Union Consumption Fund

SCHEME INFORMATION DOCUMENT SECTION I Scheme Code - Will be updated at the time of launch UNION CONSUMPTION FUND (An open-ended equity scheme following consumption theme). This product is suitable for Risk-o-meter Benchmark Risk-o-meter investors who are seeking*: • Capital appreciation over long term • Investment predominantly in equity & equity related instruments of entities engaged in consumption and consumption related sectors or allied sectors. The risk of the Nifty India Consumption The risk of the scheme is Very High Risk TRI (Benchmark) is Very High Risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. @@@For Benchmark Disclaimer, please refer page no. 5. (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. The Benchmark riskometer is based on the evaluation of the portfolios for the month ended July 31, 2025) Offer of Units of Rs. 10 each for cash during the New Fund Offer and continuous offer for Units at NAV based prices (Face Value Rs.10) New Fund Offer Opens on: ________________ New Fund Offer Closes on: _________________ Scheme re-opens on: _________________ Name of Mutual Fund Union Mutual Fund Name of Asset Management Union Asset Management Company Private Limited Company CIN of Asset Management U65923MH2009PTC198201 Company Name of Trustee Company Union Trustee Company Private Limited CIN of Trustee Company U65923MH2009PTC198198 Name of Sponsors Union Bank of India Dai-ichi Life Holdings, Inc. Addresses, Website of the Registered Office: Unit 503, 5th Floor, Leela Business Park, Andheri Entities Kurla Road, Andheri (East), Mumbai - 400 059 Website: www.unionmf.com Contact Details Toll Free No. 18002002268/ 18005722268; Non Toll Free. 022- 67483333; Fax No: 022-67483402; Email: investorcare@unionmf.com 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 1amended 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 Union Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on www.unionmf.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 Section II) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated August 26, 2025. Note: This Scheme Information Document has two sections- Section I and Section II. While Section I contains scheme specific information that is dynamic, Section II contains elaborated provisions (including references to applicable Regulations/circulars/guidelines) with reference to information/disclosures provided in Section I 2TABLE OF CONTENTS Section I ............................................................................................................................................................... 1 Part I: HIGHLIGHTS/SUMMARY OF THE SCHEME .......................................................................................... 4 Due Diligence By The Asset Management Company ..................................................................................... 14 Part II. INFORMATION ABOUT THE SCHEME ................................................................................................ 15 A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................................... 15 B. Where Will The Scheme Invest? ................................................................................................................ 17 C. What Are The Investment Strategies? ....................................................................................................... 18 D. How Will The Scheme Benchmark Its Performance? ................................................................................ 20 E. Who Manages The Scheme? ..................................................................................................................... 20 F. How Is The Scheme Different From Existing Schemes Of The Mutual Fund: ........................................... 22 G. How Has The Scheme Performed ............................................................................................................. 22 H. Additional Scheme Disclosures .................................................................................................................. 22 Part III – OTHER DETAILS ............................................................................................................................... 23 A. Computation Of Nav ................................................................................................................................... 23 B. New Fund Offer (Nfo) Expenses ................................................................................................................ 24 C. Annual Scheme Recurring Expenses ........................................................................................................ 24 D. Load Structure ............................................................................................................................................ 27 E. Requirement Of Minimum Investors In The Scheme ................................................................................. 28 Section II ............................................................................................................................................................ 29 I. Introduction .................................................................................................................................................... 29 A. Definitions & Abbreviations ......................................................................................................................... 29 B. Risk Factors ................................................................................................................................................ 29 C. Risk mitigation strategies ........................................................................................................................ 35 II. Information about the scheme: ................................................................................................................... 36 A. Where will the scheme invest ..................................................................................................................... 36 B. What are the investment restrictions? ........................................................................................................ 40 C. Fundamental Attributes: ............................................................................................................................. 46 D. Other Scheme Specific Disclosures: .......................................................................................................... 47 III. Other Details ................................................................................................................................................ 62 A. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report ........................... 62 B. Transparency/NAV Disclosure (Details with reference to information given in Section I). ......................... 64 C. Transaction charges and stamp duty ......................................................................................................... 64 D. Associate Transactions : ............................................................................................................................ 64 E. Taxation : .................................................................................................................................................... 64 F. Rights of Unitholders .................................................................................................................................. 65 G. List of official points of acceptance: ........................................................................................................... 65 H. 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 ......................... 65 3Part I: HIGHLIGHTS/SUMMARY OF THE SCHEME Sr Title Description No. I. Name of the Scheme Union Consumption Fund (“the Scheme”) II. Category of the Equity Scheme – Thematic Fund Scheme III Scheme type An open-ended equity scheme following consumption theme. IV Scheme Code To be updated V Investment objective The investment objective of the scheme is to generate long-term capital appreciation by investing in companies those are engaged in consumption and consumption related sector or allied sectors. These companies are expected to directly or indirectly benefit from changing consumer aspirations, changing lifestyle and overall growth in consumption led demand. However, there is no assurance that the investment objective of the Scheme will be achieved. VI Liquidity / Listing Liquidity: Details The Scheme offers Units for Subscription/Switch in and Redemption/Switch out at NAV based prices on all Business Days on an on-going basis, commencing not later than five business days from the date of allotment. In other words, the Scheme shall be available for on- going repurchase / sale within five business days of allotment. Under normal circumstances, the AMC shall transfer the redemption/repurchase proceeds to the unitholders within three working days from the date of redemption or repurchase. However, under exceptional circumstances where the schemes would be unable to transfer the redemption / repurchase proceeds to investors within the time as stipulated above, the redemption/ repurchase 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 the Statement of Additional Information (SAI). Listing: As the units of the Scheme will be offered for subscription and redemption at NAV based prices on all Business Days on an on-going 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 • As per AMFI Tier I benchmark Return Index) Nifty India Consumption @@@(TRI) Justification for use of benchmark: The NIFTY India Consumption Index is designed to representing the domestic consumption sector. The NIFTY India Consumption Index 4comprises of 30 companies listed on the National Stock Exchange (NSE). The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme. The Trustee reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines in this regard including the guidelines issued by SEBI and AMFI for bringing uniformity in Benchmarks of Mutual Fund Schemes, and including the requirement to issue an addendum with regard to such change. @@@Nifty Benchmark Disclaimer: The Product(s) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited ("IISL")). NSE INDICES LIMITED does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty India Consumption Index to track general stock market performance in India. The relationship of NSE INDICES LIMITED to the Issuer is only in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE INDICES LIMITED without regard to the Issuer or the Product(s). NSE INDICES LIMITED does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty India Consumption Index. NSE INDICES LIMITED is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE INDICES LIMITED has no obligation or liability in connection with the administration, marketing or trading of the Product(s). NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Nifty India Consumption Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty India Consumption Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims ,damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. VIII NAV Disclosure The AMC will calculate and disclose the first NAV(s) of the Scheme not later than 5 (five) Business days from the date of allotment. Thereafter, the NAVs will be calculated and disclosed for every Business Day. Daily (Business Days) NAV disclosure timings on AMFI website 5(www.amfiindia.com) and on the website of the Mutual Fund (www.unionmf.com) : 11.00 p.m. For further details refer Section II. IX Applicable Timelines Timeline for • Dispatch of redemption proceeds: Under normal circumstances, the AMC shall transfer the redemption/repurchase proceeds to the unitholders within three working days from the date of redemption or repurchase. • Dispatch of IDCW: The IDCW warrants shall be dispatched to the unitholders within seven working days from the record date. For further details refer Section II. X Plans and Options Plans – • Direct Plan and • Regular Plan Options under each Plan(s) • Growth • Income Distribution cum Capital Withdrawal (IDCW) (including following facilities) o Reinvestment of Income Distribution cum Capital Withdrawal Option o Payout of Income Distribution cum Capital Withdrawal Option o Transfer of Income Distribution cum Capital Withdrawal Plan Default option/ facility (as applicable) Option/Facility Default - Option/Facility Default Option Growth Default Facility Reinvestment of Income Distribution cum Capital Withdrawal Option For detailed disclosure on default plans and options, kindly refer SAI. XI Load Structure Exit Load • 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. • Nil if redeemed or switched out after completion of 1 year from the date of allotment of units. XII Minimum application o During NFO: Minimum of Rs.1,000/- and in multiples of Re. 1/- amount/Switch in thereafter. o On continuous basis: Fresh Purchase: Rs. 1,000/- and in multiples of Rs. 1 thereafter For Systematic Investment Plan (SIP): • Rs. 100 and in multiples of Rs. 1 thereafter (for daily frequency) • Rs. 500 and in multiples of Rs. 1 thereafter (for weekly frequency) • Rs. 500 and in multiples of Rs. 1 thereafter (for fortnightly frequency) • Rs. 500 and in multiples of Rs. 1 thereafter (for monthly frequency) 6If frequency is not mentioned, then Monthly frequency will be considered as the default SIP frequency. The minimum application amount mentioned above shall not be applicable to the mandatory investments made by the employees of Union AMC in the Scheme pursuant to Clause 6.10 of the SEBI Master Circular for Mutual Funds dated June 27, 2024. XIII Minimum Additional Rs. 1,000 and in multiples of Rs. 1 thereafter Purchase Amount) XIV Minimum Minimum of Rs. 1000 or the balance in the account of the unitholder, redemption/Switch whichever is lower. Out amount In case the value / number of available units held in the Unit holder’s folio / account under the Plan / Option of the Scheme is less than the amount specified in the redemption / switch out request, then the transaction shall be treated as an ‘all units’ redemption and the entire balance of available Units in the folio / account of the Unit holder under the stated Plan / Option of the Scheme shall be redeemed. XV New Fund Offer NFO opens on: ________ Period NFO closes on: ________ This is the period during which a new Minimum duration to be 3 working days and will not be kept open for scheme sells its units more than 15 days to the investors. Any changes in dates will be published through notice on AMC website i.e. www.unionmf.com XVI New Fund Offer Price: Rs. 10 /- per Unit This is the price per unit that the investors have to pay to invest during the NFO. XVII Segregated In case of a credit event at issuer level and to deal with liquidity risk, the portfolio/side AMC may create a segregated portfolio of debt and money market pocketing disclosure instruments under the Scheme in compliance with Clause 4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as amended from time to time. For Details, kindly refer SAI. XVIII Swing pricing Not applicable disclosure XIX Stock lending/short The Scheme does not intent to engage in short selling of securities. selling However, the Scheme may participate in the securities/ stock lending program, in accordance with the terms of securities lending scheme announced by SEBI. The activity shall be carried out through approved intermediaries. Investment in Securities Lending shall be upto 20% of the net assets of the Scheme. The maximum exposure of the Scheme to a single approved intermediary (Broker) in the securities lending programme at any point of time would be 5% of the market value of the security class of the Scheme or such limit as may be specified by SEBI. XX How to Apply and Investors may obtain Key Information Memorandum (KIM) along with the other details application forms from AMC offices or Customer Service Centres of the Registrar or may be downloaded from www.unionmf.com. Investors can submit the application forms for purchase or redemption or switch at any of the Official Points of Acceptance, details of which are mentioned on the back cover page of this document. 7Investors intending to apply through ASBA will be required to submit ASBA form to their respective banks, which in turn will block the amount in their account as per authority contained in the ASBA form. ASBA form should not be submitted at location other than SCSB as it will not be processed. For further details refer Section II. XXI Investor Services • Contact Details for general service requests. Following are the Contact details for general service requests.: For any enquires/ service requests / etc. the investors may contact: Computer Age Management Services Ltd. (RTA) Rayala Tower 2, 5th Floor, 158 Anna Salai, Chennai, - 600002. e-mail: enq_uk@camsonline.com • Contact Details for complaint resolution: Following are the Contact details for complaints. I. Union Asset Management Company Pvt. Ltd Ms. Leena Johnson Investor Relations Officer, Unit 503, 5 Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400059 Phone:022- 67483333, Fax No: 022 – 67483402 Toll free no.: 18002002268 / 18005722268 e-mail: investorcare@unionmf.com For any grievances with respect to transactions through Stock Exchange Platform for Mutual Funds, the investors should approach either the stock broker 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. XXII Specific attribute of The Scheme has no such specific attributes. the scheme (such as lock in, duration in case of target maturity scheme/close ended schemes) (as applicable) XXIII Special product/facility Brief information about the Special Products / Facilities available under available during the the Scheme are given below. Investors are requested to refer the SAI for NFO and on ongoing complete details including terms and conditions of each special product/ basis facility: iv. Systematic Investment Plan : This facility is useful for investors who wish to invest fixed specified amounts at regular intervals by submitting a one-time SIP application 8form along with the relevant documents. SIP facility is available for both the Options viz. Growth and Income Distribution cum Capital Withdrawal under each of the Plans under the Scheme. Minimum Cycle Default Instalment Minimum Frequency Day/ Day/ Date Amount (in Instalments Date* Rs.) Daily Rs. 100 & (Only Not in multiples Daily 6 Business applicable of Rs. 1/- Day) thereafter Rs. 500 & in multiples Weekly Any date Wednesday 6 of Rs. 1/- thereafter Rs. 500 & 1st and 15th in multiples Fortnightly Any date of the 6 of Rs. 1/- month thereafter Rs. 500 & 8th of the in multiples Monthly Any date 6 month of Rs. 1/- thereafter *In case any of these days fall on a non-business day, the transaction will be effected on the next business day of the Scheme. For further details please refer SAI. SIP Top-up Facility: SIP Top-up Facility provides flexibility to Investors to increase the amount of the SIP instalment by a fixed amount at pre-defined intervals during the tenure of the SIP. Default Top-up amount: If the investor does not specify the Top-up amount, the default amount for Top-up will be considered as Rs. 100/-, and the application form shall be processed accordingly. The following frequency options are available for Top-up: SIP Frequency Top-up Frequency Daily • Half Yearly • Yearly Weekly • Half Yearly • Yearly Fortnightly • Half Yearly • Yearly Monthly • Yearly If the investor does not specify the Top-up frequency under Daily SIP, Weekly, Fortnightly or Monthly SIP, the default frequency for Top-up will 9be Yearly. SIP Pause Facility: Under the SIP Pause Facility, the investor has an option to stop the SIP temporarily (at a folio level) for a specified period of time. On the expiry of the specified period, the SIP would re-start automatically. ii. Systematic Transfer Plan^: This facility enables unitholders to transfer a fixed specified amount from one open-ended scheme of the Fund (source scheme) to another open-ended scheme of the Fund (target scheme), in existence at the time of availing the facility of STP, at applicable NAV, subject to the minimum investment criteria of the target scheme. The STP frequencies available under the Scheme are as follows: Minimum Minimum Freque Cycle Day/ Default Instalment Instalmen ncy Date* Day/ Date Amount (in ts Rs.) Daily (Only Rs. 100 & in Not Daily Business multiples of Rs. 6 applicable Day) 1/- thereafter Rs. 100 & in Monday to Weekly Wednesday multiples of Rs. 6 Friday 1/- thereafter Every Every Rs. 100 & in Fortnigh Alternate Alternate multiples of Rs. 6 tly Wednesda Wednesday 1/- thereafter y Rs. 100 & in Any date of 8th of the Monthly multiples of Rs. 6 the month month 1/- thereafter Rs. 100 & in Quarterl Any date of 8th of the multiples of Rs. 6 y the month month 1/- thereafter Rs. 100 & in Half Any date of 8th of the multiples of Rs. 6 Yearly the month month 1/- thereafter *In case any of these days fall on a non-business day, the transaction will be effected on the next business day of the Scheme. For further details please refer SAI. Systematic Transfer Plan (STP) Intello - An Intelligent STP Booster Plan (hereinafter referred to as STP Intello Facility): STP Intello Facility is a facility wherein unit holder(s) can opt to transfer variable amount(s) from designated open-ended Scheme(s) of Union Mutual Fund [hereinafter referred to as “Source Scheme”] to the designated open-ended Scheme(s) of Union Mutual Fund [hereinafter referred to as “Target Scheme”] at defined intervals. The Unitholder would be required to provide a Base Instalment Amount that is intended 10to be transferred to the Target Scheme. The actual amount of transfer to the Target Scheme will be determined on the basis of the Unhedged Equity Portfolio of Union Balanced Advantage Fund, an Open-ended Dynamic Asset Allocation Fund (hereinafter referred to as “UEUBAF”). Based on the UEUBAF and the corresponding multiplier factor, the actual amount of STP will be derived for the Source Scheme and such amount will be transferred to the Target Scheme. This STP amount will change on a monthly basis depending on the UEUBAF. The Scheme(s) eligible for this facility are as follows: Source Schemes: Union Liquid Fund, Union Dynamic Bond Fund, Union Corporate Bond Fund, Union Overnight Fund, Union Money Market Fund, Union Arbitrage Fund, Union Equity Savings Fund, Union Gilt Fund Union Short Duration Fund and Union Low Duration Fund Target Schemes: Union Flexi Cap Fund, Union ELSS Tax Saver Fund (Formerly Union Tax Saver (ELSS) Fund), Union Small Cap Fund, Union Largecap Fund, Union Value Fund (Formerly Union Value Discovery Fund), Union Focused Fund, Union Large & Midcap Fund, Union Midcap Fund, Union Balanced Advantage Fund, Union Aggressive Hybrid Fund (Formerly Union Hybrid Equity Fund), Union Retirement Fund, Union Multicap Fund, Union Innovation & Opportunities Fund, Union Children’s Fund , Union Business Cycle Fund, Union Active Momentum Fund, Union Gold ETF Fund of Fund, Union Multi Asset Allocation Fund Union Income Plus Arbitrage Active FOF and Union Consumption Fund. ^Facility will not be available under demat mode of holding units. iii. Systematic Withdrawal Plan^ This facility enables unitholders to withdraw a fixed sum (subject to tax deduction at source, if applicable) by redemption of units in the unitholder’s account at regular intervals through a one-time request. The SWP frequencies available under the Scheme are as follows: Minimum Frequenc Cycle Day/ Default Day/ Instalment Minimum y Date* Date Amount (in Instalments Rs.) Daily (only Rs. 500 & in Daily Business Not applicable m ultiples of Rs. 6 Day) 1/- thereafter Rs. 500 & in Any date of 8th of the Monthly multiples of Rs. 6 the month month 1/- thereafter Rs. 500 & in Any date of 8th of the Quarterly multiples of Rs. 6 the month month 1/- thereafter Rs. 500 & in Half Any date of 8th of the multiples of Rs. 6 Yearly the month month 1/- thereafter 11Rs. 500 & in Any date of 8th of the Yearly multiples of Rs. 6 the month month 1/- thereafter *In case any of these days fall on a non-business day, the transaction will be effected on the next business day of the Scheme. For further details please refer SAI. ^Facility will not be available under demat mode of holding units. v. Facility to purchase/ redeem units of the Scheme through Stock Exchange Mechanism: 1. Transactions through Stock Brokers/ Clearing Members/ Depository Participants: The facility enables an applicant to purchase/ redeem units through the Stock Exchange Infrastructure. 2. Transactions through Mutual Fund Distributors: This facility enables 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. vi. Transactions through Electronic Mode : 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 transactions in Units by electronic mode (web/ electronic transactions) including transactions through the various web sites with which the AMC would have an arrangement from time to time. Subject to the investor fulfilling certain terms and conditions as stipulated by AMC from time to time, the AMC, Mutual Fund, Registrar or any other agent or representative of the AMC, Mutual Fund, the Registrar may accept transactions through any electronic mode including web transactions and as permitted by SEBI or other regulatory authorities from time to time. vii. Registration of Multiple Bank Accounts in respect of an Investor Folio^: Individuals and HUF investors can register up to 5 bank accounts and non individuals can register upto 10 bank accounts with the Fund. Facility will not be available under demat mode of holding units. viii. Trigger Facility: Under this facility, on the happening of an event (Trigger”), the units of the investor will be automatically redeemed, on behalf of the investor. ix. Facility to transact through email: Under this facility, Investors can submit transactions through their registered/authorised email ID to a designated email ID of the Fund which is transact.mail@unionmf.com (“Designated Email ID”). x. Facility to transact in the Schemes of Union Mutual Fund through MF Utility infrastructure: Union Asset Management Company Private Limited (“the AMC”) has entered into an Agreement with MF Utilities India Private Limited (“MFUI”), for usage of MF Utility (“MFU”) - a “Shared Services” initiative, which acts as a transaction aggregation portal for transacting in multiple 12Schemes of various Mutual Funds with a single form and a single payment instrument. This facility is provided to enable investors, directly or through Mutual Fund distributors and financial advisors to transact in units of schemes offered by participating Asset Management Companies across sales channels. xi. 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) inter-operable 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. xii. Multi Scheme Investment Facility: Under the said facility, the investor shall be eligible to make investments [lumpsum investments and investments through Systematic Investment Plan (SIP)] in multiple Schemes through a single application form and single payment instrument. The Special Product / Facility available during NFO of the Scheme is as follows: Facility to invest in Designated Scheme of Union Mutual Fund and switch-out to transfer the said investment to Union Overnight Fund, on the last day of the New Fund Offer period: The unitholders will have an option to invest in Designated Scheme of Union Mutual Fund, and switch-out to transfer the said investment to Union Consumption Fund on the last day of the New Fund Offer period. This facility is currently provided under Union Overnight Fund (‘Source Schemes’), whereby the investor will initially invest in the Source Scheme, and switch-out to transfer the investment so made in the Source Scheme to Union Consumption Fund will be made on the last day of the NFO period. This facility shall be available to the investors investing in the source scheme digitally. To avail this facility, the investor will have to comply with the terms and conditions as mentioned in the Application Form available on the AMC’s website (viz. www.unionmf.com) for this facility. Further, all the terms and conditions applicable to switches shall be applicable to switch-outs executed under the aforesaid facility, subject to the terms and conditions provided in the Application Form as referred above. For complete details in this regard, please refer the Application Form available on the AMC’s website. For further details please refer SAI. XXV Weblink Please find below the weblink wherein TER for last 6 months, Daily TER is available: https://www.unionmf.com/about-us/downloads#ter Please find below the weblink for scheme factsheet: https://unionmf.com/about-us/downloads#!#factsheets 13DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY 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 in this behalf, have been duly complied with. (iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme. (iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date. (v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct. (vi) A confirmation that 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 there under shall be applicable. (viii) The Trustees have ensured that the Scheme, Union Consumption Fund approved by them is a new product offered by Union Mutual Fund and is not a minor modification of any existing scheme/fund/product. S/d- Date: August 26, 2025 Name: Ms. Richa Parasrampuria Place: Mumbai Designation: Chief Compliance Officer 14Part II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? This includes asset allocation table giving the broad classification of assets and indicative exposure level in percentage terms. Under normal circumstances, the asset allocation pattern will be as follows: Indicative Allocation (% of Instruments total assets) Minimum Maximum Equity and equity-related instruments of companies engaged in Consumption and consumption related sector and allied 80% 100% sectors^ Equity and Equity related instruments of companies other than those engaged in consumption and consumption related 0% 20% sector or allied sectors^ Debt and Money Market Instruments including units of debt 0% 20% oriented mutual fund schemes Units issued by REITs and InvITs 0% 10% ^Investments in Derivatives – including derivative instruments to the extent of 50% of the equity component of the Scheme. The Scheme may use derivatives for such purposes as may be permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. In accordance with Clause 12.24 of SEBI Master Circular dated June 27, 2024, the cumulative gross exposure through equity, debt, derivative positions and units issued by REITs & InvITs will not exceed 100% of the net assets of the scheme. However, cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure. SEBI, vide letter dated November 3, 2021, has clarified that Cash Equivalent shall consist of the following securities having residual maturity of less than 91 days: • Government Securities, • T-Bills and • Repo on Government Securities. Further, a part of the total assets may be invested in the Tri-Party Repos (TREPS) on Government Securities or Treasury Bills to meet the liquidity requirements subject to regulatory approval, if any. Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sl Type of Instrument Percentage of Circular references no exposure . 1 Securitised Debt including Pass 0% - Through Certificates (PTC) 2 Equity Derivatives for non – hedging 50% Clause 12.25 of SEBI purposes Master Circular for Mutual Funds 3 Foreign/ Overseas Securities 0% - 154 Securities lending Maximum 20% Paragraph 12.11 of SEBI (where not more Master Circular dated June than 5% of the net 27, 2024 assets of the scheme will be deployed in securities lending to any single counterparty), (only if permitted under and in line with the prevailing regulations and ELSS Rules). 5 Short selling 0% - 6 Units issued by REITs and InVITs 10% Clause 13 of the Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996 7 Debt and Liquid schemes managed by 5% (Exposure in Clause 4 of Seventh the AMC or in the schemes of any this shall be Schedule of SEBI other mutual funds considered under (Mutual Funds) 20% for Debt and Regulations, 1996. Money Market Instruments mentioned in the asset allocation table) 8 AT1 and AT2 Bonds (Debt instruments 10% Clause 12.2 of the SEBI with special features) Master Circular for Mutual Funds dated June 27, 2024. 9 Debt securities having structured 0% Paragraph 12.3 of the SEBI obligations i.e. SO/ CE Rating Master Circular dated June 27, 2024 for Mutual Funds. 11 Credit Default Swaps (CDS) 0% - 12 Tri-Party Repos^^ 20% - 13 Repo/ reverse repo transactions in 0% Clause 12.18 of SEBI corporate debt securities Master Circular for Mutual Funds dated June 27, 2024 Pending deployment of funds of the Scheme, in terms of the investment objective of the scheme, and for margin purposes, the AMC may invest them in short term deposits of scheduled commercial banks in terms of clause 12.16 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as may be amended from time to time. The AMC shall not charge any investment management and advisory fees for parking of funds in such short term deposits of scheduled commercial banks for the scheme. ^^ The exposure to TREPS may exceed the limit specified above at the time of building up the portfolio of the Scheme post New Fund Offer and also pending deployment of new inflows received in the Scheme on an ongoing basis. Further, a part of the total assets may be invested in the Tri-Party Repos on Government Securities or Treasury Bills (TREPS) to meet the liquidity requirements subject to regulatory approval, if any. At all times the portfolio will adhere to the overall investment objectives of the Scheme. 16Deployment of Funds collected in New Fund Offer (NFO) Period: In accordance with Regulation 35(5) of SEBI MF Regulations read with SEBI Circular dated February 27, 2025, the AMC shall deploy the funds collected during NFO period within 30 business days from the date of allotment of units. In exceptional cases, if the AMC is not able to deploy within 30 business days, then the reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment Committee of the AMC. The Investment Committee upon examination of root cause for delay in deployment, may extend the timeline, either partially or fully by 30 business days and shall also recommend on how to ensure the deployment and shall monitor the same. However, an extension shall not be ordinarily granted if the scheme’s assets are liquid and readily available. Further, in case, funds are not deployed as per asset allocation mentioned above and as per mandated plus extended timeline, the AMC shall comply with the prescribed restrictions, the reporting and disclosure requirements as specified in SEBI Circular dated February 27, 2025. Change in Investment pattern: The Scheme may review the above pattern of investments based on views on markets, interest rates and asset liability management needs. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. 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, legislative amendments and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary depending upon the perception of the fund 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 in accordance with Clause 1.14 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as amended from time to time, for short term and for defensive considerations only. In case of deviation from the asset allocation pattern, under normal circumstances, the portfolio would be rebalanced within 30 calendar days from the date of deviation. Rebalancing period in case of passive breaches As per clause 2.9 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as may be amended from time to time, in the event of deviation from mandated asset allocation due to passive breaches (occurrence of instances not arising out of omission and commission of the AMC), the Fund Manager shall rebalance the portfolio of the Scheme within 30 Business Days. In case the portfolio of the Scheme is not rebalanced within the period of 30 Business Days, justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before the Investment Committee of the AMC. The Investment Committee, if it so desires, can extend the timeline for rebalancing up to sixty (60) Business Days from the date of completion of mandated rebalancing period. The AMC shall comply with the requirements prescribed under clause 2.9 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as may be amended from time to time. B. WHERE WILL THE SCHEME INVEST? The Scheme may invest its funds in the following securities: I. Equity & Equity Related Instruments include, but are not limited to: i. Equity Warrants and Convertible Instruments ii. Fully Convertible debentures, Debentures, Partly Convertible Debentures, unlisted securities, initial public offerings, private placements etc. iii. Equity Derivatives II. Debt & Money Market Instruments. III. Units of Debt Oriented Mutual Fund Schemes IV. Short Term Deposits. V. Derivative instruments like Stock/ Index Futures, Stock/Index Options etc traded on derivatives markets in India and any other derivative instruments permitted by SEBI. The Scheme may take 17derivatives 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. For detailed derivative strategies, please refer SAI. VI. Units of REITs & InvITs The Fund Manager reserves the right to invest in such securities as maybe permitted from time to time and which are in line with the investment objectives of the Scheme. Detailed definitions and applicable regulations/ guidelines for each instrument are included in Section II. C. WHAT ARE THE INVESTMENT STRATEGIES? The scheme is an actively managed scheme and seeks to generate long term capital appreciation by investing predominantly in equity & equity related instruments of companies engaged in consumption and consumption related sector or allied sectors. This scheme offers flexibility in terms of market capitalization and may take focus approach on stocks to tap into a wide range of investment opportunities within the consumer theme, which is influenced by long-term structural shifts in consumption pattern and consumer behaviour. In addition to focusing on the traditional consumer sector, the fund seeks to invest across various industries that benefit from rising consumption trends, increase in digital adoption thereby aiding consumption, increase in discretionary spends, changing demographics & lifestyles, increasing preference for premium/luxury products & services, urbanization, etc. The consumption patterns are fast evolving and present broad-based opportunities. The fund manager will not be restricted by market cap or investment style when identifying stock ideas. Additionally, a portion of the fund may be invested in equity and equity-related securities of companies that are enablers to the consumption sectors and themes. The indicative list of sectors that the scheme would invest in include (but not limited to): • FMCG • Consumer non-durables • Automobile and Auto Components • Telecommunication • Consumer Services • Media & Entertainment • Consumer Durables • Consumer focused E-Commerce & Fintech • Lending & non-lending Financials • Textiles • Pharmaceutical & Healthcare • Power • Realty/Hotels • Hospitality • Transport • Airlines • Trading • Housing • E-commerce Please note that the above list is indicative, and the Fund Manager may add such other sector/industries which satisfy the consumption theme. The fund Manager may also add other sectors as may be added in Nifty India Consumption TRI from time to time. 18For determining list of the companies eligible under consumption theme the AMC will consider the basic Industry list published by NSE Indices for NIFTY India Consumption TRI. Please refer link https://www.niftyindices.com/Methodology/Method_NIFTY_Equity_Indices.pdf for current index methodology document published by NSE Indices. The investment strategy of the Scheme will be reviewed from time to time and might change considering the best interest of the unitholders and if the market conditions warrant it. Derivatives Strategy: Trading in Derivatives The scheme intends to use derivatives for the purpose of hedging and portfolio balancing only or such other purpose as may be permitted under the Regulations from time to time. The same shall be within the permissible limit prescribed by SEBI (Mutual Funds) Regulations from time to time. Derivative transactions that can be undertaken by the Scheme include a wide range of instruments, including, but not limited to - Futures - Options - Swaps - Any other instrument, as may be permitted under the regulations. Derivatives can be either exchange traded or can be Over The Counter (OTC). Exchange traded derivatives are listed and traded on Stock Exchanges whereas OTC derivative transactions are generally structured between two counterparties. The derivative strategies that the Scheme may use include strategies that employ index futures, strategies that employ index options, strategies that employ stock futures, strategies that employ stock options, and various other derivative strategies. Further, the Scheme may also use Debt derivative strategies which includes Overnight Indexed Swaps, Forward Rate Agreement, Interest Rate Futures, and other Debt derivative strategies. For detailed derivative strategies, please refer to SAI. Portfolio Turnover: The scheme is an open-ended scheme, it is expected that there would be a number of subscriptions and redemptions on a daily basis. Further the trading opportunities could be exploited by the fund manager to optimise returns for the scheme, which could result in increase in portfolio turnover. The Fund manager would also be required to rebalance the portfolio in line with the asset allocation and the investment objectives. The portfolio will be managed taking into account the associated risks perceived/expected so as to minimise risks by using appropriate risk management techniques. All of these could result in increase in portfolio turnover. There may be an increase in transaction cost such as brokerage paid, if trading is done frequently. However, the cost would be negligible as compared to the total expenses of the Scheme. Frequent trading may increase the profits which could offset the increase in costs. The Fund Manager will endeavour to optimise portfolio turnover to maximise gains and minimise risks keeping in mind the costs associated with it. However, it is difficult to estimate with reasonable measure of accuracy, the likely turnover in the portfolio of the scheme. The scheme has no specific target relating to portfolio turnover. RISK CONTROL: The asset allocation of the Scheme will be steadily monitored and it shall be ensured that investments are made in accordance with the scheme objective and within the regulatory and internal investment restrictions prescribed from time to time. A detailed monitoring process has been designed to identify, measure, monitor and manage portfolio risk. The aim is to have a structured mechanism towards risk management thereby maximising potential opportunities 19and minimising the adverse effects of risk. Effective risk management is crucial for achieving optimum results. Adequate safeguards would be incorporated in the portfolio management process. The main instrument for reducing risk is through diversification across sectors/companies/ securities. The Fund Manager’s job is to identify securities which offer higher returns with a lower level of risk. While identifying such securities, rigorous credit evaluation would be carried out by the investment team. The front office system of the AMC has the capability of pre- investment monitoring of investment restrictions as per SEBI guidelines and various internal limits prescribed from time to time to facilitate pre-emptive monitoring. The AMC will be guided by the ratings of Credit Rating Agencies authorised to carry on such activity. Further, various risk management tools will be used for measuring and monitoring portfolio risks. The Risks and the corresponding risk mitigation strategies are provided under Section II. D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The performance of the Scheme will be benchmarked with Nifty India Consumption @@@(TRI). Justification for use if benchmark The NIFTY India Consumption Index is designed to representing the domestic consumption sector. The NIFTY India Consumption Index comprises of 30 companies listed on the National Stock Exchange (NSE). The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme. The Trustee reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines in this regard including the guidelines issued by SEBI and AMFI for bringing uniformity in Benchmarks of Mutual Fund Schemes, and including the requirement to issue an addendum with regard to such change. @@@Nifty Benchmark Disclaimer: The Product(s) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited ("IISL")). NSE INDICES LIMITED does not make any representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty India Consumption Index to track general stock market performance in India. The relationship of NSE INDICES LIMITED to the Issuer is only in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE INDICES LIMITED without regard to the Issuer or the Product(s). NSE INDICES LIMITED does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty India Consumption Index. NSE INDICES LIMITED is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE INDICES LIMITED has no obligation or liability in connection with the administration, marketing or trading of the Product(s). NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Nifty India Consumption Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty India Consumption Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims ,damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. 20E. WHO MANAGES THE SCHEME? Name of the Fund Age Educational Experience Name of other Manager Qualification Scheme(s) managed by the Fund Manager Mr. Vinod Malviya 37 Bachelors of Over 16 years of Co-fund Manager of Union Years Management experience in the financial Flexicap Fund, Union Fund Manager Studies, Masters markets. Focused Fund, Union in Financial Large & MidCap Fund, Management, Designated as Fund Union ELSS Tax Saver (Tenure for which CFA(USA) – Manager - Equity with Fund (formerly Union Tax the Fund Manager L evel III cleared effect from December 09, Saver (ELSS) Fund), has been managing 2024. Union Value Fund, Union the Scheme: Not Aggressive Hybrid Fund, applicable as it is a Appointed as Co-Fund Union Multi Asset New Scheme) Manager with effect from Allocation Fund, Union January 25, 2023. Gold ETF, Union Gold ETF Fund of Fund and February 2020 – January Union Children’s Fund 24, 2023 with Union Asset Management Company Pvt. Ltd. as Research Analyst - Equity. July 2014 to January 2020 with Florintree Advisors Private Limited as Principal. August 2012 to June 2014 with East India Securities Limited as Research Analyst. September 2008 to July 2012 with Amit Nalin Securities Private Limited as Research Analyst. Mr. Sanjay 41 CFA® charter Over 17 years of Co-fund Manager of Union Bembalkar years holder with the experience in the field of Flexicap Fund, Union CFA Institute, Equity Research and Fund MultiCap Fund, Union Head - Equity USA, Chartered Management. Innovation & Opportunities Accountant, Fund, Union ELSS Tax [Tenure for which M.Sc. Appointed as Fund Saver Fund (formerly the Fund Manager (Accounting and Manager (Equity) at Union Union Tax Saver (ELSS) has been managing F inance), B.Com. Asset Management Fund), Union LargeCap the Scheme: Not Company Private Limited Fund, Union Active applicable as it is a with effect from June 07, Momentum Fund, Union New Scheme] 2021 Aggressive Hybrid Fund, Union Multi Asset October 2019 to May 2021 Allocation Fund, Union with Canara Robeco Asset Balanced Advantage Fund Management Company and Union Equity Savings Limited as Fund Manager - Fund Equities. 21December 2017 to October 2019 with Canara Robeco Asset Management Company Limited as Research Analyst – Equity. August 2015 to December 2017 with LIC Mutual Fund Asset Management Ltd. as Research Analyst – Equity. April 2010 to August 2015 with Quantum Advisors Pvt. Ltd. as Assistant Vice President (Equity R esearch). F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND: Following are the Thematic/Sectoral Schemes of Union Mutual Fund as on July 31, 2025: 1. Union Business Cycle Fund 2. Union Innovation & Opportunities Fund 3. Union Active Momentum Fund For detailed comparative table, kindly refer https://www.unionmf.com/docs/default-source/downloads/policies- other-disclosures/sid-kim-sai-related-disclosures/comparison-with-existing-open-ended-schemes1efa1386- f6ed-4689-85b2-cfd4a169bb8a.pdf?sfvrsn=1ab52852_1 G. HOW HAS THE SCHEME PERFORMED This Scheme is a new scheme and does not have any performance track record. H. ADDITIONAL SCHEME DISCLOSURES i) Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors– Not applicable as the scheme is a new Scheme. ii. Functional website link for Portfolio Disclosure - Fortnightly / Monthly/ Half Yearly: Not applicable as the scheme is a new Scheme. iii) The Portfolio Turnover Rate : Not applicable as the scheme is a new Scheme. iv) The aggregate investment in the Scheme : Not applicable as the scheme is a new Scheme. v) Investments of AMC in the Scheme: Not applicable as the scheme is a new Scheme. Pursuant to Regulation 25(16A) of the SEBI (MF) Regulations, 1996 and para 6.9 of SEBI Master Circular on Mutual Funds dated June 27, 2024, AMC will invest minimum amount as a percentage of AUM based on the risk associated with the Scheme and such investment will not be redeemed unless the Scheme is wound up. The AMC will conduct quarterly review to ensure compliance with above requirement which may change either due to change in value of the AUM or in the risk value assigned to the scheme. The shortfall in value of the investment, if any, will be made good within 7 days of such review. In addition to investments as mandated under Regulation 25(16A) of the Regulations as mentioned above, the AMC, may invest in the scheme during the continuous offer period subject to the SEBI (MF). As per the existing 22SEBI (MF) Regulations, the AMC will not charge investment management and advisory fee on the investment made by it in the scheme. The Sponsor, Trustee and their associates may invest in the scheme on an ongoing basis subject to SEBI (MF) Regulations & circulars issued by SEBI from time to time. During the NFO, AMC’s investment shall be made during the allotment of units and shall be calculated as a percentage of the final allotment value excluding AMC’s investment as per the example mentioned below: Allotment value (prior to AMC investment) INR Crs 1,000 Riskometer / Risk value disclosed in the - Very High NFO SID Minimum % of AuM to be invested % 0.13% Amount to be invested by AMC INR Crs. 1.3 Final allotment value INR Crs. 1,001.3 Link to view the details of investment – Not applicable since this is a new scheme. Part III – OTHER DETAILS A. COMPUTATION OF NAV The Net Asset Value (NAV) per unit will be computed by dividing the net assets of the Scheme(s)/Plan(s)/Option(s) by the number of units outstanding under the Scheme(s)/Plan(s)/Option(s) on the valuation date. The Fund will value its investments according to the valuation norms, as per the AMC’s valuation policy and as specified in Eighth Schedule of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time. The Net Assets Value (NAV) per unit under the Scheme/Plan/Option shall be calculated as follows: NAV (Rs.) = Market or Fair Current Assets Current Liabilities Value of Scheme’s + including accrued - and Provisions including investments income accrued expenses ________________________________________________________________ No. of Units outstanding under Scheme/Plan/Option The numerical illustration of the above method is provided below: Market or Fair Value of Scheme’s investments (Rs.) = 11,00,00,000 Current Assets (Rs.) = 10,00,000 Current Liabilities and Provisions (Rs.) = 5,00,000 No. of Units outstanding under the Scheme = 1,00,00,000 NAV per unit (Rs.) = 11,00,00,000 + 10,00,000 - 5,00,000 = 11.05. ____________________________ 1,00,00,000 The above provisions pertaining to ‘Calculation of NAV’ shall apply in respect of each individual Scheme and/ or Plan as the case may be. The NAV shall be calculated up to two decimal places. However, the AMC reserves the right to declare the NAVs upto additional decimal places as it deems appropriate. Separate NAV will be calculated and disclosed for each Option under each Plan. The NAVs of the Growth Option and the Income Distribution cum Capital Withdrawal Option under each Plan will be different after the declaration of the first IDCW. The AMC will calculate and disclose the first NAV of the Scheme within a period of 5 business days from the date of allotment. Subsequently, the NAVs will be calculated for all the Business Days. 23The NAV of the Scheme will be calculated upto 2 decimals. The Repurchase Price however, will not be lower than 95% of the NAV subject to SEBI Regulations as amended from time to time. Methodology of calculation of repurchase price: For calculating the repurchase price, the exit load applicable at the time of investment shall be deducted from the applicable NAV of the Scheme. For example: If the applicable NAV of the Scheme is Rs. 11 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 repurchase price will be calculated as follows: Step 1: Applicable NAV * Exit Load at the time of investment in % = Exit Load Amount; i.e. Rs. 11 * 1% = Rs. 0.11; Step 2: Applicable NAV - Exit Load Amount = Repurchase price; i.e. Rs. 11- Rs. 0.11 = Rs.10.89. For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign securities (as applicable), procedure in case of delay in disclosure of NAV etc. refer to SAI. B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid, marketing and advertising, Registrar & Transfer Agents expenses, printing and stationary, bank charges etc. In accordance with regulatory guidelines, the NFO expenses shall be borne by the AMC/Trustee/Sponsors as applicable. 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 & Transfer Agent’s fee, marketing and selling costs etc. as given in the table specified below: The AMC has estimated that upto below specified percentage of daily net assets of the Scheme will be charged to the Scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the AMC. Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fee* 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 24Costs related to investor communications Costs of fund transfer from location to location Upto 2.25%** Cost towards investor education & awareness Brokerage & Transaction Cost pertaining to the distribution of units Goods and Services Tax* on expenses other than investment and advisory fees Goods and Services Tax on brokerage and transaction cost Other Expenses^ (to be specified as per Reg 52 of SEBI MF Regulations) Maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) and Upto 2.25%** (6) (C), as applicable Additional expenses under Regulation 52 (6A) (c) Upto 0.05%~ Additional expenses for gross new inflows from specified cities under regulation 52 (6A) Upto 0.30%# (b) ^ Subject to the Regulations. * Goods and Services Tax: a. The Goods and Services tax on investment and advisory fees charged to the scheme will be in addition to the maximum limit of TER. b. Goods and Services tax on other than investment and advisory fees, if any, will be borne by the scheme within the maximum limit of TER. c. Goods and Services tax on exit load, if any, will be paid out of the exit load proceeds. d. Goods and Services tax on brokerage and transaction cost paid for execution of trades, if any, will be within the maximum limit of TER. ** Subject to the slab-wise ceiling prescribed by SEBI on the basis of daily net assets indicated as follows: Percentage limit of daily net assets of the Scheme: Assets under management Slab Total Expense Ratio limit (In Rs. crore) on the first Rs.500 crores of the daily net assets 2.25% on the next Rs.250 crores of the daily net assets 2.00% on the next Rs.1,250 crores of the daily net assets 1.75% on the next Rs.3,000 crores of the daily net assets 1.60% on the next Rs.5,000 crores of the daily net assets 1.50% On the next Rs.40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for every increase of Rs.5,000 crores of daily net assets or part thereof. On balance of the assets 1.05% ~Additional expenses up to 0.05 % of daily net assets of the Scheme, incurred towards the different heads mentioned under Regulation 52(2) and 52(4) of the SEBI (Mutual Funds) Regulations, 1996 may be charged by the AMC. However, such additional expenses will not be charged to the Scheme where the exit load is not levied/ not applicable. #For inflows beyond top 30 cities: In addition to the above Annual Scheme Recurring Expenses charged to the scheme, expenses up to 30 basis points on daily net assets of the scheme may be charged to the scheme if the new inflows from beyond top 30 cities are at least: a. 30% of gross new inflows in the scheme, or; b. 15% of the average assets under management (year to date) of the scheme, whichever is higher. 25As per Clause 10.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024, additional expenses of 30 basis points, shall be charged based on inflows only from retail investors from beyond top 30 cities. In case the inflows from beyond top 30 cities are less than the higher of (a) or (b) above, such additional expenses on daily net assets of the scheme will be charged on a proportionate basis as prescribed by SEBI. The above additional expenses charged to the scheme will be utilized for distribution expenses incurred for bringing inflows from such cities. The additional Total Expense Ratio (TER) on account of inflows from beyond top 30 cities so charged shall be credited back to the scheme in case the said inflows are redeemed within a period of 1 year from the date of investment. With reference to SEBI’s letter no. SEBI/HO/ IMD/ IMD-SEC-3/ P/ OW/ 2023/ 5823/ 1 dated February 24, 2023, a copy of which was forwarded by AMFI vide email no. 35P/ MEM-COR/ 85/ 2022-23 dated March 02, 2023, the B-30 incentive structure for new inflows has been kept in abeyance with effect from March 01, 2023 till the incentive structure is appropriately re-instated by SEBI with necessary safeguards. Note: a. These estimates have been made in good faith as per the information available and estimates made by the Investment Manager/ AMC and are subject to change inter-se or in total subject to prevailing Regulations. The AMC may incur actual expenses which may be more or less than those estimated above under any head and/or in total. Type of expenses charged shall be as per the Regulations. b. The AMC may charge the Mutual Fund with investment and advisory fee as prescribed in the SEBI (MF) Regulations from time to time and as permitted by the Investment Management Agreement. c. Brokerage and transactions costs: As per Clause 17.14 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the brokerage and transaction cost incurred for the purpose of execution of trade shall be charged to the Scheme as provided under Regulation 52(6A)(a) upto 12bps and 5bps for cash market transactions and derivatives transactions respectively. Any payment towards brokerage and transaction cost, 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 Funds) Regulations, 1996. Any expenditure in excess of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the AMC or by the trustee or sponsors, subject to the SEBI (Mutual Funds) Regulations, as amended from time to time. d. The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc. and no commission or distribution expenses for distribution of Units will be paid / charged under the Direct Plan. Please refer the illustration given below in this regard: e. Particulars Other than Direct Plan Direct Plan~ Amount Invested at the beginning of the year (in Rs.) 10,000 10,000 Returns before Expenses (in Rs.) 1,500 1,500 Returns before Expenses (%) 15% 15% Expenses other than Distribution Expenses (in Rs.) 150 150 Distribution Expenses (in Rs.) 50 - Returns after Expenses at the end of the Year(in Rs.) 1,300 1350 Returns after Expenses at the end of the Year (%) 13% 13.5% 26~Investors who purchase/ subscribe Units in the Scheme through a Distributor will be allotted units under the Scheme but not under the Direct Plan. f. The total expenses of the Scheme(s) including the investment management and advisory fee shall not exceed the limit stated in Regulation 52 of the SEBI (MF) Regulations. g. Subject to the SEBI Regulations and this document, expenses over and above the prescribed ceiling will be borne by the AMC / Trustee / Sponsor(s). h. The current expense ratios will be updated on the AMC’s website viz. www.unionmf.com at least three working days prior to the effective date of the change. The exact weblink of the heads under which the Total Expense Ratio is disclosed is https://www.unionmf.com/about-us/downloads#ter. Further, the disclosure of the Total Expense Ratio (TER) on a daily basis shall also be made on the website of AMFI viz. www.amfiindia.com. The above disclosure shall be in accordance with requirements of SEBI (Mutual Funds) Regulations, 1996 and the circulars issued thereunder, as amended from time to time. i. Illustration of impact of expense ratio on the Scheme’s returns: Illustration of expenses and impact on the return Opening NAV Per Unit for the Day (a) 10.0000 Closing NAV Per Unit for the Day (b) 11.0000 NAV Movement Per Unit (c = a – b) 1.0000 Flat Return for the Day after expenses ( d = (c / a) %) 10.0000% TER % (e) 2.000% Expenses for the Day (f = (b * e)/365) 0.00060 Expenses for the Day % (g = (f / b) %) 0.0055% Flat Return prior to expenses for the Day (h = d + g) 10.0055% The above illustration is purely given to explain the impact of the expense ratio on a scheme’s return and should not be construed as an indicative return of the scheme. D. LOAD STRUCTURE Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC (www.unionmf.com) or may call at 18002002268 (toll free no.) or your distributor. Type of Load Load chargeable (as %age of NAV) Exit Load 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. • Nil if redeemed or switched out after completion of 1 year from the date of allotment of units. # Pursuant to Clause 10.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor's assessment of various factors including service rendered by the ARN Holder. * Goods and Services tax on exit load, if any, will be paid out of the exit load proceeds and Exit load net of Goods and services tax, if any, will be credited to the Scheme. 27The above mentioned load structure shall be equally applicable to the special products such as STP, SWP, switches, etc. offered by the AMC. Load, if any, shall be applicable for switches between eligible schemes of Union Mutual Fund as per the respective prevailing load structure; however, no load will be applicable for switches between the Plan with a common portfolio under the Scheme and switches between the Options under each Plan under the Scheme. Further, the AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of IDCW for existing as well as prospective investors. The Investor is requested to check the prevailing Load structure of the Scheme before investing. The AMC / Trustee reserves the right to change / modify the Load structure, subject to the limits prescribed under the Regulations, if it so deems fit in the interest of investors and for the smooth and efficient functioning of the Mutual Fund. The Repurchase Price however, will not be lower than 95% of the NAV subject to SEBI Regulations as amended from time to time. The Mutual Fund may charge the load without any discrimination to any specific group of unit holders. Any imposition or enhancement in the Load in future shall be applicable on prospective investments only. Procedure for changing the Load Structure: At the time of changing the Load Structure, the AMC shall follow the following procedure: 1. An Addendum detailing the changes will be attached to Scheme Information Document (s) and Key Information Memorandum. The addendum may be circulated to all the distributors / brokers so that the same can be attached to all Scheme Information Documents and Key Information Memorandum already in stock. 2. The addendum will be displayed on the website of the AMC immediately and arrangements will be made to display the addendum in the form of a notice in all the Investor Service Centres and distributors / brokers’ office. 3. The introduction of the Exit Load/ CDSC along with the details may be stamped in the acknowledgement slip issued to the Investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such Load/CDSC. 4. Any other measure which the Mutual Fund may consider necessary. E. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme. However, if such limit is breached during the NFO of the Scheme, the Fund will endeavour to ensure that within a period of three months or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. 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 (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of 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 on the Applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. 28Section II I. Introduction A. Definitions & Abbreviations Kindly refer definitions-interpretations.pdf (unionmf.com) for definitions/ interpretation. The given scheme specific definitions/abbreviations/terms as may be applicable to the Scheme apply throughout this Document in addition to the definitions/abbreviations/terms mentioned in the Statement of Additional Information unless the context requires otherwise: B. Risk Factors Scheme Specific Risk Factors: As a thematic fund, the scheme is exposed to risks associated with the consumer theme. This focus may lead to higher volatility compared to more broadly diversified equity funds. Thematic investing is based on the expectation that companies within a particular theme will perform well. However, this narrow focus may limit the fund’s ability to diversify into other sectors or themes. As with any equity investment, there is a possibility that companies within the theme may not meet earnings expectations or may be negatively impacted by unforeseen changes in the market or company-specific developments—both of which could affect overall returns. The scheme is subject to various risks, including but not limited to: market risk, business risk, derivatives risk, concentration risk, interest rate risk, reinvestment risk, basis and spread risk, liquidity risk, credit/default risk, counterparty risk, duration and settlement risk, performance and prepayment risk, as well as risks tied to investments in REITs, InvITs, debt instruments with special features, securities lending, and risks related to Tri-party Repo and segregated portfolios. Each type of security included in the scheme’s portfolio carries its own set of risks, which may cause the overall risk profile of the scheme to vary over time. The scheme’s performance may also be influenced by shifts in government policies, interest rates, and factors affecting trading volumes, liquidity, and settlement systems. 1. Risks Associated with investments in Equities The Scheme proposes to invest in equity and equity related instruments. Equity instruments by nature are volatile and prone to price fluctuations on a daily basis due to both micro and macro factors. The following are the main risks related to investing in equities: Market risk: Market Risk is any type of risk due to the market conditions and evolution, such as volatility in the capital markets, changes in macro-economic conditions and factors, interest rates, changes in policies of the Government, taxation laws or any other political and economic development, which all may negatively affect the prices of the securities invested in by the scheme. Business risk: Risk related to uncertainty of income caused by the nature of a company’s business and having an impact on price fluctuations. Liquidity risk related to equity instruments: 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’ quoted or published price/value. Securities that are listed on the stock exchange generally carry lower liquidity risk; the ability to sell these investments is limited by the overall trading volume on the stock exchanges. 29Performance Risk: Performance of the Scheme may be impacted with changes in factors which affect the capital market . Counterparty Risk: This is the risk of failure of counterparty to the transaction to deliver securities against consideration received or to pay consideration against securities delivered, in full or in part or as per the agreed specification. There could be losses to the 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. Selection Risk: 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. Legislative and fiscal risk: The risk that a change in the tax code or law could affect the value of taxable or tax-exempt interest income. Concentration risk: This is the risk arising from over exposure to few securities/issuers/sectors. 2. Risks associated with investing in Fixed Income Securities/Bonds: The following are the risks associated with investment in Fixed Income Securities/Bonds: Interest Rate Risk: This risk is associated with movements in interest rate, which depend on various factors such as government borrowing, inflation, economic performance etc. Fixed income securities such as government bonds, corporate bonds, and money market instruments etc. run price-risk or interest-rate risk. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices generally increase. The extent of fall or rise in the prices depends upon factors such as coupon, maturity of the security, the yield level at which the security is being traded. The longer the time to a bond’s maturity, the greater is its interest rate risk. The NAV of the Scheme is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates. 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. Basis Risk: This risk arises when the derivative instrument used to hedge the underlying asset does not match the movement of the underlying being hedged for example, when a bond is hedged using a derivative, the change in price of the bond and the change in price of the derivative may not be fully correlated leading to basis risk in the portfolio. The underlying benchmark of a floating rate security might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Example: Where swaps are used to hedge an underlying fixed income security, basis risk could arise when the fixed income yield curve moves differently from that of the swap benchmark curve or if there is a mismatch in the tenor of the swap and the fixed income security. Spread Risk: Yield Spreads between fixed income securities might change. Eg: 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. 30Liquidity 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 loss in value of the portfolio. Securities that are unlisted also 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 such as 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. Bonds are generally the most liquid during the period right after issuance when the typical bond 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 &/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 zero. Corporate bonds carry a higher credit risk than Government Securities. Within corporate bonds also 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 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 risk. Performance Risk: Performance of the Scheme may be impacted with changes in factors which affect the capital market and in particular the debt market. Selection Risk: This is the risk that a security chosen will underperform the market for reasons that cannot be anticipated. 31Timing 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. Prepayment Risk: The borrower may repay the receivables earlier than scheduled, which may result in change in the yield and tenor for the Scheme. 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. Legislative Risk: This is the risk that a change in the tax code could affect the value of taxable or tax-exempt interest income. 3 Risks associated with investing in Derivatives: Derivatives are financial contracts designed to create pure price exposure to an underlying commodity, asset, security, rate, index or event. In general, they do not involve the exchange or transfer of principal or title, so investors do not actually buy anything. Rather their purpose is to capture, in the form of value changes, some underlying price change or event. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The Scheme may use permitted derivative instruments like futures, options, interest rate swaps, forward rate agreements or other debt derivative instruments as may be permitted from time to time. 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 manage the risks. The risks associated with investments in derivatives are as follows: Market Risk: Derivatives are traded in the market and are exposed to losses due to change in the prices of the underlying and/or other assets and, change in market conditions and factors. The volatility in prices of the underlying may impact derivative instruments differently than its underlying. Basis Risk (Debt): This risk arises when the derivative instrument used to hedge the underlying asset does not match the movement of the underlying being hedged for example, when a bond is hedged using a derivative, the change in price of the bond and the change in price of the derivative may not be fully correlated leading to basis risk in the portfolio. The underlying benchmark of a floating rate security might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Example: Where swaps are used to hedge an underlying fixed income security, basis risk could arise when the fixed income yield curve moves differently from that of the swap benchmark curve or if there is a mismatch in the tenor of the swap and the fixed income security. Credit Risk: The Credit Risk is the risk that the counter party will default in its obligations and is generally small as in a derivative transaction there is generally no exchange of the principal amount. 32Liquidity Risk: This risk arises from the inability to sell derivatives at prices that reflect the underlying assets/ rates/ indices, lack of availability of derivative products across different maturities and with various risk appetite. Valuation Risk: This is the risk of mis–pricing or improper valuation of derivatives due to inadequate trading data with good volumes. Operational / Systemic Risk: This is the risk arising due to failure of operational processes followed by the exchanges and Over the Counter (OTC) participants for the derivatives trading. Counterparty Risk: Counterparty risk is the risk that losses will be incurred due to the default by the counterparty for OTC derivatives. Exposure Risk: An exposure to derivatives in excess of the hedging requirements can lead to losses. An exposure to derivatives can also limit the profits from a plain investment transaction. Interest Rate Risk: This risk arises 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. 4. Risks associated with investing in Securities Segment and 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 meet losses arising out of any default by its members from outright and repo trades and the other for meeting losses arising out of any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to the default fund of CCIL 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. 5. Risk factors associated with investments in REITs and InvITs: i) Liquidity Risk: This refers to the ease with which securities/instruments of REITs/InvITs can be sold. There is no assurance that an active secondary market will develop or be maintained. Hence, there could be times when trading in the units is infrequent. The subsequent valuation of illiquid units may reflect a discount from the market price of comparable securities/instruments for which a liquid market exists. As these products are new to the market they are likely to be exposed to liquidity risk. ii) Reinvestment Risk: Investments in securities/instruments of REITs and InvITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or dividend pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. iii) Price Risk: Securities/Instruments of REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. The extent of fall or rise in the prices depends upon factors such as general market conditions, factors and forces affecting capital market, real estate and infrastructure sectors, level of interest rates, trading volumes, settlement periods and transfer procedures. iv) Interest Rate Risk: Securities/Instruments of REITs and InvITs run interest rate risk. Generally, when interest rates rise, prices of units fall and when interest rates drop, such prices increase. 33v) Credit Risk: Credit risk means that the issuer of a REIT/InvIT security / instrument may default on interest payment or even on paying back the principal amount on maturity. Securities / Instruments of REITs and InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre-scheduled. vi) Regulatory/Legal Risk: REITs and InvITs being new asset classes, rights of unit holders such as right to information etc. may differ from existing capital market asset classes under Indian Law. 6. Risk factors associated with instruments having special features: If the Scheme invests in debt instruments having special features, the following risks associated with debt instruments having special features will be applicable. The risk factors stated below for investment in debt instruments having special features are in addition to the risk factors associated with Fixed Income Securities/Bonds stated above: i. The Scheme may invest in certain debt instruments with special features which may be subordinated to equity and thereby such instruments may absorb losses before equity capital. The instrument may also be convertible to equity upon trigger of a pre-specified event for loss absorption. Additional Tier I bonds and Tier 2 bonds issued under Basel III framework are some instruments which may have above referred special features. The debt instruments having such special features as referred above, would be treated as debt instruments until converted to equity. ii. The instruments may be subject to features that grant the issuer a discretion in terms of writing down the principal/coupon, to skip coupon payments, to make an early recall etc. Thus debt instruments with special features are subject to “Coupon Discretion”, “Loss Absorbency”, “Write down on Point of Non-Viability (PONV) trigger event” and other events as more particularly described as per the term sheet of the underlying instruments. iii. The instruments are also subject to Liquidity Risk pertaining to how saleable a security is in the market. The particular security may not have a market at the time of sale due to uncertain/insufficient liquidity in the secondary market, then the scheme may have to bear an impact depending on its exposure to that particular security. 7. Risk Factors Associated with Securities Lending Securities Lending is a lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. There are risks inherent to securities lending, including the risk of failure of the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. 8. Risks associated with transaction in Units through stock exchange(s): In respect of 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 Fund has no control. 9. Risks associated with segregated portfolio: If segregated portfolio is created pursuant to clause 4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the following risks associated with segregated portfolio will be applicable: The unit holders may note that no redemption and subscription shall be allowed in the segregated portfolio. However, in order to facilitate exit to unit 34holders in the segregated portfolio, the AMC shall enable listing of units of segregated portfolio on the recognized stock exchange. The risks associated in regard to the segregated portfolio are as follows: i. The investors holding units of the segregated portfolio may not be able to liquidate their holdings till the time of recovery of money from the issuer. ii. The security comprising the segregated portfolio may not realize any value. iii. Listing of units of the segregated portfolio on a recognized stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units of the segregated portfolio on the stock exchange. iv. The trading price of units on the stock exchange may be significantly lower than the prevailing Net Asset Value (NAV) of the segregated portfolio. C. Risk mitigation strategies The asset allocation of the Scheme will be steadily monitored and it shall be ensured that investments are made in accordance with the scheme objective and within the regulatory and internal investment restrictions prescribed from time to time. A detailed monitoring process has been designed to identify, measure, monitor and manage portfolio risk. The aim is to have a structured mechanism towards risk management thereby maximising potential opportunities and minimising the adverse effects of risk. Effective risk management is crucial for achieving optimum results. Adequate safeguards would be incorporated in the portfolio management process. The main instrument for reducing risk is through diversification across sectors/companies/ securities. The Fund Manager’s job is to identify securities which offer higher returns with a lower level of risk. While identifying such securities, rigorous credit evaluation would be carried out by the investment team. The front office system of the AMC has the capability of pre- investment monitoring of investment restrictions as per SEBI guidelines and various internal limits prescribed from time to time to facilitate pre-emptive monitoring. The AMC will be guided by the ratings of Credit Rating Agencies authorised to carry on such activity. Further, various risk management tools will be used for measuring and monitoring portfolio risks. Some of the risks and the corresponding risk mitigating strategies are listed below: • Risks associated with Equity and Equity related instruments Risk Risk mitigation strategy Market Risk This risk is considered while constructing the portfolio. Derivatives Risk Endeavour to have a well-diversified portfolio by constructing appropriate derivative strategies and continuous monitoring of the derivatives positions and strict adherence to the regulations. Concentration Risk The scheme shall endeavor to have diversification by investing across the spectrum of securities/issuers/sectors. Liquidity Risk Periodic Monitoring of portfolio liquidity and also considered while constructing the portfolio Performance Risk Endeavour to have a well-diversified portfolio of good companies, carefully selected to include those with perceived good quality of earnings. • Risks associated with Debt and money market securities Risk Risk mitigation strategy Interest Rate Risk Active duration management strategy; control portfolio duration and actively evaluate the portfolio structure with respect to existing interest rate scenario. Market Risk Endeavour to have a well-diversified portfolio of high quality securities. Volatility Risk There is the risk of volatility in markets due to external factors like liquidity flows, changes in the business environment, economic policy etc. The scheme will manage volatility risk through diversification. 35Concentration Risk Ensuring diversification by investing across the spectrum of securities/issuers/. Liquidity Risk Control portfolio liquidity at portfolio construction stage. Credit Risk Investment universe carefully defined to include issuers with high credit quality; critical evaluation of credit profile of issuers on an on-going basis. • Risks associated with REITS/ INVITS: Risk R isk mitigation strategy Price Risk The valuation of the REIT/InvIT units may fluctuate based on economic conditions, fluctuations in markets (eg. real estate) in which the REIT/InvIT operates and the resulting impact on the value of the portfolio of assets, regulatory changes, force majeure events etc. REITs & InvITs may have volatile cash flows. To mitigate this, the maximum exposure to units of REITs and InvITs is capped at 10% of the portfolio. Liquidity Risk This refers to the ease with which REIT/InvIT units can be sold. There is no assurance that an active secondary market will develop or be maintained. Hence there would be times when trading in the units could be infrequent. The subsequent valuation of illiquid units may reflect a discount from the market price of comparable securities for which a liquid market exists. Regular monitoring of the REITs and InvITs liquidity/ trading volume & changes in market conditions/ regulatory changes will help mitigate the same. Interest Rate Generally, there would be an inverse relationship between the interest rates and the Risk price of units. Regular monitoring and evaluating the portfolio structure with respect to changing interest rate scenario. II. Information about the scheme: A. Where will the scheme invest The corpus of the Scheme will be invested in a diversified portfolio of Equity and Equity Related Instruments, Debt and Money Market Instruments, Units of Debt Oriented Mutual Fund Schemes, Short Term Deposits. Derivative instruments like Stock/ Index Futures, Stock/Index Options etc and units issued by REITs and InvITs and schemes of mutual funds. Further, pending deployment of funds of the Scheme in securities in terms of the investment objective, and for margin purposes, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI from time to time. The securities/ instruments in which the Scheme shall invest include but are not limited to the following: • Investment in Equity and Equity linked Instruments: Equity related instruments include, but are not limited to: i. Equity Warrants and Convertible Instruments. ii. Fully Convertible debentures, Debentures, Partly Convertible Debentures, unlisted securities, initial public offerings, private placements etc. iii. Equity Derivatives. Futures: A futures contract is an exchange traded, standardized contract between the buyer and the seller for the purchase and sale of a particular asset at a specific price on a specific future date. The price at which the underlying asset would change hands in the future is agreed upon at the time of entering into the contract. The 36actual purchase or sale of the underlying asset involving payment of cash and delivery of the instrument does not take place until the contracted date of delivery. A futures contract involves an obligation on both the parties to fulfil the terms of the contract. A futures contract on the stock market index gives its owner the right and obligation to buy or sell the portfolio of stocks characterized by the index. Stock index futures are cash settled; there is no delivery of the underlying stocks. Options: An option is a contract which provides the buyer of the option (also called the holder) the right, without the obligation, to buy or sell a specified asset at an agreed price on or upto a particular date. For acquiring this right, the buyer has to pay a premium to the seller. The seller of the option (known as writer of the option) on the other hand has the obligation to buy or sell that specified asset at the agreed price. An option contract may be of two kinds, viz., a call option or a put option. An option that provides the buyer the right to buy is a call option whereas an option that provides the buyer the right to sell is a put option. Options can be classified based on the exercising feature. Two main types are: European and American. In a European option, the holder of the option can only exercise his right on the date of expiration. In an American option, he can exercise this right anytime between the purchase date and the expiration date. In accordance with clause 12.25 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the Scheme shall not write options or purchase instruments with embedded written options. iv. Any other securities / instruments as may be permitted by SEBI from time to time. The Scheme may participate in securities lending as permitted under the Regulations. Investment in Debt and Money Market Instruments: 1. Certificate of Deposit (CD): Certificate of Deposit (CD) is a negotiable money market instrument issued by Scheduled Commercial Banks (SCBs) and select All India Financial Institutions (FIs) that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the SCBs is between 7 days to 1 year, whereas, in case of FIs, maturity is 1 year to 3 years from the date of issue. CDs also are issued at a discount to face value and can be traded in secondary market. 2. Tri-party Repo in Government Securities: Tri-party Repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri- Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. The Scheme shall undertake Tri-party Repo transactions in Government Securities. 3. Commercial Paper (CP): Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and All India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. CP can be issued for maturities between a minimum of 15 days and a maximum up to 1 year from the date of issue. 4. Reverse Repo: Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, Central Government Securities, State Government securities, T-Bills and corporate debt securities are eligible for Reverse Repo. The Scheme intends to participate in Reverse Repo in Central Government Securities, State Government securities, T-Bills. 37However, the Scheme does not intend to participate in repo/ reverse repo transactions in corporate debt securities. 5. Treasury Bill (T-Bill): Treasury Bills (T-Bills) are issued by the Government of India or State Governments to meet their short term borrowing requirements. T-Bills are issued for maturities of 91 days, 182 days and 364 days. T-Bills are issued at a discount and for a fixed period. 6. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government Securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. 7. Non-convertible debentures and bonds Non-convertible debentures as well as bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or may not carry a Central/State Government guarantee, public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. The Scheme may also invest in the non-convertible part of convertible debt securities. Investments in debt instruments with special features will be made in accordance with clause 12.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024. 8. Floating rate debt instruments Floating rate debt instruments are instruments issued by Central / State Governments, corporates, PSUs, etc. with interest rates that are reset periodically. 9. Debt derivative instruments: 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. Typically, one party receives a predetermined fixed rate of interest while the other party, receives a floating rate, which is linked to a mutually agreed benchmark with provision for mutually agreed periodic resets. Such contracts generally involve 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. Forward Rate Agreement: A Forward Rate Agreement (FRA) is an agreement to pay or receive the difference between the agreed fixed rate and actual interest rate (reference rate specified in the contract) prevailing at a stipulated future date for a notional loan amount and specified time period. The interest rate is fixed now for a future agreed price wherein only the interest is settled between the counter parts. 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 1. Obligation to buy or sell a bond at a future date 2. Standardized contract 3. Exchange traded 4. Physical settlement 385. Daily mark to market 1. Debt derivative instruments: 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. Typically, one party receives a predetermined fixed rate of interest while the other party, receives a floating rate, which is linked to a mutually agreed benchmark with provision for mutually agreed periodic resets. Such contracts generally involve 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. 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 settlement date, for a specified period from start date to 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. 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 1. Obligation to buy or sell a bond at a future date 2. Standardized contract. 3. Exchange traded 4. Physical settlement 5. Daily mark to market 2. When, as and if issued security: When, as and if issued (commonly known as “when-issued” (WI) security) refers to a security that has been authorized for issuance but not yet actually issued. WI trading takes place between the time a new issue is announced and the time it is actually issued. All “when issued” transactions are on an “if” basis, to be settled if and when the actual security is issued. SEBI has on April 16, 2008 in principle allowed Mutual Funds to undertake ‘When Issued (WI)’ transactions in Central Government securities, at par with other market participants. • Open Positions in the ‘WI’ market are subject to the following limits: Category Reissued Security Newly Issued Security Non-PDs Long Position, not exceeding 5 Long Position, not exceeding 5 percent percent of the notified amount. of the notified amount. 3. Investments in units of mutual fund schemes The Scheme may invest in Debt and Liquid schemes managed by the AMC or in the schemes of any other mutual funds in conformity with the investment objective of the Scheme and in terms of the prevailing SEBI (MF) Regulations. 4. Investment in Short Term Deposits Pending deployment of funds as per the investment objective of the Scheme, the funds may be parked in short term deposits of Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. 395. Units issued by REITs and InvITs The Scheme may invest in units issued by REITS and InvITs within the prescribed limits. B. What are the investment restrictions? Investment restrictions as contained in the SEBI (Mutual Funds) Regulations, 1996 specifically in the Seventh Schedule of the Regulations including any amendments thereto and SEBI circulars issued from time to time and as applicable to the Scheme are provided below: 1) The Mutual Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting rights. Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B of the SEBI (Mutual Funds) Regulations, 1996. 2) The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities. Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard. 3) The Scheme shall not invest more than 10% of its net assets in the equity shares or equity related instruments of any company. 4) All investments by the Scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed. 5) The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV of the Scheme with the prior approval of the Board of Trustee and the Board of directors of the AMC. Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and triparty repo on Government securities or treasury bills. In accordance with clause 12.8.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024, within the single issuer limit specified above for debt and money market instruments, the Scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA; or b. 8% of its NAV in debt and money market securities rated AA; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer. The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified above. 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 Credit Rating 40Agencies (CRAs) between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating. Exposure to government money market instruments such as TREPS on G-Sec/ T-bills shall be treated as exposure to government securities. 6) The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments. Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the scheme subject to such conditions as may be specified by SEBI from time to time. Provided further that the Scheme shall comply with the norms under this clause within the time and in the manner as may be specified by SEBI. Provided further that the norms for investments by the Scheme in unrated debt instruments shall be specified by SEBI from time to time. Pursuant to clause 12.1 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as may be amended from time to time, the Scheme shall not invest in unlisted debt instruments including commercial papers (CPs), other than (a) government securities, (b) other money market instruments and (c) 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. For the purpose of provisions of this point 6, listed debt instruments shall include listed and to be listed debt instruments. Further, 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 the Scheme shall be subject to the following: a. Investments should only be made in such instruments, including bills re-discounting, usance bills, etc., that are generally not rated and for which separate investment norms or limits are not provided in SEBI (Mutual Fund) Regulations, 1996 and various circulars issued thereunder. b. Exposure of the Scheme in such instruments, shall not exceed 5% of the net assets of the Scheme. c. All such investments shall be made with the prior approval of the Board of AMC and the Board of trustees. 7) The Scheme shall not make any investment in: a) Any unlisted security of an associate or group company of the sponsor(s); or b) Any security issued by way of private placement by an associate or group company of the sponsor(s); or c) The listed securities of group companies of the sponsor(s) which is in excess of 25 % of the net assets. 8) Transfer of investments from one Scheme to another Scheme in the same Mutual Fund shall be allowed only if, - a) Such transfers are done at the prevailing market price for quoted instruments on spot basis (“Spot basis” shall have the same meaning as specified by Stock Exchange for spot transactions); b) The securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made. 41Further, the Scheme shall comply with the guidelines on inter scheme transfers of securities as prescribed by clause 12.30 of SEBI Master Circular for Mutual Funds dated June 27, 2024 9) The Scheme may invest in another scheme under the same AMC or any other Mutual Fund without charging any fees, provided the aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5 % of the Net Asset Value of the Mutual Fund. Provided that this clause shall not apply to any Fund of Funds scheme. 10) The Mutual Fund shall get the securities purchased or transferred in the name of the Mutual Fund on account of the concerned Scheme, wherever investments are intended to be of long-term nature. 11) All the Scheme’s investments will be in transferable securities or bank deposits or in money at call or any such facility provided by RBI in lieu of call. 12) Save as otherwise expressly provided under the Regulations, the Scheme shall not advance any loans for any purpose. 13) 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/or IDCW to the Unit holder. The Fund shall not borrow more than 20% of the net assets of the Scheme and the duration of the borrowing shall not exceed a period of 6 months. 14) The scheme shall not make any investment in a Fund of Funds scheme. 15) Pending deployment of the funds of the Scheme in securities in terms of the investment objective of the Scheme, the Mutual Fund may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the following guidelines prescribed under clause 12.16 of the SEBI Master Circular for Mutual Funds dated June 27, 2024 including subsequent related SEBI circulars: i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee. iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits. iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries. v. The Scheme shall not park funds in short term deposit of a bank which has invested in that Scheme. Further, it shall also be ensured that the bank in which the Scheme has short term deposits does not invest in the Scheme until the Scheme has short term deposits with such bank. vi. The AMC shall not charge any investment management and advisory fees for parking of funds in short term deposits of scheduled commercial banks. vii. The above norms do not apply to term deposits placed as margins for trading in cash and derivatives market. 16) Pursuant to clause 12.21 of SEBI Master Circular of Mutual Fund dated June 27, 2024 and subject to the following the Mutual Fund may invest in the units of REITs and InvITs: 42(a) The Mutual Fund under all its schemes shall not own more than 10% of units issued by a single issuer of REIT and InvIT; and (b) The Scheme shall not invest – i. more than 10% of its NAV in the units of REIT and InvIT; and ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer. 17) Limitations and restrictions for investments in derivative instruments SEBI has vide clause 7.5 of the SEBI Master Circular for Mutual Funds dated June 27, 2024 inter alia specified the guidelines pertaining to trading by Mutual Funds in Exchange Traded Derivatives. All derivative position taken in the portfolio would be guided by the following principles. i. Position limit for the Mutual Fund in index options contracts a. The Mutual Fund position limit in all index options contracts on a particular underlying index shall be Rs 500 crore or 15% of the total open interest of the market in index options, whichever is higher, per Stock Exchange. b. This limit would be applicable on open positions in all options contracts on a particular underlying index. ii. Position limit for the Mutual Fund in index futures contracts a. The Mutual Fund position limit in all index futures contracts on a particular underlying index shall be Rs 500 crore or 15% of the total open interest of the market in index futures, whichever is higher, per Stock Exchange. b. This limit would be applicable on open positions in all futures contracts on a particular underlying index. iii. Additional position limit for hedging In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take exposure in equity index derivatives subject to the following limits: 1. Short positions in index derivatives (short futures, short calls and long puts) shall not exceed (in notional value) the Mutual Fund's holding of stocks. 2. Long positions in index derivatives (long futures, long calls and short puts) shall not exceed (in notional value) the Mutual Fund's holding of cash, government securities, T-Bills and similar instruments. iv. Position limit for Mutual Fund for stock based derivative contracts The Mutual Fund position limit in a derivative contract on a particular underlying stock, i.e. stock option contracts and stock futures contracts, is defined in the following manner:- 1. The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL). 2. The MWPL and client level position limits however would remain the same as prescribed earlier. v. Position limit for each scheme of a Mutual Fund for stock based derivative contracts The scheme-wise position limit / disclosure requirements shall be – 1. For stock option and stock futures contracts, the gross open position across all derivative contracts on a particular underlying stock of a scheme of a mutual fund shall not exceed the higher of: 431% of the free float market capitalisation (in terms of number of shares) or 5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of contracts). 2. This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange. 3. For index based contracts, Mutual Funds shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index. Exposure limits for the Scheme: In accordance with clause 12.24 and 12.25 of SEBI Master Circular for Mutual Funds dated June 27, 2024 the following exposure limits for investment in derivatives will be applicable to the Scheme: 1. The cumulative gross exposure through equity, debt, derivative positions and units issued by REITs & InvITs, and such other securities/assets as may be permitted by SEBI from time to time, subject to regulatory approval, if any, will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure. SEBI, vide letter dated November 3, 2021, has clarified that Cash Equivalent shall consist of the following securities having residual maturity of less than 91 days: (i) Government Securities, (ii) T-Bills and (iii) Repo on Government Securities 2. The Scheme shall not write options or purchase instruments with embedded written options. 3. The total exposure related to option premium paid shall not exceed 20% of the net assets of the Scheme. 4. 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 have to be added and treated under limits mentioned in point 1 above. c. Any derivative instrument used to hedge shall have 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. 5. The Scheme may enter into plain vanilla Interest Rate Swaps ("IRS”) for hedging purposes. The value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme. In case of participation in IRS is through over the counter transactions, the counter party has to be an entity recognized as a market maker by RBI and exposure to a single counterparty in such transactions should not exceed 10% of the net assets of the scheme. However, if mutual funds are 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. 6. Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated as exposure for the limit mentioned in point 1 above. 7. Definition of Exposure in case of Derivative Positions: Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows: 44Position Exposure Long Future Futures Price * Lot Size * Number of Contracts Short Future Futures Price * Lot Size * Number of Contracts Option bought Option Premium Paid * Lot Size * Number of Contracts The Mutual Fund 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*Futures Price/ PAR) The Scheme shall not carry out imperfect hedging using IRFs. 18. Investments in debt instruments with special features shall be within the following investment limits as prescribed under clause 12.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024: i. No Mutual Fund under all its schemes shall own more than 10% of such instruments issued by a single issuer. ii. The Scheme shall not invest – a. more than 10% of its NAV of the debt portfolio of the scheme in such instruments; and b. more than 5% of its NAV of the debt portfolio of the scheme in such instruments issued by a single issuer. The above investment limit for a mutual fund scheme shall be within the overall limit for debt instruments issued by a single issuer, as specified at clause 1 of the Seventh Schedule of SEBI (Mutual Fund) Regulations, 1996, and other prudential limits with respect to the debt instruments. All investments by the Scheme will be made in accordance with the Investment Objective and Investment Pattern described earlier. The Trustee may alter the above restrictions from time to time to the extent that changes in the Regulations may allow and as deemed fit in the general interest of the Unit Holders. The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time. As the Scheme, presently does not intend to invest in overseas/foreign securities or engage in short selling or invest in securitised debt or participate in repo/reverse repo transactions in corporate debt securities or participate in credit default swap transactions, the investment restrictions relating to overseas/foreign securities or short selling or securitised debt or repo/reverse repo transactions in corporate debt securities or credit default swap transactions have not been included in this document. Apart from the Investment Restrictions prescribed under the Regulations, internal risk parameters for limiting exposure to a particular scrip or sector may be prescribed from time to time to respond to the dynamic market conditions and market opportunities. The AMC/Trustee may alter these above stated restrictions from time to time to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. 45All the investment restrictions will be applicable at the time of making investments. Changes do not have to be effected merely because of appreciations or depreciations in value of the investments, or by reason of receipt of any rights, bonuses or benefits in the nature of capital or of any schemes of arrangement or of amalgamation, reconstruction or exchange, or at any repayment or redemption or other reason outside the control of the Fund resulting in any of the above limits getting breached. However, the AMC shall take appropriate corrective action as soon as possible taking into account the interests of the Unit holders. C. Fundamental Attributes: Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master Circular for Mutual Funds dated June 27, 2024: (i) Type of a Scheme An open-ended equity scheme following consumption theme. (ii) Investment Objective (a) Main Objective The investment objective of the scheme is to generate long-term capital appreciation by investing in companies those are engaged in consumption and consumption related sector or allied sectors. These companies are expected to directly or indirectly benefit from changing consumer aspirations, changing lifestyle and overall growth in consumption led demand. However, there is no assurance that the investment objective of the Scheme will be achieved. (b) Investment Pattern: The tentative portfolio break-up of Equity, Debt, Money market instruments, other permitted securities and such other securities as may be permitted by SEBI from time to time with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations, is detailed in the section ‘HOW WILL THE SCHEME ALLOCATE ITS ASSETS?’. Please refer the Section ‘HOW WILL THE SCHEME ALLOCATE ITS ASSETS?’ (iii) Terms of Issue • Liquidity provisions such as listing, Repurchase, Redemption The Units of the Scheme are not proposed to be listed on any stock exchange. However, the Trustee reserves the right to list the Units as and when this Scheme is permitted to be listed under the Regulations and the Trustee considers it necessary in the interest of Unit holders of the Fund. The Scheme offers Units for subscription and redemption at NAV based prices on all Business Days on an ongoing basis, commencing not later than five business days from the date of allotment. Under normal circumstances, the AMC shall transfer the redemption/repurchase proceeds to the unitholders within three working days from the date of redemption or repurchase. However, under exceptional circumstances where the schemes would be unable to transfer the redemption / repurchase proceeds to investors within the time as stipulated above, the redemption/ repurchase 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 the Statement of Additional Information (SAI). • Aggregate fees and expenses charged to the scheme The aggregate fees and expenses charged to the Scheme will be in line with the limits defined in the SEBI (MF) Regulations as amended from time to time. Please refer to Section I - Part III of this SID. 46• Any safety net or guarantee provided The Scheme does not provide any safety net or guarantee nor does it provide any assurance regarding the realization of the investment objective of the Scheme or in respect of declaration of IDCW. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024 the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value without any exit load. D. Other Scheme Specific Disclosures: Listing and transfer Listing: of units Since 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. Transfer of units: The Unit holders are given an option to hold the Units in physical form (by way of an account statement) or in dematerialized form (Demat). The Units of the Scheme held in the dematerialised form will be fully and freely transferable (subject to lock-in period, if any and subject to lien, if any marked on the units) in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 1996 as may be amended from time to time and as stated in clause 10.6 of SEBI Master Circular for Mutual Funds dated June 27, 2024. The units held in physical form (i.e. by way of an account statement) are transferable post completion of requisite procedures and formalities applicable in this regard. Further, for the procedure of release of lien, the investors shall contact their respective DP. Pursuant to AMFI Best Practice Guideline Circular No. 135/BP/119/2025-26 dated May 08, 2025 read with AMFI Circular No. 135/BP/116/2024- 25 dated August 14, 2024, the facility for transfer of units held in non-demat (SoA) mode shall be available to all the investors under Resident/non- resident individual category including the unitholders falling under the following three categories. a) Surviving joint unitholder, who wants to add new joint holder(s) in the folio upon demise of one or more joint unitholder(s). b) A nominee of a deceased unitholder, who wants to transfer the units to the legal heirs of the deceased unitholder, post the transmission of units in the name of the nominee. c) A minor unitholder who has turned a major and has changed his/her 47status from minor to major, wants to add the name of the parent / guardian, sibling, spouse etc. in the folio as joint holder(s). For detailed process/guidelines for transfer of units held in non-demat (SoA) mode, kindly refer SAI Dematerialization of The Unit holders are given an option to hold the Units in physical form (by way of units an account statement) or in dematerialized form (Demat). Further, investors also have an option to convert their physical holdings into the dematerialised mode at a later date. Each Option under each plan under the Scheme held in the dematerialised 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 dematerialised mode would be subject to the guidelines/ procedural requirements as laid by the Depositories viz. NSDL/CDSL from time to time. Subscription/Additional Purchase of units under Dematerialised Mode & allotment thereof: The Applicants intending to hold the Units in dematerialised mode will be required to have a beneficiary account with a DP of the NSDL/CDSL and will be required to mention the DP's Name, DP ID No. and Beneficiary Account No. with the DP in the application form at the time of subscription/ additional purchase of the Units of the Scheme(s)/Plan(s)/Option(s). The applicant shall mandatorily attach a self-attested copy of the latest demat account statement/client master statement along with the application forms at the time of initial subscription. The application for subscription/additional purchase would be liable to be rejected by the AMC/ Registrar under the following conditions: a. In case the applicants do not provide their Demat Account details in the application form; or b. The demat details provided in the application form are incomplete / incorrect or do not exactly match with the details in the Depository records; and/or c. The mode of holding in the application form does not match exactly with that of the demat mode of holding. Applicants intending to hold units in the dematerialised mode would be considered to be KYC compliant as per the DP records and no separate KYC acknowledgment proof needs to be submitted to the AMC/Registrar. However, the submission of KYC acknowledgement proof is optional. It may be noted that in case the application stands rejected due to any of the above reasons, the AMC/ Registrar shall refund the amount to the applicants in line with the provisions of the SID. However, if the applicant has submitted the KYC acknowledgment proof along with the application forms, the units will be allotted in the physical mode ‘by default’ (without any separate intimation to such applicant) and an Account Statement shall be sent to the Unit holders in accordance with the provisions of the SID. It may be further noted that for any such default allotment the “Source Bank Account” (as per the payment instrument submitted along with the 48application form) shall be considered as the bank mandate for all purposes. NOTE: It may be noted that the facilities viz. Switch in and out, Systematic Withdrawal Plan (SWP)/ Systematic Transfer Plan (STP), are currently NOT available in the dematerialised mode. It may also be noted that units in the demat mode shall only be credited in the DP account on the basis of realization of funds. Conversion of Units from Physical mode to Dematerialised mode: If the Unit holder desires to convert the Units in a dematerialised 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 the 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. Note: It is further clarified that the demat mode of holding is subject to the following: a. Mandatory Submission of the PAN details along with the necessary proofs in accordance with the provisions of the SAI; b. Provisions of “Non-Acceptance of Third Party Payment Instruments for subscription/investments of units” under the section “How to Apply?” in the SAI. c. Submission of such other mandatory authority documents as may be specified in the application forms for individual/non-individual category of investors. All communications under demat mode of holding shall be on the basis of DP ID and client ID submitted in the application form and no separate folio shall be created for the same. For further details on dematerialised mode of holding Units, investors are requested to refer to the SAI. Minimum Target Rs.10,00,00,000 (Rupees Ten Crores) amount (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 There will be no upper limit on the total amount collected under the Scheme 49be raised (if any) during the NFO Period Dividend Policy The Trustee will endeavour to declare IDCW under the Income Distribution cum (IDCW) Capital Withdrawal Option as per the specified frequencies, subject to availability of distributable surplus calculated in accordance with the Regulations. IDCW Declaration Procedure: - The procedure for IDCW distribution would be as under: 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. However, such a notice shall not be given for Income Distribution cum Capital Withdrawal Options having IDCW distribution frequency ranging from daily up to monthly distribution. IDCW Distribution Procedure: - Under normal circumstances, the IDCW proceeds will be paid through electronic modes such as Direct Credit / National Electronic Fund Transfer (NEFT) / Real Time Gross Settlement (RTGS) / National Electronic Clearing System (NECS) or any other manner to the unitholder's bank account as recorded in the Registrar's records. Physical despatch of IDCW payments shall be carried out only in exceptional circumstances for which the AMC shall maintain records along with reasons for such physical despatch. The AMC, at its discretion at a later date, may choose to alter or add other modes of payment. In case of Units under the Income Distribution cum Capital Withdrawal Option held in dematerialised 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. Effect of IDCW: 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 will the IDCW be paid regularly. It must also be distinctly understood that when IDCW are declared, the net assets attributable to unitholders in the respective Option under respective Plan will stand reduced to the extent of the IDCW payout and applicable statutory levies, if any. 50Post 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 under the 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. All the IDCW declaration and payments shall be in accordance and compliance with SEBI Regulations, as amended from time to time. Allotment (Detailed Allotment : procedure) 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 Clause 8.4.6.2 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 shall be applicable on which 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 / Trustee 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. The process of allotment of units will be completed within 5 business days from the date of closure of the NFO Period. For investors holding units under dematerialised mode, the statement of account shall be sent by the Depository Participant in accordance with SEBI (Depositories and Participants) Regulations, 1996. The AMC shall send confirmation specifying the number of units allotted to the applicant by way of an email and/or SMS’s to the applicant’s registered email address and/or mobile number as soon as possible but not later than five working days from the date of closure of the NFO Period (NFO) and / or from date of receipt of the request from the unit holder. Account Statement: For normal transactions (other than SIP/STP/SWP) during ongoing sales and repurchase: • The AMC shall issue to the investor whose application (other than SIP/STP/SWP) has been accepted, an account statement specifying the number of units allotted. Under normal circumstances, the AMC shall endeavour to dispatch the account statement as soon as possible but not later than 5 working days from the date of receipt of the application from the unitholder. • AMC/ Registrar shall send confirmation specifying the number of units allotted to the applicant by way of email and/or SMS’s to the applicant’s registered email address and/or mobile number as soon as possible but 51not later than five working days from the date of receipt of the application from the unitholder. • For those unitholders who have provided an e-mail address, the AMC will send the account statement by e-mail. • The unitholder may request for a physical account statement by writing/calling the AMC/ISC/Registrar & Transfer Agent at 18002002268 / 18005722268 (toll free numbers) For SIP / STP / SWP transactions: • Account Statement for SIP, STP and SWP will be dispatched once every quarter ending March, June, September and December within 10 working days of the end of the respective quarter. • A soft copy of the Account Statement shall be mailed to the Investors under SIP/STP/ SWP to their e-mail address on a monthly basis, if so mandated. However, the first Account Statement under SIP/STP/ SWP shall be issued within 10 working days of the initial investment/ transfer. • In case of specific request received from investors, Mutual Funds shall provide the account statement [SIP/STP/ SWP] to the investors within 5 working days from the receipt of such request without any charges. Note: i. For normal transactions and SIP/STP/ SWP transactions as stated above, in the event the account has more than one registered holder, the first- named Unit holder shall receive the account statements. Account Statement for demat account holders: Investors shall receive the demat account statement /demat holding statement directly from the DP with whom the investor holds the DP account. The statement issued by the DP will be deemed adequate compliance with the requirements in respect of dispatch of Statement of Account. In case of any specific requirements/queries on the account statement, investor should directly contact the respective DP’s. The Trustee / AMC retain the sole and absolute discretion to reject any application. The AMC / Trustee may require or obtain verification of identity or such other details regarding any subscription or related information from the investor/unit holders as may be required under any law, which may result in delay in dealing with the applications, units, benefits, distribution, etc. Refund If application is rejected, full amount will be refunded within 5 working days of closure of NFO. If refunded later than 5 working days @ 15% p.a. for delay period will be paid and charged to the AMC. Modes of dispatch: For refund payments to unitholders, the AMC may use modes of dispatch such as registered post, speed post, courier etc. The AMC may also use payment channels such as RTGS, NEFT, IMPS, direct credit, etc. or any other mode allowed by Reserve Bank of India from time to time, for refund payments to unitholders in addition to cheque, demand draft or IDCW warrants. In accordance with the SEBI Regulations, if the Scheme fails to collect the minimum target amount, the Mutual Fund and the AMC shall be liable to refund the money to the applicants under the scheme. In addition to the above, refund of subscription amount to applicants whose applications are invalid for any reason whatsoever, will commence after the 52allotment process is completed. Who can invest The following persons are eligible to apply for subscription to the units of the This is an indicative Scheme (subject to, wherever relevant, subscription to units of the Scheme being list and investors permitted under the respective constitutions and relevant statutory regulations): shall consult your financial advisor to o Indian resident adult individuals either singly or jointly (not exceeding three) ascertain whether the or on an Anyone or Survivor basis; scheme is o High Net worth Individual (HNI), Hindu Undivided Family (HUF) through suitable to you risk Karta of the HUF; profile. o Minor through parent / legal guardian; o Partnership Firms and Limited Liability Partnerships (LLPs); o Proprietorship in the name of the sole proprietor; o 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; o Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions; o Mutual Funds registered with SEBI; o Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and private trusts authorised to invest in mutual fund schemes under their trust deeds; o Non-Resident Indians (NRIs) / Persons of Indian Origin (PIOs) residing abroad on repatriation basis or on non-repatriation basis; o Foreign Portfolio Investor (FPI) subject to applicable regulations; o Army, Air Force, Navy and other para-military units and bodies created by such institutions; o Scientific and Industrial Research Organizations; o Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI; o Provident Funds, Pension Funds, Gratuity Funds and Superannuation Funds to the extent they are permitted; o Other schemes of Union Mutual Fund subject to the conditions and limits prescribed by SEBI (MF) Regulations; o Trustee, AMC or Sponsor(s) or their associates may subscribe to units under the Scheme; o Such other individuals’ /institutions/ body corporates etc., as may be decided by the AMC from time to time, so long as, wherever applicable, subject to their respective constitutions and relevant statutory regulations. The list given above is indicative and the applicable laws, if any, as amended from time to time shall supersede the list. Note: 1. 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. 2. 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. 3. Dishonoured cheques are liable not to be presented again for collection, and the accompanying application forms are liable to be rejected. 4. The Trustee, reserves the right to recover from an investor any loss caused 53to the Scheme on account of dishonour of cheques issued by the investor for purchase of Units of this Scheme. 5. 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. 6. Pursuant to 17.6 of SEBI Master Circular for Mutual Funds dated June 27, 2024 read with SEBI Circular no. SEBI/HO/IMD/POD-II/CIR/P/2023/0069 dated May 12, 2023, the following process shall be applicable for investments made in the name of a minor through a guardian: 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. 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 SAI. Who cannot invest The following persons are not eligible to invest in the Scheme: • 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 an FPI or otherwise explicitly permitted under FEMA Act/ by RBI/ by any other applicable authority. • Pursuant to RBI A.P. (DIR Series) Circular No. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds. • NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to time. • NRIs and PIOs who are residents of the United States of America/defined as United States Persons under applicable laws/ statutes and the residents of Canada. • Qualified Foreign Investor/ QFI as defined in this document. Such other persons as may be specified by the AMC from time to time. How to Apply and other details 1. Application forms are available from either the Investor Service Centers (ISCs)/Official Points of Acceptance (OPAs) of AMC or may be downloaded from the website of AMC (www.unionmf.com) Please refer to the SAI and Application form for the instructions. 2. Refer link for the list of official points of acceptance, collecting banker details etc.: https://www.unionmf.com/docs/default- source/downloads/policies-other-disclosures/sid-kim-sai-related- disclosures/list-of-address-of-offical-points-of- acceptance.pdf?sfvrsn=799090f_1 It is mandatory for investor to mention their bank account numbers in their applications/requests for redemption. 54The policy regarding Units once redeemed will not be reissued. reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same Restrictions, if any, The Mutual Fund will be repurchasing (subject to completion of lock-in period, if on the right to freely any) and issuing units of the Scheme on an ongoing basis and hence the transfer retain or dispose of facility is found redundant. Any addition / deletion of name from the folio of the units being offered. Unit holder is deemed as transfer of Units. In view of the same, additions / deletions of names will not be allowed under any folio 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 (transfer of units by operation of law) of Units and not transfer. The Units of the Scheme held in the dematerialised form will be fully and freely transferable (subject to lock-in period, if any and subject to lien, if any marked on the units) in accordance with the provisions of SEBI (Depositories and Participants) Regulations, 1996 as may be amended from time to time and as stated in Clause 14.4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024. Further, for the procedure of release of lien, the investors shall contact their respective DP. Also, when a person becomes a holder of the units by operation of law or upon enforcement of pledge, then the AMC shall, subject to production/submission of such satisfactory evidence, which in its opinion is sufficient, effect the transfer, if the intended transferee is otherwise eligible to hold the units. Please refer to paragraphs on ‘Transfer and Transmission of units’, ‘Right to limit redemption’, ‘Suspension of purchase and / or redemption of Units and Distribution under IDCW Option’ and ‘Pledge of Units’ in the SAI for further details. Cut off timing for ‘Cut-off Timing’ in relation to an investor making an application for purchase or subscriptions/ sale of units of the Scheme, shall mean, the outer limit of timing within a particular redemptions/ day which is relevant for determination of the NAV applicable for his transaction. switches The Applicable NAV used for processing subscriptions/redemptions is based on This is the time the time of the Business Day on which the application is time stamped at the before which your designated Official Points of Acceptance. Investors get units on the basis of the application (complete Applicable NAV. in all respects) should reach the a) Subscriptions / Purchases including Switch - ins: official points of acceptance. The following cut-off timings shall be observed by the Mutual Fund in respect of purchase (including switch-in) of the Units of the Scheme, and the following NAVs shall be applied for such purchase switch in: 1. In respect to valid applications received upto 3.00 p.m. on a day and where the funds for the entire amount are credited to the bank account of the Scheme before the cut off time and the funds are available for utilization before the cut-off time on the same day – the closing NAV of the day shall be applicable. 2. In respect to valid applications received after 3.00 p.m. on a day and where the 55funds for the entire amount are credited to the bank account of the Scheme either on the same day or before the cut-off time of the next Business Day i.e. available for utilization before the cut off time of the next Business Day – the closing NAV of the next Business Day shall be applicable. 3. Irrespective of the time of receipt of application, where the funds for the entire amount are credited to the bank account of the Scheme before the cut-off time on any subsequent Business Day i.e. available for utilization before the cut-off time of any subsequent Business Day – the closing NAV of such subsequent Business Day shall be applicable. For allotment of units in respect of purchase in the Scheme/switch-in to the Scheme, it shall be necessary that: • Application for purchase/switch-in is received before the applicable cut-off time. • Funds for the entire amount of subscription / purchase as per the application for purchase/switch-in are credited to the bank account of the Scheme before the cut-off time. • The funds are available for utilization by the Scheme before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme. • In case of switch-in into the Scheme, the NAV applicability shall be based on the date of payout from the switch-out scheme. For systematic investment transactions such as Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs), the units will be allotted as per the closing NAV of the day on which the funds are available for utilization by the target scheme irrespective of the SIP/ STP registration date, instalment date and amount of the SIP/ STP. It is clarified that for purchases, if funds are received in advance and the purchase application is received after receipt of funds in the scheme’s bank account, then the applicable NAV would be based on the date and time of receipt of the application. b) Redemptions including Switch – outs: The following cut off timings shall be observed by the Mutual Fund in respect of repurchase of units: 1. Where the application is received upto 3.00 p.m. – closing NAV of the day of receipt of application. 2. Where application is received after 3.00 p.m. – closing NAV of the next business day. Applicable NAV in case of Redemptions under dematerialised mode: It may be noted that in case of Redemption of units held in demat mode, the date and time available in the electronic feed from the DP sent to the AMC/Registrar will only be considered for the purpose of determination of Applicable NAV. Minimum amount for Minimum amount for new purchase / switch in purchase/Redemption /Switches Rs. 1,000 and in multiples of Rs. 1 thereafter For Systematic Investment Plan (SIP) 56Rs. 100 and in multiples of Rs. 1 thereafter (for daily frequency) Rs. 500 and in multiples of Rs. 1 thereafter (for weekly frequency) Rs. 500 and in multiples of Rs. 1 thereafter (for fortnightly frequency) Rs. 500 and in multiples of Rs. 1 thereafter (for monthly frequency) Minimum additional amount for purchase / switch in Rs. 1,000 and in multiples of Rs. 1 thereafter The minimum subscription limits for new purchases/additional purchases will apply to each Option under each plan separately. The minimum application amount mentioned above shall not be applicable to the mandatory investments made in the Scheme pursuant to Clause 6.10 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as amended from time to time. Minimum amount for redemption / switch out Minimum of Rs. 1000/- or the balance in the account of the unitholder, whichever is lower. The redemption request should meet the above minimum redemption amount criteria and should be in multiples of Re. 1/- thereafter. In case the investor specifies the number of units and amount to be redeemed, the number of units shall be considered for redemption. In case the unitholder does not specify the number of units or amount to be redeemed, the redemption request will not be processed. The AMC reserves the right to change the minimum amounts for various purchase/ redemption/ switch. Such changes shall only be applicable to transactions on a prospective basis. Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working days of receipt of valid application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form). A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by mail or email on or before 15th of the succeeding month. Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before 21st day of succeeding month, to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable. For further details, refer SAI. Income Distribution The payment of IDCW to the unitholders shall be made within seven working days cum Capital from the record date. Withdrawal IDCW payments will be made in favour of the unitholder (registered holder of the Unit or, if there are more than one registered holder, only to the first registered 57holder) with bank account number furnished to the Fund. Please note that it is mandatory for the unitholders to provide the bank account details as per SEBI guidelines. In case of Units under the Income Distribution cum Capital Withdrawal Option held in dematerialised mode, the Depositories (NSDL/ CDSL) will give the list of demat account holders and the number of Units held by them in electronic form on the Record date to the AMC/Registrar. The IDCW pay-out will be credited to the bank account of the investor, as per the bank account details recorded with the DP. Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase. For list of exceptional circumstances refer para 14.1.3 of SEBI Master Circular for Mutual Funds dated June 27, 2024 However, under exceptional circumstances where the schemes would be unable to transfer the redemption / repurchase proceeds to investors within the time as stipulated above, the redemption/ repurchase 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 the Statement of Additional Information (SAI). For redeeming units of the Scheme, an investor would need to submit a duly filled-in redemption application at any of the CSC/Official Point of Acceptance. However, an investor who holds units in the demat mode is required to place an order for redemption (subject to applicable limits prescribed in SID, if any or as may be communicated from time to time) directly with the DP. The redemption/ switch would be permitted to the extent of credit balance in the unitholder's account. The redemption/ switch request can be made by specifying either the number of units or the amount (in rupees) to be redeemed. In case the investor specifies the number of units and amount to be redeemed, the number of units shall be considered for redemption. In case the unitholder does not specify the number of units or amount to be redeemed, the redemption request will not be processed. For details regarding the minimum amount for redemption please see the point on ‘Minimum amount for purchase/redemption/switches’ in this document. Where Units under the Scheme are held under both, the scheme and the Direct Plan of the scheme and the redemption / Switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with the folio number), failing which the request would not be processed from the Direct Plan. However, where Units under the requested Option are held only under the Direct Plan, the redemption request would be processed under the Direct Plan irrespective of whether the Direct Plan is specifically mentioned in the redemption request. In the larger interest of the unit holders of the Scheme, the AMC may, on the basis of specific approval of the Board of Directors of the AMC and the Trustee Company, impose restriction on redemption of units when there are circumstances leading to a systemic crisis or event that severely constricts market liquidity or efficient functioning of markets such as liquidity issues, market failures, exchange closures, operational issues or such other reasons, in accordance with 58applicable regulations, circulars and other prevalent guidelines. For details, please refer to the paragraph on ‘Right to limit redemption’ in the SAI. Bank Mandate Bank Details: 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. 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. Bank Mandate under Dematerialised mode: 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 redemption 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. Delay in payment of Under normal circumstances, the AMC shall transfer the redemption/repurchase redemption / proceeds to the unitholders within three working days from the date of redemption repurchase or repurchase and the IDCW warrants shall be dispatched to the unitholders proceeds/dividend within seven working days from the record date. However, under exceptional circumstances where the schemes would be unable to transfer the redemption / repurchase proceeds to investors within the time as stipulated above, the redemption/ repurchase 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 the Statement of Additional Information (SAI). The AMC shall be liable to pay interest to the unitholders at rate as specified vide clause 14.2 of SEBI Master Circular for Mutual Funds dated June 27, 2024 by SEBI for the period of such delay (presently @ 15% per annum). However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the AMC / Trustee is required to obtain from the investor / unitholders, verification of identity or such other details relating to subscription for units under any applicable law or as may be requested by a regulatory body or any government authority, which may result in delay in processing the application. Unclaimed As per Clause 14.3 of SEBI Master Circular for Mutual Funds dated June 27, Redemption and 2024, the unclaimed redemption and IDCW amounts shall be deployed by the Income Fund in call money market or money market instruments or in a separate plan of Distribution cum only Overnight Scheme/Liquid scheme / Money Market Mutual Fund scheme Capital Withdrawal floated by Mutual Funds specifically for deployment of the unclaimed amounts. Amount Provided that such schemes where the unclaimed redemption and IDCW amounts are deployed shall be only those Overnight scheme/ Liquid scheme / Money Market Mutual Fund schemes which are placed in A-1 cell (Relatively Low Interest Rate Risk and Relatively Low Credit Risk) of Potential Risk Class matrix 59as per Clause 17.5 of SEBI Master Circular for Mutual Funds dated June 27, 2024. There shall be no exit load in this plan, and TER (Total Expense Ratio) of such plan shall be capped as per the TER of direct plan of such scheme or at 50bps whichever is lower. Investors claiming these amounts during a period of three years from the due date shall be paid initial unclaimed amount along-with the income earned on its deployment. Investors, who claim these amounts after 3 years, shall be paid initial unclaimed amount along-with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. The AMC shall make a continuous effort to remind investors through letters to take their unclaimed amounts. Process for claiming the unclaimed amounts: i. Investors can obtain information regarding the unclaimed amounts, if any, under their folios from the website of Union Mutual Fund viz. www.unionmf.com. ii. The process of claiming the unclaimed amount and the necessary forms / documents required for the same is available on the website of Union Mutual Fund. Further, the information on unclaimed amount along with its prevailing value (based on income earned on deployment of such unclaimed amount), will be separately disclosed to investors through the periodic statement of accounts / Consolidated Account Statement sent to the investors. Alternative Mechanism for Redemptions AMC reserves the right to provide the facility of redeeming Units of the Scheme through an alternative mechanism including but not limited to online transactions on the Internet through the AMC website or any other website, etc., as may be decided by the AMC from time to time. The alternative mechanisms would be applicable to only those investors who opt for the same in writing and/or subject to investor fulfilling such conditions as AMC may specify from time to time. 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. Disclosure w.r.t Pursuant to 17.6 of SEBI Master Circular for Mutual Funds dated June 27, 2024 investment by minors read with SEBI Circular no. SEBI/HO/IMD/POD-II/CIR/P/2023/0069 dated May 12, 2023, the following process shall be applicable for investments made in the name of a minor through a guardian: 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. 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 – 60request form to change status’ available on the AMC’s website www.unionmf.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. 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. Segregated Portfolio In case of a credit event at issuer level and to deal with liquidity risk, the AMC may create a segregated portfolio of debt and money market instruments under the Scheme in compliance with Clause 4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, as amended from time to time. In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or money market instrument affected by a credit event, that has been segregated in a mutual fund scheme, the term ‘main portfolio’ shall mean the scheme portfolio excluding the segregated portfolio and the term ‘total portfolio’ shall mean the scheme portfolio including the securities affected by the credit event. The AMC may create a segregated portfolio in a mutual fund scheme in case of a credit event at issuer level i.e. downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under: a. Downgrade of a debt or money market instrument to ‘below investment grade’, or b. Subsequent downgrades of the said instruments from ‘below investment grade’, or c. Similar such downgrades of a loan rating. In case of difference in rating by multiple CRAs, the most conservative rating shall be considered. Creation of segregated portfolio shall be based on issuer level credit events as detailed above and implemented at the ISIN level. Creation of segregated portfolio shall be optional and at the discretion of the AMC. The AMC shall decide on creation of segregated portfolio on the day of the credit event. Further, the AMC shall seek approval of the Trustees prior to creation of the segregated portfolio. Further, as per Clause 4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, SEBI has permitted creation of segregated portfolio of unrated debt or money market instruments by mutual fund schemes of an issuer that does not have any outstanding rated debt or money market instruments, subject to the following: a. Segregated portfolio of such unrated debt or money market instruments may be created only in case of actual default of either the interest or principal amount. As per Clause 4.4 of SEBI Master Circular for Mutual Funds dated June 27, 2024, credit event is considered for creation of segregated portfolio, however for the purpose of the aforesaid circular, ‘actual default’ by the issuer of such instruments shall be considered for creation of segregated portfolio. b. AMCs shall inform AMFI immediately about the actual default by the issuer. Upon being informed about the default, AMFI shall immediately inform the same to all AMCs. Pursuant to dissemination of information by AMFI about actual default by the issuer, AMCs may segregate the portfolio. Risks associated with segregated portfolio: The unit holders may note that no redemption and subscription shall be allowed in the segregated portfolio. However, in order to facilitate exit to unit holders in the segregated portfolio, the AMC shall enable listing of units of segregated portfolio 61on the recognized stock exchange. The risks associated in regard to the segregated portfolio are as follows: • The investors holding units of the segregated portfolio may not be able to liquidate their holdings till the time of recovery of money from the issuer. • The security comprising the segregated portfolio may not realize any value. • Listing of units of the segregated portfolio on a recognized stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units of the segregated portfolio on the stock exchange. • The trading price of units on the stock exchange may be significantly lower than the prevailing Net Asset Value (NAV) of the segregated portfolio. For the detailed provisions in relation to segregated portfolios, investors are requested to refer the Statement of Additional Information (SAI) of Union Mutual Fund. Minimum balance to There is no minimum balance requirement. be maintained and consequences of non-maintenance. III. Other Details A. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report Half Yearly disclosure: The AMC will disclose the portfolio of the schemes as on the last day of the month / half year on its website and on the website of AMFI within 10 days from the close of each month/ half year respectively in a user- friendly and downloadable spreadsheet format. In case of unitholders whose e-mail addresses are registered, the AMC shall send via email both the monthly and half-yearly statement of the scheme portfolio within 10 days from the close of each month/ half–year respectively. The AMC shall publish an advertisement every half-year disclosing the hosting of the half-yearly statement of the scheme portfolios on its website and on the website of AMFI. The AMC shall provide a physical copy of the statement of the scheme portfolio, without charging any cost, on specific request received from a unitholder. Further, pursuant to Clause 5.1 of SEBI Master Circular for Mutual Funds dated June 27, 2024, for debt schemes, portfolio disclosure shall be done on fortnightly basis within 5 days of every fortnight as prescribed by the said Circular. Visit https://unionmf.com/about-us/downloads/financials for detailed half yearly disclosures Half Yearly Results: The Mutual Fund and AMC shall before the expiry of one month from the close of each half year i.e. 31st March and on 30th September, host a soft copy of its unaudited financial results on its website (www.unionmf.com). The Mutual Fund and AMC shall publish an advertisement disclosing the hosting of such financial results on its website, 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. Click on https://unionmf.com/about-us/downloads/financials or detailed half yearly result. The unaudited financial results will also be displayed on the website of AMFI. 62Annual Report: The AMC will host the Annual Report of the Schemes on the website of the AMC and on the website of AMFI not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year). The AMC shall e-mail the scheme annual reports or abridged summary thereof to those unitholders whose e-mail addresses are registered with the Mutual Fund. The AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on specific request received from a unitholder. The full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. Investors who have not registered their e-mail id will have to specifically opt-in to receive a physical copy of the Annual Report or Abridged Summary thereof. Further, unitholders can submit a request for a physical or electronic copy of the scheme annual report or abridged summary thereof by writing to the AMC at the email address investorcare@unionmf.com or calling the AMC on the toll free number 18002002268 or submitting a request at any of the official points of acceptance of Union Mutual Fund. Union Mutual Fund will publish an advertisement every year, in the all India edition of at least two daily newspapers, one each in English and Hindi, disclosing the hosting of the scheme wise Annual Report on the AMC website Downloads (unionmf.com)) and on the website of AMFI www.amfiindia.com. The AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on specific request received from a unitholder. Investors who have not registered their e-mail id will have to specifically opt-in to receive a physical copy of the Annual Report or Abridged Summary thereof. Further, unitholders can submit a request for a physical or electronic copy of the scheme annual report or abridged summary thereof by writing to the AMC at the email address investorcare@unionmf.com or calling the AMC on the toll free number 18002002268 or submitting a request at any of the official points of acceptance of Union Mutual Fund. Periodic disclosure of Risk-o-meter of the Scheme and of the Benchmark: In accordance with 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 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 initial offering application form, SID, KIM, common application form and scheme advertisements as prescribed. Further, in accordance with Clause 5.16 of SEBI Master Circular for Mutual Funds dated June 27, 2024, the AMC is required to disclose the following in all disclosures, including promotional material or the disclosures stipulated by SEBI: a. risk-o-meter of the Scheme wherever the performance of the Scheme is disclosed; and b. risk-o-meter of the Scheme and benchmark wherever the performance of the Scheme vis-à-vis that of the benchmark is disclosed. Additionally, the AMC is also required to include the Scheme risk-o-meter, name of benchmark and risk-o- meter of benchmark in the portfolio disclosure in terms of Clause 5.17 of SEBI Master Circular for Mutual Funds dated June 27, 2024. 63Scheme 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, as per 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). B. Transparency/NAV Disclosure (Details with reference to information given in Section I). The AMC/Mutual Fund will calculate and disclose the first NAV(s) of the Scheme not later than 5 Business days from the date of allotment. Thereafter, the AMC shall declare the Net Asset Value (NAV) of the scheme on every Business Day on AMFI’s website (www.amfiindia.com) by 11.00 p.m. and also on its website (www.unionmf.com). 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. Unitholders may avail the facility to receive the latest available NAVs through SMS by submitting a specific request in this regard to the AMC/ Mutual Fund. For the methodology of calculation of repurchase price, please refer section III ‘Other Details sub point A - Computation of NAV for redemption (sale) / switch outs (to other schemes/plans of the Mutual Fund) by Investors’ in the SID C. Transaction charges and stamp duty • Transaction Charges: No transaction charge shall be deducted from the subscription amount for transactions /applications received through the distributors. • Stamp Duty: Pursuant to Part I of Chapter IV of the Notification dated February 21, 2019, issued by the Legislative Department, Ministry of Law and Justice, Government of India, on the Finance Act, 2019, read with subsequent notifications including Notification dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, a stamp duty at the rate of 0.005% of the transaction value would be levied on applicable mutual fund investment transactions such as purchases (including switch-in, Reinvestment of Income Distribution cum Capital Withdrawal) with effect from July 1, 2020. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchases, switch-ins, Systematic Investment Plan (SIP) installments, Systematic Transfer Plan (STP) installments, Reinvestment of Income Distribution cum Capital Withdrawal etc. to the unit holders would be reduced to that extent. For further details refer SAI. D. Associate Transactions : Please refer to Statement of Additional Information (SAI) E. Taxation : For details on taxation please refer to the clause on Taxation in the SAI apart from the following: Resident Investors Mutual Fund Tax on Dividend TDS @10% if dividend exceeds Rs. 10,000/- Nil (Refer note~) (Refer note~) Capital Gains Tax: Long Term Refer Note* Nil 64Short Term 15% (Subject to Surcharge, if applicable) Nil ~Note: Dividend distribution tax is abolished w.e.f. 1st April 2020. Accordingly, dividend will be taxed in the hands of investor. Section 194K is introduced in order to deduct tax on dividend. (*) From AY 2025-26 (FY 2024-25) on or after 23rd July, 2024 Any Long Term Capital Gains arising on transfer of unit of an equity oriented mutual fund will be taxable at 12.5% without indexation benefit of such capital gains exceeding Rs.1,25,000/-. No Chapter VI-A deductions or rebate will be allowed from this capital gains. In case of resident individuals and Hindu Undivided Families ('HUFs'), where the total income as reduced by such long-term capital gains (Section 112A), is below the basic exemption limit, the long-term capital gains will be reduced to the extent of the short fall and only the balance long-term capital gains will be subjected to 12.5 percent tax rate 1. Equity scheme will also attract securities transaction tax (STT) at applicable rates. 2. For further details on taxation, please refer to the clause on Taxation in the SAI. Surcharge and Educational cess will be payable in addition to the applicable taxes, wherever. F. Rights of Unitholders Please refer to SAI for details. G. List of official points of acceptance: Details are uploaded and updated on the AMC’s website https://www.unionmf.com/docs/default-source/downloads/policies-other-disclosures/sid-kim-sai-related- disclosures/list-of-address-of-offical-points-of-acceptance.pdf?sfvrsn=799090f_1 H. 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 are available at disclosures-on-penalties-pending-litigation.pdf (unionmf.com) Notes: The Scheme under this Document was approved by the Trustee at its meeting held on August 26, 2025 The Trustee has ensured that Union Consumption Fund is a new product offered by Union Mutual Fund and is not a minor modification of its existing schemes. The information contained in this Document regarding taxation is for general information purposes only and is in conformity with the relevant provisions of the tax laws, and has been included relying upon advice provided by the Fund's tax advisor based on the relevant provisions of the currently prevailing tax laws. Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in India. Statements in this Scheme Information Document are, except where otherwise stated, based on the law, practice currently in force in India, and are subject to changes therein. 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. For and on behalf of Union Asset Management Company Private Limited Sd/- Madhukumar Nair Chief Executive Officer Date: August 26, 2025. Place: Mumbai 65