued to the unitholder. All transactions received on the same Business Day (as per cut-off timing and Time stamping rule prescribed under SEBI (Mutual Funds) Regulations, 1996 or circulars issued thereunder from time to time). Transactions shall include purchases, additional purchases, Switches, if any. Where can the applications for Applications for purchase/redemption/switches be submitted at any of the Designated Investor Service purchase/redemption switches Centres mentioned in this Scheme Information Document or any other location designated as such by be submitted? the AMC, at a later date. The addresses of the Designated Investor Service Centres are given at the end of this Scheme Information Document and also on the website www.wealthcompanyamc.com/contact- us. Investors in cities other than where the Designated Investor Service Centres (DISC) are located, may forward their application forms to any of the nearest DISC, or apply online on our website www.wealthcompanyamc.com Application/transaction request can be submitted via AMC digital properties, RTA Digital properties / MF Central / Exchange Infrastructure (MFSS and BSE StAR, EOPs, Authorized Platforms, etc. 45THE WEALTH COMPANY MUTUAL FUND Minimum Amount for Purchase/ Redemption/ Purchase (Incl. Switch-in) Additional Purchase Repurchase/ Switches (Incl. Switch-in) Redemption Minimum of Rs. 1,000/- and in Minimum of Rs. 1,000/- and ‘Any amount’ or ‘any multiples of any amount in multiples of any amount number of units’ as thereafter thereafter requested by the investor. The same will not be applicable for any investment made in compliance with para 6.10 of SEBI Master Circular related to ‘Alignment of interest of Designated Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes’. Minimum balance to be There is no minimum balance requirement. maintained and consequences of non-maintenance Con. Std. Obs. 36 Accounts Statements FOR INVESTORS WHO OPT TO HOLD UNITS IN PHYSICAL (NON-DEMAT) MODE AND DO NOT HAVE DEMAT ACCOUNT: Account Statements: AMC shall send allotment confirmation specifying the number of units allotted to the investor by way of Con. Std. Obs. 60 email and/ or SMS to the investors’ registered email address and/or mobile number not later than 5 (five) business days from the date of receipt of application. Thereafter, a Consolidated Account Statement (CAS) shall also be sent to the unit holder, in whose folio transactions viz. subscriptions, redemptions, switches, IDCW pay-out, etc. have taken place during that month, on or before 12th of the succeeding month by e-mail/on or before 15th day of the succeeding month by physical mode where valid email is not registered. CAS shall contain details relating to all the transactions** carried out by the investor across all schemes of all mutual funds, during the month and holding at the end of the month. **The word ‘transaction’ shall include purchase, redemption, switch, IDCW pay- out, IDCW reinvestment, and Systematic Withdrawal Plan, Systematic Transfer Plan and bonus transactions. In case of specific request is received from investors, account statement shall be issued to the investors within 5 (five) business days from the receipt of such request without any charges. The unit holder may request a physical account statement by writing/calling the AMC/ISC/R&T. Half Yearly Consolidated Account Statements: A CAS detailing holding across all schemes of all mutual funds at the end of every six months (i.e. September/ March), shall be sent by mail/e-mail on or before the 21st day of succeeding month by physical (18th day by email), to all such Unit holders in whose folios no transaction has taken place during that period. The half yearly consolidated account statement will be sent by e-mail to the Unit holders whose e- mail address is available, unless a specific request is made to receive in physical. Investors should note that, no separate account statements will be issued to investors who opted to hold units in electronic (demat) mode since the statement of account furnished by depository participants will contain the details of transactions. The half-yearly CAS shall also provide the details of actual commission paid and such other disclosures in line with Para 14.4.3. related to 'disclosures in the Consolidated Account Statement' of the SEBI Master Circular. Further, the Disclosure on the Half Yearly Consolidated Account Statement is also mentioned in the SAI. FOR INVESTORS WHO OPT TO HOLD UNITS IN DEMAT MODE: The Unitholders are given an Option to subscribe to/hold the units by way of an Account Statement or in Dematerialized (‘Demat’) form. Unitholders opting to hold the units in electronic (demat) form must provide their Demat Account details in the specified section of the application form. The Unit holder intending to hold the units in Demat form are required to have a beneficiary account with a Depository Participant (DP) (registered with NSDL / CDSL) and will be required to indicate in the application the DP's name, DP ID Number and the beneficiary account number of the applicant held with the DP at the time of subscribing to the units. Applicants must ensure that the sequence of the names as mentioned in the application form matches with that of the beneficiary account held with the DP. Names, PAN details, KYC details etc. mentioned in the Application Form will be verified against the Depository records. In case the unit holders do not provide their Demat Account details or provide incomplete details, or the details do not match with the records as per Depository(ies), units shall be allotted in physical (non-demat) form, subject to it being complete in all other aspects. Unitholders who have opted to hold and thereby allotted units in electronic (demat) form will receive payment of redemption / IDCW proceeds into bank account linked to their Demat account. However, Special Products/ Facilities such as Systematic Transfer Plan, Systematic Withdrawal Plan, Switching etc. offered by Wealth Company AMC/Mutual Fund under the scheme shall be available for unitholders in case the units are held/opted to be held in physical (non-demat) mode. Further, the Investors also have an option to subscribe to / hold units in demat form through fresh investment applications for SIP. Under SIP option, units will be allotted based on the applicable NAV as per provisions of this SID and will be credited to demat account of the investors upon realisation of funds. The allotment of units in demat form shall be subject in terms of the guidelines/ procedural requirements as laid by the Depositories (NSDL/CDSL) from time to time. In case, the Unitholder desires to hold the Units in a Dematerialized /Rematerialized form at a later date, the request for conversion of units held in physical 46SCHEME INFORMATION DOCUMENT (SID) (non-demat) mode into demat form or vice-versa should be submitted along with a Demat/Remat Request Form to their Depository Participant(s). Investors should ensure that the combination of names in the account statement is the same as that in the demat account. Communication through Email: For those unit holders who have provided an email address, the AMC will send the communication by email. Unitholders who receive email statements may download 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 make 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. For ease of communication, the first applicant’s own email ID and mobile number should be provided. As per AMFI Circular No. 135/BP/97/2021- 22, if email ID and Contact number of Primary Unit Holder is not available then email ID and Mobile number of family member can be provided. ‘Family’ for this purpose shall mean self, spouse, dependent children, dependent parents, dependent siblings as specified in SEBI Circular No. CIR/MIRSD/15/2011 dated Aug 02, 2011. Dividend/IDCW The payment of dividend/IDCW to the unitholders shall be made within seven working days from the record date. For further details, please refer to the section ‘Dividend Policy (IDCW)’ above. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. All redemption requests received prior to the cut-off time (i.e., 3.00 p.m.) on any Business Day at the Official Points of Acceptance of Transactions will be considered accepted on that Business Day, subject to the redemption requests being complete in all respects and will be priced on the basis of the Redemption Price for that day. Requests received after the cut-off time (i.e., 3:00 p.m.) will be treated as though they were accepted on the next Business Day. Further, as per AMFI circular no. AMFI/35P/MEM-COR/74/2022-23 dated January 16, 2023, in case of exceptional situations the AMC might follow the additional timelines for making redemption payments. For further information, please refer to the SAI. For schemes investing at least 80% of total assets in permissible overseas investments (as per Clause 12.19 of SEBI Master Circular for Mutual Funds), the transfer of redemption or repurchase proceeds to the unitholders shall be made within five working days from the date of redemption or repurchase. Bank Mandate In order to protect the interest of Unit holders from fraudulent encashment of redemption / IDCW cheques, SEBI has made it mandatory for investors to provide their bank details viz. name of bank, branch, address, account type and number, etc. to the Mutual Fund. Payment will be made only in the Bank. Con. Std. Obs. 61 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. Also, please refer to point on ‘Registration of Multiple Bank Accounts in respect of an Investor Folio’ given elsewhere in this document and the SAI. Further, please refer to “Bank Account details mandatory for all investors” in the SAI. Any one of the following documents: 1.1. Cancelled original cheque leaf (where first Unit holder name and bank account number printed on the face of the cheque). Unit holders should without fail cancel the cheque and write 'Cancelled' on the face of it to prevent any possible misuse; 1.2. Self-attested copy of the bank passbook or a statement of bank account with current entries not older than 3 months having the name and address of the first Unit holder and account number; 1.3. Letter from the bank on its letterhead certifying that the Unit holder maintains an account with the bank, the bank account information like bank account number, bank branch, account type, the MICR code of the branch & IFSC Code (where available) and specimen signature of the Unit holder, and Self attested copy of any one of the documents admissible as Proof of Identity (PoI) as may be prescribed by SEBI from time to time. Note: The above documents shall be submitted in Original. If copies are furnished, the same must be submitted at the Investor Service Centres of AMC (ISCs) where they will be verified with the original documents to the satisfaction of the Fund. The original documents will be returned across the counter to the Unit holder after due verification. In case the original of any document is not produced for verification, then the copies should be attested by the bank manager with his / her full signature, name, employee code, bank seal and contact number. In case of folios held on behalf of minors, when a minor attains the age of majority, the documents pertaining to the major investor's bank details registration must be submitted to the Fund. In case of those unit holders, who hold units in demat form, the bank mandate available with the respective DP will be treated as the valid bank mandate for the purpose of pay-in at the time of subscription or purchase/ pay-out at the time of maturity or at the time of any corporate action. In view of the above, Multiple Bank Mandate registration facilities with the AMC will not be applicable to Demat account holders For more details, kindly refer to SAI. Delay in payment of The Asset Management Company shall be liable to pay interest to the unitholders at the rate as specified redemption /repurchase vide clause 14.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024, by SEBI for the period proceeds/dividend (IDCW) of such delay. Delay in payment of IDCW proceeds: As per Chapter 11 of the Master Circular, or as amended from time to time, the AMC shall dispatch payment of the IDCW proceeds within 7 working days from the record date. However, in the event of failure to dispatch/ credit the IDCW proceeds within the above time, interest @ 15% per annum or such rate as may be specified by SEBI, would be paid to the Unit holders for the period of delay from the stipulated period for the dispatch/payment of IDCW payments. Delay in payment of redemption / repurchase proceeds: As per Para 14.1.1 of the Master Circular, or as amended from time to time, the AMC shall transfer the redemption / repurchase proceeds within 3 47THE WEALTH COMPANY MUTUAL FUND working Days*, from the date of acceptance of redemption request at any of the Investor Service Centers. In the event of failure to dispatch the redemption proceeds within the above time, the Asset Management Company shall be liable to pay interest to the unitholders at such a rate as may be specified by SEBI for the period of such delay (presently @15% per annum). SEBI has further advised mutual funds that in the event of payment of interest to the Unit holders, such Unit holders should be informed about the rate and the amount of interest paid to them. * As per AMFI circular no. AMFI/35P/MEM-COR/74/2022-23 dated January 16, 2023, in case of exceptional situations the AMC might follow the additional timelines for making redemption payments. For further information, please refer to the SAI. If the Unit holder fails to provide the Bank mandate, the request for redemption would be considered as not valid and the Fund retains the right to reject/withhold the redemption until a proper bank mandate is furnished by the Unitholder and the provision with respect of penal interest in such cases will not be applicable/ entertained. The mode of payment may be direct credit/ECS/cheque, or any other mode as may be decided by AMC in the interest of investors. If the investor(s)/unitholder(s) submit(s) redemption request accompanied with request for change of Bank mandate or submits a redemption request within 7 days from the date submission of a request for change of Bank mandate details, the Asset Management Company will process the redemption but the release of redemption proceeds shall be deferred on account of additional verification, but will be within the regulatory limits as specified by Securities and Exchange Board of India time to time. Unclaimed Redemption and The Unclaimed Redemption amounts and through IDCW option amounts may be deployed by the Fund Income Distribution cum in money market instruments and/or in a separate plan of Liquid scheme / Money Market Mutual Fund Capital Withdrawal Amount scheme floated by the Fund specifically for deployment of these Unclaimed amounts. Further, the AMC shall not charge any exit load in this plan and TER (Total Expense Ratio) of such plan shall be capped at 50 bps. Investors who claim the unclaimed amounts during a period of three years from the due date shall be paid initial unclaimed amount along with the income earned from its deployment. Investors, who claim these amounts after 3 years, shall be paid an initial unclaimed amount along with Con. Std. Obs. 52 the income earned from its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. The AMC shall provide on its website www.wealthcompanyamc.com, the list of names and addresses of investors in whose folios there are unclaimed amounts. The details of such unclaimed redemption/amount received from IDCW option, if any, shall be disclosed in the Abridged Scheme wise Annual Report sent to the Unit Holders. The website of the AMC shall also provide information on the process of claiming the unclaimed amount and the necessary forms / documents required for the same. Further, the information on unclaimed amount along-with its prevailing value (based on income earned on deployment of such unclaimed amount), shall be separately disclosed to investors through the periodic statement of accounts / Consolidated Account Statement sent to the investors. Disclosure w.r.t investment by In addition to the details mentioned in the SAI, the following procedures shall apply to the investments minors made on behalf of Minors: - a. The minor shall be the sole Unitholder in a folio. Joint holders will not be registered. b. The minor Unitholder should be represented either by a natural parent (i.e. father or mother) or by a legal guardian i.e., a court appointed guardian. c. Payment for investment by means of Cheque, Demand Draft or any other mode shall be accepted from Con. Std. Obs. 37 the bank account of the minor or from a joint account of the minor with the guardian only. For existing folios, the AMCs shall insist upon a Change of Pay-out Bank mandate before redemption is processed. d. Copies of birth certificate/passport evidencing the date of birth of the minor, relationship proof of the natural parent/ Court Order appointing the legal guardian (as the case may be) should be mandatorily provided while placing a request for subscription on behalf of a minor investor. Upon attainment of majority by the minor, the folio/s should be regularised forthwith. The AMC may specify such procedures for regularisation of the Folio/s, as may be deemed appropriate from time to time. Post attainment of majority by the minor Unitholder, the Mutual Fund/ AMC will not be obliged to accept any instruction or transaction application made under the signature of the representing guardian of the Folio/s. The folio/s will be frozen for operation by the representing guardian on the day the minor Unitholder attains the age of majority, and no transactions will be permitted till the documents for changing the status are received by the AMC / Mutual Fund. e. The AMC/ Mutual Fund will register standing instructions like SIP/ STP/SWP etc. for a folio held by a minor Unitholder (either for existing folio or new folio) from the parent/ legal guardian only till the date when the minor Unitholder attains the age of majority, even though such instructions may be for a period beyond that date. Change of Status from Minor to Major: All financial transactions/standing instructions/ systematic and non-systematic transactions etc. will be suspended i.e. the folio(s) will be frozen for operation by the parent/ legal guardian from the date the minor Unitholder attains the age of majority as per the records maintained by the AMC. Prior to the minor Unitholder attaining the age of majority, the AMC/ Mutual Fund will send a notice to the minor Unitholder at the registered correspondence address advising such minor Unitholder to submit, on attaining the age of majority, an application form along with prescribed documents to change the status of the folio/s from ‘minor’ to ‘major’. Till the receipt of such intimation/information from the minor turned major Unitholder, the existing contract as signed by the parent/ legal guardian of the minor Unitholder will continue. Ongoing Offer Period The Scheme will be reopened from XX for continuous purchases. This is the date from which the scheme will reopen for subscriptions/ redemptions after the closure of the NFO period. 48SCHEME INFORMATION DOCUMENT (SID) Ongoing price for Units of the Scheme shall be available for subscription (purchase)/switch- in at the Applicable NAV. subscription (purchase)/ In terms of Para 10.4.1 titled to 'Empowering investors through transparency in payment of commission switch-in (from other and load structure' of the SEBI Master Circular, SEBI has prohibited charging of entry load for all the schemes/ plans of the schemes of Mutual Fund. mutual fund) by investors. Pursuant to Para 10.6 titled 'No Load on Bonus Units and Units allotted on Reinvestment of Dividend' of This is the price you need to the SEBI Master Circular, no entry load or exit load shall be charged in respect of bonus units and units pay for purchase/ switch-in. allotted on IDCW reinvestment. Ongoing Price for redemption The Redemption Price of the Units will be based on the Applicable NAV (for respective plan and option of This is the price you will the Scheme) subject to the prevalent exit load provisions. receive for redemptions/switch The repurchase price, however, will not be lower than 95% of the NAV subject to SEBI (Mutual Funds) outs. Regulations, 1996 as amended from time to time. The Redemption Price of the Units will be computed as follows: Redemption Price = Applicable NAV (for respective plan and option of the Scheme) * (1-Exit Load as applicable to the investor). The applicable exit load shall be subject to the tenure of investment of the investor in the scheme vis-à- vis the exit load structure applicable when investor had invested in the scheme. Example: An investor invests on April 1, 2024, when the applicable exit load for the scheme was 2% if redeemed within 1-year, else nil. Scenario 1) In case investor redeems before April 1, 2025, then applicable exit load would be 2%. Now suppose the same investor decides to redeem his 1000 units. The prevailing NAV is Rs 25/-. Hence, the sale or redemption price per unit becomes Rs. 24.50/- i.e., 25*(1-2%). The investor therefore gets 1000 x 24.50 = Rs. 24,500/-. Scenario 2) In case investor redeems on or after April 1, 2025, then applicable exit load would be nil. Now suppose the same investor decides to redeem his 1000 units. The prevailing NAV is Rs 30/-. Hence, the sale or redemption price per unit will be Rs. 30/- i.e., 30*(1- 0). The investor therefore gets 1000 x 30 = Rs. 30,000/-. Requirement of Minimum The Scheme shall have a minimum of 20 investors, and no single investor shall account for more than investors in the Scheme 25% of the corpus of the Scheme. The two conditions mentioned above shall be complied with in each calendar quarter, on an average basis, as specified by SEBI/AMFI. In case the Scheme does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (Mutual Funds) Regulations, 1996, would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at applicable NAV. If there is a breach of the 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 the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund at the applicable Net Asset Value on the 15th day of the notice period. The Scheme shall adhere to the requirements prescribed by SEBI from time to time in this regard. 49THE WEALTH COMPANY MUTUAL FUND III. OTHER DETAILS A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund should be provided. Not applicable as the Scheme is not a Fund of Fund Scheme. B. PERIODIC DISCLOSURES SUCH AS HALF YEARLY DISCLOSURES, HALF YEARLY RESULTS, ANNUAL REPORT Portfolio Disclosures: In terms of SEBI Regulation, Mutual Funds/ AMCs will disclose portfolio (along with ISIN) as on the last day of the month/half-year for all Schemes on its website 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. The Mutual Fund/AMCs will send to Unit holders a complete statement of the scheme portfolio, within ten days from the close of each month/half-year whose email addresses are registered with the Mutual Fund. Further, the Mutual Fund/AMC shall publish an advertisement disclosing the hosting of such half yearly scheme portfolios on its website and on the website of AMFI (www.amfiindia.com). Mutual Funds/ AMCs will also provide a physical copy of the statement of its scheme portfolio, without charging any cost, on specific request received from a unit holder. The same is available on the AMC’s website on the link: www.wealthcompanyamc.com 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 (https://www.wealthcompanyamc.com/) and AMFI’s website. Further, the Mutual Fund/AMC shall publish an advertisement disclosing the hosting of such unaudited half yearly financial results on their website and in atleast one English daily newspaper having nationwide circulation and, in a newspaper, having wide circulation published in the language of the region where the Head Office of the Mutual Fund is situated. The same is available on the AMC’s website on the link: www.wealthcompanyamc.com Annual Report: The scheme-wise annual report or an abridged summary thereof shall be provided to all Unit holders not later than four months from the date of closure of the relevant accounting year whose email addresses are registered with the Mutual Fund. The physical copies of Scheme-wise Annual report will also be made available to the unit holders, at the registered offices at all times. The scheme wise annual report will also be hosted on its website (link: www.wealthcompanyamc.com) and on the website of AMFI (www.amfiindia.com). The physical copy of the abridged summary shall be provided to the investors without charging any cost, if a specific request through any mode is received from the unit holder. Further, the Mutual Fund/AMC shall publish an advertisement disclosing the hosting of scheme wise annual reports on its website (link: www.wealthcompanyamc.com) and on the website of AMFI (www.amfiindia.com). Con. Std. Obs. 38 Periodic disclosure of Risk-o-meter of the Scheme and of the Benchmark: As per Clause 17.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Risk-o-meter of the Scheme shall be evaluated on a monthly basis and any change in risk-o-meter shall be communicated to the unitholders of the Scheme by way of Notice cum Addendum and by way of an e-mail or SMS. The Mutual Fund/ AMC shall disclose the Risk-o-meter along with portfolio disclosure for all schemes on its website and on AMFI website within 10 days from the close of each month. The Mutual Fund/AMC shall disclose the risk level of schemes as on March 31 of every year, along with the number of times the risk level has changed over the year, on its website and AMFI website. The Mutual Fund/ AMC shall publish the scheme wise changes in Risk-o-meter in scheme wise Annual Reports and Abridged summary as per the prescribed format. The product label of the Scheme shall be disclosed on the front page of the initial offering application form, SID, KIM, common application form and scheme advertisements as prescribed. As per Clause 5.16.1 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the AMC is required to disclose risk-o-meter of the Scheme wherever the performance of the Scheme is disclosed; and risk-o-meter of the Scheme and benchmark wherever the performance of the Scheme vis-à-vis that of the benchmark is disclosed, including promotional material or the disclosures stipulated by SEBI from time to time. Monthly Average Asset Under Management: The Mutual Fund shall disclose the Monthly AAUM under different categories of schemes as specified by SEBI in the prescribed format on a monthly basis on its website viz. www.wealthcompanyamc.com and forward to AMFI within 7 working days from the end of the month. Con. Std. Obs. 38 Scheme Summary Document The AMC shall provide on its website the Scheme Summary Document which is a standalone scheme document which contains all the applicable details of the Scheme in the prescribed format. The document shall be updated by the AMC on a monthly basis or on changes in any of the specified fields, whichever is earlier. The document shall be uploaded on the websites of the AMC, AMFI and Stock Exchanges in 3 data formats, namely PDF, Spreadsheet and a machine-readable format (either JSON or XML). C. Transparency/NAV Disclosure (Details with reference to information given in Section I) a. The AMC will calculate and disclose the first NAV of the Scheme within 5 business days from the date of allotment. Subsequently, the NAV will be calculated and disclosed for every Business Day. The NAVs of the Scheme will be calculated up to Four decimals. AMC shall update the NAV on the AMFI website (www.amfiindia.com) and on the website of the Mutual Fund www.wealthcompanyamc.com/mutual- fund-scheme/nav-update by 11.00 pm on the day of declaration of the NAV/business day. Con. Std. Obs. 40 b. In case the scheme takes exposure to overseas securities, the NAV of the scheme would be declared by 10.00 a.m. on the following business day. In case the scheme ceases to hold exposure to any overseas securities, NAV for that day would continue to be declared on 10.00 am on the following business day. Subsequent to that day, NAV shall be declared by 11.00 p.m., on the same business day. Con. Std. Obs. 41 c. In case of any delay, the reasons for such delay would be explained to AMFI in writing. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. 50SCHEME INFORMATION DOCUMENT (SID) d. The NAV will be calculated in the manner as provided in this SID or as may be prescribed by the SEBI Regulations from time to time. The NAV will be computed up to Four decimal places. D. STAMP DUTY .Stamp Duty: A stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions. Accordingly, pursuant to the levy of stamp duty, the number of units allotted on purchase/switch-in transactions (including IDCW reinvestment) to the unitholders would be reduced to that extent. E. ASSOCIATE TRANSACTIONS Please refer to the Statement of Additional Information (SAI) for details. F. TAXATION For details on taxation, please refer to the clause on "Taxation" in the SAI apart from the following: Tax implications on distributed income (hereinafter referred to as either 'Income from units of Mutual Funds' or 'capital gains') by Mutual Funds: For Debt Schemes: Taxation Details Resident Investors Registered Mutual Fund Dividend / Income from Unit of Mutual Fund Withholding Tax Rate Resident: Nil 10% (if income from units of Mutual fund exceeds INR 10,000 in a financial year) Non-Resident: 20%2 + applicable surcharge + 4% Cess3 Tax Rates Resident: Nil Individual/ HUF Income tax rate applicable to the Unit holders as per their income slabs + applicable Surcharge + 4% Cess3 Domestic Company: 30% + Surcharge as applicable + 4% Cess3 25%4 + Surcharge as applicable + 4% Cess3 22%5 + 10% Surcharge + 4% Cess3 15%5 + 10% Surcharge5 + 4% Cess3 Non-Resident: 20%2 + applicable surcharge + 4% Cess3 Capital Gains2 6 Long Term capital gain on Resident: Nil sale of listed and unlisted NA units Non-Resident: (period of holding more than 12 months) NA Deemed Short Term capital Resident: Nil gain ) Individual/ HUF Income tax rate applicable to the Unit holders as per their income slabs + applicable Surcharge + 4% Cess3 Domestic Company: 30% + Surcharge as applicable + 4% Cess3 25%4 + Surcharge as applicable + 4% Cess3 22%5 + 10% Surcharge + 4% Cess3 15%5 + 10% Surcharge5 + 4% Cess3 Non-Resident: Non-Resident (Other Than Foreign Company) – Income tax rate applicable to the Unit holder as per their Income slabs Foreign company 35% + Surcharge as applicable + 4% cess Notes: As per section 50AA of the Act, “specified mutual fund” means (a) a Mutual Fund by whatever name called, which invests more than sixty-five per cent of its total proceeds in debt and money market instruments; or (b) a fund which invests sixty-five per cent or more of its total proceeds in units of a fund referred to in sub-clause (a). In case of Specified Mutual Fund schemes, all assets are considered as Short-Term Capital Gains irrespective of period for which it is held and applicable slab rate shall apply Provided further that for the purposes of this clause, “debt and money market instruments” shall include any securities, by whatever name called, classified or regulated as debt and money market instruments by the Securities and Exchange Board of India.’. The above definition of “specified mutual fund” will be effective from 01 April 2025. 2 Section 196A of the Act provides that a person responsible for paying to a non-resident (other than FPI) any income in respect of units of 51THE WEALTH COMPANY MUTUAL FUND mutual fund shall withhold taxes at the rate of 20% (plus applicable surcharge and cess) or rate provided in the relevant DTAA. whichever is lower, provided the payee furnishes a tax residency certificate and such other information and documents as may be prescribed to claim treaty benefit. As per the provisions of section 196D of the Act which is specifically applicable in case of FPI/FII, the withholding tax rate of 20% (plus applicable surcharge and cess) on any income in respect of securities referred to in section 115AD(1)(a) credited/paid to FII shall apply. The proviso to section 196D (1) of the Act grants relevant tax treaty benefits at the time of withholding tax on income with respect to securities of FPIs, subject to furnishing of tax residency certificate and such other documents as may be required. As per section 196D (2) of the Act, no TDS shall be made in respect of income by way of capital gain arising from the transfer of securities referred to in section 115AD of the Act. 3 Health and education Cess shall be applicable at 4% on aggregate of base tax and surcharge. 4 In the case of domestic companies, the rate of income-tax shall be 25% if its total turnover or gross receipts in the financial year 2023-24does not exceed Rs. 400 crores. 5 In case of a domestic company whose income is chargeable to tax under section 115BAB or section 115BAA of the Income-Tax Act, 1961, tax rate @15% or @ 22% shall be applicable respectively, subject to conditions mentioned therein. The tax computed in the case of domestic companies whose income is chargeable to tax under section 115BAA or section 115BAB shall be increased by a surcharge at the rate of 10%. 6 Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of non-resident investors only (other than FPI). However, as per section 196A of the Act the withholding tax of 20% (plus applicable surcharge and cess) is applicable on any income in respect of units of mutual fund in case of non-residents. 7Section 112A provides that long-term capital gains arising from transfer of a long-term capital asset being a unit of an equity-oriented fund shall be taxed at 12.5% (without indexation and foreign currency fluctuation benefit) of such capital gains exceeding one lakh twenty five thousand rupees. The concessional rate of 12.5% shall be available only if STT has been paid for transfer in case of units of equity-oriented mutual funds. The information given above is as per the prevailing tax laws and might be subject to change. Refer more information in SAI. In view of the individual nature of the tax consequences for each individual/non-individual/NRIs, each investor is advised to consult his/her own professional tax advisor. AMC has the right to higher TDS on a conservative basis and in line with the Income Tax provisions (including for IDCW), if PAN is not provided or PAN found to be Invalid as per the Income Tax database. The information given above is as per the prevailing tax laws and might be subject to change. In view of the individual nature of the tax consequences for each individual/non-individual/NRIs, each investor is advised to consult his/her own professional tax advisor. AMC has the right to higher TDS on a conservative basis and in line with the Income Tax provisions (including for IDCW), if PAN is not provided or PAN found to be Invalid as per the Income Tax database. G. RIGHTS OF UNITHOLDERS Please refer to SAI for details. H. LIST OF OFFICIAL POINTS OF ACCEPTANCE: Please refer to the end of this document for the list of official points of acceptance. Further the details are also available on the website Link - www.wealthcompanyamc.com Details of the Registrar and Transfer Agent: Name KFin Technologies Limited Address Selenium Building, Tower-B, Plot No 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddy, Telangana India - 500 032. Website Address https://www.kfintech.com/ I. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY The details of penalties, pending litigation for the last 5 financial years and for the amount of penalty more than 5 lakhs are given below. Con. Std. Obs. 48 Further, for updated disclosure on penalties, pending litigations etc., please refer to the weblink - www.wealthcompanyamc.com Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. Con. Std. Obs. 63 This scheme was approved by the Trustee at its Board meeting held on July 18, 2025. The Trustees have certified that The Wealth Company Liquid Fund approved by them, is a new product offered by The Wealth Company Mutual Fund. Mutual Fund Investments are subject to market risk, read all schemes related documents carefully For Wealth Company Asset Management Holdings Private Limited (Asset Management Company to The Wealth Company Mutual Fund) Sd/- Madhu Lunawat Managing Director & CEO Date: Place: Mumbai 52