SCHEME INFORMATION DOCUMENT

(Offer of units of Rs. 10/- each for cash (subject to applicable load) during the New Fund Offer and Continuous Offer
for units at Applicable NAV)

Name of the Scheme Parag Parikh Dynamic Asset Allocation Fund

Type of the Scheme An open ended dynamic asset allocation fund

New Fund Offer opens on 20th February 2024

New Fund Offer closes on 22nd February 2024

Scheme Reopens for continuous sale 28th February 2024

and repurchase on

This product is Risk-o-meters

suitable for investors
who are seeking*
Scheme’s Risk-o-meter Tier I Benchmark’s Risk-o-meter
(CRISIL Hybrid 50+50 Moderate Index)

● Capital
Appreciation &
Income
generation over
medium to long
term.
● Investment in
equity and
equity related
instruments as
well as debt and
money market
instruments
while managing
risk through
active asset
allocation
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: The product labelling assigned during the NFO is based on internal assessment of the scheme
characteristics or model portfolio and the same may vary post NFO when the actual investments are made

Name of the Mutual Fund PPFAS Mutual Fund

Name of the Sponsor Parag Parikh Financial Advisory Services Limited

CIN: U67190MH1992PLC068970

1
 Name of the Asset Management PPFAS Asset Management Private Limited
Company CIN: U65100MH2011PTC220623

Name of the Trustee Company PPFAS Trustee Company Private Limited

CIN: U65100MH2011PTC221203

Registered Address, Website of the 81/82, 8th Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230,
Entities Nariman Point, Mumbai- 400021, Maharashtra, India
Website: [Link]

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996, (hereinafter referred to as SEBI (MF) Regulations) as amended till date, and filed
with SEBI, along with a Due Diligence Certificate from the Asset Management Company (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
(ISCs)/Website/Distributors or Brokers. This SID can be modified from time to time through an Addendum whenever a
material change occurs. Such material change will also be filed with SEBI and circulated to all Unit holders or may be
publicly notified by advertisements in newspapers subject to Regulations. Investors can obtain such Addenda from the
Mutual Fund/ its Investor Service Centres or distributors / AMC Website.

The investors/unitholders are advised to refer to the Statement of Additional Information (SAI) for details of PPFAS
Mutual Fund, Tax and Legal issues and general information on [Link]

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,
[Link]
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

The Mutual Fund has not authorized any person to provide any information or representation not confirmed in the SAI
and SID. Investors are advised, while taking investment decisions, not to rely on any such information or representation
that is not contained in the SAI / SID.

All information in the Scheme Information Document (SID) and Key Information Memorandum (KIM) shall be updated
30 days before the launch of the scheme.

Any modification to the New Fund Offer Period shall be announced by way of an Addendum uploaded on the website
of the AMC.

This Scheme Information Document (SID) is dated February 05, 2024.

2
Table of Contents

Highlights/ Summary of the Scheme …………………………………………………………………..….… 4

I. Introduction
A. Risk Factors…………………………………………………………....……………………………...………. 11
B. Requirement of Minimum Investors in the Scheme(s).......................................................................... 19
C. Special Considerations, if any ...…………………………………………………………………….…….....20
D. Definitions…………………………………………………………………………………………...………..... 23
E. Abbreviations ………………………………………………………………………………………………..… 30
F. Due Diligence by the Asset Management Company ………………………………………………...….... 32

II. Information about the Scheme:

A. Type of the Scheme: ……………………………………………..………………………………………....... 33
B. What is the investment objective of the scheme……………………………………………………......…..33
C. How will the Scheme allocate its assets?..............................................................................................33
D. Where will the scheme invest?...............................................................................................................37
E. What are the Investment Strategies? ……..…………………………………………………….…….………46
F. Fundamental Attributes ………………………………………………………………………….…….…..…… 53
G. How will the Scheme Benchmark its Performance?............................................................................... 53
H. Who manages the Scheme? ……………………………………………….…………………......………...... 54
I. What are the Investment Restrictions? …………………………………….. ………………..……………..... 56
J. How has the scheme performed? …………………………………………………………………..………... 61
K. How this scheme is different?................................................................................................................ .61

III. Unit and offers

A. New Fund Offer (NFO) ………………………………………………………………………...…………….… 62
B. Computation of NAV ………………………………………………………………………….……………..… 112

IV. Fees and Expenses

A. New Fund Offer (NFO) Expenses………………………………………………………………………...…...113
B. Annual Scheme Recurring Expenses …………………………………………………………………….......113
C. Scheme Expense Structure………………………………………………………………………………....….113
D. Transaction Charges ……………………………………………………………………………………..….… 116
E. Load Structure ………………………………………….………………………………………………..……... 117
F. Waiver of Load for Direct Applications……………………………………………..…………………….…… 118

V. Rights of Unitholders ………………….……………………………………………………………...……... 118

VI. 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
………………………………………………………………………………………………………………….........118

3
HIGHLIGHTS/SUMMARY OF THE SCHEME

Name of the Scheme Parag Parikh Dynamic Asset Allocation Fund

Type of the Scheme An open ended dynamic asset allocation fund

Category of Scheme Hybrid Fund

Scheme Code PPFA/O/H/DAA/24/01/0006

Investment objective The investment objective of the Scheme is to generate income/long-

term capital appreciation by investing in equity, equity derivatives, fixed
income instruments. The allocation between equity instruments and
fixed income will be managed dynamically so as to provide investors
with long term capital appreciation while managing downside risk.

However, there is no assurance that the investment objective of the

Scheme will be realized and the Scheme does not assure or guarantee
any returns.

Liquidity The Scheme being offered is an open-ended scheme and will offer
Units for Subscription and Redemption on all Business Days at NAV
based prices. As per SEBI (MF) Regulations, the Mutual Fund shall
release redemption proceeds within 3 Business Days of receiving the
valid redemption request from the unitholder/investor in case of normal
situation and in exceptional situation it shall be within 5 business days
as per SEBI and/or AMFI Guidelines. A penal interest of 15% p.a. or
such other rate as may be prescribed by SEBI from time to time, will be
paid by the AMC for the period of delay in case the redemption
proceeds are not transferred within the prescribed time.

Please refer to section ‘Redemption’ under Ongoing Offer Period for

details.

Tier I Benchmark Index CRISIL Hybrid 50+50 – Moderate Index

Transparency/ NAV Disclosure The AMC will calculate and disclose the first NAV of the Scheme within
5 business days from the date of allotment. Subsequently, the AMC will
calculate and disclose the NAV of the Scheme at the close of every
Business Day. The AMC shall update the NAVs on the website of the
Mutual Fund ([Link] and on the website of Association
of Mutual Funds in India - AMFI ([Link]) by 11.00 p.m. on
every Business Day. In case of any delay, the reasons for such delay
would be explained to AMFI in writing. If the NAVs are not available
before commencement of Business Hours on the following day due to
any reason, the Mutual Fund shall issue a press release giving reasons
and explaining when the Mutual Fund would be able to publish the
NAVs. Unitholders may also avail a facility of receiving latest NAVs
through SMS on their registered mobile numbers, by submitting a
specific request in this regard to the AMC / Registrar & Transfer Agent.

4
Portfolio Disclosure/ Annual Accounts The AMC will disclose the portfolio of the Scheme (along with ISIN) as
of the Scheme on the last day of each month/ half year on its website i.e
[Link] and on the website of AMFI viz.
[Link] on or before 10th day of the succeeding month/
half year respectively in a user friendly and downloadable 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. Further, the AMC shall publish an advertisement in
all India editions of at least two daily newspapers, one each in English
and Hindi, every half year disclosing the hosting of the half-yearly
statement of the schemes’ portfolio(s) on the AMC’s 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.

The scheme wise annual report shall be hosted on the website of the
AMC / Mutual Fund ([Link]) and AMFI
([Link]) 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). Further,
the physical copy of the scheme wise annual report shall be made
available to the Unitholders at the registered / corporate office of the
AMC at all times.

In case of Unitholders whose e-mail addresses are registered with the

Fund, the AMC shall e-mail the annual report or an abridged summary
thereof to such Unitholders. The Unitholders whose email addresses
are not registered with the Fund may submit a request to the AMC /
Registrar & Transfer Agent to update their email ids or communicate
their preference to continue receiving a physical copy of the scheme
wise annual report or an abridged summary thereof. Unitholders may
also request for a physical or electronic copy of the annual report /
abridged summary, by writing to the AMC at mf@[Link] from their
registered email ids or calling the AMC on the toll free number 1800
266 7790 or by submitting a written request at any of the nearest
investor service centers of the Fund.

Further, the AMC shall publish an advertisement in all India edition of

at least two daily newspapers, one each in English and Hindi, every
year disclosing the hosting of the scheme wise annual report on its
website and on the website of AMFI. 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.

Half Yearly Financial Results The Fund shall provide half yearly disclosures of the Scheme’s
unaudited financial results in the prescribed format on its website
[Link] within one month from the close of each half
year i.e. on 31st March and on 30th September and shall publish an
advertisement in this regard in at least one English daily newspaper
having nationwide circulation and in a newspaper having wide
circulation published in the language of the region where the Head
Office of the Fund is situated.

5
Dematerialisation of Units The Unit holders would have an option to hold the Units in electronic
(dematerialized) form or account statement/ physical (non-demat)
form. Units held in Demat Form are freely transferable. The Applicant
intending to hold Units in dematerialized form will be required to have
a beneficiary account with a Depository Participant (DP) of the
NSDL/CDSL and will be required to mention in the application form
DP's Name, DP ID No. and Beneficiary Account No. with the DP at the
time of purchasing Units.

Unit-holders are requested to note that requests for conversion of units

held in Account Statement (non-demat) form into Demat (electronic)
form should be submitted to their Depository Participants.

Transfer of Units Units held by way of an Account Statement can be transferred. Units
held in non demat form / by way of an Account Statement can be
transferred.
For units held in non - demat form, unit holders intending to transfer
units will have to get the units Certified by submitting designated form.
On receipt of the said request, RTA will mark the underlying units as
Certified Units and will issue a Certified SOA for those units. The AMC
/ RTA, on production of Designated Transfer Form together with
relevant Certified SOA and requisite documents, register the transfer
and provide the Certified SOA to the transferee within 10 business days
from the date of such production. Investors may note that stamp duty
and other statutory levies, if any, as applicable from time to time shall
be borne by the transferee.
If a person becomes a holder of the Units consequent to operation of
law, or upon enforcement of a pledge, the Fund will, subject to
production of satisfactory evidence, effect the transfer, if the transferee
is otherwise eligible to hold the Units. Similarly, in cases of transfers
taking place consequent to death, insolvency etc., the transferee’s
name will be recorded by the Fund subject to production of satisfactory
evidence.
Units held in Demat form are transferable in accordance with the
provisions of SEBI (Depositories and Participants) Regulations, as may
be amended from time to time. Transfer can be made only in favor of
transferees who are eligible of holding units and having a Demat
Account. The delivery instructions for transfer of units will have to be
lodged with the DP in requisite form as may be required from time to
time and transfer will be effected in accordance with such rules /
regulations as may be in force governing transfer of securities in
dematerialized mode.

Load Structure (for Lumpsum Entry Load: Not Applicable.

purchases and investments through
SIP) Exit Load:
● In respect of each purchase / switch-in of Units, 10% of the
units (“the limit”) may be redeemed without any exit load from
the date of allotment.
● Any redemption or switch-out in excess of the limit shall be
subject to the following exit load:
- Exit load of 1.00% is payable if Units are redeemed /
switched-out within 1 year from the date of allotment of units.
- No Exit Load is payable if Units are redeemed / switched-out
after 1 year from the date of allotment.

Any exit load charged (net off GST, if any) shall be credited back to the
Scheme.

6
 No exit load will be charged, in case of switch transactions between
Plans. i.e Regular Plan and Direct Plan.

The AMC shall not charge entry and/or exit load on units allotted on
reinvestment of Income Distribution cum capital withdrawal.

The Trustees shall have a right to prescribe or modify the exit load
structure with prospective effect subject to a maximum prescribed
under the Regulations.

For further details on load structure refer to the section 'Load any
amount Structure'.

Minimum Application/Additional New Purchase: Rs. 5,000/- and any amount thereafter.
Purchase Amount
Additional Purchase: Rs.500/- and any amount thereafter.

Monthly SIP: Rs. 1,000/- and any amount thereafter.

Quarterly SIP: Rs.3,000/- and any amount thereafter.

Note: Allotment of units will be done after deduction of applicable stamp

duty and transaction charges, if any.

Non-applicability of Minimum Application Amount (Lump-sum)

to Alignment of interest of Designated Employees of AMC:

SEBI vide its master circular on Mutual Funds dated May 19, 2023
(Alignment of interest of Designated Employees of Asset
Management Companies (AMCs) with the Unitholders of the Mutual
Fund Schemes) has, inter alia mandated that a minimum of 20% of
gross annual CTC net of income tax and any statutory contributions
of the Designated Employees of the AMCs shall be invested in units
of the scheme(s) of the Fund in which they have a role/oversight.

Accordingly, the criteria of minimum amounts would not apply for

such Investments made by Designated Employees of the PPFAS
Asset Management Private Limited in compliance with the
aforesaid circular(s).

Transaction Charges In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-

1/P/CIR/2023/74 dated May 19, 2023, PPFAS Asset Management
Private Limited ("the AMC") / Mutual Fund shall deduct the Transaction
Charges on purchase / subscription received from the investors
investing through a valid ARN Holder i.e. AMFI registered Distributor
including transactions routed through Stock Exchange(s) platform viz.
NSE Mutual Fund Platform (“NMF II”) and BSE Mutual Fund Platform
(“BSE StAR MF”) (provided the distributor has opted to receive the
Transaction Charges) as under (distributors’ decision to opt in or opt
out of levying transaction charges is applicable at plan/option/product
level):

(i) First Time Mutual Fund Investor (across Mutual Funds):

Transaction Charge of Rs. 150/- per purchase / subscription of Rs.
10,000/- and above will be deducted from the purchase / subscription
amount for payment to the distributor of such investor and the balance
shall be invested.

7
 (ii) Investor other than First Time Mutual Fund Investor:
Transaction Charge of Rs. 100/- per purchase / subscription of Rs.
10,000/- and above will be deducted from the purchase/ subscription
amount for payment to the distributor of such investor and the balance
shall be invested.

Transaction Charges in case of Investments Through SIP:

Transaction Charges in case of investments through SIP are deductible
only if the total commitment of investment (i.e. amount per SIP
installment x No. of installments) amounts to Rs. 10,000/- or more. In
such cases, Transaction Charges shall be deducted in 3-4 installments.

Identification of investors as “first time” or “existing” will be based on

Permanent Account Number (PAN)/ PAN Exempt KYC Reference
Number (PEKRN) at the First/ Sole Applicant/ Guardian level. Hence,
Unit holders are urged to ensure that their PAN/ PEKRN/ KYC is
updated with the Fund. Unit holders may approach any of the Official
Points of Acceptances of the Fund i.e. Investor Service Centers (ISCs)
of the Fund/ offices of our Registrar and Transfer Agent, M/s. Computer
Age Management Services Limited in this regard.

It may be noted that Transaction Charges shall not be deducted:

(a) where the distributor of the investor has not opted to receive any
Transaction Charges;
(b) for purchases / subscriptions / total commitment amount in case of
SIP of an amount less than Rs. 10,000/-;
(c) for transactions other than purchases / subscriptions relating to new
inflows; i.e. through Switches/ Systematic Transfers/ Transfer of
Income Distribution cum capital withdrawal plan / Transfer of Income
Distribution cum capital withdrawal plan;
(d) for purchases / subscriptions made directly with the Fund (i.e. not
through any distributor);
(e) for purchases / subscriptions routed through Stock Exchange(s)
through Stock Brokers as applicable.

For further details on Transaction Charges, refer to the section “Units

and Offer”

Cash Investments In order to help enhance the reach of mutual fund products amongst
small investors, who may not be tax payers and may not have
PAN/bank accounts, such as farmers, small
traders/businessmen/workers, SEBI has permitted receipt of cash
transactions for fresh purchases/ additional purchases to the extent of
Rs.50,000/- per investor, per financial year shall be allowed subject to:
i. compliance with Prevention of Money Laundering Act, 2002 and
Rules framed there under; the SEBI Circular(s) on Anti Money
Laundering (AML) and other applicable Anti Money Laundering Rules,
Regulations and Guidelines; and
ii. sufficient systems and procedures in place.

However, payment towards redemptions, Income distribution cum

capital withdrawal option etc. with respect to aforementioned
investments shall be paid only through the banking channel.

At present, applications for investing in schemes through cash are not

accepted by PPFAS Mutual Fund. Appropriate notice shall be
displayed on its website viz. as well as at the Investor Service Centres,

8
 once the facility is made available to the investors.

Option / Plan The Scheme offers two Plans:

1. Direct Plan
2. Regular Plan

Both Regular and Direct Plan(s) offers two Options, viz.,

1. Growth Option
2. Income Distribution cum capital withdrawal (IDCW) Option

Income Distribution cum capital withdrawal Option have the following

sub-options/facilities:

Sub-Option/ Frequency Record Date

Facilities of IDCW

Monthly Reinvestment Monthly Last Monday of the

of Income Distribution Month
cum capital withdrawal
option

Monthly Payout of Monthly Last Monday of the

Income Distribution Month
cum capital withdrawal
option

The NAVs of the above options will be different and separately

declared; the portfolio of investments remaining the same

Investors are requested to note that, where the actual amount of payout
of IDCW option is less than Rs. 500/-, then such IDCW will be
compulsorily reinvested.

The Investors should indicate the plan / option for which Subscription
is made by indicating the choice in the appropriate box provided for this
purpose in the application form. In case of valid application received
without any choice of option/ facility, the following default plan / option
will be considered:

Default Plan
Investors subscribing under Direct Plan of the Scheme will have to
indicate “Direct Plan” against the Scheme name in the application form.
However, if distributor code is mentioned in application form, but “Direct
Plan” is mentioned against the Scheme name, the distributor code will
be ignored and the application will be processed under “Direct Plan”.
Further, where application is received for regular Plan without
Distributor code or “Direct” mentioned in the ARN Column, the

9
 application will be processed under Direct Plan. For further details,
please refer to ‘Section III. Units and Offer”.

Default Option – Growth

Default IDCW Frequency – Monthly Reinvestment of Income

Distribution cum capital withdrawal option.

As per AMFI Best Practice Guideline No : 135/BP/ 107 /2023-24 dated

May 04, 2023, AMC can accept business only from an empaneled
distributor. Transactions received, if any, from / under the ARN of a
non-empaneled MFD may be processed under Direct Plan, with prompt
intimation to the non-empaneled MFD, and the investor.

Minimum Redemption Amount (For All Re.1 or 1 unit in respect of each option.
Option/plan) In case the Investor specifies both the number of units and amount, the
number of Units shall be considered for Redemption. In case the
unitholder does not specify the number or amount, the request will not
be processed.

Where Units under a Scheme are held under both Plans and the
redemption / Switch request pertains to the Direct Plan, the same must
clearly be mentioned on the request (along with the folio number),
failing which the request would be processed from the Regular Plan.
However, where Units under the requested Option are held only under
one Plan, the request would be processed under such Plan.

10
I. INTRODUCTION

A. RISK FACTORS

Standard Risk Factors:

● Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity
risk, default risk including the possible loss of principal.

● As the price / value / interest rates of the securities in which the scheme invests fluctuates, the value of your
investment in the scheme may go up or down. The value of investments may be affected, inter-alia, by changes
in the market, interest rates, changes in credit rating, trading volumes, settlement periods and transfer
procedures; the NAV is also exposed to Price/Interest-Rate Risk and Credit Risk and may be affected inter-
alia, by government policy, volatility and liquidity in the money markets and pressure on the exchange rate of
the rupee.

● Past performance of the Sponsor and their associates / AMC / Mutual Fund does not guarantee future
performance of the Scheme of the Mutual Fund.

● Parag Parikh Dynamic Asset Allocation Fund is only the name of the Scheme and the name of the Scheme
does not in any manner indicate either the quality of the Scheme or its future prospects and returns.

● The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the
initial contribution of Rs. 1 lakh made by them towards setting up the Fund.

● The present scheme is not a guaranteed or assured return scheme.

Scheme Specific Risk Factors:

Some of the specific risk factors related to the Scheme include, but are not limited to the following:

1. Risks associated with investments in Equity and Equity related instruments

● Equity and Equity related instruments are volatile in nature and are subject to price fluctuations on a daily
basis. The volatility in the value of the equity and equity related instruments is due to various micro and macro-
economic factors affecting the securities markets. This may have an adverse impact on individual securities
/sector and consequently on the NAV of Scheme.
● The inability of the Scheme to make intended securities purchases due to settlement problems could cause
the Scheme to miss certain investment opportunities as in certain cases, settlement periods may be extended
significantly by unforeseen circumstances. Similarly, the inability to sell securities held in the schemes portfolio
may result, at times, in potential losses to the scheme, should there be a subsequent decline in the value of
the securities held in the schemes portfolio.
● Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made
by the scheme. Different segments of the Indian financial markets have different settlement periods and such
periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds
from sale of securities.
● The AMC may invest in unlisted securities within the regulatory limit. This may however increase the risk of
the portfolio as these unlisted securities are inherently illiquid in nature and carry larger liquidity risk as
compared to the listed securities or those that offer other exit options to the investors.

2. Risk Factors Associated with Fixed Income Securities and Money Market Instruments

11
Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, and money market
instruments and derivatives run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing
fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices
depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is
being traded.

Reinvestment Risk: Investments in fixed income securities carry reinvestment risk as interest rates prevailing on the
coupon payment or maturity dates may differ from the original coupon of the bond.

Basis Risk: The underlying benchmark of a floating rate security or a swap 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.

Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark
rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the
underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase
leading to loss in value of the security.

Liquidity Risk: The liquidity of fixed income securities may change, depending on market conditions leading to
changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can
become illiquid, leading to loss in value of the portfolio.

Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market instrument defaulting
on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a
security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government
Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government
securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating
agency is safer than a bond rated lower by the same rating agency.

Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their
holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The
unlisted security can go down in value before the divestment date and selling of these securities before the divestment
date can lead to losses in the portfolio.

Counterparty Risk: - This is the risk of failure of counterparty to a 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 a counterparty default.

Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund
house to swiftly execute trading strategies which can lead to adverse movements in NAV.

Risks associated with unrated instruments: -Investments in unrated instruments are subject to the risk associated
with investments in any other fixed income securities, as referred above. However, investments in unrated instruments
are considered to be subject to greater risk of loss of principal and interest than rated instruments.

3. Risks associated with Investing in Structured Obligation (SO) & Credit Enhancement (CE) rated securities
The risks factors stated below for the Structured Obligations & Credit Enhancement are in addition to the risk factors
associated with debt instruments.

-Credit rating agencies assign CE rating to an instrument based on any identifiable credit enhancement for the debt
instrument issued by an issuer. The credit enhancement could be in various forms and could include guarantee, shortfall
undertaking, letter of comfort, etc. from another entity. This entity could be either related or non-related to the issuer
like a bank, financial institution, etc. Credit enhancement could include additional security in form of pledge of shares

12
listed on stock exchanges, etc. SO transactions are asset backed/ mortgage backed securities, securitized paper
backed by hypothecation of car loan receivables, securities backed by trade receivables, credit card receivables etc.
Hence, for CE rated instruments evaluation of the credit enhancement provider, as well as the issuer is undertaken to
determine the issuer rating. In case of SO rated issuer, the underlying loan pools or securitization, etc. is assessed to
arrive at rating for the issuer.

Liquidity Risk: SO rated securities are often complex structures, with a variety of credit enhancements. Debt securities
lack a well-developed secondary market in India, and due to the credit enhanced nature of CE securities as well as
structured nature of SO securities, the liquidity in the market for these instruments is adversely affected compared to
similar rated debt instruments. Hence, lower liquidity of such instruments, could lead to inability of the scheme to sell
such debt instruments and generate liquidity for the scheme or higher impact cost when such instruments are sold.

Credit Risk: The credit risk of debt instruments which are CE rated derives rating based on the combined strength of
the issuer as well as the structure. Hence, any weakness in either the issuer or the structure could have an adverse
credit impact on the debt instrument. The weakness in structure could arise due to inability of the investors to enforce
the structure due to issues such as legal risk, inability to sell the underlying collateral or enforce guarantee, etc. In case
of SO transactions, co-mingling risk and risk of servicer increases the overall risk for the securitized debt or assets
backed transactions. Therefore, apart from issuer level credit risk such debt instruments are also susceptible to
structure related credit risk.

4. Risk factors associated with investing in Derivatives:

The AMC, on behalf of the Scheme may use various derivative products, from time to time, in an attempt to protect the
value of the portfolio and enhance Unit holders' interest. Derivative products are specialized instruments that require
investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative
requires an understanding not only of the underlying instrument but of the derivative itself. Other risks include, the risk
of mis-pricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates
and indices.

Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate
losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such
opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and
the decision of 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.

Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess
the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There
is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred
to as the “counterparty”) to comply with the terms of the derivatives contract. The Scheme bears a risk that it may not
be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors
in establishing derivative positions for the Scheme.
Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives, trading
in derivatives carry a high degree of risk although they are traded at a relatively small amount of margin which provides
the possibility of great profit or loss in comparison with the principal investment amount.

Other risks in using derivatives include but are not limited to:

a. Credit Risk – This occurs when a counterparty defaults on a transaction before settlement and therefore, the
Scheme are compelled to negotiate with another counter party, at the then prevailing (possibly unfavorable) market

13
price, in order to maintain the validity of the hedge. For exchange traded derivatives, the risk is mitigated as the
exchange provides a guaranteed settlement but one takes the performance risk on the exchange.

b. Liquidity 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.

c. Model Risk – This is the risk of mis–pricing or improper valuation of derivatives.

d. 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. Additional Risk viz. Basis Risk associated with imperfect hedging using Interest Rate Futures (IRF): The
imperfect correlation between the prices of securities in the portfolio and the IRF contract used to hedge part of the
portfolio leads to basis risk. Thus, the loss on the portfolio may not exactly match the gain from the hedge position
entered using the IRF.

e. 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.

f. Valuation Risk: This is the risk of mis–pricing or improper valuation of derivatives due to inadequate trading data
with good volumes.

g. 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.

h. Counterparty Risk: Counterparty risk is the risk that losses will be incurred due to the default by the counterparty
for OTC derivatives.

i. 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.

j. 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.

5. Risk factors Associated with Securitised Debt:

The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed
Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans
including automobile loans, personal loans, loans against consumer durables, etc. MBS are securitized debts where
the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties.

At present in Indian market, following types of loans are securitized:

1. Auto Loans (cars / commercial vehicles /two wheelers)

2. Residential Mortgages or Housing Loans
3. Consumer Durable Loans
4. Personal Loans
5. Corporate Loans

In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential
Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the
other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and

14
better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an
economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying
security for the loan or the nature of the receivable and the risks correspondingly fluctuate.

The Risks involved in Securitised Papers described below are the principal ones and does not represent that the risks
set out hereunder is exhaustive.

Limited Liquidity & Price Risk

There is no assurance that a deep secondary market will develop for the Certificates. This could limit the ability of the
investor to resell them.

Limited Recourse, Delinquency and Credit Risk

The Credit Enhancement stipulated represents a limited loss cover to the Investors. These Certificates represent an
undivided beneficial interest in the underlying receivables and do not represent an obligation of either the Issuer or the
Seller or the originator, or the parent or any associate of the Seller, Issuer and Originator. Delinquencies and credit
losses may cause depletion of the amount available under the Credit Enhancement and thereby the Investor Payouts
to the Certificate Holders may get affected if the amount available in the Credit Enhancement facility is not enough to
cover the shortfall. On persistent default of an Obligor to repay his obligation, the Servicer may repossess and sell the
Asset. However, many factors may affect, delay or prevent the repossession of such Asset or the length of time required
to realise the sale proceeds on such sales. In addition, the price at which such Asset may be sold may be lower than
the amount due from that Obligor.

Risks due to possible prepayments and Charge Offs

In the event of prepayments, investors may be exposed to changes in tenor and yield. Also, any Charge Offs would
result in the reduction in the tenor of the Pass-Through Certificates (PTCs).

Re-investment Risk: Since prepayment risk increases when interest rates decline, this also introduces re-investment
risk, which is the risk that the principal can only be reinvested at a lower rate.

Bankruptcy of the Swap Bank

If the Swap Bank becomes subject to bankruptcy proceedings then an Investor could experience losses or delays in
the payments due under the Interest Rate Swap Agreement.

Risk of Co-mingling

With respect to the Certificates, the Servicer will deposit all payments received from the Obligors into the Collection
Account. However, there could be a time gap between collection by a Servicer and depositing the same into the
Collection account especially considering that some of the collections may be in the form of cash. In this interim period,
collections from the Loan Agreements may not be segregated from other funds of originator. If the originator in its
capacity as Servicer fails to remit such funds due to Investors, the Investors may be exposed to a potential loss.

6. Risk factors associated with Securities Lending

As with other modes of extensions of credit, there are risks inherent to securities lending, including the risk of failure of
the other party, in this case the approved intermediary, to comply with the terms of the agreement entered into between
the lender of securities i.e. the 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.

7. Risk Factors associated writing covered call options for equity shares:

15
a) Writing call options are highly specialized activities and entail higher than ordinary investment risks. In such
investment strategy, the profits from call option writing is capped at the option premium, however the downside depends
upon the increase in value of the underlying equity shares. This downside risk is reduced only to the extent of premium
received by writing covered call options.

b) The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per
regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered
call options are sold to the maximum extent allowed by regulatory authority, the scheme may not be able to sell the
underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to
be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity or can cause exit issues
if the strike price at which the call option contracts have been written become illiquid. Hence, the scheme may not be
able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and
result in loss of opportunity.

c) The writing of the covered call option would lead to loss of opportunity due to appreciation in value of the underlying
equity shares. Hence, when the appreciation in equity share price is more than the option premium received the scheme
would be at a loss.

d) The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the
net assets of the scheme. This may restrict the ability of Scheme to buy any options.

e) Increased volatility in the market may result in higher premium and marked to market losses in NAV for all the existing
short option position even at the same price of underlying stock.

8. Risk factors associated with Segregated Portfolio

Different types of securities in which the scheme would invest carry different levels and types of risk as given in the
Scheme Information Document of the scheme. In addition to the same, unitholders are requested to also note the
following risks with respect to Segregated Portfolio:

Liquidity Risk: A lower level of liquidity affecting an individual security (ies) or an entire market may have an adverse
bearing on the value of the Segregated Scheme's assets. This may more importantly affect the ability to sell particular
securities with minimal impact cost as and when necessary to meet requirements of liquidity or to sell securities in
response to triggers such as a specific economic/corporate event. Trading volumes, settlement periods and transfer
procedures may restrict the liquidity of a few of the investments. This may impact the NAV of the segregated portfolio
and could result into potential loss to the Unit holders.

Credit risk: The scheme's risk may increase or decrease depending upon its investment pattern. E.g. corporate bonds
carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds, which are AA
rated, are comparatively more risky than bonds, which are AAA rated. Investment in unrated securities may be riskier
compared to investment in rated instruments due to non-availability of third party assessment on the repayment
capability of the issuer. As the securities are unrated, an independent opinion of the rating agency on the repayment
capability of the issuer will not be available. The issuer of a debenture/ bond or a money market instrument may default
on interest payment or even in paying back the principal amount on maturity. Even where no default occurs, the price
of a security may go down because the credit rating of an issuer goes down. This may impact the NAV of the segregated
portfolio and resultant loss to the Unit holders.

Listing of units: Listing of units of segregated portfolio in recognized stock exchange does not necessarily guarantee
their liquidity. There may not be active trading of units in the stock market. Further, trading price of units on the stock
market may be significantly lower than the prevailing NAV.

9. Risk factors associated with processing of transaction through Stock Exchange Mechanism:

The trading mechanism introduced by the stock exchange(s) is configured to accept and process transactions for
mutual fund units in both Physical and Demat Form. The allotment and/or redemption of Units through NSE and/or BSE

16
or any other recognised stock exchange(s), on any Business Day will depend upon the modalities of processing viz.
collection of application form, order processing/settlement, etc. upon which the Fund has no control. Moreover,
transactions conducted through the stock exchange mechanism shall be governed by the operating guidelines and
directives issued by respective recognized stock exchange(s).

10. Risks associated with investments in Repo transactions in Corporate Bonds

In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing
to buy them back at later date. The repurchase price should be greater than the original sale price, the difference
effectively representing interest. A repo is economically similar to a secured loan, with the buyer receiving corporate
debt securities as collateral to protect against default. The Scheme may invest in repo of corporate debt securities
which are subject to the following risks:

Counterparty Risk: This refers to the inability of the seller to meet the obligation to buy back securities at the contracted
price on the contracted date. The Investment Manager will endeavour to manage counterparty risk by dealing only with
counterparties, having strong credit profiles. Also, the counterparty risk is to an extent mitigated by taking collateral
equivalent in value to the transaction after knocking off a minimum haircut on the intrinsic value of the collateral. In the
event of default by the repo counterparty, the scheme shall have recourse to corporate debt securities.

Collateral Risk: Collateral risk arises when the market value of the securities is inadequate to meet the repo obligations.
This risk is mitigated by restricting participation in repo transactions with collateral bearing a minimum rating as
prescribed by the regulators (currently AA or equivalent and above rated money market and corporate debt securities).
Any rating downgrade will tantamount to either an early termination of the repo agreement or a call for fresh margin to
meet the minimum haircut requirement. In addition, the Investment manager may apply a higher haircut on the
underlying security than mentioned above to adjust for the illiquidity and interest rate risk on the underlying instrument.
The adequacy of the collateral will be monitored on a daily basis by considering the daily market value & applying the
prescribed haircut. In the event of shortfall in the collateral, the counterparty shall be asked to replenish the same. If
the counterparty is not able to top-up either in form of cash / collateral, it shall tantamount to early termination of the
repo agreement.

Settlement Risk: Corporate Bond Repo shall be settled between two counterparties in the OTC segment unlike in the
case of Government securities repo transactions where CCIL stands as central counterparty on all transactions which
neutralizes the settlement risk. However, the settlement risk pertaining to CDRs shall be mitigated through Delivery
versus Payment (DvP) mechanism which is followed by all clearing members.

11. Risk factors associated with investing in Non- Convertible Preference Shares

Credit Risk - Credit risk is the risk that an issuer will be unable to meet its obligation of payment of dividend and/ or
redemption of principal amount on the due date. Further, for non-cumulative preference shares, issuer also has an
option to not pay dividends on preference shares in case of inadequate profits in any year.

Liquidity Risk - The preference shares generally have limited secondary market liquidity and thus we may be forced
to hold the instrument till maturity.

Unsecured in nature - Preference shares are unsecured in nature and rank lower than secured and unsecured
debt in hierarchy of payments in case of liquidation. Thus there is significant risk of capital erosion in case the
company goes into liquidation.

12. Risk associated with investment in Government securities and Triparty repo on Government securities or
treasury bills:

-The mutual fund is a member of securities segment and Triparty Repo trade settlement of the Clearing Corporation
of India (CCIL). All transactions of the mutual fund in government securities and in Tri-party Repo trades are settled
centrally through the infrastructure and settlement systems provided by CCIL; thus reducing the settlement and
counterparty risks considerably for transactions in the said segments. The members are required to contribute an

17
amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default
waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through
CCIL).

-As per the waterfall mechanism, after the defaulter's margins and the defaulter's contribution to the default fund have
been appropriated, CCIL's contribution is used to meet the losses. Post utilization of CCIL's contribution if there is a
residual loss, it is appropriated from the default fund contributions of the non-defaulting members. Thus the scheme is
subject to risk of the initial margin and default fund contribution being invoked in the event of failure of any settlement
obligations. In addition, the fund contribution is allowed to be used to meet the residual loss in case of default by the
other clearing member (the defaulting member).

-CCIL shall maintain two separate Default Funds in respect of its Securities Segment, one with a view to meet losses
arising out of any default by its members from outright and repo trades and the other for meeting losses arising out of
any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to
the default fund of CCIL, in the event that the contribution of the mutual fund is called upon to absorb settlement/default
losses of another member by CCIL, as a result the scheme may lose an amount equivalent to its contribution to the
default fund.

13. General Risk factors:

Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the
Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be
extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities.
The NAV of the Units of the Scheme can go up or down because of various factors that affect the capital markets in
general.

As the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and settlement
periods, the time taken by the Mutual Fund for redemption of Units may be significant in the event of an inordinately
large number of redemption requests or restructuring of the Scheme. In view of the above, the Trustee has the right, in
its sole discretion, to limit redemptions (including suspending redemptions) under certain circumstances, as described
under "Right to Limit Redemptions" in Section ‘Restrictions, if any, on the right to freely retain or dispose of units being
offered’. The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity
requirements.

Investment strategy to be adopted by the Scheme may carry the risk of significant variance between the portfolio
allocation of the Scheme and the Benchmark particularly over a short to medium term period.

Performance of the Scheme may be affected by political, social, and economic developments, which may include
changes in government policies, diplomatic conditions, and taxation policies.

B. 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 compiled
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.

REQUIREMENT OF MINIMUM AVERAGE ASSETS UNDER MANAGEMENT (AUM)

18
The Scheme shall maintain an average AUM of Rs. 20 crores on half yearly rolling basis. In case, the average AUM
falls below Rs. 20 crores, the AMC shall scale up the AUM of such Scheme within a period of six months so as to
maintain the average AUM of Rs. 20 crores on half yearly rolling basis, failing which the Scheme shall be wound up in
accordance with the provisions of Regulation 39 (2) (c) of SEBI (Mutual Funds) Regulations, 1996 as amended from
time to time.

C. SPECIAL CONSIDERATIONS, IF ANY

● The Sponsor is not responsible for any loss resulting from the operation of the Scheme beyond the initial
contribution of an amount of Rs.1,00,000 (Rupees One Lakh) collectively made by them towards setting up
the Mutual Fund or such other accretions and additions to the initial corpus set up by the Sponsor.

● Prospective Investors should study this Scheme Information Document and the Statement of Additional
Information carefully in its entirety and should not construe the contents as advise relating to legal, taxation,
investment or any other matters. Investors are advised to consult their legal, tax, investment and other
professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or
redeeming units, before making a decision to invest / redeem /hold Units.

● Neither this Scheme Information Document nor the Units have been registered in any jurisdiction outside India.
The Investors may take note that the Scheme may in future be registered/ recognized in any other applicable
jurisdiction, by the AMC as and when it desires. The distribution of this Scheme Information Document in
certain jurisdictions may be restricted or totally prohibited due to registration requirements and accordingly,
persons who come into possession of this Scheme Information Document are required to inform themselves
about and to observe any such restrictions and or legal compliance requirements with respect to their eligibility
for investment in the Units of the Scheme. Any person receiving a copy of this SID, SAI or any accompanying
application form in such jurisdiction should not treat this SID, SAI or such application form as constituting an
invitation to them to subscribe for Units. Such persons should in no event use any such application form unless
in the relevant jurisdiction such an invitation to subscribe could lawfully be made to them and such application
form could lawfully be used without complying with any registration or other legal requirements by the
AMC/Mutual Fund/Trustee.

● Any dispute arising out of the Scheme shall be subject to the non-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.

● No person has been authorised to issue any advertisement or to give any information or to make any
representations other than that contained in this Scheme Information Document and Statement of Additional
Information. Circulars in connection with this offering not authorised by the Mutual Fund and any information
or representations not contained herein must not be relied upon as having been authorized by the Mutual
Fund.

● The Mutual Fund / Trustees / AMC has not authorized any person to give any information or make any
representations, either oral or written, not stated in this SID or the SAI in connection with issue or sale of Units
under the Scheme. Prospective Investors are advised not to rely upon any information or representations not
incorporated in the SAI and SID as the same have not been authorized by the Mutual Fund or the Trustees or
the AMC. Any Purchase or Redemption or Switch made by any person on the basis of statements or
representations which are not contained in this SID or SAI or which are not consistent with the information
contained in the Offer Documents shall be solely at the risk of the Investor / Unit holder(s). Investors are
requested to check the credentials of the individual, firm or other entity they are entrusting their Application
Form and payment to, for any transaction with the Mutual Fund. The Mutual Fund shall not be responsible for
any acts done by the intermediaries representing or purportedly representing such Investor.

● The Mutual Fund may disclose details of the investor's account and transactions there under to those
intermediaries whose stamp appears on the application form. In addition, the Mutual Fund may disclose such
details to the bankers / its agents, payment aggregators as may be necessary for the purpose of effecting
payments to the investor. Further, the Mutual Fund may disclose details of the investor’s account and
transactions thereunder to any Regulatory / Statutory entities as per the provisions of law.

19
● The AMC and/ or its Registrars & Transfer Agent (RTA) reserve the right to disclose/share Unit holder's details
of folio(s) and transaction details thereunder with the following third parties of fulfilling its obligations under
PMLA and rules/guidelines issued thereunder without obtaining prior approval of the Unitholder/any other
person:
a) RTA, Banks and/or authorised external third parties who are involved in transaction processing, dispatching
etc., of the Unitholder's investment in the Scheme;
b) Distributors or sub-brokers through whom the applications are received for the Scheme;
c) Any other organizations for compliance with any legal or regulatory requirements or to verify the identity of
the Unitholders for complying with anti-money laundering requirements.
In this connection the Trustee / AMC reserves the right to reject any such application at its discretion.

● Mutual funds and securities investments are subject to market risks and there can be no assurance or
guarantee that the Scheme objectives will be achieved and the investment decisions made by the AMC may
not always be profitable. Investors should study this Scheme Information Document and the Statement of
Additional Information carefully in its entirety before investing.

● The Trustee, AMC, Mutual Fund, their directors and their employees shall not be liable for any of the tax
consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner
provided in 'Statement of Additional Information ('SAI')'. Redemption by the Unit holder due to change in the
fundamental attributes of the Scheme or due to any other reasons may involve tax consequences. The
Trustee, AMC, Mutual Fund, their directors and their employees shall not be liable for any such tax
consequences that may arise.

● The tax benefits described in this Scheme Information Document and Statement of Additional Information are
as available under the present taxation laws and are available subject to relevant conditions. The information
given is included only for general purpose and is based on advise received by the AMC regarding the law and
practice currently in force in India and the Unit holders should be aware that the relevant fiscal rules or their
interpretation may change. As is the case with any investment, there can be no guarantee that the tax position
or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In
view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own
professional tax advisor.

● In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under and the
guidelines/circulars issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries,
including Mutual Funds, have to formulate and implement a client identification i.e. Know Your Customer
programme, verify and maintain the record of identity and address(es) of investors. The need to Know Your
Customer (KYC) is vital for the prevention of money laundering. The Trustee / AMC may seek information or
obtain and retain documentation used to establish identity. It may re-verify identity and obtain any missing or
additional information for this purpose. The Trustee / AMC may reject any application or prevent further
transactions by a Unit holder, if after due diligence, the Investor / Unit holder / a person making the payment
on behalf of the Investor does not fulfill the requirements of the Know Your Customer (KYC). If after due
diligence the Trustee / AMC has reason to believe that any transaction is suspicious in nature as regards
money laundering, the AMC shall report such transactions to competent authorities under PMLA and
rules/guidelines issued thereunder by SEBI/RBI, furnish any such information in connection therewith to such
authorities and take any other actions as may be required for the purposes of fulfilling its obligations under
PMLA and rules/guidelines issued thereunder without obtaining prior approval of the Unitholder/any other
person. In this connection the Trustee / AMC reserves the right to reject any such application.

● As per SEBI circular No MRD/DoP/Cir- 05/2007 dated April 27, 2007, in order to strengthen the Know Your
Client (KYC) norms and identify every participant in the securities market with their respective Permanent
Account Number (PAN) thereby ensuring sound audit trail of all the transactions, PAN shall be the sole
identification number for all participants transacting in the securities market, irrespective of the amount of
transactions (except for specifically exempted cases). Exempted investors are required to provide alternate
proof of identity in lieu of PAN for KYC purposes and are allotted PAN-exempt KYC Reference Number
(PEKRN).
Valid PAN/PEKRN and KYC is mandatory for all financial transactions including non-investor initiated. If not
furnished, then from April 1, 2023.
1. IDCW reinvestment option/facility being automatically changed to IDCW payout option/facility.
Registrations under Transfer of IDCW Plan facility, being canceled and IDCW declared, if any, being

20
 treated as "Payout".
2. All IDCW pay-out (including point 1 and 2 above) shall also be paid only after unit holders furnish their
PAN/PEKRN.
Further, such investors will also be able to lodge grievance or make service requests only after furnishing the
above details.
Currently, as per Section 139AA of the Income Tax Act, 1961, every person who has been allotted a PAN as
on July 1, 2017, and who is eligible to obtain an Aadhaar number, shall have to mandatorily link their Aadhaar
and PAN latest by June 30, 2023 or such other timeline as may be notified by SEBI from time to time, failing
which such PAN shall become inoperative immediately thereafter and attract higher TDS and transaction
restrictions.
Note: Presently, Aadhaar-PAN linking does not apply to any individual who is (a) residing in the States of
Assam, Jammu and Kashmir, and Meghalaya; (b) a non-resident as per the Income Tax Act, 1961 (NRI as
per Income Tax records); or (c) of the age of eighty years or more at any time during the previous year; or (d)
not a citizen of India.
However, these exemptions may change or be revoked later.

● SEBI vide its Master Circular dated May 19, 2023, as amended from time to time, has made it mandatory for
investors subscribing to mutual fund units on or after October 1, 2022, to either provide nomination details or
opt out of nomination in prescribed format. Further, all existing individual unit holder(s) (either sole or joint) are
required to provide nomination / opt out of nomination by June 30, 2024 as per Circular No.: SEBI/HO/IMD/
IMD-I POD1/P/CIR/2023/160 dated September 27, 2023 or such other timeline as may be notified by SEBI
from time to time, failing which their folios shall be frozen for debits.

● Subject to the approval of Board of Directors of the AMC and Trustee Company and immediate intimation to
SEBI, a restriction on redemptions may be imposed by the Scheme under certain exceptional circumstances,
which the AMC / Trustee believe that may lead to a systemic crisis or event that constrict liquidity of most
securities or the efficient functioning of markets. Please refer to the paragraph “Right to Limit Redemptions”
for further details.

● From time to time and subject to the Regulations, the Sponsor, the mutual funds and investment companies
managed by them, their associate companies, subsidiaries of the Sponsor and the AMC may invest either
directly or indirectly in the Scheme. The funds managed by these associates, the sponsor, subsidiaries of the
Sponsor and/or the AMC may acquire a substantial portion of the Scheme’s Units and collectively constitute a
major Investor in the Scheme. Accordingly, Repurchase/Redemption of Units held by such funds, associates
and Sponsor may have an adverse impact on the Units of the Scheme because the timing of such
Repurchase/Redemption may impact the ability of the other Unitholders to redeem their Units.

● Levy of Stamp Duty on applicable mutual fund transactions

Investors/ Unit holders of all Schemes of PPFAS Mutual Fund are requested to note that, 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 option) 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 option etc. to
the unit holders would be reduced to that extent. The stamp duty will be deducted from the net investment
amount i.e. gross investment amount less any other deduction like transaction charge. Units will be created
only for the balance amount i.e. Net Investment Amount as reduced by the stamp duty. The stamp duty will
be computed at the rate of 0.005% on an inclusive method basis.
For instance: If the transaction amount is Rs. 100100 /- and the transaction charge is Rs. 100, the stamp duty
will be calculated as follows: ((Transaction Amount – Transaction Charge)/100.005*0.005) = Rs. 5. If the
applicable Net Asset Value (NAV) is Rs. 10 per unit, then units allotted will be calculated as follows:
(Transaction Amount – Transaction Charge – Stamp Duty)/ Applicable NAV = 9,999.50 units.
Transfer of mutual fund units (such as transfers between demat accounts) are subject to payment of stamp
duty @ 0.015%. The rate and levy of stamp duty may vary as amended from time to time.

21
 ● Foreign Account Tax Compliance Act (FATCA):

The Foreign Account Tax Compliance Act (FATCA) is a United States Federal Law, aimed at prevention of
tax evasion by US taxpayers through use of offshore accounts. The Government of India and the United States
of America (US) have reached an agreement in substance on the terms of an Inter-Governmental Agreement
(IGA) to implement FATCA. FATCA is designed to increase compliance by US taxpayers and is intended to
bolster efforts to prevent tax evasion by the US taxpayers with offshore investments. PPFAS Mutual Fund is
classified as a “Foreign Financial Institution” (FFI) under the FATCA provisions. FATCA requires enhancement
of due diligence processes by the FFI so as to enable the FFI to identify US reportable accounts.

In accordance with the FATCA provisions, the Fund /the AMC would be required, from time to time, to
undertake necessary due diligence process by collecting information/documentary evidence of the US/non-
US status of its investors/ unit holders and identify US reportable accounts, and to disclose/report information
(through itself or through its service providers), as far as may be legally permitted, about the
holdings/investment returns pertaining to US reportable accounts to the US Internal Revenue Service (IRS)
and/or such Indian authorities as may be specified under FATCA or other applicable laws or guidelines; and
to carry out such other activities, as prescribed under FATCA or other applicable laws or guidelines, as
amended from time to time.

The AMC / Trustee reserves the right to modify the provisions of the SID / KIM / SAI from time to time as
permissible under SEBI (MF) Regulations and circulars and guidelines issued thereunder from time to time.

D. DEFINITIONS:

In this Scheme Information Document, the following words and expressions shall have the meaning specified
herein, unless the context otherwise requires:

"AMC" or "Asset Management PPFAS Asset Management Private Limited, incorporated

Company" or "Investment Manager" under the provisions of the Companies Act, 1956 and
approved by Securities and Exchange Board of India to act
as the Asset Management Company for the schemes of
PPFAS Mutual Fund.

"Applicable NAV" The Net Asset Value applicable for Purchase/ Redemptions
/ Repurchase / Switches etc., based on the Business Day
and relevant cut-off times on which the application is
accepted at the official point of acceptance.

"AMFI Certified Stock Exchange A person who is registered with AMFI as Mutual Fund
Brokers" Advisor and who has signed up with PPFAS Asset
Management Private Limited and also registered with BSE &
NSE as Participant.

"ARN Holder" / "AMFI registered Intermediary registered with Association of Mutual Funds in
"Distributors" India (AMFI) to carry out the business of selling and
distribution of mutual fund units and having AMFI
Registration Number (ARN) allotted by AMFI.

"Beneficial Owner" Beneficial owner as defined in the Depositories Act 1996 (22
of 1996) means a person whose name is recorded as such
with a depository.

"Book Closure" The time during which the Asset Management Company
would temporarily suspend sale, redemption and switching
of Units.

“Business Day” A day other than:

22
 i. Saturday and Sunday;
ii. A day on which the banks in Mumbai and / RBI are closed
for business / clearing;
iii. A day on which the National Stock Exchange of India
Limited is closed;
iv. A day which is a public and /or bank holiday at a Investor
Service Centre/ Official Point of Acceptance where the
application is received;
v. A day on which Sale / Redemption / Switching of Units is
suspended by the AMC;
vi. A day on which normal business cannot be transacted due
to storms, floods, bandhs, strikes or such other events as the
AMC may specify from time to time.
vii. The AMC reserves the right to declare any day as a
Business Day or otherwise at any or all Investor Service
Centres.

“Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or
such other time as may be applicable from time to time.

"Clearing Member" or "CM" Clearing Members are members of the Clearing

Houses/Clearing Corporations who facilitate settlement of
trades done on stock exchanges.

"Consolidated Account Statement" Consolidated Account Statement is a statement containing

details relating to all the transactions across all schemes of
mutual funds viz. purchase, redemption, switch, Payout of
Income Distribution cum capital withdrawal option,
Reinvestment of Income Distribution cum capital withdrawal
option, systematic investment plan, systematic withdrawal
plan, systematic transfer plan and bonus transactions, etc.
(including transaction charges paid to the distributor) and
holding at the end of the month.

“Call money/Money at Call” Refers to the money invested by the Funds in the overnight
Money Market, subject to necessary regulatory approvals.

"Custodian" A person who has been granted a certificate of registration

to carry on the business of custodian of securities under the
Securities and Exchange Board of India (Custodian of
Securities) Regulations 1996, which for the time being is
Deutsche Bank AG.

"Depository" Depository as defined in the Depositories Act, 1996 (22 of

1996) and in this SID, refers to National Securities
Depository Ltd (NSDL) and Central Depository Services
(India) Ltd (CDSL).

"Depository Participant" 'Depository Participant' means a person registered as such

under Sub-section (1A) of section 12 of the Securities and
Exchange Board of India Act, 1992.

"Derivative" Derivative includes (i) a security derived from a debt

instrument, share, loan whether secured or unsecured, risk
instrument or contract for differences or any other form of
security; (ii) a contract which derives its value from the prices,

23
 or index of prices, or underlying securities.

“Direct Plan” A Plan for investors who wish to invest directly without
routing the investment through any distributor. This Plan
shall have a lower expense ratio and no commission for
distribution of Units will be paid/ charged under the Direct
Plan.

"Entry Load" or "Sales Load" Load on Sale / Switch in of Units.

However, SEBI vide its circular no. SEBI/HO/IMD/IMD-PoD-

1/P/CIR/2023/74 dated May 19, 2023 has decided that there
shall be no entry Load for all Mutual Fund Schemes.

"Exit Load" or "Redemption Load" Load on Redemption of Units / Switch out of Units.

“Equity Related Instruments” “Equity Related Instruments” includes convertible bonds

and debentures, convertible preference shares, warrants
carrying the right to obtain equity shares, equity derivatives
and any other like instrument.

“FATCA” Foreign Account Tax Compliance Act (FATCA) is a

legislation to help counter tax evasion in the United States.
FATCA has been introduced by the United States
Department of Treasury and the U.S. Internal Revenue
Service to encourage better tax compliance by preventing
U.S. Persons from using banks and financial institutions to
avoid U.S. taxation on their global income and assets.
FATCA legislation will affect both individual and non-
individual investors who are treated as 'U.S. Person' for US
tax purposes.

“Fund Manager” Person/s managing the scheme.

"Foreign Institutional Investor” or “FII" Foreign Institutional Investor, registered with SEBI under the
Securities and Exchange Board of India (Foreign Institutional
Investors) Regulations, 1995, as amended from time to time.

"Foreign Portfolio Investor" FPI means a person who satisfies the eligibility criteria
or "FPI" prescribed under Regulation 4 and has been registered
under Chapter II of Securities and Exchange Board of India
(Foreign Portfolio Investors) Regulations, 2019.

“Floating rate debt Instruments” Floating rate debt instruments are debt instruments issued by
Central and / or State Government, corporates or PSUs with
interest rates that are reset periodically. The periodicity of the
interest reset could be daily, monthly, quarterly, half-yearly,
annually or any other periodicity that may be mutually agreed
with the issuer and the Fund.
The interest on the instruments could also be in the nature of
fixed basis points over the benchmark gilt yields.

"Gilts" or "Government Securities" Securities created and issued by the Central Government
and/or a State Government (including Treasury Bills) or

24
 Government Securities as defined in the Public Debt Act,
1944, as amended or re-enacted from time to time.

"Holiday" Holiday means the day(s) on which the banks (including the
Reserve Bank of India) are closed for business or clearing in
Mumbai or their functioning is affected due to a strike / bandh
call made at any part of the country or due to any other
reason.

Income Distribution cum capital withdrawal Income distributed on Mutual Fund Units from the
(IDCW) Option distributable surplus, which Capital Withdrawal may include
a portion of the investor’s capital {i.e. part of Sale Price (viz.
Price paid by the investor for purchase of Units) representing
retained realized gains (equalisation reserve) in the Scheme
books}.

"Investment Management The agreement dated May 22, 2012 entered into between
Agreement" PPFAS Trustee Company Private Limited and PPFAS Asset
Management Private Limited, as amended from time to time.

"Investor Service Centres" or "ISCs" Designated Offices of PPFAS Asset Management Private
Limited or such other centres / offices as may be designated
by the AMC from time to time.

“InvIT” or “Infrastructure Investment Trust” “InvIT” or “Infrastructure Investment Trust” shall have the
meaning assigned in clause (za) of sub-regulation (1) of
regulation 2 of the Securities and Exchange Board of India
(Infrastructure Investment Trusts) Regulations, 2014.
As per SEBI (Infrastructure Investment Trusts) Regulations,
2014, InvIT is defined as: “InvIT” or “Infrastructure Investment
Trust” shall mean the trust registered as such under these
regulations.

"Load" In the case of Redemption/Switch out of a Unit, the sum of

money deducted from the Applicable NAV on the
Redemption/ Switch out and in the case of Sale/switch in of
a Unit, a sum of money to be paid by the prospective investor
on the Sale/Switch in of a Unit in addition to the Applicable
NAV.

“Main Portfolio” Main Portfolio shall mean the Scheme portfolio excluding the
Segregated Portfolio.

"Money Market Instruments" Includes commercial papers, commercial bills, treasury bills,
Government securities having an unexpired maturity upto
one year, call or notice money, certificate of deposit, usance
bills, corporate bonds, Tri Party Repo/Reverse Repo and any
other like instruments as specified by the Reserve Bank of
India from time to time.

“Mutual Fund” or “the Fund” PPFAS Mutual Fund, a trust set up under the provisions of
the Indian Trusts Act, 1882.

“Net Asset Value” or “NAV” Net Asset Value per Unit of the Scheme(s), calculated in the
manner described in this Scheme Information Document or

25
 as may be prescribed by the SEBI (MF) Regulations from
time to time.

“Non-Resident Indian” or “NRI” A person resident outside India who is either a citizen of India
or a person of Indian origin

“NRE Account” Non-Resident External Account.

“NRO Account” Non-Resident Ordinary Rupee

“NRSR Account” Non-Resident Special Rupee Account.

“Overseas Citizen of India” or “OCI” A person registered as an overseas citizen of India by the
Central Government under section 7A of ‘The Citizenship
Act, 1955’. The Central Government may register as an OCI
a foreign national (except a person who is or had been a
citizen of Pakistan or Bangladesh or such other person as
may be specified by Central Government by notification in the
Official Gazette), who was eligible to become a citizen of
India on 26.01.1950 or was a citizen of India on or at any time
after 26.01.1950 or belonged to a territory that became part
of India after 15.08.1947 and his/her children and
grandchildren (including Minor children), provided his/her
country of citizenship allows dual citizenship in some form or
other under the local laws.

“Open Ended Scheme” Scheme of a mutual fund, which offers Units for sale without
specifying any duration for, Redemption / Repurchase.

"Official Points of Acceptance" or “OPA” Places, as specified by AMC from time to time where
application for subscription/ redemption / switch will be
accepted on an ongoing basis.

“Options” The scheme offers two options viz., Growth Option and
Income Distribution cum capital withdrawal (IDCW) Option.

"Person of Indian Origin" or “PIO” A citizen of any country other than Bangladesh or Pakistan, if
(a) he at any time held an Indian passport; or (b) he or either
of his parents or any of his grandparents was a citizen of India
by virtue of Constitution of India or the Citizenship Act, 1955
(57 of 1955); or (c) the person is a spouse of an Indian citizen
or person referred to in sub-clause (a) or (b).

"Plans" Shall include and mean any prospective Plan issued by the
Scheme in accordance with SEBI (MF) Regulations and other
Plan issued under the Schemes of PPFAS Mutual Fund.

“QFI” QFI means Qualified Foreign Investor.

"QFI shall mean a person who fulfills the following criteria:

(i) Resident in a country that is a member of Financial Action

Task Force (FATF) or a member of a group which is a member
of FATF; and
(ii) Resident in a country that is a signatory to IOSCO’s MMOU
(Appendix A Signatories) or a signatory of a bilateral MOU
with SEBI:

26
 Provided that the person is not resident in a country listed in
the public statements issued by FATF from time to time on-
(i) jurisdictions having a strategic Anti-Money Laundering/
Combating the Financing of Terrorism (AML/CFT)
deficiencies to which counter measures apply,
(ii) jurisdictions that have not made sufficient progress in
addressing the deficiencies or have not committed to an
action plan developed with the FATF to address the
deficiencies:

Provided further such person is not resident in India:

Provided further that such person is not registered with SEBI

as Foreign Institutional Investor or Sub-account or Foreign
Venture Capital Investor.

"Rating" Rating means an opinion regarding securities, expressed in

the form of standard symbols or in any other standardised
manner, assigned by a credit rating agency and used by the
issuer of such securities, to comply with any requirement of
the SEBI (Credit Rating Agencies) Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank

of India Act, 1934, (2 of 1934)

"Registrar and Transfer Agent" or Computer Age Management Services Limited (CAMS)
"RTA" Chennai, currently acting as registrar to the Scheme, or any
other registrar appointed by the AMC from time to time.

“REIT” or “Real Estate Investment Trust” “REIT” or “Real Estate Investment Trust” shall have the
meaning assigned in clause (zm) of sub-regulation 1 of
regulation 2 of the Securities and Exchange Board of India
(Real Estate Investment Trusts) Regulations, 2014.
As per SEBI (Real Estate Investment Trusts) Regulations,
2014, REIT is defined as: “REIT” or “Real Estate Investment
Trust” shall mean a trust registered as such under these
regulations.

"Regular Plan" A plan for investors who wish to invest in units of the Scheme
through Distributors and not directly with the Fund.

"Redemption / Repurchase" Redemption/ Repurchase of Units of the Scheme as

permitted.

"Regulatory Agency" Government of India, SEBI, RBI or any other authority or

agency entitled to issue or give any directions, instructions or
guidelines to the Mutual Fund

"Repo or Reverse Repo" Sale/Purchase of Government Securities with simultaneous

agreement to repurchase/ resell them at a later date.

"Sale/Subscription" Sale or allotment of Units to the Unit holder upon subscription

by the investor/ applicant under the Scheme.

"Scheme" Parag Parikh Dynamic Asset Allocation Fund

27
"Scheme Information Document" or This document issued by PPFAS Mutual Fund, offering for
"SID" subscription of Units of the Parag Parikh Dynamic Asset
Allocation Fund (including options thereunder).

"SEBI" Securities and Exchange Board of India, established under

the Securities and Exchange Board of India Act, 1992.

"SEBI (MF) Regulations" or Securities and Exchange Board of India (Mutual Funds)
"Regulations" Regulations, 1996, as amended from time to time.

“Segregated Portfolio” 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.

"Sponsor" or "Settlors" Parag Parikh Financial Advisory Services Limited.

"Statement of Additional The document issued by PPFAS Mutual Fund containing

Information" or "SAI" details of PPFAS Mutual Fund, its constitution, and certain
tax, legal and general information. SAI is legally a part of the
Scheme Information Document.

"Switch" Redemption of a unit in any scheme (including the options

therein) of the Mutual Fund against purchase of a unit in
another scheme (including the options therein) of the Mutual
Fund, subject to completion of Lock-in Period, if any.

“Stock Lending” Lending of securities to another person or entity for a fixed

period of time, at a negotiated compensation in order to
enhance returns of the portfolio.

“Systematic Transfer Plan” A plan enabling investor to transfer a fixed amount at daily/
or “STP” weekly/ monthly intervals into other schemes of PPFAS
MUTUAL FUND.

“Systematic Investment Plan” / “SIP” A plan enabling investors to save and invest in the Scheme
on a periodic basis submitting post dated cheques/ payment
instructions.

“Systematic Withdrawal Plan” / “SWP” Facility given to the Unitholders to withdraw a specified sum
of money on a periodic basis from his investment in the
Scheme.

“Securities Consolidated Account Securities Consolidated Account Statement (‘SCAS’) is a

Statement (‘SCAS’)” statement sent by the Depository that shall contain details
relating to all the transaction(s) viz. purchase, redemption,
switch, Payout of Income Distribution cum capital withdrawal
option, Reinvestment of Income Distribution cum capital
withdrawal option, systematic investment plan, systematic
withdrawal advantage plan, systematic transfer plan, bonus
transactions, etc. carried out by the Beneficial Owner(s)
(including transaction charges paid to the distributor) across
all schemes of all mutual funds and transactions in securities
held in dematerialized form across demat accounts, during
the month and holdings at the end of the month.

28
 Triparty repo on Government securities or Triparty repo on Government securities or treasury bills is a
treasury bills type of repo contract where a third entity (apart from the
borrower and lender), called a Tri-Party Agent, acts as an
intermediary between the two parties to the repo to facilitate
services like collateral selection, payment and settlement,
custody and management during the life of
the transaction.

“Trustee” PPFAS Trustee Company Private Limited incorporated under

the provisions of the Companies Act, 1956 and approved by
SEBI to act as Trustee to the Scheme(s) of PPFAS Mutual
Fund.

"Trust Deed" The Trust Deed dated April 13, 2012 made by and between
Sponsor and PPFAS Trustee Company Private Limited
("Trustee"), thereby establishing an irrevocable trust, called
PPFAS Mutual Fund.

“Trust Fund” Amounts settled/contributed by the Sponsor towards the

corpus of the PPFAS Mutual Fund and additions/ accretions
thereto.

"Unit" The interest of the Unit holder which consists of each Unit
representing one undivided share in the assets of the
Scheme.

"Unit holder" or "Investor" A person holding a Unit in the Scheme of PPFAS Mutual
Fund offered under this Scheme Information Document.

INTERPRETATION

For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context
otherwise requires:

● all references to the masculine shall include the feminine and all references to the singular shall include the
plural and vice-versa.
● all references to “dollars” or “$” refer to United States Dollars and “Rs.” refer to Indian Rupees. A “crore” means
“ten million” and a “lakh” means a “hundred thousand”.
● all references to timings relate to Indian Standard Time (IST)
● references to a day are to a calendar day including a non-business day.

E. ABBREVIATIONS

In this Scheme Information Document, the following abbreviations have been used

AMC Asset Management Company

AMFI Association of Mutual Funds in India

BSE Bombay Stock Exchange of India

CAGR Compound Annual Growth Rate

CDSL Central Depository Services Limited

29
CKYC Central Know Your Client.

DP Depository Participant

ECS Electronic Clearing System

EFT Electronic Funds Transfer

FCNR A/c Foreign Currency (Non-Resident) Account

FPI Foreign Portfolio Investor

FII Foreign Institutional Investor

ISC Investor Service Centre

KRA KYC Registration Agency

KYC Know Your Customer

MIBOR Mumbai Interbank Offer Rate

NAV Net Asset Value

NEFT National Electronic Funds Transfer

NECS National Electronic Clearing Service

NFO New Fund Offer

NRE A/c Non-Resident (External) Rupee Account

NRI Non-Resident Indian

NRO A/c Non-Resident Ordinary Rupee Account

NSDL National Depositories Services Limited

NSE Limited National Stock Exchange of India

OCI Overseas Citizen of India

PPDAAF Parag Parikh Dynamic Asset Allocation Fund

PEKRN PAN Exempt KYC Reference Number

PAN Permanent Account Number

PIO Person of Indian Origin

QFI Qualified Foreign Investor

RBI Reserve Bank of India

RIA SEBI Registered Investment Advisors

RTA Registrar and Transfer Agent

30
 RTGS Real Time Gross Settlement

SEBI Securities and Exchange Board of India

SIP Systematic Investment Plan

SAI Statement of Additional Information

SID Scheme Information Document

STP Systematic Transfer Plan

SWP Systematic Withdrawal Plan

TREPS “TREPS” means and includes Tri party Repo Dealing System

IDCW Income Distribution cum Capital Withdrawal Option

F. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

It is confirmed that:

(i) the draft Scheme Information Document forwarded 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) there are no deviations from the regulations or no subjective interpretations have been applied to the provisions of
the regulations.

(iv) 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 proposed scheme.

(v) the intermediaries named in the Scheme Information Document (SID) and Statement of Additional Information (SAI)
are registered with SEBI and their registration is valid, as on date.

(vi) the contents of the Scheme Information Document including figures, data, yields, etc. have been checked and are
factually correct. AMC has complied with the set of checklist applicable for Scheme Information Documents

Signed: Sd/-
Place: Mumbai Name: Priya Hariani
Date: February 05, 2024 Designation: Chief Compliance Officer & Company Secretary

31
II. INFORMATION ABOUT THE SCHEME:

A. TYPE OF THE SCHEME:

Parag Parikh Dynamic Asset Allocation Fund is an open ended dynamic asset allocation fund.

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?

The investment objective of the Scheme is to generate income/long-term capital appreciation by investing in equity,
equity derivatives, fixed income instruments. The allocation between equity instruments and fixed income will be
managed dynamically so as to provide investors with long term capital appreciation while managing downside risk.

There is no assurance that the investment objective of the Scheme will be realized and the scheme does not
assure or guarantee any returns.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?

Asset allocation:

Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme’s portfolio will be as follows:

Type of Instruments Normal Allocation (% Risk Profile

of Net Assets)

Equities & Equity related instruments 0 - 100 Very High

Debt securities & Money Market instruments 0 - 100 Low to Moderate

including Units of Debt oriented mutual fund
schemes**

(i) **Debt securities / instruments are deemed to include securitized debt and investment in securitized debt will not
exceed 40% of the debt portion of the scheme allocation.
(ii) **The Scheme may invest in the government securities, treasury bills, reverse repos / repo in government securities,
tri-party repos and other like instruments to meet the liquidity requirements, as specified by the Reserve Bank of India
/ SEBI from time to time.
(iii) The scheme may also invest in SO and CE rated debt securities not exceeding 10% of the debt portfolio of the
Scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the Scheme as per
SEBI (Mutual Funds) Regulations as amended from time to time.
(iv) The Scheme may invest up to 100% of its total assets in derivatives for the purpose of hedging and portfolio
balancing, based on the opportunities available. Derivatives shall mean derivatives instruments as permitted by
SEBI. Derivative positions for other than equity hedging purposes shall not exceed 25% of the equity portion of the
scheme. The scheme may invest in debt derivatives to the extent of 40% of the debt portion of the scheme..
(v) The Scheme may undertake repo / reverse repo transactions in Corporate Debt Securities up to 10% of its total
assets.
(vi) The Scheme may invest in the schemes of Mutual Funds in accordance with the applicable extant SEBI (Mutual
Funds) Regulations as amended from time to time.
(vii) The scheme may invest in the covered call option and stock lending in accordance with the applicable SEBI (Mutual
Funds) regulations.
(viii) The scheme shall not invest in overseas securities/ADR/GDR, Credit Default Swaps, REIT and InvITs, Short
Selling of securities, Equity linked debenture and Debt Instruments with special features i.e. AT1 and AT2 Bonds.

32
The Scheme may engage in securities lending in accordance with the framework relating to short selling and securities
lending and borrowing specified by SEBI. Subject to the SEBI (MF) Regulations, as applicable from time to time, the
Scheme seek may engage in Stock Lending. Stock Lending means the lending of stock to another person or entity for
a fixed period of time, at a negotiated compensation in order to enhance returns of the portfolio. The securities lent will
be returned by the borrower on the expiry of the stipulated period. The Scheme will ensure compliance with SEBI
(Mutual Funds) Regulations and with Securities Lending Scheme, 1997, SEBI Master Circular no. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 dated May 19, 2023 and framework for short selling and borrowing and lending of securities
notified by SEBI vide Circular No MRD/DoP/SE/ Dep/Cir-14/2007 dated December 20, 2007 as may be amended from
time to time. The maximum exposure of the Scheme to a single intermediary in the stock lending at any point of time
would be limited to 5% of the market value of its equity portfolio i.e the limit of 5% will be at broker level or up to such
limits as may be specified by SEBI.

The Scheme will not engage in stock lending and borrowing for more than 20% of net assets of the scheme. The
Scheme will not lend more than what is permitted under applicable SEBI (Mutual Funds) Regulations. For detailed
understanding on Securities lending by the Scheme, Investors are requested to refer to the SAI.

The exposure to derivative shown in the above asset allocation table is exposure taken against the underlying equity
investments i.e. in case the scheme shall have a long position in a security and a corresponding short position in the
same security, then the exposure for the purpose of asset allocation will be counted only for the long position. The
intent is to avoid double counting of exposure and not to take additional asset allocation with the use of derivatives.

As per SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the cumulative gross
exposure through equity, debt, derivative positions (including commodity and fixed income derivatives), repo
transactions and credit default swap in corporate debt securities, Real Estate Investment Trusts (REITs), Infrastructure
Investment Trusts (InvITs), other permitted securities/assets and such other securities/ assets as may be permitted by
SEBI from time to time shall not exceed 100% of the net assets of the Scheme.

However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any
exposure in line with SEBI Master Circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023. Further,
SEBI vide letter dated November 3, 2021 has clarified that Cash Equivalent shall consist of Government Securities, T-
Bills and Repo on Government Securities.

Investment in Short Term Deposits

Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the
funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by
SEBI vide its Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023. The AMC shall not
charge investment management and advisory fees on such investments.

Investment in Repo in Corporate Debt securities

In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 and
SEBI/HO/IMD/IMD PoD-2/P/CIR dated June 08, 2023; scheme may participate in the corporate debt repo transactions.
Currently the applicable guidelines are as under:
> The scheme shall only participate in repo of listed AA and above corporate security, Commercial Paper and Certificate
of deposits.
> The gross exposure of the scheme to repo transactions in corporate debt securities shall not be more than 10% of
the net assets of the concerned scheme.
> For the purpose of consideration of credit rating of exposure on repo transactions for various purposes including
for Potential Risk Class (PRC) matrix, liquidity ratios, Risk-o-meter etc., the same shall be as that of the underlying
securities, i.e., on a look through basis.

33
> For transactions where settlement is guaranteed by a Clearing Corporation, the exposure shall not be considered for
the purpose of determination of investment limits for single issuer, group issuer and sector level limits.

Pursuant to SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, Mutual
Funds/AMCs are allowed to deploy the NFO proceeds in Tri-Party repo on Government securities or treasury bills
before the closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on
funds deployed in Tri-Party repo on Government securities or treasury bills during the NFO period. The appreciation
received from investment in Tri-Party repo on Government securities or treasury bills shall be passed on to investors.
Further, in case the minimum subscription amount is not garnered by the scheme during the NFO period, the interest
earned upon investment of NFO proceeds in Tri-Party repo on Government securities or treasury bills shall be returned
to investors, in proportion of their investments, along-with the refund of the subscription amount.

Review by Board of AMC and Trustees

A detailed review of the schemes of the Fund including its performance vis-à-vis benchmark index, assets size,
rankings/ratings received, if any is placed before the Board of Directors of AMC and to the Trustee on a quarterly basis.

Change in Asset Allocation / Investment Pattern

Subject to SEBI (MF) Regulations the asset allocation pattern indicated above may change from time to time, keeping
in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be
clearly understood that the percentages stated above are only indicative and not absolute and that they can vary
substantially depending upon the perception of the Investment Manager, the intention being at all times to seek to
protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive
consideration only. In the event of change in the asset allocation, the fund manager will carry out portfolio rebalancing
within 30 calendar days or such other timeline as may be prescribed by SEBI from time to time.

It may be noted that no prior intimation/indication would be given to investors when the fund manager deviates from
the asset allocation mentioned above for short term or for defensive considerations, including factors such as market
conditions, market opportunities, applicable regulations and political and economic factors. In case such deviations are
carried, the fund manager shall endeavor to rebalance the asset allocation within 30 calendar days of the deviation.
The investors/unit holders can ascertain details of asset allocation of the scheme as on the last date of each month on
AMC’s website at [Link] that will display the asset allocation of the scheme as on the given day.

Portfolio Rebalancing due to passive breaches

SEBI vide it’s Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 on Timelines for
Rebalancing of Portfolios of Mutual Fund Schemes, the following have been mandated for the applicable schemes of
Mutual Funds:

In the event that the asset allocation of the scheme should deviate from the ranges as stated in asset allocation table
above, then the portfolio of the scheme will be rebalanced by the fund manager for the position indicated in the asset
allocation table above within a maximum period of 30 business days from the date of said deviation.

In case the portfolio of schemes mentioned are not rebalanced within the above mandated timelines (i.e. 30 Business
Days), justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before the
Investment Committee. The Investment Committee, if so desires, can extend the timelines up to sixty (60) business
days from the date of completion of the mandated rebalancing period.

In case the portfolio of schemes is not rebalanced within the aforementioned mandated plus extended timelines, AMCs
shall:

34
i. not be permitted to launch any new scheme till the time the portfolio is rebalanced.

ii. not to levy exit load, if any, on the investors exiting such scheme(s).

Debt Market in India

The instruments available in the Indian Debt Market are classified into two categories, Government and Non –
Government debt securities. The following instruments are available in these categories:

A) Government Debt Securities

★ Central Government Debt
★ Treasury Bills
★ Dated Government Securities
• Coupon Bearing Bonds
• Floating Rate Bonds
• Zero Coupon Bonds
★ State Government Debt
• State Government Loans
• Coupon Bearing Bonds

B) Non-Government Debt

★ Instruments issued by Government Agencies and other Statutory Bodies

• Government Guaranteed Bonds
• PSU Bonds

C)Instruments issued by Public Sector Undertakings

★ Commercial Paper
★ PSU Bonds
★ Fixed Coupon Bonds
★ Floating Rate Bonds
★ Zero Coupon Bonds

Instruments issued by Banks and Development Financial Institutions

★ Certificates of Deposit
★ Promissory Notes
★ Bonds
★ Fixed Coupon Bonds
★ Floating Rate Bonds
★ Zero Coupon Bonds

Instruments issued by Corporate Bodies

★ Commercial Paper
★ Non-Convertible Debentures
★ Fixed Coupon Debentures
★ Floating Rate Debentures
★ Zero Coupon Debentures
★ Pass Through certificates

Instruments that comprise a major portion of money market activity include,

35
★ Overnight Call
★ Repo/Reverse Repo Agreements
★ Tri Party Repo/Reverse Repo
★ Treasury Bills
★ Government Securities with a residual maturity of < 1 year
★ Commercial Paper and Certificates of Deposit

Apart from these, there are some other options available for short tenure investments that include MIBOR linked
debentures with periodic exit options and other such instruments.

D. WHERE WILL THE SCHEME INVEST?

The corpus of the Scheme shall be invested in accordance with the investment objective in any (but not exclusively) of
the following securities:

Equity and Equity Related Instruments:

Equity related instruments shall mean equities, equity derivatives, cumulative convertible preference shares and fully
convertible debentures and bonds of companies. Investment may also be made in partly convertible issues or
debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-
convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of 12 (twelve)
months. Investments in these securities will be as per the limits specified in the asset allocation table(s) of respective
Scheme(s), subject to permissible limits laid under SEBI (MF) Regulations.

Debt Securities & Money Market Instruments:

[Link] of Deposits (CD) – CD is a negotiable money market instrument issued by scheduled commercial banks
and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity
period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is between one
year to 3 years from the date of issue. CDs may be issued at a discount to face value.

[Link] Paper (CP) - CP is an unsecured negotiable money market instrument issued in the form of a promissory
note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of
short term borrowings. They are issued at a discount to the face value as may be determined by the issuer. CP is
traded in the secondary market and can be freely bought and sold before maturity.

[Link] Re-discounting (BRD) – BRD is the rediscounting of trade bills which have already been purchased by /
discounted with the bank by the customers. These trade bills arise out of supply of goods / services.

[Link] issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the
Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury
bills). Central Government securities are sovereign debt obligations of the Government of India with zero-risk of default
and issued on its behalf by RBI. They form part of the Government's annual borrowing programme and are used to
fund the fiscal deficit along with other short term and long-term requirements. Such securities could be fixed rate, fixed
interest rate with put/call option, zero coupon bond, floating rate bonds, capital indexed bonds, fixed interest security
with staggered maturity payment etc. State Government securities are issued by the respective State Government in
co-ordination with the RBI.

[Link] Bills (T-Bills) are issued by the Government of India 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 to their face value and
redeemed at par.

6. Cash Management Bill - Cash Management Bill (CMB) are issued by the Government of India to meet their short

36
term borrowing requirements. CMB are generally issued for maturities of less than 91 days.

[Link]/reverse repos in Government Securities as may be permitted by RBI (including but not limited to coupon
bearing bonds, zero coupon bonds and treasury bills). Repo (Repurchase Agreement) or Reverse Repo is a transaction
in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same
security at a mutually decided future date and price.

[Link] obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/State
Government guarantee – These are instruments which are issued by various government agencies and bodies. They
can be issued at discount, par or premium.

[Link] debt and securities (of both public and private sector undertakings) including Bonds, Debentures, Notes,
Strips etc. These are instruments issued by corporate entities for their business requirements. They are generally rated
by credit rating agencies, higher the rating lower the risk of default.

[Link]-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.

[Link] rate Debt instruments- Floating rate debt instruments are instruments issued by Central / state
governments, corporates, PSUs, etc. with interest rates that are reset periodically.

[Link] market instruments permitted by SEBI/RBI, in Tri Party Repo/Reverse Repo (TREPS) market or in alternative
investment for the Tri Party Repo market as may be provided by the RBI to meet the short term liquidity requirements.

[Link] in units of mutual fund schemes – The Scheme may invest in other schemes managed by the AMC or
in the schemes of any other mutual funds, provided it is in conformity with the investment objectives of the Scheme and
in terms of the prevailing SEBI (MF) Regulations.

[Link] in Short Term Deposits – Pending deployment of funds as per the investment objective of the Scheme,
the Funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits
specified by SEBI.

[Link] Debt Obligations - Securitization is a structured finance process which involves pooling and repackaging
of cash-flow producing financial assets into securities that are then sold to investors. They are termed as Asset Backed
Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed by other assets such as credit card,
automobile or consumer loan receivables, retail installment loans or participations in pools of leases. MBS is an asset
backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. Such
Mortgage could be either residential or commercial properties.

[Link] through, Pay through or other Participation Certificates, representing interest in a pool assets including
receivables. It represents beneficial interest in an underlying pool of cash flows. These cash flows represent dues
against single or multiple loans originated by the sellers of these loans.

Investment / Risk Mitigation Strategy

i) Risk profile of securitised debt vis-à-vis risk appetite of the Scheme

Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by
assigning the loans to a special purpose vehicle (a trust), which in turn issues Pass Through Certificates (PTCs). These

37
PTCs are transferable securities with fixed income characteristics. The risk of investing in securitized debt is similar to
investing in debt securities. However, it differs in two respects.

a. Typically, the liquidity of securitized debt is less than similar debt securities.
b. For certain types of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an
additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which
may reduce returns if the re-investment rates are lower than initially envisaged.

Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit
rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns,
he may invest in securitized debt up to the limits specified in the asset allocation.

ii) Policy relating to originators based on nature of originator, track record, NPAs, losses in earlier securitised
debt, etc.

The originator is an entity (like banks, non-banking finance companies, corporates etc), which has initially provided the
loan & is also generally responsible for servicing the loans. The schemes will invest in securitised debt of originators
with at least investment grade credit rating and established track record. A detailed evaluation of originator is done
before the investment is made in securitised debt of any originator on various parameters given below:

Track record

The investment in securitised debt is done based on origination and underwriting process and capabilities of the
originator, overview of corporate structure, group to which they belong, experience of the company in the business,
how long they have been in the business, financial condition of the company, credit rating, past performance of similar
pools by the originator, etc.

Willingness to pay through credit enhancement facilities etc.

Credit enhancement is provided by the originator, as indicated by rating agencies, so as to adequately cover the
defaults and acts as a risk mitigation measure. The size of the credit enhancement as indicated by rating agency
depends on the originator's track record, past delinquencies, pattern of the portfolio & characteristics of the pool vis-a-
vis of the portfolio, nature of the asset class.

Ability to pay

The quality of the origination impacts the performance of the underlying asset & thus originators with strong systems
and processes in place can eliminate poor quality assets. A robust risk management system of the originator and
availability of MIS reports on a timely basis, results in creation of a strong asset portfolio.

Business Risk Assessment

The business risk assessment of originator / underlying borrower also includes detailed credit assessment wherein
following factors are also considered:

★ Outlook for the economy (domestic and global)

★ Outlook for the industry
★ Company specific factors

38
Additionally, a detailed review of rating rationale is done along with interactions with the originator as well as the credit
rating agency. All investment in securitised debt is done after taking into account points (with regard to originator) stated
below:

★ Default track record/ frequent alteration of redemption conditions

★ High leverage ratios of the ultimate borrower both on a standalone basis as well on a consolidated level/ group level
★ Higher proportion of reschedulement of underlying assets of the pool or loan, as the case may be
★ Higher proportion of overdue assets of the pool or the underlying loan, as the case may be.
★ Poor reputation in market
★ Insufficient track record of servicing of the pool or the loan, as the case may be.

iii)Risk mitigation strategies for investments with each kind of originator

Investments are based on assessment of following parameters, to mitigate risk associated with such
investment:

a. Credit quality, size and reach of the originator

b. Nature of receivables/asset category i.e. cars, commercial vehicles, personal loans etc.
c. Collection process, infrastructure and follow-up mechanism
[Link] of MIS
e. Credit cum liquidity enhancement
f. Credit appraisal norms of originator
g. Asset Quality - portfolio delinquency levels
h. Past performance of rated pools
i. Pool Characteristics - seasoning, Loan-to-value ratios, geographic diversity etc.

iv)Minimum retention percentage by originator of debts to be securitised

While minimum retention percentage by originator is not prescribed, any amount retained by the originator through
subordination is viewed positively at the time of making investment & generally varies from 5% to 10%.

v)The mechanism to tackle conflict of interest when the mutual fund invests in securitised debt of an originator
and the originator in turn makes investments in that particular scheme of the fund.

All proposals for investment in securitised debt are evaluated by the analyst based on several parameters such as
nature of underlying asset category, pool characteristics, asset quality, credit rating of the securitisation transaction,
and credit cum liquidity enhancement available. Investment in securitised debt by the scheme is made by the fund
manager in line with the investment objective of the scheme.

vi) Minimum retention period of the debt by originator prior to securitization

Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including
credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period before they
can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Fund will
invest in securitized debt that are compliant with the laws and regulations.

Note: The information contained herein is based on current market conditions and may change from time to time based
on changes in such conditions, regulatory changes and other relevant factors. Accordingly, our investment strategy,
risk mitigation measures and other information contained herein may change in response to the same.

39
Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have
an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC’s view
regarding current market conditions, interest rate outlook and the stability of ratings.

vii) The level of diversification with respect to the underlying assets, and risk mitigation measures for less
diversified investments.

Diversification of underlying assets is achieved through a) prudent mix of asset categories - i.e. cars (new, used),
commercial vehicles, construction equipment, unsecured loans to individuals or small & medium enterprises b) total
number of contracts in a pool c) average ticket size of loans and d) geographical distribution.

Risk mitigation measures for less diversified investments in pools is accomplished through the size of credit
enhancement, seasoning or loan to value ratios.

Illustrative framework, which will be applied while evaluating investment decision relating to a pool securitisation
transaction:

Characteristics Mortgag Commercial Car Two Micro Personal Single Others

/ e Loan Vehicle and Wheele Finance Loans Sell
Type of Pool Constructio rs Pools Downs
n Equipment

Approximate NA 12-60 months 12-60 8-40 NA NA

Average months months
Maturity (In
Months)
Refer Refer
Note A Note B
Collateral NA 5%-20% 4-15% 4-15% NA NA
margin
(Including cash,
guarantees,
excess interest
spread,
Subordinate
tranche)

Average Loan to NA 80-95% 70-90% 70-95% NA NA

Value Ratio

Average NA 3- 8 months 3- 8 2-5 NA NA

seasoning of the months months
pool

Maximum single NA 3-7% NA NA NA NA

exposure range (Retail (Retail
Pool) Pool)

Average single NA 1-5% 0-1% 0-1% NA NA

exposure range
%

40
Information in the table above is based on current scenario and is subject to change depending upon the change in
related [Link] framework, which will be applied while evaluating investment decision relating to a pool
securitization transaction:
NA - Not Applicable

Notes:
A. In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed.
The investment limits applicable to the underlying borrower are applied to the single loan sell-down.

B. Other investment will be decided on a case to case basis.

In case of asset backed pools (ABS), evaluation of the pool assets is done considering the following factors: (Refer
the table above which illustrates the averages of parameters considered while selecting the pool)
• Size of the loan
• Average original maturity of the pool
• Loan to Value Ratio
• Average seasoning of the pool
• Default rate distribution
• Geographical Distribution
• Credit enhancement facility
• Liquid facility
• Structure of the pool

17. Repo of corporate debt securities.

18. When 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 Position 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 of the notified amount. percent of the notified amount.

The Scheme may invest, if and to the extent permissible under the Regulations in derivative instruments.

19. Trading in Derivatives- Equity Derivatives like Futures and Options as described below:

Futures:
Futures are exchange-traded contracts to sell or buy financial instruments for future delivery at an agreed price. There
is an agreement to buy or sell a specified quantity of financial instrument on a designated future date at a price agreed
upon by the buyer and seller at the time of entering into a contract. To make trading possible, the exchange specifies
certain standardized features of the contract. A futures contract involves an obligation on both the parties to fulfill the
terms of the contract.

41
SEBI has permitted futures contracts on indices and individual stocks with maturity of 1 month, 2 months and 3 months
on a rolling basis. The futures contracts are settled on last Thursday (or immediately preceding trading day if Thursday
is a trading holiday) of each month. Currently, the futures are settled in cash and in physical for some of the securities,
the final settlement price is the closing price of the underlying stock(s)/index.

Options:
Option is a contract which provides the buyer of the option (also called holder) the right, without the obligation, to buy
or sell a specified asset at the agreed price on or upto a particular date. For acquiring this privilege, the buyer pays
premium (fee) to the seller. The seller on the other hand has the obligation to buy or sell specified asset at the
agreed price and for this obligation he receives premium. The premium is determined considering number of factors
such as the market price of the underlying asset/security, number of days to expiry, risk free rate of return, strike price
of the option and the volatility of the underlying asset. Option contracts are of two types viz:

Call Option - The option that gives the buyer the right but not the obligation to buy specified quantity of the underlying
asset at the strike price is a call option. The buyer of the call option (known as the holder of call option) can call upon
the seller of the option (writer of the option) and buy from him the underlying asset at the agreed price at any time on
or before the expiry of the option.

The seller (writer of the option) on the other hand has the obligation to sell the underlying asset if the buyer of the call
option decides to exercise his option to buy.

Put Option – The option that gives the buyer the right but not the obligation to sell is called put option. A Put option
gives the holder (buyer) the right to sell specified quantity of the underlying asset at the strike price. The seller of the
put option (one who is short Put) however, has the obligation to buy the underlying asset at the strike price if the
buyer decides to exercise his option to sell.

There are two kind of options based on the date of exercise of right. The first is the European Option which can be
exercised only on the maturity date. The second is the American Option which can be exercised on or before the
maturity date.

Debt Derivative instruments like Interest Rate Swaps, Forward Rate Agreements and such other derivative instruments
permitted by SEBI/RBI.

Interest Rate Swap - An Interest Rate Swap (“IRS”) is a financial contract between two parties exchanging or
swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified
period. Such contracts generally involve 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

42
1. Obligation to buy or sell a bond at a future date.
2. Standardized contract.
3. Exchange traded
4. Physical/Cash settlement.
5. Daily mark to market.

The Scheme(s) may take derivatives position based on the opportunities available subject to the guidelines provided
by SEBI from time to time and in line with the overall investment objective of the Scheme(s). The Fund has to comply
with the prescribed disclosure requirements. These may be taken to hedge the portfolio, rebalance the same or to
undertake any other strategy as permitted under SEBI (MF) Regulations from time to time. Hedging could be perfect
or imperfect. Hedging does not mean maximisation of returns but only reduction of systematic or market risk inherent
in the investment. The Scheme(s) intends to take position in derivative instruments like Futures, Options, Interest
Rate Swaps, Forward Rate Agreements and such other derivative instruments as may be permitted by SEBI from
time to time.

Mutual Funds 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.

Exposure limits on Interest Rate Futures (IRF)

The exposure limits for trading in Interest Rate Futures (IRFs) by Mutual Funds specified by SEBI vide its Master
Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 are as follows:
i. To reduce interest rate risk in a debt portfolio, mutual funds may hedge the portfolio or part of the portfolio (including
one or more securities) on weighted average modified duration basis by using Interest Rate Futures (IRFs). The
maximum extent of short position that may be taken in IRFs to hedge interest rate risk of the portfolio or part of the
portfolio, is as per the formula given below:

(Portfolio Modified Duration* Market Value of the Portfolio)/ (Futures Modified Duration *Futures Price/PAR)

ii. In case the IRF used for hedging the interest rate risk has different underlying security(s) than the existing position
being hedged, it would result in imperfect hedging.
iii. Imperfect hedging using IRFs may be considered to be exempted from the gross exposure, upto maximum of 20%
of the net assets of the scheme, subject to the following:

a) Exposure to IRFs is created only for hedging the interest rate risk based on the weighted average modified duration
of the bond portfolio or part of the portfolio.
b) Mutual Funds are permitted to resort to imperfect hedging, without it being considered under the gross exposure
limits, if and only if, the correlation between the portfolio or part of the portfolio (excluding the hedged portions, if any)
and the IRF is atleast 0.9 at the time of initiation of hedge. In case of any subsequent deviation from the correlation
criteria, the same may be rebalanced within 5 working days and if not rebalanced within the timeline, the derivative
positions created for hedging shall be considered under the gross exposure computed in terms of SEBI Master circular
dated May 19, 2023. The correlation should be calculated for a period of last 90 days.

Explanation: If the fund manager intends to do imperfect hedging upto 15% of the portfolio using IRFs on weighted
average modified duration basis, either of the following conditions need to be complied with:
i. The correlation for past 90 days between the portfolio and the IRF is at least 0.9 or

43
ii. The correlation for past 90 days between the part of the portfolio (excluding the hedged portions, if any) i.e. at least
15% of the net asset of the scheme (including one or more securities) and the IRF is at least 0.9.

c)At no point of time, the net modified duration of part of the portfolio being hedged should be negative.
d) The portion of imperfect hedging in excess of 20% of the net assets of the scheme should be considered as creating
exposure and shall be included in the computation of gross exposure in terms of SEBI Master circular dated May 19,
2023.

20. The Scheme may invest in Non-Convertible Preference Shares (NCPS).

The securities / instruments mentioned above and such other securities the Scheme is permitted to invest in could be
listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity.

The securities may be acquired through initial public offering (IPOs), secondary market, private placement, rights offers,
negotiated deals. Further investments in debentures, bonds and other fixed income securities will be in instruments
which have been assigned investment grade rating by the Credit Rating Agency.

Investment in unrated debt instruments shall be subject to complying with the provisions of the Regulations and within
the limit as specified in Schedule VII to the Regulations. Pursuant to SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, the AMC may constitute committee(s) to approve proposals for investments in
unrated debt instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments.
However, in case any unrated debt security does not fall under the parameters, the prior approval of Board of AMC and
Trustee shall be sought.

Covered Call Options

A call option gives the holder (buyer) the right but not the obligation to buy an asset by a certain date for a certain price.
Covered calls are an options strategy where a person holds a long position in an asset and writes (sells) call options
on that same asset.

Benefits of using Covered Call strategy in Mutual Funds:

The covered call strategy can be followed by the Fund Manager in order to hedge risk thereby resulting in better risk
adjusted returns of the Scheme. The strategy offers the following benefits:

a) Down side protection to the extent of premium collected - Since the fund manager sells a call option on a stock
already owned by the mutual fund scheme, the downside from fall in the stock price would be lower to the extent of the
premium earned from the call option.

b) Generating additional returns in the form of option premium in a range bound market.

Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in the right direction.

Illustration — Covered Call strategy using stock call options:

A fund manager buys equity stock of ABC Ltd. for Rs. 1000 and simultaneously sells a call option on the same stock
at a strike price of Rs. 1100. Further, it is assumed that the scheme has earned a premium of Rs. 50 and the fund
manager is of the opinion that the stock price will not exceed Rs. 1100, during the expiry period of the option.
Scenario 1: Stock price exceeds Rs. 1100
The call option will get exercised and the fund manager will sell the stock to settle his obligation on the call at Rs. 1100
(earning a return of 10% on the stock purchase price). Also, since the scheme has earned a premium of Rs. 50, this
has reduced the purchase cost of the stock (Rs. 1000 — Rs. 50 = Rs. 950).

44
Hence, the Net Gain = Rs. 150 (Rs 100 stock appreciation + Rs 50 call option premium)
(However, please note that in a scenario where the stock price reaches Rs. 1300, investment in long only equity would
be more beneficial than a covered call strategy as the net gain under the covered call strategy would be Rs. 150,
against a net gain of Rs. 300 under a pure long only equity strategy.)
Scenario 2: Stock prices stays below Rs. 1100
The call option will not get exercised and will expire worthless. The premium earned on call option will generate alpha
for the scheme.
Hence, the Net Gain = Rs. 50.

Any other like instruments as may be permitted by RBI / SEBI / such other Regulatory Authority from time to time
subject to approvals required, if any.

For applicable regulatory investment limits please refer to paragraph "Investment Restrictions”. Details of various
derivative strategies/examples of use of derivatives have been provided under the section “Strategies for Investment
in Derivatives”.

The Fund Manager reserves the right to invest in such securities as may be permitted from time to time and which are
in line with the investment objectives of the Scheme.

E. WHAT ARE THE INVESTMENT STRATEGIES?

INVESTMENT STRATEGIES

The primary objective of the scheme is to generate income through investments in fixed income securities and using
arbitrage and other derivative Strategies. The Scheme also intends to generate long-term capital appreciation by
investing a portion of the Scheme’s assets in equity and equity related instruments. The key value proposition of the
Scheme is to provide an asset allocation overlay to investors.

Investment Strategy for Equity Investments

The scheme aims to provide long term capital growth by investing in a well-diversified portfolio of equity and equity
related securities. The fund manager proposes to concentrate on business and economic fundamentals driven by in-
depth research techniques and employing the full potential of the research team at the AMC. The stock selection
process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long term
sustainable competitive advantage (as this is one of the key factors responsible for withstanding competitive pressures
and does not allow rivals to eat up any excess profits earned by a successful business). In a scenario where Equity
markets are attractive, the Scheme would exploit such opportunities with increased equity participation. In a scenario
where equity markets are expensive, the Scheme would reduce the equity participation and actively use arbitrage and
cash to hedge the portfolio and generate low volatility returns.

Investment Strategy for Debt Investments

The Scheme will retain the flexibility to invest in the entire range of debt securities (including securitised debt) and
money market instruments. Investment in Debt securities and Money Market Instruments will be as per the limits in the
asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. Investment in debt
securities will be guided by credit quality, liquidity, interest rates and their outlook. The fund manager will seek to play
out the yield curve and exploit anomalies if any in portfolio construction after analysing the macro-economic
environment including future course of system liquidity, interest rates and inflation along with other considerations in
the economy and markets. The investment team of the AMC will, as a mitigation and risk control procedure, carry out
rigorous credit evaluation of the issuer company proposed to be invested in. The credit evaluation will analyse the

45
operating environment of the issuer, business model, management, governance practices, quality of the financials, the
past track record as well as the future prospects of the issuer and the financial health of the issuer.

Investment Strategy for Arbitrage Opportunities

The market provides opportunities to the investor to derive returns from the implied cost of carry between the underlying
cash market and the derivatives market. This provides for opportunities to generate returns that are possibly higher
than short term interest rates with minimal active price risk on equities. Implied cost of carry and spreads across the
spot, futures and options markets can potentially lead to profitable arbitrage opportunities. The Scheme would carry
out arbitrage strategies, which would entail taking offsetting positions in the various markets simultaneously. The
arbitrage strategy can also be on account of buy-back of shares announced by a company and/or differences in prices
between two exchanges/markets. In this case the arbitrage strategy will not include an offsetting derivatives transaction.
The Investment Manager will use a disciplined quantitative analysis while accessing arbitrage opportunities. The
Investment Manager will have an effective risk monitoring and control process to ensure adherence to regulatory
guidelines and limits. As arbitrage opportunities are dependent on ensuing market conditions, there will be a part of
the portfolio, which will be invested in debt securities and money market securities. This component of the portfolio will
provide the necessary liquidity to meet redemption needs and other liquidity requirements of the Scheme. The arbitrage
strategies the Fund may adopt could be as under. The list is not exhaustive and the Fund could use similar strategies
and any other strategies as available in the markets.

a) Index/ Stock spot – Index/ Stock Futures: This strategy is employed when the price of the future is trading at a
premium to the price of its underlying in spot market. The Scheme shall buy the stock in spot market and endeavor to
simultaneously sell the future at a premium on a quantity neutral basis. Buying the stock in spot market and selling the
futures results into a hedge where the Scheme has locked in a spread and is not affected by the price movement of
cash market and futures market. The arbitrage position can be continued till expiry of the future contracts. The future
contracts are settled based on the last half an hour’s weighted average trade of the spot market. Thus there is a
convergence between the spot price and the futures market on expiry. This convergence helps the Scheme to generate
the arbitrage return locked in earlier. On or before the date of expiry, if the price differential between the spot and
futures position of the subsequent month maturity still remains attractive, the scheme may rollover the futures position
and hold onto the position in the spot market. In case such an opportunity is not available, the scheme would liquidate
the spot position and settle the futures position simultaneously. Rolling over of the futures transaction means unwinding
the short position in the futures of the current month and simultaneously shorting futures of the subsequent month
maturity, and holding onto the spot position.

b) Index Arbitrage: The S&P CNX Nifty derives its value from fifty constituent stocks; the constituent stocks (in their
respective weights) can be used to create a synthetic index matching the Nifty Index. Also, theoretically, the fair value
of a future is equal to the spot price plus the cost of carry. Theoretically, therefore, the pricing of Nifty Index futures
should be equal to the pricing of the synthetic index created by futures on the underlying stocks. Due to market
imperfections, the index futures may not exactly correspond to the synthetic index futures. The Nifty Index futures
normally trades at a discount to the synthetic Index due to large volumes of stock hedging being done using the Nifty
Index futures giving rise to arbitrage opportunities. One instance in which an index arbitrage opportunity exists is when
Index future is trading at a discount to the index (spot) and the futures of the constituent stocks are trading at a
cumulative premium. The investment manager shall endeavour to capture such arbitrage opportunities by taking long
positions in the Nifty Index futures and short positions in the synthetic index (constituent stock futures). Based on the
opportunity, the reverse position can also be initiated.

c) Corporate Action / Event Driven Strategies: 1) IDCW Arbitrage At the time of declaration of IDCW, the stock futures
/ options market can provide a profitable opportunity. Generally, the stock prices decline by the IDCW amount when
the stock becomes ex-IDCW. 2) Buy-Back/ Open Offer Arbitrage When the Company announces the buy-back or
open offer of its own shares, there could be opportunities due to price differential in buyback price and traded price. 3)
Merger When the Company announces any merger, amalgamation, hive off, de-merger, etc, there could be
opportunities due to price differential in the cash and the derivative market. 4) Portfolio Hedging: This strategy will be

46
adopted: (i) If in an already invested portfolio of a Scheme, the Investment manager is expecting a market correction,
the Investment manager may sell Index Futures to insulate the portfolio from the market related risks. (ii) If there are
significant inflows to the Scheme and the market expectations are bullish, the Investment manager may buy Index
Futures to continue participation in the equity markets. This strategy is used to reduce the time to achieve the desired
invested levels.

Subject to the Regulations and the applicable guidelines, the Scheme may engage in Stock Lending activities.

The Scheme may also invest in the schemes of Mutual Funds.

Though every endeavour will be made to achieve the objectives of the Scheme, the AMC/Sponsor/Trustees do
not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are being
offered under the Scheme.

Risk Control

Risk is an inherent part of the investment function. Effective risk management is critical to fund management for
achieving financial soundness. Since investing requires disciplined risk management, the AMC would incorporate
adequate safeguards for controlling risks in the portfolio construction process. The risk control process involves
reducing risks through portfolio diversification; The AMC believes that this diversification would help achieve the desired
level of consistency in returns. The AMC aims to identify securities, which offer superior levels of yield at lower levels
of risks. With the aim of controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested
in will be carried out by the investment team of the AMC. Risk control would involve managing risk in order to keep it in
line with the investment objective of the Scheme. For this purpose, the Front Office System (FOS) has incorporated all
the investment restrictions as per SEBI guidelines and “soft” warning alerts at appropriate levels for preemptive
monitoring.

Credit Evaluation Policy

The credit evaluation policy of the AMC involves evaluation of credit fundamentals of each investment opportunity.
Some of the factors that are evaluated inter-alia may include outlook on the sector, parentage, quality of management,
and overall financial strength of the credit. The AMC utilises ratings of recognised rating agencies as an input in the
credit evaluation process. Investments in bonds and debenture are usually in instruments that have been assigned
high investment grade ratings by a recognized rating agency.

In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the AMC
may constitute committee(s) to approve proposals for investments in unrated instruments. The AMC Board and the
Trustee shall approve the detailed parameters for such investments. The details of such investments would be
communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports,
how the parameters have been complied with. However, in case any security does not fall under the parameters, the
prior approval of Board of AMC and Trustee shall be sought.
Strategies for Investment in Derivatives

The Scheme may use Derivative instruments like interest rate swaps, Overnight Indexed Swaps (“OIS”), forward rate
agreements, interest rate futures (as and when permitted) or such other Derivative instruments as may be permitted
under the applicable regulations. Derivatives will be used for the purpose of hedging, and portfolio balancing or such
other purpose as may be permitted under the regulations and Guidelines from time to time.

The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged basis. A swap will be
undertaken only if there is an underlying asset in the portfolio. In terms of Circular No. [Link].191/07.01.279/1999-
2000 and [Link].187/07.01.279/1999-2000 dated November 1, 1999 and July 7, 1999 respectively issued by RBI
permitting participation by Mutual Funds in interest rate swaps and forward rate agreements, the Fund will use
Derivative instruments for the purpose of hedging and portfolio balancing. The Fund may also use derivatives for such

47
purposes as maybe permitted from time to time. Further, the guidelines issued by RBI from time to time for forward rate
agreements and interest rate swaps and other derivative products would be adhered to by the Mutual Fund.

IRS and FRA do also have inherent credit and settlement risks. However, these risks are substantially reduced as they
are limited to the interest streams and not the notional principal amounts.

Investments in Derivatives will be in accordance with the extant Regulations / guidelines. Presently Derivatives shall
be used for hedging and / or portfolio balancing purposes, as permitted under the Regulations. The circumstances
under which such transactions would be entered into would be when, for example using the IRS route it is possible to
generate better returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr FBIL Mibor based
instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA corporate, the Scheme would
endeavour to do that. Alternatively, the Scheme would also look to hedge existing fixed rate positions if the view on
interest rates is that it would likely rise in the future.

The following information provides a basic idea as to the nature of the Derivative instruments proposed to be used by
the Fund and the benefits and risks attached therewith. Please note that the examples have been given for illustration
purposes only.

Interest Rate Swaps (IRS)

The Indian markets have faced high volatility in debt markets. An interest rate swap is a contractual agreement between
two counterparties to exchange streams of interest amount on a notional principal basis. In this, one party agrees to
pay a fixed stream of interest amount against receiving a variable or floating stream of interest amount. The variable or
floating part is determined on a periodical basis.

Mutual Funds may enter into plain vanilla interest rate swaps for hedging purposes. The counterparty in such
transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in
such cases must not exceed the value of respective existing assets being hedged by the scheme.

Example
Entity A has a Rs.50 crores, 3-month asset which is being funded through call. Entity B, on the other hand, has deployed
in overnight call money market Rs.50 crores, 3-month liability. Both the entities are taking on an interest rate risk.

To hedge against the interest rate risk, both the entities can enter into a 3-month swap agreement based on say FBIL
MIBOR (Financial Benchmarks India Private Limited, Mumbai Interbank Offered Rate). Through this swap, entity B will
receive a fixed pre-agreed rate (say 7%) and pay FBIL MIBOR (“the benchmark rate”) which will neutralize the interest
rate risk of lending in call. Similarly, entity A will neutralize its interest rate risk from call borrowing as it will pay 8% and
receive interest at the benchmark rate.

Assuming the swap is for Rs. 50 crores from January 1 to April 1, Entity A is a floating rate receiver at the overnight
compounded rate and Entity B is a fixed rate receiver. On a daily basis, the benchmark rate fixed by NSE will be tracked
by them.

On April 1, they will calculate as explained below:

Entity A is entitled to receive daily compounded call rate for 91 days and pay 7% fixed.

Entity B is entitled to receive interest on Rs.50 crores @ 7% i.e. Rs. 87.26 lakhs, and pay the compounded benchmark
rate.

Thus on December 1, if the total interest on the daily overnight compounded benchmark rate is higher than Rs. 87.26
lakhs, entity B will pay entity A the difference and vice versa.

The above example illustrates the use of Derivatives for hedging and optimizing the investment portfolio. Swaps have
their own drawbacks like credit risk, settlement risk. However, these risks are substantially reduced as the amount
involved is interest streams and not principal.

48
Forward Rate Agreements (FRA)

A FRA is referred to by the beginning and end dates of the period covered in the transaction. A 2x5 FRA means the 3
month rate starting 2 months from now.

For example, a corporate has a three month fixed liability three months from now. To meet this liability the company
enters into a 3x6 FRA where it receives 7.25% for 100 crore and fixes the interest cost for the 3-6 months period. If the
actual three month rate three months from now is 7% the corporate has gained 25 bps through interest cost. As the
settlement is done at the beginning of the period, the net present value of the savings needs to be calculated using the
3 month rate as the discount rate.
Interest savings = INR 100 crores * 25 bps * 92/365 (assuming 92 days in the 3 month period and 365 days for the
year) = INR 6,30,137/-
Settlement Amount = INR 6,30,137 / (1+ 7%*92/365) = INR 6,19,212/-

Interest Rate Futures:

Assume that ABC hold GOI securities, hence is exposed to the risk of rising interest rates, which in turn results in the
reduction in the value of their portfolio. So in order to protect against a fall in the value of their portfolio due to falling
bond prices, they can take short position in IRF contracts.

Example:
Date: 15-12-2022
Spot price of GOI Security: Rs 100.05
Futures price of IRF Contract: Rs 100.12

On 15-12-2022 ABC bought 2000 GOI securities from spot market at Rs 100.05. He anticipates that the interest rate
will rise in near future. Therefore, to hedge the exposure in underlying market he may sell December 2022 Interest
Rate Futures contracts at Rs. 100.12.
On 30-12-2022 due to increase in interest rate:
Spot price of GOI Security: Rs 99.24
Futures Price of IRF Contract: Rs 99.28
Loss in underlying market will be (99.24 - 100.05) *2000 = Rs. 1620/-
Profit in the Futures market will be (99.28 - 100.12) *2000 = Rs. 1680/-

Imperfect Hedging using IRF

IRF can be taken at portfolio level to reduce the interest rate risk of the portfolio or part of the portfolio (including one
or more securities). However, in case the IRF used for hedging the interest rate risk has different underlying security(s)
than the existing position being hedged, it would result in imperfect hedging ie basis risk. In order to reduce the basis
risk for the portfolio hedging strategy, the correlation between the portfolio or part of the portfolio (excluding the hedged
portions, if any) and the IRF would be atleast 0.9 at the time of initiation of hedge. The correlation should be calculated
for a period of last 90 days. Additionally, Imperfect hedging using IRFs would be restricted upto maximum of 20% of
the total assets of the scheme.

Example:
Date: 15/06/2022
Total Assets of the Scheme: Rs. 100 cr
Modified Duration of the Scheme: 4.75
August 2022 Future Price of IRF contract of 6.79 GOI 2032: 103.24
Modified Duration of 6.79 GOI 2032: 7.13
Correlation between IRF and Portfolio during last 90 days: 0.95

On 15/06/2022, the fund manager anticipates that the interest rates will rise in near future. Therefore, to hedge the
exposures of the portfolio he sells 19,00,000 IRF contracts of August 2022 6.79 GOI 2032 at 103.24. Thus, the value
of Futures contract is Rs. 19.62 cr, which is less than 20% of Scheme value.

49
On 15/07/2022, due to interest rate increase by 5 basis points the values of securities in the portfolio reduced to Rs.
99.76 cr and the price of IRF contract for August 2022 6.79 GOI 2032 reduced to Rs. 102.88. This resulted in loss in
the value of the securities of Rs. 0.24 cr (Rs. 100 cr - Rs. 99.76 cr) and profit in the futures position of Rs. 0.07 cr
{(103.24- 102.88)*19,00,000}

Given that there was imperfect correlation between portfolio and the IRF (ie basis risk) as well as cap on the maximum
portfolio hedging allowed as per extant regulation, the loss in the value of portfolio was not completely matched by the
gain from the IRF contract. Nevertheless, the fund manager was able to protect the value of the portfolio, to an extent,
using the IRF contract. The loss on proportionate basis (ie ~20% of portfolio) would have been only Rs. 0.05 cr as
against gain of Rs. 0.07 cr of gain from IRF.

Certain risks are inherent to Derivative strategies viz. lack of opportunities, inability of Derivatives to correlate perfectly
with the underlying and execution risks, whereby the rate seen on the screen may not be the rate at which the
transaction is executed. For details of risk factors relating to use of Derivatives, the investors are advised to refer to
Scheme Specific Risk Factors.

Risk Factors of SWAP/ Forward Rate Agreement/ Interest Rate Futures

● Credit Risk: This is the risk of defaults by the counterparty. This is usually negligible, as there is no exchange
of principal amounts in a derivative transaction.

● Market Risk: Market movements may adversely affect the pricing and settlement derivatives.

● Liquidity Risk: The risk that a derivative cannot be sold or purchased quickly enough at a fair price, due to lack
of liquidity in the market.

● Additional Risk viz. Basis Risk associated with imperfect hedging using Interest Rate Futures (IRF): The
imperfect correlation between the prices of securities in the portfolio and the IRF contract used to hedge part
of the portfolio leads to basis risk. Thus, the loss on the portfolio may not exactly match the gain from the
hedge position entered using the IRF.

PORTFOLIO TURNOVER

The Scheme being an open-ended scheme, it is expected that there would be a number of subscriptions and
redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the
likely turnover in the portfolio. There may be an increase in transaction cost such as brokerage paid, if trading is done
frequently. Frequent trading may increase the profits which will offset the increase in costs. The fund manager will
endeavor to optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost associated with
it. However, it is difficult to estimate with reasonable accuracy, the likely turnover in the portfolio of the Scheme. The
Scheme has no specific target relating to portfolio turnover.

INVESTMENT DECISIONS

The Chief Investment Officer / Fund Manager of the Scheme is responsible for making buy / sell decisions for the
Scheme's portfolio and will seek to develop a reasonably diversified portfolio that minimizes liquidity and credit risk.
The investment decisions will be taken by the Scheme keeping in view the investment objective of the Scheme, market
conditions and all the relevant aspects.

The AMC will formulate broad investment strategies for the Scheme including investments in unrated debt instruments,
reviewing performance of the Scheme and general market outlook. The approval of unrated debt instruments will be
based on detailed parameters laid down by the Board of the AMC and the Trustees. The details of such investments
will be communicated by the AMC to the Trustees in their periodical reports along with a disclosure regarding how the
parameters have been complied with. Such reporting shall be in the manner prescribed by SEBI from time to time. The
AMC will review all the investments made by the Scheme.

It is the responsibility of the AMC to seek to ensure that the investments are made as per the Regulatory guidelines,
the investment objectives of the Scheme and in the interest of the Unit holders of the Scheme.

50
The AMC will keep a record of all investment decisions in accordance with the guidelines issued by SEBI. The Fund
Manager shall seek to ensure that the funds of the Scheme are invested in line with the Regulatory guidelines, the
investment objective of the Scheme and in the interest of the Unit holders of the Scheme.

Investment decisions are taken by the Chief Investment Officer/ Fund manager of the Scheme(s) and the CEO does
not play any role in the day-to-day investment decisions. The CEO of the AMC shall ensure that the investments made
by the fund managers are in the interest of the Unit holders.

Periodic presentations will be made to the Board of Directors of the AMC and Trustee Company to review the
performance of the Scheme.

INVESTMENT BY THE AMC/SPONSOR IN THE SCHEME

The Sponsor or the AMC shall invest as per clause sub-regulation 16 (A) of Regulation 25 of SEBI (Mutual Funds)
Regulations, 1996 read along with SEBI Master Circular no SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May
19, 2023 on alignment of interest of AMC with the unit holders of Mutual Fund, the AMC will invest in the Scheme
based on the risk-o-meter.

The AMC may invest in the Scheme anytime during the continuous offer period subject to the SEBI (MF) Regulations.
As per the existing SEBI (MF) Regulations, the AMC will not charge Investment Management and Advisory fee on the
investment made by it in the Scheme or other existing schemes of the Mutual Fund.

The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds, provided
it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI (MF) Regulations.

INVESTMENT IN SCHEME BY DIRECTORS OF AMC AND TRUSTEE COMPANY.

Directors of Asset Management Company and Trustee Company may invest in the scheme(s) of PPFAS Mutual Fund.
AMC will charge normal investment management and advisory fees as per existing SEBI (MF) Regulations.

Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015 and SEBI Circulars as amended from time to
time will be ensured.

INVESTMENT IN SCHEME BY EMPLOYEES OF ASSET MANAGEMENT COMPANY AND TRUSTEE COMPANY.

Fund Manager/s of the scheme will invest in the scheme managed by him/ her. Further employees of Asset
Management Company may invest in the scheme(s) floated by the PPFAS Mutual Fund. AMC will charge normal
investment management and advisory fees as per existing SEBI (MF) Regulations.

Voluntary Disclosure of Investment in the Scheme:

PPFAS Mutual Fund will disclose on its website [Link] the details of investment in the units of the
scheme by Directors of AMC and Trustee Company. These details shall also be provided for any investment by Fund
Manager/s and key employees of AMC.

F. FUNDAMENTAL ATTRIBUTES

Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the SEBI (MF)
Regulations:

(i) Type of a scheme

Please refer to Section ‘Type of the Scheme’

(ii) Investment Objective

Main Objective - Please refer to Section ‘What is the Investment Objective of the Scheme?'

51
Investment pattern - Please refer to section 'How will the Scheme Allocate its Assets?'

(iii) Terms of Issue

a) Liquidity provisions such as listing, repurchase, redemption. Refer to Page 62.

b) Aggregate Fees and Expenses charged to the Scheme Please refer to section 'Fees and Expenses' for details.

c) Any safety net or guarantee provided: The Scheme does not provide any guaranteed or assured return.

Changes in Fundamental Attributes

In accordance with Regulation 18 (15A) of the SEBI (Mutual Funds) Regulations, the Trustee shall ensure that no
change in the fundamental attributes of the Scheme and the Option thereunder or the trust or fee and expenses
payable or any other change which would modify the Scheme and the Option thereunder and affect the interest of
Unit holders is carried out unless: -

- A prior approval is taken from Securities and Exchange Board of India before brining such change(s)
- A written communication about the proposed change is sent to each Unit holder and an advertisement is given in one
English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the
region where the Head Office of the Mutual Fund is situated; and
-The consent or approval of unitholders can also be done through the Postal Ballot mechanism i.e. voting by post or
through any electronic mode.
- The Unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any Exit
Load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

The performance of the Scheme will be benchmarked against CRISIL Hybrid 50+50 – Moderate Index.

Justification: The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance
of the scheme

As required under SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the
benchmark has been selected from amongst those notified by AMFI as the first tier benchmark to be adopted by mutual
funds and which are reflective of the category of the scheme.

The Trustee reserves the right to change the benchmark for evaluation of performance of the Scheme from time to time
in conformity with investment objective of the Scheme and appropriateness of the benchmark subject to SEBI
Regulations and other prevailing guidelines, if any. The Total Return variant of the index (TRI) will be used for
performance comparison.

[Link] MANAGES THE SCHEME?

Name and Age Educational Experience (last 10 years) Other Fund Managed
Qualifications

Rajeev Thakkar B. Com. (Bombay Till March 2012 he was acting as a Chief He is managing the
(Chief Investment University) Executive Officer of PPFAS (Sponsor Scheme- Parag Parikh
Officer Company). Flexi Cap Fund
and Equity Fund Chartered (PPFCF), Parag Parikh
Manager) Accountant He joined the company in 2001. ELSS Tax Saver Fund
(PPTSF), Parag Parikh
51 years CFA Charter Holder Conservative Hybrid

52
 He started his career in the year 1994 and Fund (PPCHF) and
Grad ICWA he has experience of working in areas like; Parag Parikh Arbitrage
merchant banking, managing fixed income Fund (PPAF) since its
portfolio, broking operations, PMS inception.
operations for over two decades.

He was functioning as a Fund Manager for

PMS service of PPFAS managing a
portfolio of around Rs. 300 crores.

He is acting as a Chief Investment Officer

and Equity Fund Manager to the Company.

Raunak Onkar Bsc. IT (Bombay He has more than 15 years of experience He manages the
(Equity Fund University) in the capital market. He started his career overseas investment of
Manager) with Parag Parikh Financial Advisory the Scheme- Parag
MMS- Finance Services Limited, following his internship, Parikh Flexi Cap Fund
38 years (Bombay University) in the year 2009. (PPFCF)

He joined PPFAS as a research analyst. And acts as Co- Fund

He was appointed as Head- research in the Manager for Parag
year 2011. Parikh ELSS Tax Saver
Fund (PPTSF), Parag
He is working with the company as an Parikh Conservative
Associate Fund Manager. Hybrid Fund (PPCHF)
and Parag Parikh
Arbitrage Fund (PPAF)
since its inception.

Raj Mehta [Link] (Mumbai He is appointed as a Debt Fund Manager of He is currently acting as
(Debt Fund University), the Parag Parikh Flexi Cap Fund w.e.f 27th Debt Fund Manager for
Manager) January 2016. He has collectively over 10 the schemes- Parag
[Link](Mumbai years of experience in investment research. Parikh Flexi Cap Fund
34 years University), (PPFCF) since 2016,
Parag Parikh ELSS Tax
Chartered He started his career with PPFAS Asset Saver Fund (PPTSF),
Accountant, Management Pvt Ltd as an intern in 2012. Parag Parikh Liquid
Following which, he joined the company as Fund (PPLF) and Parag
CFA Charter Holder. a Research Analyst in 2013. Parikh Conservative
Hybrid Fund
(PPCHF),Parag Parikh
Arbitrage Fund (PPAF)
since its inception.

Rukun Post Graduate He is appointed as an Additional Fund He is managing

Tarachandani Diploma in Manager - Equity with effect from May 16, Domestic Equity
(Fund Manager - Management 2022. segment for Parag
Equity) (Specialization: Parikh Flexi Cap Fund
Finance), (PPFCF) and Equity
Mr. Rukun Tarachandani has more than 9
33 years segment for Parag
B. Tech years of experience in the financial market Parikh ELSS Tax
(Information in Equity research and Fund Management Saver Fund (PPTSF),
Technology), (Arbitrage). He is based in Mumbai and will Parag Parikh
be responsible for fund management of the Conservative
CFA Charter Holder equity portion of schemes of PPFAS Mutual Hybrid Fund (PPCHF)
Fund. w.e.f. May 16, 2022
and Parag Parikh

53
 Certificate in He joined PPFAS Asset Management Pvt. Arbitrage Fund (PPAF)
Quantitative Finance Ltd. in March 2021 as Vice President - since inception.
(CQF) Research. He is involved in Quantitative
Research to identify investment
opportunities in listed equities. Prior to
joining PPFAS Asset Management Limited
his
previous assignments held during the last
10 years were as below:
[Link] Sachs (India) Securities Pvt Ltd
(From April 2013 to March 2015):
He was part of the Sell-side Equity
Research team focussed on US Banks and
Credit Card companies
[Link] Mahindra Asset Management
Company Limited
(From March 2015 to February 2021)
Mr. Rukun was appointed as an Equity
Research analyst and was involved in
Equity Research for Indian stocks across
market capitalization and across sectors. He
was also responsible for identifying and
evaluating special situation investment
opportunities in listed equities. He also
managed the Kotak Equity Arbitrage Fund
from May-2019 to Dec-2019.

Mansi Kariya She is managing debt

(Debt Fund CFA Charter Holder, She joined PPFAS Asset Management segment for Parag
Manager) Private Limited in 2018 as Debt Dealer. Parikh Flexi Cap Fund
MS-(Finance) (PPFCF), Parag Parikh
36 years She is also a credit research analyst Liquid Fund (PPLF),
handling various companies and also acts Parag Parikh ELSS
[Link] (Hons)
as a debt dealer. In her previous roles, she Tax Saver Fund
has worked as a research associate and (PPTSF), Parag Parikh
senior executive debt products for 3.5 Conservative
Hybrid Fund (PPCHF),
years.
and Parag Parikh
Arbitrage Fund (PPAF)
w.e.f. December 22,
2023

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the following investment
restrictions are currently applicable to the Scheme:

[Link] Scheme shall not invest more than 10% of its NAV in the equity shares or equity related instruments of any
company. Provided that, the limit of 10% shall not be applicable for investments in case of index fund or sector or
industry specific scheme.

54
2. All investments by a mutual fund scheme in equity shares and equity related instruments shall only be made provided
such securities are listed or to be listed

3. The Mutual Fund under all its Scheme(s) 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.

4. The Scheme shall not invest more than 10% of its NAV in debt instruments, issued by a single issuer, comprising
money market securities and non-money market securities rated investment grade or above by a credit rating agency
authorised to carry out such activity under the Act. This overall investment limit may be extended to 12% of the NAV of
the scheme with the prior approval of the Board of Trustees and the Board of AMC.:

Provided that such limit shall not be applicable for investments in Government Securities, treasury bills and Triparty
repo.

Provided further that investment within such limit can be made in mortgaged backed securitized debt which are rated
not below investment grade by a credit rating agency registered with the SEBI.

Provided further that single issuer investment in debt and money market instruments shall be made based on credit
risk of the issuer within the limits specified in the clause 1 of Seventh Schedule of the MF Regulation, following
prudential limits shall be followed, for schemes other than Credit risk funds:

i. A mutual fund 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.

The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term
rating available for the same issuer, then based on credit rating mapping of CRAs between short term and long term
ratings, the most conservative long term rating shall be taken for a given short term rating. Exposure to government
money market instruments such as TREPS on G-Sec/ T-bills shall be treated as exposure to government securities

Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment
restrictions as applicable for debt instruments. It is further clarified that the investment limits are applicable to all debt
securities, which are issued by public bodies/institutions such as electricity boards, municipal corporations, state
transport corporations etc. guaranteed by either state or central government. Government securities issued by
central/state government or on its behalf by the RBI are exempt from the above investment limits.

[Link] Scheme may invest in another scheme under the same AMC or any other mutual fund without charging any fees,
provided that aggregate inter-scheme investment made by all schemes under the same AMC or in schemes under the
management of any other asset management shall not exceed 5% of the net asset value of the Mutual Fund. However,
the aforesaid provision will not apply to the fund of funds scheme.

6. The Scheme shall not make any investments in:

(a) any unlisted security of an associate or group company of the Sponsors; or
(b) any security issued by way of private placement by an associate or group company of the Sponsors; or
(c) the listed securities of group companies of the Sponsors which is in excess of 25% of the net assets.

7. The Scheme shall not invest in any Fund of Funds Scheme.

55
8. Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed only if:-
(a) such transfers are made at the prevailing market price for quoted Securities on spot basis (spot basis shall have
the same meaning as specified by Stock Exchange for spot transactions). Provided that inter scheme transfer of money
market or debt security (irrespective of maturity) shall take place based on prices made available by valuation
agencies as prescribed by SEBI from time to time.
(b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer
has been made.
(c) Inter Scheme Transfers are effected in accordance with the guidelines specified by SEBI Master circular No.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 as amended from time to time.

[Link] Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take
delivery of relevant securities and in all cases of sale, deliver the securities:
● Provided that the Mutual Fund may engage in short selling of securities in accordance with the framework
relating to short selling and securities lending and borrowing specified by SEBI.
● Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange,
subject to the framework specified by SEBI.
● Provided further that sale of government security already contracted for purchase shall be permitted in
accordance with the guidelines issued by the Reserve Bank of India in this regard.

[Link] 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 Income DIstribution cum capital withdrawal to the Unit
holders.
Provided that the Fund shall not borrow more than 20% of the net assets of the individual Scheme and the duration of
the borrowing shall not exceed a period of 6 months.

11. The Mutual Fund shall enter into transactions relating to Government Securities only in dematerialised form.

12. The Mutual fund shall get the securities purchased / transferred in the name of the fund on account of the concerned
scheme, where investments are intended to be of long term nature.

13. Pending deployment of funds of a scheme in terms of investment objectives of the scheme, a mutual fund may
invest them in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its
Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 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.

i. “Short Term” for parking of funds shall be treated as a period not exceeding 91 days.
ii. Such short-term deposits shall be held in the name of the Scheme.
iii. The Scheme shall not park more than 15% of their net assets in the short-term deposit(s) of all the scheduled
commercial banks put together. However, it may be raised to 20% with the prior approval of the Trustee. Also, parking
of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20%
of total deployment by the Mutual Fund in short term deposits.
iv. The Scheme shall not park more than 10% of their net assets in short-term deposit(s) with any one scheduled
commercial bank including its subsidiaries.
v. The Trustee / AMC shall ensure that the funds of the Scheme are not parked in the short-term deposits of a bank
which has invested in the Scheme.
vi. AMC will not charge any investment management and advisory fees for parking of funds in short term deposits of
scheduled commercial banks.
vii. The Trustee / AMC shall also ensure that the bank in which a scheme has short-term deposits do not invest in the
scheme until the scheme has short term deposits with such bank.
The above provisions do not apply to term deposits placed as margins for trading in the cash and derivative market.

56
14. In accordance with SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 in case
of debt schemes, the total exposure to single sector shall not exceed 20% of the net assets of the scheme. However,
this limit is not applicable for investments in Bank CDs, Tri-party Repo, G-Secs, T-Bills short term deposits of scheduled
commercial banks and AAA rated securities issued by Public Financial Institutions and Public Sector Banks.

Provided that an additional exposure to financial services sector (over and above the limit of 20%) not exceeding 10%
of the net assets of the scheme shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs)
only; Further, an additional exposure of 5% of the net assets of the scheme has been allowed for investments in
securitized debt instruments based on retail housing loan portfolio and/or affordable housing loan portfolio.

However, the overall exposure in HFCs shall not exceed the sector exposure limit of 20% of the net assets of the
scheme.

Provided further that the additional exposure to such securities issued by HFCs are rated AA and above and these
HFCs are registered with National Housing Bank (NHB) and the total investment/ exposure in HFCs shall not exceed
20% of the net assets of the scheme

[Link] accordance with SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, in case
of debt scheme the total exposure in a group, except and in the group of sponsor and the asset management company,
(excluding investments in securities issued by Public Sector Units, Public Financial Institutions and Public Sector
Banks) shall not exceed 20% of the net assets of the scheme. Such investment limit may be extended to 25% of the
net assets of the scheme with the prior approval of the Board of Trustees.

Further, the investments in debt and money market instruments of group companies of both the sponsor and the asset
management company shall not exceed 10% of the net assets of the scheme. Such investment limit may be extended
to 15% of the net assets of the scheme with the prior approval of the Board of Trustees.

For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (Mutual Funds) Regulations,
1996 (Regulations) and shall include an entity, its subsidiaries, fellow subsidiaries, its holding company and its
associates.

16. In accordance with the guidelines as stated under SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, investments in following instruments as specified in the said circular, as may be
amended from time to time, shall be applicable:

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, Mutual fund schemes 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. 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 the Board.

ii. 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 mutual fund schemes shall
be subject to the conditions as specified in the said circular:

Investments should only be made in such instruments, including bills rediscounting, 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.

57
iii. Exposure of mutual fund schemes in such instruments, shall not exceed 5% of the net assets of the schemes.

17. The Scheme shall invest in Debt instruments having Structured Obligations/ Credit Enhancements in accordance
with provisions of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 as may be
amended by SEBI from time to time. The same are currently as under:

The investment of the Scheme in the following instruments shall not exceed 10% of the debt portfolio of the Scheme
and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the Scheme:

a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is below investment grade;
and
b. Supported rating of debt instruments (i.e. after factoring in credit enhancement) is above investment grade.

For this purpose, a group means a group as defined under regulation 2 (mm) of the Regulations and shall include an
entity, its subsidiaries, fellow subsidiaries, its holding company and its associates.

However the above Investment limits shall not be applicable on investments in securitized debt instruments, as defined
in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008. Investment in debt instruments,
having credit enhancements backed by equity shares directly or indirectly, shall have a minimum cover of 4 times
considering the market value of such shares.

Further, the investment in debt instruments having credit enhancements should be sufficiently covered to address the
market volatility and reduce the inefficiencies of invoking of the pledge or cover, whenever required, without impacting
the interest of the investors. In case of fall in the value of the cover below the specified limit, AMCs will initiate necessary
steps to ensure protection of the interest of the investors.

[Link] vide its Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 has prescribed the
following investment restrictions w.r.t investment in derivatives:

● The Scheme shall not write options or purchase instruments with embedded written options except for covered
call strategy.

● The total exposure related to option premium paid and received must not exceed 20% of the net assets of the
Scheme.

● Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any
exposure. Cash or cash equivalents for this purpose shall consist of Government Securities, T-Bills and Repo
on Government securities.

● Exposure due to hedging positions may not be included in the above mentioned limits subject to the following:
a. Hedging positions are the derivative positions that reduce possible losses on an existing position in
securities and till the existing position remains.
b. Hedging positions cannot be taken for existing derivative positions. Exposure due to such positions shall
have to be added and treated as exposure as per SEBI Master Circular point number 12.24.1 dated May 19,
2023
c. Any derivative instrument used to hedge has the same underlying security as the existing position being
hedged.
d. The quantity of underlying associated with the derivative position taken for hedging purposes does not
exceed the quantity of the existing position against which hedge has been taken.

● 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 as per SEBI Master Circular point
number 12.24.1 dated May 19, 2023.

● 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:

58
 Position Exposure

Long Future Futures Price * Lot Size * Number of Contracts

Short Future Futures Price * Lot Size * Number of Contracts

Option bought Option Premium Paid * Lot Size * Number of Contracts.

● The Scheme may enter into plain vanilla Interest Rate Swaps(IRS) for hedging purposes. Further, the value
of the notional principal in such cases shall 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 counterparty in such transactions
has to be an entity recognized as a market maker by RBI and exposure to a single counterparty in such
transactions shall 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.

19. The scheme will invest in Repos in Corporate debt in accordance with SEBI Master Circular no SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 dated May 19, 2023.

20. Save as otherwise expressly provided under the Regulations, the Scheme shall not advance any loans for any
purpose.

22. Covered Call Strategy- The Scheme can write Call options under a covered strategy for constituent stocks of NIFTY
50 and BSE SENSEX subject to the following condition:

a) The total notional value (taking into account strike price as well as premium value) of call options written by a scheme
shall not exceed 15% of the total market value of equity shares held in that scheme.

b) The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of
a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part
of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances.

c) At all points of time the scheme shall comply with the provisions at points (a) and (b) above. In case of any passive
breach of the requirement at paragraph (a) above, the respective scheme shall have 7 trading days to rebalance the
portfolio. During the rebalancing period, no additional call options can be written in the said scheme.

d) In case the scheme needs to sell securities on which a call option is written under a covered call strategy, it must
ensure compliance with paragraphs (a) and (b) above while selling the securities.

e) In no case, the scheme shall write a call option without holding the underlying equity shares. A call option can be
written only on shares which are not hedged using other derivative contracts.

f) The premium received shall be within the requirements prescribed in terms of SEBI Master circular dated May 19,
2023 i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets
of the scheme.

g) The exposure on account of the call option written under the covered call strategy shall not be considered as
exposure in terms of paragraph 3 of SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19,
2023.

59
h) The call option written shall be marked to market daily and the respective gains or losses factored into the daily NAV
of the respective scheme(s) until the position is closed or expired.

The AMC/Trustee may alter these above stated restrictions from time to time to the extent the SEBI (MF) Regulations
change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual
funds to achieve its investment objective. The AMC/Trustee may from time to time alter these restrictions in conformity
with the SEBI (MF) Regulations. Further, apart from the investment restrictions prescribed under SEBI (MF)
Regulations, the Fund may follow any internal norms vis-à-vis restricting / limiting exposure to a particular scrip or
sector, etc. All investment restrictions shall be applicable at the time of making investment.

J. HOW HAS THE SCHEME PERFORMED?

This scheme is a new scheme and does not have any performance track record.

K. HOW THIS SCHEME IS DIFFERENT?

Comparison of open-ended hybrid schemes of PPFAS Mutual Fund

Sr. Scheme Name Scheme Type of Scheme AUM as on No. of

No. Category November 30, Folios as on
2023 (Rs. November 30,
in crores) 2023

1 Parag Parikh Conservative An open-ended hybrid 1,657.00 28,275

Conservative Hybrid Hybrid Fund scheme investing
Fund predominantly in debt
instruments

2 Parag Parikh Arbitrage Arbitrage Fund An open-ended scheme 146.80 4,176

Fund investing in arbitrage
opportunities

Undertaking by The Trustee

The Board of Trustees have ensured that Parag Parikh Dynamic Asset Allocation Fund as approved by them on
December 21, 2023 is a new product offered by PPFAS Mutual Fund and is not a minor modification of any existing
scheme/fund/product.

III. UNITS AND OFFER

This section provides details you need to know for investing in the scheme.

A. NEW FUND OFFER (NFO)

New Fund Offer Period NFO opens on: 20th February 2024
This is the period during which a
new scheme sells its units to the NFO closes on: 22nd February 2024
investors.
(The AMC/Trustee reserves the right to close the NFO of the Scheme
before the above-mentioned date. The AMC/ Trustee reserves the right
to extend the closing date of the New Fund Offer Period, subject to the
condition that the New Fund Offer shall be kept open for minimum 3
working days and maximum 15 days.)

60
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.

Minimum Amount for Application in Rs 5,000/- and any amount thereafter.

the NFO

Minimum Target amount The Scheme seeks to collect a minimum target of Rs. 20 crores during
This is the minimum amount the NFO period.
required to operate the scheme and
if this is not collected during the This is the minimum amount required to operate the Scheme and if this
NFO period, then all the investors is not collected during the NFO period, then in accordance with the SEBI
would be refunded the amount Regulation, all the investors would be refunded the amount invested with
invested without any return. interest earned on NFO proceeds, subject to as mentioned in the section
However, if AMC fails to refund the on “Refund” in this Scheme Information Document.
amount within 5 working days,
interest as specified by SEBI
(currently 15% p.a.) will be paid to
the investors from the expiry of 5
working days from the date of
closure of the subscription period.

Maximum Amount to be raised (if There will be no upper limit on the total amount collected under the
any) Scheme during the NFO Period.
This is the maximum amount which can
be collected during the NFO period, as
decided by the AMC.

Plans / Options offered Plans offered by the Scheme:

1. Direct Plan (i.e., investments not routed through distributor.)
2. Regular Plan

For both the above plans, the Scheme offers the below options / sub-
options / facilities:
Options Sub-Options/ Frequency of Record Date
Facilities IDCW

Growth NA NA NA

Income Monthly Monthly Last Monday

Distribution Reinvestment of the Month.
cum capital of Income
withdrawal Distribution
(IDCW) cum capital
withdrawal
option

61
 Monthly Payout Monthly Last Monday
of Income of the Month.
Distribution
cum capital
withdrawal
option

Default Plan
Investors subscribing under Direct Plan of the Scheme will have to
indicate “Direct Plan” against the Scheme name in the application form.
However, if distributor code is mentioned in application form, but “Direct
Plan” is mentioned against the Scheme name, the distributor code will be
ignored and the application will be processed under “Direct Plan”. Further,
where application is received for Regular Plan without Distributor code or
“Direct” mentioned in the ARN Column, the application will be processed
under Direct Plan.
The below table summarizes the procedures which would be adopted by
the AMC for applicability of Direct Plan / Regular Plan, while processing
application form/transaction request under different scenarios:

Sr. AMFI Registration Plan as selected Transaction

No. Number (ARN) code in the application shall be
mentioned/ not form/ transaction processed and
mentioned in the request Units shall be
application form / allotted under
transaction request

1 Not mentioned Not mentioned Direct Plan

2 Not mentioned Direct Direct Plan

3 Not mentioned Regular Direct Plan

4 Mentioned Direct Direct Plan

5 Direct Not mentioned Direct Plan

6 Direct Regular Direct Plan

7 Mentioned Regular Regular Plan

8 Mentioned Not mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the

application form, the application shall be processed under Regular Plan.
The AMC/RTA shall endeavour to contact the investor/distributor and
obtain the correct ARN code within 30 calendar days of the receipt of the
application form from the investor/ distributor. In case, the correct code is

62
not received within 30 calendar days, the AMC shall reprocess the
transaction under Direct Plan from the date of application without any exit
load.

The financial transactions# of an investor where his distributor's AMFI

Registration Number (ARN) has been suspended temporarily or
terminated permanently received during the suspension period shall be
processed under "Direct Plan" and continue to be processed under "Direct
Plan" perpetually unless after suspension of ARN is revoked, unitholder
makes a written request to process the future installments/investments
under "Regular Plan". Any financial transactions requests received
through the stock exchange platform, from any distributor whose
ARN has been suspended, shall be rejected.

#Financial Transactions shall include all Purchase / Switch requests

(including under fresh registrations of Systematic Investment Plan ("SIP")
/ Systematic Transfer Plan ("STP") or under SIPs/ STPs registered prior
to the suspension period).

Default Option: Growth

Default IDCW Frequency- Monthly Reinvestment of Income Distribution

cum capital withdrawal option

I) Growth Option: The Mutual Fund will not declare any dividends under
this option. The income earned under this Option will remain invested in
the option and will be reflected in the NAV. This option is suitable for
investors who are not looking for current income but who have invested
with the intention of capital appreciation.

II) Income Distribution cum capital withdrawal (IDCW) Option: Under

this option, IDCW will be declared at periodic intervals at the discretion of
the Trustees and partly out of the investors capital (Equalization Reserve),
which is part of sale price that represents realized gains and subject to
availability of distributable surplus calculated in accordance with SEBI
(MF) Regulations. On payment of IDCW, the NAV of the Units under
IDCW option will fall to the extent of the Payout of Income Distribution cum
capital withdrawal option, and applicable statutory levies, if any.

Income Distribution cum capital withdrawal Option offers Monthly

Reinvestment of Income Distribution cum capital withdrawal option
and Monthly Payout of Income Distribution cum capital withdrawal
option.

It must be distinctly understood that the actual declaration of IDCW and

frequency thereof is at the sole discretion of Board of Trustee and the
amounts can be distributed out of investors capital (Equalization
Reserve), which is part of sale price that represents realized gains. There
is no assurance or guarantee to the Unit holders as to the rate of IDCW
distribution nor that the IDCW will be paid regularly. The Trustee reserves
the right to declare a IDCW at any other frequency in addition to the
frequencies mentioned above.

Monthly Reinvestment of Income Distribution cum capital

withdrawal option:
Under this facility, IDCW due and payable to the Unit holders will be
compulsorily and without any further act by the Unit holder, reinvested in
the IDCW option at a price based on the prevailing ex-dividend Net Asset

63
 Value per Unit on the record date. The amount of IDCW re-invested will
be net of tax deducted at source, wherever applicable. IDCW so
reinvested shall constitute an actual payment of IDCW to the Unit holders
and an actual receipt of the same amount from each Unit holder for re-
investment in Units.

On Reinvestment of Income Distribution cum capital withdrawal option,

the number of Units to the credit of Unit holder will increase to the extent
of the IDCW reinvested divided by the Applicable NAV.

Monthly Payout of Income Distribution cum capital withdrawal

option:
Dividends, if declared, will be paid (subject to deduction of tax at source,
if any) to those Unitholders / Beneficial Owners whose names appear in
the Register of Unit holders maintained by the Mutual Fund/ statement of
beneficial ownership maintained by the Depositories, as applicable, on the
notified record date.

As and when the payable IDCW amount is less than or equal to Rs. 500/-
, the same will be compulsorily reinvested in the respective
Plan(s)/Option(s) of the Scheme irrespective of the IDCW facility selected
by the investor. If the IDCW amount payable is greater than Rs. 500/ -
then it will be either reinvested or paid as per the mandate selected by the
investor.

There shall, however, be no Load(s) (if any) on the IDCW so reinvested.

For details on taxation of dividend, please refer to the SAI.

Notes:
a. An investor on record for the purpose of IDCW distributions is an
investor who is a Unit Holder as of the Record Date. In order to be a Unit
Holder, an investor has to be allocated Units representing receipt of clear
funds by the Scheme.
b. Investors should indicate the name of the Plan and/or Option, clearly in
the application form. In case of valid applications received, without
indicating the Plan and/or Option etc. or where the details regarding
Option are not clear or ambiguous, the default options as mentioned
above, will be applied.

Investors shall note that once Units are allotted, AMC shall not
entertain requests regarding change of Option, with a retrospective
effect.

The Trustees reserve the right to offer IDCW option to the investors
in the future which in the opinion of the Trustees is in the best
interest of the unit-holder.

The AMC, in consultation with the Trustee reserves the right to

discontinue/ add more options/facilities at a later date subject to
complying with the prevailing SEBI guidelines and Regulations.

Income Distribution cum Capital Under the Income Distribution cum capital withdrawal option, the Trustee
Withdrawal Policy will have discretion to declare the dividend, subject to availability of
distributable surplus and partly out of investor’s capital calculated in
accordance with the Regulations. The actual declaration of IDCW and
frequency will inter-alia, depend on availability of distributable surplus
calculated in accordance with SEBI (MF) Regulations and the decisions

64
 of the Trustee shall be final in this regard. The amounts can be distributed
out of investors capital (Equalization Reserve), which is part of the sale
price that represents realized gains. There is no assurance or guarantee
to the Unitholder as to the rate of IDCW nor that the IDCW will be paid
regularly.

The AMC/Trustee reserves the right to change the frequency of

declaration of IDCW or may provide additional frequency for Declaration
of IDCW

IDCW Distribution Procedure:

In accordance with SEBI Master circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, the procedure for IDCW distribution
would be as under:

[Link] of IDCW and the record date will be fixed by the Trustee.
IDCW so decided shall be paid, subject to availability of distributable
surplus.

[Link] one calendar day of decision by the Trustees, the AMC shall
issue notice to the public communicating the decision including the record
date. The record date shall be 2 Working days from the date of publication
in atleast 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.

[Link] date shall be the date, which will be considered for the purpose
of determining the eligibility of Unitholders whose names appear on the
register of Unitholder for receiving Dividends. The Record Date will be 2
Working days from the date of issue of public notice.

[Link] notice will, in font size 10, bold, categorically state that pursuant to
payment of Dividend, the NAV of the Scheme would fall to the extent of
payout and statutory levy (if applicable).

[Link] NAV will be adjusted to the extent of IDCW distribution and statutory
levy, if any, at the close of Business Hours on record date.

[Link] the issue of such notice, no communication indicating the

probable date of IDCW declaration in any manner whatsoever will be
issued by Mutual Fund.

The requirement of giving public notice shall not be applicable for

IDCW options having frequency ranging from daily up to monthly
distribution.

Allotment Investors may apply for Units by filling up an Application Form. All valid
and complete applications will be allotted Units at the Applicable NAV for
the application amount. Allotment of units shall be made within 5
business days from the closure of the NFO and the Scheme shall be
available for ongoing repurchase/sale/trading within 5 business days of
the allotment.

Allotment of Units shall be subject to;

(i) the achievement of the minimum target amount; (ii) receipt of
complete Application Forms that are in order; (iii) realisation of the
specified minimum Subscription amount from the Investor, and (iv)
provisions set out in the section on 'Refund/Rejection of the application’

65
 given below.

Account Statements
An account statement will be sent by ordinary post/courier/electronic
mail to each Unit Holder within 5 business days from the closure of the
NFO, stating the number of Units purchased.

In case, the investor provides the e-mail address, the Fund will provide
the Account Statement only through e-mail message. Should the unit
holder experience any difficulty in accessing the electronically delivered
documents, the unit holders shall promptly advise the Mutual Fund to
enable the Mutual Fund to make the delivery through alternate means. It
is deemed that the unit holder is aware of all security risks including
possible third party interception of the documents and contents of the
documents becoming known to third parties.

Normally, no unit certificates will be issued. However, if an applicant so

desires, the AMC shall issue the unit certificates to the applicant within 5
business days of the receipt of request for the certificate.

Consolidated Account Statements

In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023 a consolidated account statement
for each calendar month is issued to the investors in whose folios
transactions have taken place during that month.

Refund Application money may be refunded in case the minimum target amount
required to operate the Scheme is not collected during the NFO period.
Applications may also be rejected if they are found to be incomplete,
invalid or for any other reason whatsoever.

If application is rejected, the Fund will refund the full application amount
within 5 Business Days of the closure of the NFO period. In the event of
delay beyond 5 Business Days of the closure of the NFO, interest at the
rate of 15% per annum or such other rate of interest as may be prescribed
from time to time for the delay period will be paid to the applicant and
borne by the AMC.

Refund orders will be marked ‘A/c Payee only’ and drawn in the name of
the applicant (in the case of a sole applicant) and in the name of the first
applicant in all other cases.

All refund orders will be sent by either registered post, speed post, courier
etc. with acknowledgment due or through RTGS, NEFT, IMPS or direct
credit facility etc. or any other mode allowed by Reserve Bank of India.

Who can invest The following persons are eligible to apply for subscription to the units of
This is an indicative list and you are the Scheme (subject to, wherever relevant, subscription to units of the
requested to consult your financial Scheme being permitted under the respective constitutions and relevant
advisor to ascertain whether the statutory regulations):
scheme is suitable to your risk profile. 1. Indian resident adult individuals either singly or jointly (not exceeding
three) or on an Anyone or Survivor basis;
2. Hindu Undivided Family (HUF) through Karta of the HUF;
3. Minor (as the first and the sole holder only) through a natural guardian
(i.e. father or mother, as the case may be) or a court appointed legal
guardian. There shall not be any joint holding with minor investments.
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

66
account of the minor with parent or legal guardian.
4. Partnership Firms and Limited Liability Partnerships (LLPs);
5. Proprietorship in the name of the sole proprietor;
6. Companies, Bodies Corporate, Public Sector Undertakings (PSUs),
Association of Persons (AOP) or Bodies of Individuals (BOI) and societies
registered under the Societies Registration Act, 1860;
7. Banks (including Co-operative Banks and Regional Rural Banks) and
Financial Institutions;
8. Mutual Funds/ Alternative Investments Fund registered with SEBI;
9. Religious and Charitable Trusts, Wakfs or endowments of private trusts
(subject to receipt of necessary approvals as “Public Securities” as
required) and private trusts authorised to invest in mutual fund schemes
under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) residing
abroad on repatriation basis or on non-repatriation basis;
11. Foreign Institutional Investors (FIIs) and their sub-accounts registered
with SEBI on repatriation basis;
12. Army, Air Force, Navy and other para-military units and bodies created
by such institutions;
13. Council of Scientific and Industrial Research, India
14. Multilateral Funding Agencies / Bodies Corporate incorporated outside
India with the permission of Government of India / RBI;
15. Provident Funds, Pension Funds, Gratuity Funds and Superannuation
Funds to the extent they are permitted;
16. Other schemes of PPFAS Mutual Fund subject to the conditions and
limits prescribed by SEBI (Mutual Funds) Regulations;
17. Trustee, AMC or Sponsor or their associates may subscribe to units
under the Scheme;
18. Qualified Foreign Investor (QFI)
19. Foreign Portfolio Investors (FPI) registered with SEBI on repatriation
basis;
20. 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.

Notes:
1. Non-Resident Indians (NRIs) and Persons of Indian Origin
(PIOs)residing abroad / Foreign Institutional Investors (FIIs) 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, 2000 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
the 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. 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.
4. Subject to the SEBI (MF) Regulations, any application for units of this

67
 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.
5. The AMC / Trustees may request Investors / Unit holders to provide
other further details as may be required in the opinion of the AMC /
Trustees under applicable Laws. This may result in a delay in dealing with
the applicants, Unit holders, benefits distribution, etc.
6. In case of application(s) made by individual investors under a Power of
Attorney, the original Power of Attorney or a duly notarized copy should
be submitted along with the subscription application form. In case of
applications made by non-individual investors, the authorized signatories
of such non-individual investors should sign the application form in terms
of the authority granted to them under the Constitutional Documents/
Board resolutions/Power of Attorneys, etc. A list of specimen signatures
of the authorized signatories, duly certified / attested should also be
attached to the Application Form. The Mutual Fund/AMC/Trustee shall
deem that the investments made by such non-individual investors are not
prohibited by any law/Constitutional documents governing them and they
possess the necessary authority to invest.
[Link] desiring to invest / transact in mutual fund schemes are
required to comply with the KYC norms applicable from time to time.
Under the KYC norms, Investors are required to provide prescribed
documents for establishing their identity and address such as copy of the
Memorandum and Articles of Association / bye-laws/trust deed/
partnership deed/Certificate of Registration along with the proof of
authorization to invest, as applicable, to the KYC Registration Agency
(KRA) registered with SEBI.
[Link], all other requirement for investments by minor and process of
transmission shall be followed in line with SEBI Master Circular dated May
19, 2023 read with SEBI Circular dated May 12, 2023 as amended from
time to time.
9. The Mutual Fund/ AMC/ Trustee/ other intermediaries will rely on the
declarations/ affirmations provided by the Investor(s) in the
Application/Transaction Form(s) and the documents furnished to the KRA.
Further, the Investor shall be liable to indemnify the Fund/ AMC/ Trustee/
other intermediaries in case of any dispute regarding the eligibility, validity
and authorization of the transactions and/ or the applicant who has applied
on behalf of the Investor. The Mutual Fund/ AMC/ Trustee reserves the
right to call for such other information and documents as may be required
by it in connection with the investments made by the investors.
10. Returned cheques are not liable to be presented again for collection
and the accompanying application forms are liable to be rejected by the
AMC. In case the returned cheques are presented again, the necessary
charges are liable to be debited to the investor.
[Link] Trustee reserves the right to recover from an investor any loss
caused to the Scheme on account of dishonour of cheques issued by the
investor for purchase of Units of the Scheme.
12. AMC shall register the details of a client, in case of client being a non-
profit organisation, on the DARPAN Portal of NITI Aayog, if not already
registered, and maintain such registration records for a period of five years
after the business relationship between a client and a reporting entity has
ended or the account has been closed, whichever is later.

The following persons are not eligible to invest in the Scheme:

Who cannot invest Pursuant to RBI A.P. (DIR Series) Circular No. 14 dated September 16,

68
 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.
Any prospective investor/s residing in Non-Compliant Countries and
Territories (NCCTs) as determined by the Financial Action Task Force
(FATF), from time to time.
Such other persons as may be specified by AMC from time to time or as
may be required by the applicable rules and regulations.

Where can you submit the filled-up Duly completed application forms can be submitted at the registered
applications. office, corporate office and branch offices of the AMC and investor service
centers of CAMS.

For further details of CAMS Investors Centers, refer to Section List of

Investor Service Centres and Official Points of Acceptance of
Transactions on this link [Link]
service-centres/[Link].

The Investors who are registered with the AMC to invest online through
the website of the AMC [Link] can apply online for
purchase / redemption / switches.

Investors can also purchase/redeem units of the Scheme by placing an

order for purchase/redemption with the members (Stock Broker) / clearing
members of stock exchanges or Mutual Fund Distributors registered with
AMFI as per SEBI Circular No. CIR/MRD/DSA/32/2013 dated October 4,
2013. These members (Stock Brokers) / clearing members/ Mutual Fund
Distributors would be availing the platform / mechanism provided by the
stock exchanges for placing an order for purchase / redemption of units
of the Scheme. Investors may purchase / redeem units of the Scheme
through the Stock Exchange Infrastructure. In order to facilitate
transactions in mutual fund units, the BSE has introduced the BSE STAR
MF Platform and NSE has introduced Mutual Fund Service System
(MFSS) and NMF II.

Investors should note that Brokers, Clearing members and Depository

Participants will be considered as Official Points of Acceptance (OPA) of
PPFAS Mutual Fund in line with SEBI Master Circular no.
SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023 for stock
brokers viz. AMFI /NISM certification and the provisions of SEBI Circular
No. CIR/MRD/DSA/32/2013 dated October 4, 2013 for Mutual Fund
Distributors, code of conduct prescribed by SEBI for Intermediaries of
Mutual Fund, shall be applicable for such Clearing members, Mutual Fund
Distributors and Depository participants as well.

Further in line with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-

1/P/CIR/2023/74 dated May 19, 2023 it has been decided to allow
investors to directly access infrastructure of the recognised stock
exchanges to purchase mutual fund units directly from Mutual Fund/ Asset
Management Companies. SEBI circular has advised recognised stock
exchanges, clearing corporations and depositories to make necessary
amendment to their existing byelaws, rules and/or regulations, wherever
required.

Please refer to the section List of Investor Service Centres and Official
Points of Acceptance of Transactions for address, contact details and
website address of the AMC and for the Registrar and Transfer Agent,
Official Points of Acceptance, etc.

69
 AMC reserves the right to appoint collecting bankers during the New Fund
Offer Period and change the bankers and/or appoint any other bankers
subsequently.

How to Apply Investors may obtain Key Information Memorandum (KIM) along with the
application forms from the AMC offices or Point of Acceptance of the
Registrar or may be downloaded from [Link] (AMC’s
website). Please refer to the SAI and Application Form for the instructions.
An Application Form accompanied by a payment instrument issued from
a bank account other than that of the Applicant / Investor will not be
accepted except in certain circumstances. For further details, please refer
to paragraph - Non-acceptance of Third Party Payment Instruments for
subscriptions / investments under the section - How to Apply in SAI.

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 the point on Registration
of Multiple Bank Accounts in respect of an Investor Folio under section
“Special Products/Facilities available”.

Listing Being an open ended Scheme under which Sale and Redemption of Units
will be made on a continuous basis by the Mutual Fund (subject to
completion of lock in period, if any), the Units of the Scheme are not
proposed to be listed on any stock exchange. However, the Mutual Fund
may at its sole discretion list the Units under the Scheme on one or more
stock exchanges at a later date.

Special Products / facilities available Switching Option

during the NFO During the NFO period, Switch requests will be accepted upto 3.00 p.m.
on the last day of the NFO. The investors will be able to invest in the NFO
under the Scheme by switching part or all of their Unit holdings, if any,
held in the respective option(s) /plan(s) of the existing scheme(s) of the
Mutual Fund (subject to completion of lock-in period, if any, of the Units of
the scheme(s) from where the Units are being switched).

The Switch will be affected by way of a Redemption of Units from the

Scheme/ Plan and a reinvestment of the Redemption proceeds in the
Scheme and accordingly, to be effective, the Switch must comply with the
Redemption rules of the Scheme/ Plan and the issue rules of the Scheme
(e.g. as to the minimum number of Units that may be redeemed or issued,
Exit Load etc). The price at which the units will be switched - out will be
based on the redemption price of the scheme from which switch - out is
done and the proceeds will be invested into the scheme at the NFO Price.

The Switch request can be made on a pre-printed form or by using the

relevant tear off section of the Transaction Slip enclosed with the Account
Statement, which should be submitted at any of the ISCs.

Applications Supported by Blocked Amount (ASBA) facility

ASBA facility will be provided to the investors subscribing to NFO of the
Scheme. It shall co-exist with the existing process, wherein cheques /
demand drafts are used as a mode of payment. Please refer to the ASBA

70
 application form for detailed instructions.

Stock Exchange Infrastructure Facility:

The investors can subscribe and redeem the Units of the Direct and
Regular Plan in the “Growth and Income Distribution cum capital
withdrawal” option of the Scheme through NMF -II platform of National
Stock Exchange and “BSEStAR MF” platform of Bombay Stock Exchange
and any other platform which will provide subscription and redemption of
units through its platform.

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.

Further, Systematic Investment Plan (SIP) facility would be available to

the investors. For details, investors/ unitholders are requested to refer to
paragraph “Special Products available” given in the document under
Ongoing Offer Details.

Option to hold units in Demat Form In terms of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, investors have the option to receive
allotment of Mutual Fund units in their demat account while subscribing to
this scheme. Such units held in demat form shall be fully transferable.

Demat Facility for SIP Transactions:

Demat option shall be available for SIP transactions. However, the units
will be allotted on the applicable NAV as per SID and will be credited to
investors demat account on weekly basis on realisation of funds.

The policy regarding reissue of Units once redeemed will be extinguished and will not be reissued.
repurchased units, including the
maximum extent, the manner of
reissue, the entity (the scheme or the
AMC) involved in the same.

Restrictions, if any, on the right to Units of the Scheme which are issued in demat (electronic) form will be
freely retain or dispose of units being transferred and transmitted in accordance with the provisions of SEBI
offered. (Depositories and Participants) Regulations, as may be amended from
time to time.

Right to Limit Fresh Subscription

The Trustees reserves the right at its sole discretion to withdraw /
suspend the allotment / Subscription of Units in the Scheme temporarily
or indefinitely, at the time of NFO or otherwise, if it is viewed that
increasing the size of such Scheme may prove detrimental to the Unit
holders of such Scheme. An order to Purchase the Units is not binding
on and may be rejected by the Trustees or the AMC unless it has been
confirmed in writing by the AMC and/or payment has been received.

71
Please refer to paragraphs on Transfer and Transmission of units, Right
to limit Redemption, Suspension of Purchase and / or Redemption of
Units and Pledge of Units‘ in the SAI for further details.

Pledge of Units
The Units under the Scheme may be offered as security by way of a
pledge / charge in favour of scheduled banks, financial institutions, non-
banking finance companies (NBFCs), or any other body. The AMC/RTA
will note and record such Pledged Units. The AMC/RTA shall mark a lien
on the specified units only upon receiving the duly completed form and
documents as it may require. Disbursement of such loans will be at the
entire discretion of the bank / financial institution / NBFC or any other
body concerned and the Mutual Fund assumes no responsibility thereof.

The Pledgor will not be able to redeem/switch Units that are pledged until
the entity to which the Units are pledged provides a written authorisation
to the Mutual Fund that the pledge / lien/ charge may be removed. As long
as Units are pledged, the Pledgee will have complete authority to redeem
such Units.

For units of the Scheme held in electronic (Demat) form, the rules of
Depository applicable for pledge will be applicable for Pledge/Assignment
of units of the Scheme. Pledgor and Pledgee must have a beneficial
account with the Depository. These accounts can be with the same DP or
with different DPs.

Lien on Units
On an ongoing basis, when existing and new investors make
Subscriptions, pending clearance of the payment instrument, a
temporary hold (lien) will be created on the Units allotted and such Units
shall not be available for redemption/switch out until the payment
proceeds are realised by the Fund. In respect of NRIs, the AMC/ RTA
shall mark a temporary hold (lien) on the Units, in case the requisite
documents (such as FIRC/Account debit letter) have not been submitted
along with the application form and before the submission of the
redemption request. The AMC reserves the right to change the
operational guidelines for temporary lien on Units from time to time.

Right to Limit Redemption

Subject to the approval of Board of Director of the AMC and Trustee
Company and immediate intimation to SEBI, a restriction on
redemptions may be imposed by the Scheme when there are
circumstances, which the AMC / Trustee believe that may lead to a
systemic crisis or event that constrict liquidity of most securities or the
efficient functioning of markets such as:

[Link] issues - when market at large becomes illiquid affecting

almost all securities rather than any issuer specific security.

[Link] failures, exchange closures - when markets are affected by

unexpected events which impact the functioning of exchanges or the
regular course of transactions. Such unexpected events could also be
related to political, economic, military, monetary or other emergencies.

[Link] issues – when exceptional circumstances are caused by

force majeure, unpredictable operational problems and technical failures
(e.g. a black out). Such cases can only be considered if they are

72
 reasonably unpredictable and occur in spite of appropriate diligence of
third parties, adequate and effective disaster recovery procedures and
systems.

Such restriction on redemption may be imposed for a specified period of

time not exceeding 10 working days in any 90 days period. However, if
exceptional circumstances / systemic crisis referred above continues
beyond the expected timelines, the restriction may be extended further
subject to the prior approval of Board of Directors of the AMC and Trustee
Company giving details of circumstances and justification for seeking
such extension shall also be informed to SEBI in advance.

Procedure to be followed while imposing restriction on redemptions

a. No redemption requests upto INR 2 lacs per request shall be subject

to such restriction;
b. Where redemption requests are above INR 2 lacs:
- The AMC shall redeem the first INR 2 lacs of each redemption request,
without such restriction;
- Remaining part over and above INR 2 lacs shall be subject to such
restriction and be dealt as under:
- Any Units which are not redeemed on a particular Business Day will
be carried forward for Redemption to the next Business Day, in order of
receipt.
- Redemptions so carried forward will be priced on the basis of the
Applicable NAV (subject to the prevailing Load, if any) of the subsequent
Business Day(s) on which redemptions are being processed.
- Under such circumstances, to the extent multiple redemption requests
are received at the same time on a single Business Day, redemptions
will be made on a pro rata basis based on the size of each redemption
request, the balance amount being carried forward for redemption to the
next Business Day.

Transaction Charges (applicable for In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
both existing and new investors) 1/P/CIR/2023/74 dated May 19, 2023 the following are the terms and
conditions relating to Transaction Charges:

1. The Distributor would be allowed to charge the Mutual Fund Investor a

Transaction Charge where the amount of investment is Rs. 10,000/- and
above per subscription.

2. For existing investors in a Mutual Fund, the Transaction Charge allowed

will be Rs. 100/- per subscription of Rs. 10,000/- and above. For a first-
time investor in a Mutual Fund, the Transaction Charge allowed will be
Rs. 150/- per subscription of Rs. 10,000/- and above.

3. The Transaction Charge, where applicable based on the above criteria,

will be deducted by the AMC from the subscription amount remitted by the
Investor and paid to the distributor; and the balance (net) amount will be
invested in the Scheme. Thus, units will be allotted against the net
investment.

4. In case of SIPs, the transaction charge shall be applicable only if the

total commitment through SIPs amounts to Rs 10,000/- and above. In
such cases the transaction charge shall be recovered in 3-4 installments.

5. No Transaction charges shall be levied:

a) where the distributor of the investor has not opted to receive any

73
 transaction charges (distributors’ decision to opt in or opt out of levying
transaction charges is applicable at plan/option/product level);
b) Where the investor purchases the Units directly from the Mutual Fund.
c) Where the amount of investment is below Rs. 10,000/- per subscription.
d) On transactions other than purchases/ subscriptions relating to new
inflows. Switch-in / Transfer / Transmission of units/ Allotment of Bonus
Units / Reinvestment of Income Distribution cum capital withdrawal option
Units will not be considered as subscription for the purpose of levying the
transaction charge.

[Link] terms and conditions relating to transaction charges shall be part of

the application form.

[Link] statement of account shall clearly state that the net investment as
gross subscription less transaction charge and give the number of units
allotted against the net investment.

Transaction charges shall also be deducted on purchases/subscriptions

received through non-demat mode from the investors investing through a
valid ARN holder i.e. AMFI Registered Distributor (provided the distributor
has opted-in to receive the transaction charges) in respect of transactions
routed through Stock Exchange(s) platform viz. NSE Mutual Fund
Platform (“NMF-II”) and BSE Mutual Fund Platform (“BSE STAR MF”).

The transaction charges are in addition to the existing system of

commission permissible to the Distributors. The transaction charges are
in compliance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023.

No transaction charges will be levied for an investor who is investing

directly with the Mutual Fund.

B. Ongoing Offer Period:

This is the date from which the Scheme The scheme will reopen for subscriptions/ redemptions within 5 business
will reopen for subscriptions / days from the date of allotment.
redemptions after the closure of the
NFO period.

Ongoing price for subscription Units of the Scheme shall be available for subscription (purchase)/ switch-
(purchase)/ switch-in (between plans in at the applicable NAV, subject to applicable load.
of the scheme) (from other
schemes/plans of the Mutual Fund) Pursuant to SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
by Investors. 1/P/CIR/2023/74 dated May 19, 2023, there is no entry load for purchase
of Units of the Scheme. Accordingly, Purchase Price will be equal to
This is the price you need to pay for Applicable NAV.
purchase/ switch-in
The investors should also note that stamp duty at the applicable rate will
Example: If the applicable NAV is Rs. be levied on applicable transactions i.e. purchase, switch-in,
10/- and since there will be no entry Reinvestment of Income Distribution cum capital withdrawal option,
load, then the purchase price will be Rs. installment of Systematic Investment Plan, Systematic Transfer Plan.
10/- Accordingly, pursuant to levy of stamp duty, the number of units allotted
will be lower to that extent. For more details & impact of stamp duty on
number of units allotted, please refer section D. Special Considerations
- Levy of Stamp Duty on applicable mutual fund transactions.

Ongoing price for redemption (sale) Units of the Scheme can be redeemed at the applicable NAV subject to
and switch-in and switch out prevailing exit load.

74
between the plans of the
Scheme by Investors. Investors/Unit holders should note that the AMC/Trustee has the right to
modify existing Load structure and to introduce Loads subject to a
This is the price you will receive for maximum limit prescribed under the Regulations.
redemptions/ Switch outs.
Any change in Load structure will be effective on prospective basis and
Example: If the applicable NAV is Rs. will not affect the existing Unit holder in any manner.
10, exit load is 1% then redemption
price will be: Rs. 10* (1-0.01) = Rs.9.90/-

Cut off timing for Subscriptions/Purchases including Switch – ins for any amount.
subscriptions/redemptions
● In respect of valid applications received for any amount upto 3.00
This is the time before which your p.m. on a Business Day at the Official Point(s) of Acceptance
application (complete in all respects) and where the funds for the entire amount of subscription /
should reach the Official points of purchase as per the application / switch-in request, are credited
Acceptance to the bank account of the Scheme before the cut-off time i.e.
available for utilization before the cut-off time - the closing NAV
of the day on which application is received shall be applicable.

● In respect of valid applications received for any amount after 3.00

p.m. on a Business Day at the Official Point(s) of Acceptance
and where the funds for the entire amount of subscription /
purchase as per the application / switch-in request, are credited
to the bank account of the Scheme before the cut-off time of the
next Business Day i.e. available for utilization before the cut-off
time of the next Business Day - the closing NAV of the next
Business Day shall be applicable.

● Irrespective of the time of receipt of application, where the funds

for the entire amount are credited to the bank account of the
Scheme before the cut-off time on any subsequent Business Day
i.e. available for utilization before the cut-off time on any
subsequent Business Day - the closing NAV of such subsequent
Business Day shall be applicable.

For Switch-ins of any amount:

For determining the applicable NAV, the following shall be ensured:
● Application for switch-in is received before the applicable cut-off
time.

● Funds for the entire amount of subscription/purchase as per the

switch in request are credited to the bank account of the Scheme
before the cut-off time.

● The funds are available for utilization before the cut-off time.

● In case of ‘switch’ transactions from one scheme to another, the

allocation shall be in line with redemption payouts.

In case of switches, the request should be received on a day

which is a Business Day for the Switch-out scheme. Redemption
for switch-out shall be processed at the applicable NAV as per
cut-off timing. Switch-in will be processed at the Applicable NAV
(on a Business Day) based on realization of funds as per the
redemption pay-out cycle for the switch-out scheme.

For investments through systematic investment routes such as

75
 Systematic Investment Plans (SIP), Systematic Transfer Plans
(STP), etc. the units will be allotted as per the closing NAV of the
day on which the funds are available for utilization within
applicable cut-off time by the Target Scheme irrespective of the
installment date of the SIP, STP etc.

While the AMC will endeavour to deposit the payment

instruments accompanying investment application submitted to
it with its bank expeditiously, it shall not be liable for delay in
realization of funds on account of factors beyond its control such
as clearing / settlement cycles of the banks.

Since different payment modes have different settlement cycles

including electronic transactions (as per arrangements with
Payment Aggregators / Banks / Exchanges etc), it may happen
that the investor's account is debited, but the money is not
credited within cut-off time on the same date to the Scheme's
bank account, leading to a gap / delay in Unit allotment. Investors
are therefore urged to use the most efficient electronic payment
modes to avoid delays in realization of funds and consequently
in Unit allotment.

Redemptions including switch-out:

The following cut-off timings shall be observed by the Mutual Fund in
respect of Repurchase of Units:

1. Where the valid application is received up to 3.00 p.m. on a business

day by the Mutual Fund- the closing NAV of the day on which application
is received shall be applicable.

2. Where the valid application is received after 3.00 p.m. on a business

day by the Mutual Fund- the closing NAV of the next business day shall
be applicable.

The above mentioned cut off timing shall be applicable to transactions

through the online trading platform. The Date of Acceptance will be
reckoned as per the date & time; the transaction is entered in stock
exchanges infrastructure for which a system generated confirmation slip
will be issued to the unitholder.

Investors shall make sure that after deducting bank charges for outstation
cheque amount available for investment shall not be less than amount
specified for minimum investment.

Transactions through online facilities / electronic modes:

The time of transaction done through various online facilities / electronic
modes offered by the AMC, for the purpose of determining the applicability
of NAV, would be the time when the request for purchase / sale / switch
of units is received in the servers of AMC/RTA.

In case of transactions through online facilities / electronic modes, there

may be a time lag of upto 5-7 banking days between the amount of
subscription being debited to the investor's bank account and the
subsequent credit into the respective Scheme’s bank account. This lag
may impact the applicability of NAV for transactions where NAV is to be
applied, based on actual realization of funds by the Scheme. Under no
circumstances will PPFAS Asset Management Private Limited or its
bankers or its service providers be liable for any lag / delay in realization

76
 of funds and consequent pricing of units.

The AMC has the right to amend cut off timings subject to SEBI (MF)
Regulations for the smooth and efficient functioning of the Scheme.

MF Central as Official Point of Acceptance:

Pursuant to SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, to comply with the requirements of
RTA inter-operable Platform for enhancing investors’ experience in
Mutual Fund transactions / service requests, the Qualified RTAs, at
present, Kfin Technologies Private Limited (“KFintech”) and Computer
Age Management Services Limited (“CAMS”) have jointly developed
MFCentral - A digital platform for Mutual Fund investors (hereinafter
referred to as “MFCentral” or “the Platform”).

MFCentral is created with an intent to be a one stop portal / mobile app

for all Mutual fund investments and service-related needs that significantly
reduces the need for submission of physical documents by enabling
various digital / physical services to Mutual fund investors across fund
houses subject to applicable Terms and Conditions of the Platform.
MFCentral will be enabling various features and services in a phased
manner. MFCentral may be accessed using [Link] and a
Mobile App in future.

With a view to comply with all provisions of the aforesaid circular and to
increase digital penetration of Mutual Funds, PPFAS Mutual Fund
designates MFCentral as its Official Point of Acceptance (DISC -
Designated Investor Service Centre) w.e.f. September 23, 2021.

Any registered user of MFCentral, requiring submission of physical

documents as per the requirements of MFCentral, may do so at any of the
DISCs or collection centers of Kfintech or CAMS.

Where can the applications for Investors can submit the application forms for purchase or redemption at
purchase/ redemption be submitted? any of the Official Points of Acceptance, details of which are mentioned
under section List of Investor Service Centres and Official Points of
Acceptance of Transactions and also on the website
[Link]

Investors can submit their application for purchase or redemption at the 1

unitoffice of the AMC or at Official Point of Acceptance of Registrar and
Transfer Agent.

Investors can also purchase/redeem units of the Scheme by placing an

order for purchase/redemption with the members (Stock Broker) / clearing
members of stock exchanges/ Mutual Fund Distributors registered with
AMFI. These members (Stock Brokers) / clearing members / Mutual Fund
Distributors registered with AMFI would be availing the platform /
mechanism provided by the stock exchanges for placing an order for
purchase / redemption of units of the Scheme.

Investors may purchase / redeem units of the Scheme through the Stock
Exchange Infrastructure. In order to facilitate transactions in mutual fund
units, the BSE has introduced the BSE STAR MF Platform and NSE has
introduced NMF-II platform.

Minimum amount for purchase/ Minimum amount for subscription/purchase (including switch -ins):
redemption/ switches: Rs.5,000 and any amount thereafter.

77
 Minimum amount for additional purchase and switch ins:
Rs. 500 and any amount thereafter.

Minimum Amount for Redemption / Switch-outs:

Re.1 or 1 unit in respect of each Option. In case of Switch out, Rs. 500/-
and any amount thereafter in respect of each option. In case the Investor
specifies both the number of units and amount, the number of Units shall
be considered for Redemption. In case the unitholder does not specify the
number or amount, the request will not be processed.

Where Units under a Scheme are held under both Plans and the
redemption / Switch request pertains to the Direct Plan, the same must
clearly be mentioned on the request (along with the folio number), failing
which the request would be processed from the Regular Plan. However,
where Units under the requested Option are held only under one Plan, the
request would be processed under such Plan.

The AMC reserves the right to change the minimum amounts for various
purchase/ redemption/ switches. Such changes shall only be applicable
to transactions on a prospective basis.

Non-applicability of Minimum Application Amount (Lump-sum) to

Alignment of interest of Designated Employees of AMC:

SEBI vide its Master Circular no. SEBI/HO/IMD/IMD-PoD-

1/P/CIR/2023/74 dated May 19, 2023 on Alignment of interest of
Designated Employees of Asset Management Companies (AMCs) with
the Unitholders of the Mutual Fund Schemes has, inter alia mandated
that a minimum of 20% of gross annual CTC net of income tax and any
statutory contributions of the Designated Employees of the AMCs shall
be invested in units of the scheme(s) of the Fund in which they have a
role/oversight. The said guidelines came into effect from October 1,
2021.

In accordance with the regulatory requirement, the minimum application

amount wherever specified in the concerned SID / KIM will not be
applicable for investment made in schemes of the Fund in compliance
with the aforesaid circular(s).

Option to hold units in Demat Form In terms of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023, investors have the option to receive
allotment of Mutual Fund units in their demat account while subscribing to
this scheme. Such units held in demat form shall be fully transferable.

Demat Facility for SIP Transactions:

Demat option shall be available for SIP transactions. However, the units
will be allotted on the applicable NAV as per SID and will be credited to
investors demat account on weekly basis on realisation of funds.

Minimum balance to be maintained The scheme does not require maintenance of minimum balance in the
and consequences of non- units of the scheme.
maintenance.
In case the balance in the account of the unitholder does not cover the
amount of redemption request, then the Mutual Fund is authorized to
redeem all the units/amount in the folio and send the redemption
proceeds to the unitholder.

78
Special Products/Facilities available The Special Products / Facilities available under the Scheme, are:
i. Systematic Investment Plan (SIP)
ii. SIP Top up Facility
iii. SIP Pause Facility
iv. Systematic Transfer Plan (STP)
v. Systematic Withdrawal Plan (SWP)
vi. Investment through “PPFAS SELFINVEST”
vii. Transactions through Electronic Mode
viii. Registration of Multiple Bank Accounts in respect of an Investor Folio
ix. Facilitating transactions through Stock Exchange Mechanism.
x. Transaction through “Channel Distributors”

i)Systematic Investment Plan (SIP):

The conditions for investing in SIP will be as follows:

Particulars Frequency available

Monthly Quarterly

SIP Any date within Any date within Quarter

Transaction Month (upto a (upto a maximum 6 dates
Dates maximum 6 dates per per application)
application)

Minimum no. 6 installments of Rs. 4 installments of Rs.3000/-

of installments 1000/- each and any each and any amount
and Minimum amount thereafter thereafter
amount per
installment

Mode of a. Direct Debit mandate through select banks with

Payment whom AMC has an arrangement.
b. Post-Dated Cheques (PDCs) for SIP.
c. National Automated Clearing House (NACH)
Facility

Registration period: AMC will endeavour to register SIP within a period of

30 days from the date of receipt of first SIP cheque and subsequent due
date of NACH/OTM (debit clearing) In case of the auto debit facility, the
default options (where auto debit period, frequency and SIP date are not
indicated) will be as follows:
• SIP auto debit period: The SIP auto debit will continue till 5 years.
• SIP date: 10th of the Month/Quarter (commencing 30 days after the first
SIP installment date); and
• SIP frequency: Monthly

1. If the SIP period is not specified by the investor then the SIP enrollment
will be deemed to be for 30 years from the date of registration and
processed accordingly.

2. If any SIP installment due date falls on a non-Business day, then the
respective transactions will be processed on the next Business day.

3. SIP in a folio of a minor will be registered only upto the date of minor
attaining the majority even though the instruction may be for the period
beyond that date.

79
4. The Load structure prevailing at the time of submission of the SIP
application (whether fresh or extension) will apply for all the Installments
indicated in such application.

5. SIP registered for more than one date or all dates of the month /
calendar quarter will be considered as a separate SIP instruction for the
purpose of fulfilling the criteria under “Minimum no. of installments” section
above.

6. The SIP enrollment will be discontinued if:

a. 3 consecutive SIP installments in case of Monthly & Quarterly
frequency are not honoured.
b. the Bank Account (for Standing Instruction) is closed and request for
change in bank account (for Standing Instruction) is not submitted at least
30 days before the next SIP Auto Debit installment due date.

7. The SIP mandate may be discontinued by a Unit holder by giving a

written notice of 30 days to any of the Official Point(s) of Acceptance.

Investors can avail of the SIP facility during the NFO period as well.
However, in such a case the SIP must be through the NACH or Direct
Debit. The first investment in SIP during the NFO period shall be through
a cheque only.

The AMC reserves the right to introduce SIP facility at any other
frequencies or on any other dates as the AMC may feel appropriate from
time to time.

ii)Systematic Investment Plan (SIP) Top-UP Facility:

It is a facility wherein an investor who is enrolling for SIP has an option to

increase the amount of the SIP installment by a fixed amount at pre-
defined intervals. Thus, an investor can progressively start increasing the
amount invested, allowing them to gradually increase the investment
corpus in a systematic manner. The salient features of this facility are as
follows:

1. New investors can opt for it at the time of initiating the SIP. Existing
unitholders can opt for it at the time of SIP renewal.

2. Investor can opt for an amount-based Cap whereby they can choose
the amount from which the top-ups will cease (even though the SIP will
continue at this final amount till the expiry date). In case the top-up
amount-based cap is not chosen, the top-up will occur at the chosen
frequency (half-yearly /yearly) until the SIP expiry date (Please refer to
illustrations 1 - A and 2 - A below)

3. The amount of each such SIP installment cannot exceed the Daily One
Time Mandate (OTM) limit for purchases in scheme(s) of PPFAS Mutual
Fund from all modes (lump sum as well as SIP). In case of any conflict,
such SIP installment will have precedence over any lump sum purchases
undertaken on that day.

4. Minimum Top-up Amount for the said facility will be Rs. 500/- & any
amount thereafter. Forms where a specific amount is not clearly
mentioned are liable to be rejected.

80
5. Frequency for the Top up facility: Investors can choose either 'Half-
Yearly' or 'Yearly' Top-Up increments under Monthly and Quarterly SIP
options. In case SIP Top-Up frequency is not mentioned, the default
frequency will be considered as ‘Yearly’ for monthly SIP.

6. The facility is available only for the investors who submit “NACH / One
Time Mandate (OTM) Form” mentioning the 'Maximum Amount'. This will
limit the total investment to the pre-determined 'maximum amount'.

7. Once the SIP Top-Up upper limit is reached, the Top-Up will be
discontinued. However, the SIP will continue at this upper limit for the
remaining SIP enrollment period (subject to it not exceeding the daily OTM
limit). For further clarification, please refer to the illustrations as mentioned
below.

8. The initial investment under the SIP Top-UP will be subject to minimum
SIP investment requirement applicable from time to time (As on date, this
figure is Rs. 5000/-).

9. Once enrolled, the Top-up details cannot be modified. However,

investors can choose to cancel the Top-Up, by filling in the relevant Form
and continue with the same SIP.

10. For further details and Forms, investors are requested to refer to the
website ([Link] or contact the Head/Corporate Office of
PPFAS Mutual Fund.

11. The above terms apply for both, offline and online modes of
application, as and when initiated by the Fund.

12. All the other provisions of the SID/KIM except as specifically modified
herein above remain unchanged.

Illustration no. 1 (Monthly SIP ; Top-Up Frequency : Half-Yearly;

Amount-based cap opted for)
SIP enrollment period: 5th Jan 2017 to 5th Dec 2022;

Starting Monthly SIP amount : Rs. 1000/-

Top Up Amount: Rs. 555/-

Top Up frequency: Half – Yearly

Top-Up Amount cap : Rs. 3220/-
Daily OTM Limit : Rs. 4000/-

From To Monthly SIP Top Total

SIP Up Amount of
Installmen Amount SIP (Rs.)
t (Rs.) (Rs.)

5-Jan-17 5-Jun-17 1000 NA 1000

5-Jul-17 5-Dec-17 1000 555 1555

81
 5-Jan-18 5-Jun-18 1555 555 2110

5-Jul-18 5-Dec-18 2110 555 2665

5-Jan-19 5-Dec-22 2665 555 3220

Here the monthly SIP installment will be frozen at Rs. 3220/- even
though the OTM limit of Rs. 4000, is higher.

Illustration no. 1-A (Monthly SIP ; Top-Up Frequency : Half-Yearly ;

Amount-based cap not opted for)

In this case the top-up will keep occurring at the chosen frequency
(half-yearly in this case) until the SIP expiry date (December 5,
2022). The amount cannot cross the OTM limit, though.

SIP enrollment period: 5th Jan 2017 to 5th Dec 2022;

Starting Monthly SIP amount : Rs. 1000/-

Top Up Amount: Rs. 555/-

Top Up frequency: Half – Yearly

Top-Up Amount cap : Not chosen
Daily OTM Limit : Rs. 6000/-

From To Monthly SIP Top Total

SIP Up Amount of
Installmen Amount SIP (Rs.)
t (Rs.) (Rs.)

5-Jan-17 5-Jun-17 1000 NA 1000

5-Jul-17 5-Dec-17 1000 555 1555

5-Jan-18 5-Jun-18 1555 555 2110

5-Jul-18 5-Dec-18 2110 555 2665

5-Jan-19 5-Jun-19 2665 555 3220

5-Jul-19 5-Dec-19 3220 555 3775

5-Jan-20 5-Jun-20 3775 555 4330

82
 5-Jul-20 5-Dec-20 4330 555 4885

5-Jan-21 5-Jun-21 4885 555 5440

5-Jul-21 5-Dec-21 5440 555 5995

5-Jan-22 5-Dec-22 5995 NIL 5995

Here the monthly SIP installment of Rs. 5995/- will be frozen at a

level which is closest to the daily OTM limit of Rs. 6000/-, as it is
not permitted to cross it.

Illustration no. 2 : (Monthly SIP ; Top-Up Frequency : Yearly ;

Amount-based cap opted for)
SIP enrollment period: 10th Jan 2017 to 10th Dec 2022;

Starting Monthly SIP amount : Rs. 1000/-

Top Up Amount: Rs. 777/-

Top Up frequency: Yearly

Top-Up Amount cap : Rs. 4108/-
Daily OTM Limit : Rs. 5000/-

From To Monthly SIP Top Total

SIP Up Amount of
Installm Amount SIP (Rs.)
ent (Rs.) (Rs.)

10-Jan-17 10-Dec-17 1000 NA 1000

10-Jan-18 10-Dec-18 1000 777 1777

10-Jan-19 10-Dec-19 1777 777 2554

10-Jan-20 10-Dec-20 2554 777 3331

10-Jan-21 10-Dec-21 3331 777 4108

10-Jan-22 10-Dec-22 4108 NIL 4108

Here the monthly SIP installment will be frozen at Rs. 4108/- even
though the OTM limit of Rs. 5000/- is higher.

83
Illustration no. 2-A : (Monthly SIP ; Top-Up Frequency : Yearly ;
Amount-based Cap not opted for)

In this case the top-up will keep occurring at the chosen frequency
(yearly, in this case) until the SIP expiry date (December 10, 2022),
provided the OTM limit is not crossed.
SIP enrollment period: 10th Jan 2017 to 10th Dec 2022;

Starting Monthly SIP amount : Rs. 1000/-

Top Up Amount: Rs. 777/-

Top Up frequency: Yearly

Top-Up Amount cap : Not chosen
Daily OTM Limit : Rs. 4500/-

From To Monthly SIP Top Total

SIP Up Amount of
Installme Amount SIP (Rs.)
nt (Rs.) (Rs.)

10-Jan-17 10-Dec-17 1000 NA 1000

10-Jan-18 10-Dec-18 1000 777 1777

10-Jan-19 10-Dec-19 1777 777 2554

10-Jan-20 10-Dec-20 2554 777 3331

10-Jan-21 10-Dec-21 3331 777 4108

10-Jan-22 10-Dec-22 4108 NIL 4108

Here the monthly SIP installment will be frozen at Rs. 4108/- as it is

closest to the daily OTM limit of Rs. 4500/- and is not permitted to
cross it.

iii) SIP Pause Facility

SIP Pause facility allows investors to pause their SIP for a temporary
period, without discontinuing the existing SIP.

The features, terms and conditions for availing SIP Pause facility are as
follows:

1. SIP Pause request should be received at least 30 calendar days prior

to the instalment date for the concerned SIP, which is required to be
paused.

84
2. The Facility is applicable only for AMC initiated debit feeds i.e.
ECS/NACH/Direct Debit, etc and BSE STAR MF Platform.

3. This Facility is available only for SIPs with Monthly and Quarterly
frequencies except for SIPs registered through Mutual Fund Utility (MFU),
MFSS system of NSE or any other platforms of the said stock exchange
and Channel Partners or those who have standing instructions with Banks
as the SIP are registered directly with them and not with the fund house.

4. The maximum number of instalments that can be paused using this

facility are 3 (three) consecutive instalments for SIPs registered with
Monthly frequency and 1 (one) for SIPs registered with Quarterly
frequency. Thereafter, the balance SIP instalments (as originally
registered) will automatically resume.

5. If SIP Pause period coincides with SIP Top Up period, SIP instalment
amount post completion of SIP Pause period would be inclusive of SIP
Top Up amount. For e.g: SIP Instalment amount prior to Pause period is
₹ 2,000/- and the Top-Up amount is ₹ 1,000/-. If the Pause period is
completed after date of Top-Up, then the SIP instalment amount post-
completion of Pause period shall be ₹ 3,000/-.

6. SIP Pause once registered cannot be cancelled.

7. Investors can opt for the Facility only once during the tenure of the SIP.

iv)Systematic Transfer Plan (STP):

This facility enables the Unit holder to transfer fixed amount periodically
from one scheme of the Mutual Fund (“Transferor Scheme”) to another
(“Transferee Scheme”) by redeeming units of the Transferor Scheme at
the Applicable NAV, subject to Exit Load, if any and investing the same
amount in Transferee Scheme at the Applicable NAV, on a recurrent basis
for a specified period at specified frequency as per the investor’s STP
mandate. Investors may register for STP using a prescribed enrollment
form. STP facility is offered by the Scheme subject to following terms and
conditions:

Particular Frequency available

Default Day/Date
Type of Default Day/ Date
STP

Daily Daily

Weekly Every Monday of the

week

Fortnightly Every Monday of the

alternate week

85
 Monthly 10th of the Month

Quarterly 10th of First month of

the quarter.

STP transaction Daily - On all days between Monday to

frequency date Friday
Weekly - Any day of the week
Fortnightly - Any date within 15 days
Monthly - Any date within Month (up to
a maximum of 6 dates per application)
Quarterly - Any date within Quarter (up
to a maximum of 6 dates per
application)

Minimum no. of Daily, Weekly and Monthly:

installments 6 Installments

Fortnightly and Quarterly:

4 Installments

Minimum amount per Daily, Weekly and Monthly: Rs.

installment 1,000 & any amount thereafter

Fortnightly: Rs. 1,500 & any amount

thereafter

Quarterly - Rs. 3,000 & any amount

thereafter.

Minimum unit holder's For Daily, Weekly, Fortnightly and

account balance or Monthly Rs.6,000/- and Quarterly Rs.
minimum amount of 12,000/-
application at the time of
STP enrolment in the
Transferor Scheme

The amount transferred under the STP from the Transferor Scheme to the
Transferee Scheme shall be effected by redeeming units of Transferor
Scheme at Applicable NAV, after payment of Exit Load, if any, and
subscribing to the units of the Transferee Scheme at Applicable NAV in
respect of each STP investment. If any STP transaction due date falls on
a non-Business Day, then the respective transactions will be processed
on the immediately succeeding Business Day.

If the STP period or no. of installments is not specified in the transaction

Form, the STP transactions will be processed until the balance of units in
the unit holder’s folio in the Transferor/Source Scheme becomes zero.

STP registered for more than one date or all dates of the month will be
considered as separate STP instruction for the purpose of fulfilling the
criteria under “Minimum no. of installments” section above.

The AMC reserves the right to introduce STP facility at any other
frequencies or on any other dates as the AMC may feel appropriate from

86
time to time.

The load structure in the Transferee/Target Scheme prevailing at time of

submission of STP application (whether for fresh enrollment or extension)
will be applicable for all the investment through STP specified in such
application.

The STP mandate may be discontinued by a Unit holder by giving a

written notice of 7 working days to any of the Official Point(s) of
Acceptance prior to the due date of the next transfer date. On receipt of
such request, the STP facility will be terminated. STP will be terminated
automatically if all the Units are liquidated or withdrawn from the
Transferor/Source Scheme or pledged or upon the Fund’s receipt of
notification of death or incapacity of the Unit holder.

Units marked under lien or pledge in the Transferor/Source Scheme will

not be eligible for STP.

In case the unit balance in the Transferor/Source Scheme is lesser than

amount specified by the unit holders for STP, the AMC will transfer
remaining unit balance to the Transferee/Target Scheme.

STP in a folio of minor will be registered only upto the date of minor
attaining majority even though the instruction may be for the period
beyond that date.

The AMC / Trustee reserves the right to change / modify the terms and
conditions under the STP prospectively at a future date.

v)Systematic Withdrawal Plan (SWP):

This facility enables unit-holders to withdraw a fixed sum from the Scheme
on a recurrent basis for a specified period at specified frequency by
providing a single mandate/ standing instruction. The amount thus
withdrawn by redemption will be converted into Units at Applicable NAV
based prices and the number of Units so arrived at will be subtracted from
the Units balance to the credit of that Unitholder. Investors may register
for SWP using a prescribed enrollment form. SWP facility is offered by the
Scheme subject to following terms and conditions:.

-The unit-holder can choose 1st, 5th,10th, 15th, 20th and 25th of the
month as the SWP date (in case the date selected falls on a non-business
day, the transaction will be effected on the next business day of the
scheme.) the default SWP date will be 10th of every month. The SWP
frequency will be monthly.

-The minimum SWP installment size is Rs. 1000/- and any amount
thereafter and SWP request should be for a minimum period of 12 months.

-Minimum unit holder's account balance or minimum amount of

application at the time of SWP enrolment in the Transferor Scheme should
be Rs.12000/-

-A minimum period of 15 calendar days shall be required for registration

of SWP. Unit-holder may change the amount (but not below the minimum
specified amount)/ frequency by giving a written notice at any Investor
Service Center at least 15 calendar days prior to next SWP execution
date.

87
-The SWP may be terminated by a written notice of 15 calendar days by
a unit-holder. This SWP termination request may be sent to the office of
AMC or at any Investor Service Center

-SWP will be automatically terminated if all units are liquidated or

withdrawn from the scheme or pledged or upon receipt of intimation of
death of unit-holder.

-Load structure prevailing at the time of submission of the SWP

application will apply for all installments indicated in such application

Unitholders can enroll themselves for the facility by submitting the duly
completed Systematic Withdrawal enrolment Form at any of the Investor
Service Centers (ISCs)/ Official Points of Acceptance (OPAs). The AMC/
Trustee reserve the right to change / modify the terms and conditions
under the SWP prospectively at a future date.

vi) Investment through “PPFAS SelfInvest” (Mobile & Web App)

PPFAS Mutual Fund has launched ‘PPFAS Self Invest’ a mobile

application available on Android (Google Play) and iOS (App store).
Existing investors can register for PPFAS Self Invest after completing a
simple One-Time-Password (OTP) based registration process and
choosing their Mobile Personal Identification Number (M-PIN) for each
Folio.

Key Features:
-Create a new Folio (Currently, it is available only for investors who are
KRA/KYC compliant before February 1, 2017)
-Aadhaar-Based eKYC - A fresh investor can do his/her KYC using our
eKYC platform and simultaneously start investing w.e.f. June 2020
-View your investments
-Add other schemes of PPFAS to the existing folio
-Register for OTM online
-Make additional purchases in the existing schemes, redeem, switch, and
register for SIP, STP, and SWP
- Cancel & Pause SIPs and Cancel STPs & SWPs
-Update contact details (Email and Mobile)
-Register or Modify Nominee Details
-Fetch your Account Statement for the specific date ranges
-View Transaction status and history
-Pay using a UPI method
-Any Day SIP and STP
-View exit load amount while redemption

vii)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

88
viii)Registration of Multiple Bank Accounts in respect of an Investor
Folio:

An Investor can register with the Fund upto 5 bank accounts in case of
individuals and HUFs and upto 10 in other cases.

Registering of Multiple Bank Accounts will enable the Fund to

systematically validate the pay-in of funds and avoid acceptance of third
party payments. For the purpose of registration of bank account(s),
Investor should submit Bank Mandate Registration Form (available at the
AMC Website, office of AMC and Official point of Acceptance) together
with any of the following documents:

Cancelled original cheque leaf in respect of bank account to be registered

where the account number and names of the account holders are printed
on the face of the cheque; or Bank statement or copy of Bank Pass Book
page with the Investor’s Bank Account number, name and address.

The above documents will also be required for change in bank account
mandate submitted by the Investor.

The AMC will register the Bank Account only after verifying that the sole/
first joint holder is the holder / one of the joint holders of the bank account.
In case, if a copy of the above documents is submitted, Investor shall
submit the original to the AMC/ Investor Service Centre for verification and
the same shall be returned.

In case of Multiple Registered Bank Account, Investor may choose one of

the registered bank accounts for the credit of redemption, IDCW proceeds
(being - Pay-out bank account). Investor may however, specify any other
registered bank accounts for credit of redemption proceeds at the time of
requesting for the redemption.

Investor may change such Payout Bank account, as necessary, through

written instructions.

However, if request for redemption is received together with a change of

bank account (unregistered new bank account) or before verification and
validation of new bank account, the redemption request would be
processed to the currently registered default old bank account.

Bank account which is stated first shall be treated as default bank account.

For further details please refer to paragraph on Registration of Multiple

Bank Accounts in respect of an Investor Folio in the SAI.

The AMC reserves the right to alter/ discontinue all / any of the above
mentioned special product(s)/ facility(ies) at any point of time. Further, the
AMC reserves the right to introduce more special product(s) / facility(ties)
at a later date subject to prevailing SEBI Guidelines and Regulations.

Email ID for communication

First / Sole Holders should register their own email address and mobile
number in their folio for speed and ease of communication in a convenient
and cost-effective manner, and to help prevent fraudulent transactions.

ix)Facility to purchase / redeem Units of the scheme(s) through

89
Stock Exchange(s).

PPFAS Mutual Fund is introducing the facility to purchase and redeem

units of PPFAS Mutual Fund scheme/s through Stock Exchange Platform,
in accordance with SEBI Circulars No. CIR/MRD/DSA/32/2013 dated
October 4, 2013, read with SEBI Master Circular no. SEBI/HO/IMD/IMD-
PoD-1/P/CIR/2023/74 dated May 19, 2023.

The following are the salient features of the facility introduced for
the benefit to investors

1. This facility i.e. purchase/redemption of units will be available to both

existing and new investors.

2. The investors will be eligible to purchase /redeem units of the aforesaid

scheme.

3. All trading members of BSE & NSE who are registered with AMFI as
Mutual Fund Advisors, mutual fund distributors registered with the AMFI
and who are permitted by the respective recognised stock exchange and
who have signed up with PPFAS Asset Management Private Limited and
also registered with BSE & NSE as Participants ("AMFI certified stock
exchange brokers") will be eligible to offer this facility to investors. In order
to facilitate transactions in mutual fund units through the stock exchange
infrastructure, BSE has introduced BSE STAR MF Platform and NSE has
introduced NMF-II. Further, the units of PPFAS Mutual Fund scheme/(s)
are permitted to be transacted through clearing members of the registered
Stock Exchanges and Depository Participants of Registered Depositories
are permitted to process only redemption request of units held in demat
form as per SEBI Master Circular dated May 19, 2023.

4. BSE StAR MF and NMF-II are electronic platforms introduced by BSE

& NSE respectively for transacting in units of mutual funds. The units of
eligible Scheme are not listed on BSE & NSE and the same cannot be
traded on the Stock Exchange. The window for purchase/redemption of
units on BSE & NSE will be available between 9 a.m. and 3 p.m. or such
other timings as may be decided.

[Link] Mutual Fund has entered into an arrangement with BSE & NSE
for facilitating transactions in select PPFAS Mutual Fund scheme/s
through the AMFI certified stock exchange brokers. Investors who are
interested in transacting in eligible schemes of PPFAS Mutual Fund
should register themselves with AMFI certified stock exchange brokers.

[Link] eligible AMFI certified stock exchange brokers, Clearing members

of recognised stock exchanges and Depository Participants will be
considered as Official Points of Acceptance (OPA) of PPFAS Mutual Fund
as per applicable guidelines.

[Link] have an option to hold the units in physical or dematerialized

form.

8. Investors will be able to purchase/redeem units in eligible scheme/s in

the following manner:

i. Purchase of Units:

a. Physical Form - The investor who chooses the physical mode is

90
required to submit all requisite documents along with the purchase
application (subject to applicable limits prescribed by BSE/NSE) to the
AMFI certified stock exchange brokers.

The AMFI certified stock exchange broker shall verify the application for
mandatory details and KYC compliance.

After completion of the verification, the purchase order will be entered in

the Stock Exchange system and an order confirmation slip will be issued
to investor.

Allotment details will be provided by the AMFI certified stock exchange

brokers to the investor.

b. Dematerialized Form-
• The investors who intend to deal in depository mode are required to have
a demat account with CDSL/NSDL.
• The investor who chooses the depository mode is required to place an
order for purchase of units (subject to applicable limits prescribed by
BSE/NSE) with the AMFI certified stock exchange brokers.
• The investor should provide their depository account details to the AMFI
certified stock exchange brokers.
• The purchase order will be entered in the Stock Exchange system and
an order confirmation slip will be issued to investor.
• The units will be allotted based on the applicable NAV as per Scheme
Information Document (SID) of the scheme. The units will be credited to
investors demat Account post realisation of funds.

ii. Redemption of Units:

a. Physical Form-
• The investor who chooses the physical mode is required to submit all
requisite documents along with the redemption application (subject to
applicable limits prescribed by BSE/NSE) to the AMFI certified stock
exchange brokers.
• The redemption order will be entered in the Stock Exchange system and
an order confirmation slip will be issued to investor.
• The redemption proceeds will be credited to the bank account of the
investor, as per the bank account details recorded with PPFAS Mutual
Fund.

b. Dematerialized Form-
• The investors who intend to deal in depository mode are required to have
a demat account with CDSL/NSDL and units converted from physical
mode to demat mode prior to placing of redemption order.
• The investor who chooses the depository mode is required to place an
order for redemption (subject to applicable limits prescribed by BSE/NSE)
with the AMFI certified stock exchange brokers. The investors should
provide their Depository Participant with Depository Instruction Slip with
relevant units to be credited to Clearing Corporation pool account.
• The redemption order will be entered in the system and an order
confirmation slip will be issued to investor.

Provisions of Point 9 and 10 shall be applicable with respect to investors

having demat account and purchasing or redeeming mutual fund units
through stock exchange brokers and clearing members:

9. Investors shall receive redemption amount (if units are redeemed) and

91
units (if units are purchased) through clearing member pool account.
PPFAS Asset Management Private Limited (the "AMC") /PPFAS Mutual
Fund (the "Mutual Fund") shall pay proceeds to the clearing member (in
case of redemption) and clearing member in turn to the respective investor
and similarly units shall be credited by the AMC/ Mutual Fund into clearing
member pool account (in case of purchase) and clearing member in turn
shall credit the units to the respective investor's demat account.

10. Payment of redemption proceeds to the clearing members by

AMC/Mutual Fund shall discharge AMC/ Mutual Fund of its obligation of
payment to individual investor. Similarly, in case of purchase of units,
crediting units into clearing member pool account shall discharge
AMC/Mutual Fund of its obligation to allot units to individual investor.

11. Applications for purchase/redemption of units which are incomplete

/invalid are liable to be rejected.

12. Separate folios will be allotted for units held in physical and demat
mode. In case of non-financial requests/applications such as change of
address, change of bank details, etc. investors should approach Investor
Service Centres (ISCs) of PPFAS Mutual Fund if units are held in physical
mode and the respective Depository Participant(s) if units are held in
demat mode.

13. An account statement will be issued by PPFAS Mutual Fund to

investors who purchase/ redeem their units under this facility in physical
mode. In case of investors who intend to deal in units in depository mode,
a demat statement will be sent by Depository Participant showing the
credit/debit of units to their account.

14. The applicability of NAV will be subject to guidelines issued by SEBI

on Uniform cut-off timings for applicability of NAV of Mutual Fund
Scheme(s)/Plan(s).

15. Investors will have to comply with Know Your Customer (KYC) norms
as prescribed by BSE/NSE/CDSL/ NSDL and PPFAS Mutual Fund to
participate in this facility.

16. Investors should get in touch with Investor Service Centres (ISCs) of
PPFAS Mutual Fund for further details.

17. The Mutual Fund distributors (registered) shall not handle payout and
pay in of funds as well as units on behalf of investor. In the same manner,
units shall be credited and debited directly from the demat account of
investors, in accordance with applicable SEBI guidelines.

x) Transactions through "Channel Distributors"

Investors may enter into an agreement with certain distributors/
Registered Investment Advisers (RIAs) / Portfolio Managers (with whom
AMC also has a tie up) referred to as "Channel Distributors" who provide
the facility to investors to transact in units of mutual funds through various
modes such as their website/other electronic means or through Power of
Attorney/agreement/ any such arrangement in favour of the Channel
Distributor, as the case may [Link] such arrangement, the Channel
Distributors will forward the details of transactions (viz.
subscriptions/redemptions/switches) of investors electronically to the
AMC / RTA for processing on daily basis as per the cut-off timings
applicable to the relevant schemes and in accordance with applicable

92
 SEBI /AMFI circulars issued from time to time. The Channel Distributor is
required to upload the scan copy of investor documents like Account
opening forms(AOF) to the RTA (one time for central record keeping) as
also the transaction documents / proof of transaction authorization as the
case may be, to the AMC / RTA as per agreed timelines. In case
necessary documents are not furnished within the stipulated timeline, the
transaction request, shall be liable to be rejected. Subscription proceeds,
when invested through this mode, shall be by way of direct credits to the
specified bank account of the Fund. The Redemption proceeds (subject
to deduction of tax at source, if any) are paid by the AMC to the investor
directly through direct credit in the specified bank account of the investor
or through issuance of payment instrument, as applicable. It may be noted
that investors investing through this mode may also approach the AMC /
Official Points of Acceptance directly with their transaction requests
(financial / non-financial) or avail of the online transaction facilities offered
by the AMC.
The Mutual Fund, the AMC, the Trustee, along with their directors,
employees and representatives shall not be liable for any errors, damages
or losses arising out of or in connection with the transactions undertaken
by investors / Channel Distributors through above mode.

Switching Options Unit holders under the Scheme holding units in non-demat form have the
option to Switch part or all of their Unit holdings in the Scheme to another
scheme established by the Mutual Fund, or within the Scheme from one
Plan / Option to another Plan / Option (subject to completion of lock-in
period, if any) which is available for investment at that time subject to
applicable exit load. This Option will be useful to Unit holders who wish to
alter the allocation of their investment among the Scheme(s)/ Plan(s) /
Option(s) of the Mutual Fund in order to meet their changed investment
needs.

The Switch will be affected by way of a Redemption of Units [On a First In

First Out (FIFO) basis] from the Scheme / Plan and a re-investment of the
Redemption proceeds in the other Scheme / Plan and accordingly, to be
effective, the Switch must comply with the Redemption rules of the
Scheme and the issue rules of the other scheme (e.g. as to the minimum
number of Units that may be redeemed or issued, Exit / Entry Load etc).
The price at which the Units will be Switched out of the Scheme(s) will be
based on the Redemption Price, and the proceeds will be invested in the
other Scheme/ Plan at the prevailing sale price for units in that Scheme /
Plan.

Exit Load for switches within the Scheme:

(i) No exit load shall be levied for switching between Options under the
same Plan within the Scheme.

(ii) No exit load shall be levied for switching from Direct Plan to Regular
Plan and vice versa.

(iii) No load will be charged on the issue of bonus Units and Units allotted
on reinvestment of IDCW for existing as well as prospective investors.

The Switch request can be made on a pre-printed form or by Transaction

Slip which should be submitted any of the Official Point(s) of Acceptance.

The AMC reserves the right to modify the load structure for Switching

93
 between Plans within the Scheme or Options within the respective Plans
at a future date.

Account Statements: Under Regulation 36(4) of SEBI (Mutual Funds) Regulations, 1996, the
AMC/ RTA is required to send consolidated account statements for each
calendar month to all the investors in whose folio transaction has taken
place during the month. Further, SEBI vide its circular having ref. no.
CIR/MRD/DP/31/2014 dated November 12, 2014, in order to enable a
single consolidated view of all the investments of an investor in Mutual
Fund and securities held in demat form with Depositories, has required
Depositories to generate and dispatch a single consolidated account
statement for investors having mutual fund investments and holding
demat accounts.

In view of the said requirements the account statements for transactions

in units of the Fund by investors will be dispatched to the investors in
following manner:

I. Investors who do not hold Demat Account

Further, on acceptance of application for subscription, an allotment

confirmation specifying the number of Units allotted will be sent by way of
e-mail and/or SMS to the applicant’s registered e-mail address and/or
mobile number within five Business Days from the date of receipt of
transaction request from the unit holder(s).

The AMC shall send first account statement for a new folio separately with
all details registered in the folio by way of a physical account statement
and/or an email to the investor’s registered address / e-mail address not
later than five business days from the date of receipt of subscription
request from the unit holder

Consolidated Account Statement (CAS), based on PAN of the holders,

shall be sent by AMC/ RTA to investors not holding demat account, for
each calendar month within 15th day of the succeeding month to the
investors in whose folios, transactions have taken place during that
month.

CAS shall be sent by AMC/RTA every half yearly (September/ March), on

or before 21st day of succeeding month, detailing holding at the end of the
six month, to all such investors in whose folios there have been no
transactions during that period.

CAS sent by AMC/RTA is a statement containing details relating to all

financial transactions made by an investor across all mutual funds viz.
purchase, redemption, switch, Payout of Income Distribution cum capital
withdrawal option, Reinvestment of Income Distribution cum capital
withdrawal option, systematic investment plan, systematic withdrawal
plan, systematic transfer plan, bonus etc. (including transaction charges
paid to the distributor) and holding at the end of the month.

II. Investors who hold Demat Account

On acceptance of application for subscription, an allotment confirmation

Specifying the number of Units allotted will be sent by way of e-mail and/or
SMS to the applicant’s registered e-mail address and/or mobile number
within five Business Days from the date of receipt of transaction request
from the unit holder(s).

94
CAS, based on PAN of the holders, shall be sent by Depositories to
investors holding demat account, for each calendar month within 15th day
of the succeeding month to the investors in whose folios, transactions
have taken place during that month.

CAS shall be sent by Depositories every half yearly (September/March),

on or before 21st day of succeeding month, detailing holding at the end of
the six month, to all such investors in whose folios and demat accounts
there have been no transactions during that period.

In case of demat accounts with nil balance and no transactions in

securities and in mutual fund folios, the depository shall send account
statement in terms of regulations applicable to the depositories.

CAS sent by Depositories is a statement containing details relating to all

financial transactions made by an investor across all mutual funds viz.
purchase, redemption, switch, Payout of Income Distribution cum capital
withdrawal option, Reinvestment of Income Distribution cum capital
withdrawal option, systematic investment plan, systematic withdrawal
plan, systematic transfer plan, bonus etc. (including transaction charges
paid to the distributor) and transaction in dematerialised securities across
demat accounts of the investors and holding at the end of the month.

Note: Investors will have an option not to receive CAS through

Depositories. Such Investors will be required to provide negative consent
to the Depositories. Investors who have opted not to receive CAS through
Depositories will continue to receive Statement from AMC/ the Fund.

Following provisions shall be applicable to CAS sent through AMC/ RTA

and CAS sent through depositories:

i. Investors are requested to note that for folios which are not included in
the CAS, AMC shall henceforth issue monthly account statement to the
unit holders, pursuant to any financial transaction done in such folios; the
monthly statement will be sent on or before 15th day of succeeding month.
Such statements shall be sent in physical form if no email id is provided
in the folio.

ii. The statement sent within the time frame mentioned above is
provisional and is subject to realisation of payment instrument and/or
verification of documents, including the application form, by the RTA/AMC

iii. In the event the folio/demat account has more than one registered
holder, the first named Unit holder/Account holder shall receive the CAS
(AMC/RTA or Depository). For the purpose of CAS (AMC/RTA or
Depository), common investors across mutual funds/depositories shall be
identified on the basis of PAN. Consolidation shall be based on the
common sequence/order of investors in various folios/demat accounts
across mutual funds / demat accounts across depository participants.
iv. Investors whose folio(s)/demat account(s) are not updated with PAN
shall not receive CAS. Investors are therefore requested to ensure that
their folio(s)/demat account(s) are updated with PAN.

v. For Unit Holders who have provided an e-mail address in KYC records,
the CAS will be sent by e-mail.

vi. The Unit Holder may request for a physical account statement by

95
writing to/calling the AMC/RTA. In case of a specific request received from
the unit holders, the AMC/RTA shall provide the account statement to the
unit holders within 5 business days from the receipt of such request.

vii. In case an investor has multiple accounts across two Depositories, the
depository with whom the account has been opened earlier will be the
default Depository.

viii. The periodical CAS will be sent by the Depositories to investors

holding demat accounts (whether or not units are held in demat form)
referred to as "SCAS" and by Mutual Fund Industry to other investors
referred to as "MF-CAS".

Pursuant to SEBI Master Circular dated May 19, 2023, following additional
disclosures will be provided in the CAS issued to the investors:
Each CAS/SCAS shall also provide the total purchase value / cost of
investment in each scheme. Further, whenever distributable surplus is
distributed, a clear segregation between income distribution (appreciation
on NAV) and capital distribution (Equalization Reserve) shall be suitably
disclosed. CAS/SCAS issued for the half-year (ended September / March)
shall also provide
(i) the amount of actual commission paid by the AMC/ Fund to distributors
(in absolute terms) during the half-year period, and
(ii) the scheme's average Total Expense Ratio (in percentage terms)
along with the break up between Investment and Advisory fees,
Commission paid to the distributor and Other expenses for the half-year
period for the scheme's applicable Option (regular or direct or both) where
the concerned investor has actually invested in.
The term 'commission' refers to all direct monetary payments and other
payments made in the form of gifts / rewards, trips, event sponsorships
etc. by the AMC/Fund to distributors. The commission disclosed is gross
commission and does not exclude costs incurred by distributors such as
Goods & Service Tax (wherever applicable, as per existing rates),
operating expenses, etc.

COMMUNICATION BY ELECTRONIC MODES:

Those unit holders whose email addresses/ Mobile number(s) have been
validated by the AMC, shall receive communication through electronic
mode.
Should the Unit holder experience any difficulty in accessing the
electronically delivered documents/communication, the Unit holder shall
promptly advise the Mutual Fund to enable the Mutual Fund to make the
delivery through alternate means. It is deemed that the Unit holder is
aware of all security risks including possible third party interception of the
documents and contents of the documents becoming known to third
parties. The AMC has the right to verify the authenticity of the email
address and mobile number provided by the investor, in the manner
prescribed by SEBI/AMFI from time to time, before registering these
details in the folio.
AMC reserves the right to communicate on the email/ mobile numbers
registered with KRA in the investors KYC records. For certain
communication, AMC may send the intimation only vide email and/or sms
and not through physical mode,at its discretion.

For SIP/STP/SWP transactions:

96
 Account Statement for SIP/STP/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 to the investors within 5 working days from
the receipt of such request without any charges.

Annual Account Statement:

The Mutual Fund shall provide the Account Statement to the Unitholders
who have not transacted during the last six months prior to the date of
generation of account statements. The Account Statement shall reflect the
latest closing balance and value of the Units prior to the date of
multiplegeneration of the account statement, The account statements in
such cases may be generated and issued along with the Portfolio
Statement or Annual Report of the Scheme. Alternately, soft copy of the
account statements shall be mailed to the investors’ e-mail address,
instead of physical statement, if so mandated.

Note: If the investor(s) has/have provided his/their email address in the

application form or any subsequent communication in any of the folio
belonging to the investor(s), Mutual Fund / Asset Management Company
reserves the right to use Electronic Mail (email) as a default mode to send
various communication which include account statements for transactions
done by the investor(s). The investor shall from time to time intimate the
Mutual Fund / its Registrar and Transfer Agents about any changes in the
email address.

Segregated portfolio may be created, in case of a credit event at issuer

Creation of Segregated Portfolio level i.e. downgrade in credit rating by a SEBI registered Credit Rating
Agency (CRA), as under:
● Downgrade of a debt or money market instrument to ‘below
investment grade’, or
● Subsequent downgrades of the said instruments from ‘below
investment grade’, or
● Similar such downgrades of a loan rating.

The most conservative rating shall be considered, if there is difference in

rating by multiple CRAs, Creation of segregated portfolio shall be based
on issuer level credit events as detailed at “Credit Events” and
implemented at the ISIN level.

Actual default (for unrated debt or money market instruments)

In case of unrated debt or money market instruments, the actual default
of either the interest or principal amount by the issuer.
On occurrence of any default, the AMC shall inform AMFI immediately
about the actual default by the issuer. Subsequent to dissemination of
information by AMFI about actual default by the issuer, the AMC might
segregate the portfolio of debt or money market instruments of the said

97
issuer.

Process of creation of segregated portfolio:

PPFAS AMC will decide on creation of a segregated portfolio on the day

of credit event/actual default and will seek approval of PPFAS Trustee.
Post that PPFAS AMC will immediately issue a press release disclosing
its intention to segregate such debt and money market instruments and
its impact on the investors. PPFAS AMC will also disclose that the
segregation shall be subject to trustee approval. Additionally, the said
press release will be prominently disclosed on the website of the AMC.
PPFAS AMC will ensure that till the time the trustee approval is received,
which in no case shall exceed 1(one) business day from the day of credit
event/actual default, the subscription and redemption in the scheme shall
be suspended for processing with respect to creation of units and payment
on redemptions.

The segregated portfolio shall be effective from the day of credit

event/actual default, post approval of Trustee.

PPFAS AMC will issue a press release immediately post approval of

PPFAS Trustee with all relevant information pertaining to the segregated
portfolio. The said information shall also be submitted to SEBI.

An e-mail or SMS will be sent to all unit holders of the concerned Scheme.
The NAV of both the segregated and main portfolio will be disclosed from
the day of the credit event. All existing unit holders in the Scheme as on
the day of the credit event shall be allotted an equal number of units in the
segregated portfolio as held in the main portfolio.

No redemption and subscription shall be allowed in the segregated

portfolio. However, in order to facilitate exit to unit holders in segregated
portfolios, PPFAS AMC will enable listing of units of segregated portfolio
on recognized stock exchange within 10 working days of creation of
segregated portfolio and also enable transfer of such units on receipt of
transfer request.

If the trustees do not approve the proposal to segregate the portfolio, AMC
shall issue a press release immediately informing investors of the same.

Valuation and processing of subscription and redemptions:

The valuation will take into account the credit event and the portfolio will
be valued based on the principles of fair valuation (i.e. realizable value of
the assets) in terms of the relevant provisions of SEBI (Mutual Funds)
Regulations, 1996 and Circular(s) issued thereunder.

All subscription and redemption requests for which NAV of the day of
credit event/actual default or subsequent day is applicable will be
processed as per the existing circular on applicability of NAV. However,
in case of segregated portfolio, applicability of NAV will be as under:

-Investors redeeming their units will get redemption proceeds based on

the NAV of the main portfolio and will continue to hold the units of the
segregated portfolio.
-Investors subscribing to the Scheme will be allotted units only in the main
portfolio based on its NAV.

98
In case, PPFAS Trustee does not approve the above valuation process,
all subscription and redemption applications will be processed based on
the NAV of the total portfolio.

Disclosure Requirements:

A statement of holding indicating the units held by the investors in the

segregated portfolio along with the NAV of both segregated portfolio and
main portfolio as on the day of the credit event will be communicated to
the investors within 5 working days of creation of the segregated portfolio.
Further, adequate disclosure of the segregated portfolio will also appear
in all scheme related documents, in monthly and half-yearly portfolio
disclosures and in the annual report of the mutual fund and the Scheme.
Further, the NAV of the segregated portfolio will be declared on a daily
basis.

The information regarding the number of segregated portfolios created in

a scheme shall appear prominently under the name of the scheme at all
relevant places such as SID, KIM-cum-Application Form, advertisements,
AMC and AMFI websites, etc. The scheme performance required to be
disclosed at various places will include the impact of creation of a
segregated portfolio. The scheme performance will clearly reflect the fall
in NAV to the extent of the portfolio segregated due to the credit event
and the said fall in NAV along with recovery(ies), if any, will be disclosed
as a footnote to the scheme performance. These disclosures regarding
the segregated portfolio will be carried out for a period of at least 3 years
after the investments in the segregated portfolio are fully recovered/
written-off.

The investors of the segregated portfolio will be duly informed of the

recovery proceedings of the investments of the segregated portfolio and
status update will be provided to the investors at the time of recovery and
also at the time of writing-off of the segregated securities. Upon recovery
of money, whether partial or full, it will be immediately distributed to the
investors in proportion to their holding in the segregated portfolio.

Total Expense Ratio (TER) for segregated portfolio:

AMC shall not charge investment and advisory fees on the segregated
portfolio. TER (including legal charges and excluding the investment and
advisory fees) shall be charged pro- rata basis only on upon recovery of
investment in the segregated portfolio. The legal charges related to
recovery of the investments of the segregated portfolio may be charged
to the segregated portfolio in proportion to the amount of recovery. The
maximum TER limit shall be same as applicable to the main portfolio. TER
in excess of limit shall be borne by AMC. However, the costs related to
segregated portfolio shall in no case be charged to the main portfolio.
TER so levied shall not exceed the simple average of such expenses
(excluding the investment and advisory fees) charged on daily basis on
the main portfolio (in % terms) during the period for which the segregated
portfolio was in existence.

Monitoring by Trustees:

In order to ensure timely recovery of investments of the segregated

portfolio, Trustees will ensure that, PPFAS AMC puts in sincere efforts to
recover the investments of the segregated portfolio. Upon recovery of
money, whether partial or full, it will be immediately distributed to the

99
investors in proportion to their holding in the segregated portfolio. Any
recovery of amount of the security in the segregated portfolio even after
the write off shall be distributed to the investors of the segregated portfolio.
Further, an Action Taken Report (ATR) on the efforts made by PPFAS
AMC to recover the investments of the segregated portfolio will be placed
in every Trustee meeting till the investments are fully recovered/ written-
off.

The Trustees will monitor the compliance of this circular and disclose in
the half-yearly trustee reports filed with SEBI, the compliance in respect
of every segregated portfolio created.

In order to avoid mis-use of segregated portfolio, trustees will ensure that

there is a mechanism in place to negatively impact the performance
incentives of Fund Managers, Chief Investment Officers (CIOs), etc.
involved in the investment process of securities under the segregated
portfolio, mirroring the existing mechanism for performance incentives of
the AMC, including claw back of such amount to the segregated portfolio
of the scheme.

Creation of a segregated portfolio will be optional and at the discretion of

PPFAS AMC.

Illustration of portfolio segregation:

The below table shows how a security affected by a credit event will be
segregated and its impact on investors
Total Portfolio Regular Plan Direct Plan

Net Assets (A) 200.00 110.00

Units (B) 20.000 10.000

NAV per unit (A)/(B) 10.0000 11.0000

Assuming, the above portfolio has a security with market value of Rs. 20
which has got impacted by a credit event. Based on Trustees approval for
segregation of portfolio, total portfolio would be split into main portfolio and
segregated portfolio as given below:

Main Portfolio Regular Direct Plan

Plan

Net Assets before Segregation 200.00 110.00

(A)

Value of impacted security (B) 12.9040 7.0970

Net Assets after segregation (C) 187.0960 102.903

= (A) – (B)

Units (D) 20.000 10.000

NAV per unit (C)/(D) 9.3548 10.2903

100
 Segregated Portfolio Regular Direct Plan
Plan

Value of impacted security 12.9040 7.0970

segregated from Total Portfolio

Haircut @ 25% 3.226 1.774

Net Assets after Haircut (A) 9.678 5.323

Units (B) 20.000 10.000

NAV per unit (A)/(B) 0.4839 0.5323

Investor Holding Regular Direct Plan

Plan

Net Assets in Total Portfolio 200.00 110.00

Net Assets in Main Portfolio 187.0960 102.903

Net Assets in Segregated 9.678 5.323

Portfolio after Haircut*
* Market value of investor holding will come down to the extent of a haircut
on the impacted security.

Impact on investors:

Existing Investors: All existing investors in the scheme as on the day of

the credit event will be allotted equal number of units in the segregated
portfolio as held in the main portfolio.

New Investors: Investors subscribing to the scheme will be allotted units

only in the main portfolio based on its NAV.

Exiting Investors: Investors redeeming their units will get redemption

proceeds based on the NAV of main portfolio and will continue to hold the
units of segregated portfolio.

1. The IDCW proceeds will mandatorily be paid directly into the

IDCW Unitholders bank account through various electronic payout modes such
as Direct credit/ NEFT/RTGS/IMPS/ECS/NECS etc, as directed by SEBI.
Please note that physical despatch of IDCW payment instruments shall
be made by the AMC only in exceptional circumstances.

2. The IDCW proceeds will be paid in favour of the Unit holder (registered
holder of the Units or, if there is more than one registered holder, only to
the first registered holder) with bank account number furnished to the
Mutual Fund (please note that it is mandatory for the Unit holders to
provide/update the Bank account details IFSC code etc. as per the
directives of SEBI.

3. The IDCW payment shall be transferred to the Unitholders within 7

working days of the record date of such declaration of IDCW or such other

101
 timeline as may be specified by SEBI from time to time. In the event of
failure to transfer IDCW within the stipulated period, the AMC shall be
liable to pay interest @ 15% per annum to the Unitholders for the delay in
payment as computed from the Record Date or from such other date or
for such period as may be advised by SEBI from time to time.

[Link] units held in demat form: The IDCW proceeds will be credited to the
bank account of the Unitholder, as per the bank account details recorded
with the Depository Participant based on the list provided by the
Depositories (NSDL/CDSL) giving the details of the demat account
holders and the number of Units held by them in demat form on the Record
date.

Redemption: The redemption or repurchase proceeds shall be released to the

unitholders within 3 working days from the date of redemption or
repurchase in case of normal situation and in case of exceptional situation
it shall be within 5 working days as per SEBI and/ or AMFI guidelines.

A Transaction Slip can be used by the Unit Holder to request for

Redemption. The requisite details should be entered in the Transaction
Slip and submitted at an ISC/Official Point of Acceptance. Transaction
Slips can be obtained from any of the ISCs/Official Points of Acceptance.
The redemption/ switch would be permitted to the extent of credit balance
in the unit-holder'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 unit-holder
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.

In the larger interest of the unitholders of the Scheme, the AMC may, in
consultation with the Trustee, keeping in view unforeseen circumstances
/ unusual market conditions, limit the total number of units which may be
redeemed on any business day to such a percentage of the total number
of units issued and outstanding under Scheme/plan as the AMC may
determine. For details, please refer to paragraph on Right to limit
Redemption in the SAI. The AMC reserves the right to, in consultation with
the Trustee, suspend the purchase and/ or redemption of units temporarily
or indefinitely, in case of unforeseen extraordinary circumstances. For
details, please refer to paragraph on ‘Suspension of Purchase and / or
Redemption of Units’ and IDCW Distribution in the SAI.

Redemption proceeds will be paid to the investor through Real Time

Gross Settlement (RTGS), NEFT, IMPS, Direct Credit, a/c payee cheque
or demand draft or any other mode allowed by Reserve Bank of India .

Redemption by investors transacting through the Stock Exchange

mechanism
Investors who wish to transact through the stock exchange shall place
orders for redemptions as currently practiced for secondary market
activities. Investors must submit the Delivery Instruction Slip to their

102
Depository Participant on the same day of submission of redemption
request, within such stipulated time as may be specified by NSE/BSE,
failing which the transaction will be rejected. Investors shall seek
redemption requests in terms of number of Units only and not in Rupee
amounts. Redemption amounts shall be paid by the AMC to the bank
mandate registered with the Depository Participant.

Redemption under dematerialized mode:

As an alternative, redemption request can be placed through Depository

Participants & Exchanges specified intermediaries where NSE NMF II/
BSE STAR platform is available for trading of Mutual Fund Units. The
redemption requests submitted to the AMC / Registrar directly are liable
to be rejected.

If the investor wishes to redeem the units hold in demat mode with the
AMC in such case the investor is required to convert such units in the
physical mode by submitting request for Rematerialisation to the
Depository Participants and after conversion of such units into the
physical mode to the AMC for redemption of such units.

The Trustee may mandatory redeem units of any unitholders in the event
that it is found that the unitholders has submitted information either in the
application or otherwise that is false, misleading or incomplete or units are
held by a unitholder in breach of the regulation.

Units can be redeemed (sold back to the Mutual Fund) at the Redemption
Price during the Ongoing Offer Period

Payment of redemption proceeds-

Resident Investors:
In case of Unit holders having a bank account with certain banks with
which the Mutual Fund would have an arrangement from time to time, the
redemption proceeds shall be electronically credited to their account. In
case of specific requests, redemption proceeds will be paid by way of
payment channels like RTGS, NEFT, IMPS, Direct Credit, etc. or any
other mode allowed by Reserve Bank of India in addition to
cheques/demand drafts in favour of the unitholder (registered holder of
the Unit or, if there are more than one registered holder, only to the first
registered holder) through “Account Payee” cheque / demand draft with
bank account number furnished to the Fund (please note that it is
mandatory for the Unit holders to provide the Bank account details as per
the directives of SEBI, even in cases where investments are made in
cash). Redemption cheques will be sent to the Unit holder’s address (or,
if there is more than one holder on record, the address of the first-named
Unit holder).

Redemption by NRIs: For NRIs, redemption proceeds will be remitted

depending upon the source of investment as follows:
Where the payment for the purchase of the units redeemed was made out
of funds held in NRO account, the redemption proceeds will be credited
to the NRI investor's NRO account

Where the units were purchased on repatriation basis and the payment
for the purchase of the units redeemed was made by inward remittance
through normal banking channels or out of funds held in NRE / FCNR
account, the redemption proceeds will be credited to his NRE / FCNR /
NRO account

103
Note: i. The Fund will not be liable for any delays or for any loss on account
of any exchange fluctuations, while converting the rupee amount in foreign
exchange in the case of transactions with NRIs / FIIs.
ii. Payment to NRI / FII Unit holders will be subject to the relevant laws /
guidelines of the RBI as are applicable from time to time (also subject to
deduction of tax at source as applicable).
iii. The Fund may make other arrangements for effecting payment of
redemption proceeds in future.
iv. The cost related to repatriation, if any will be borne by the Investor.

Effect of Redemptions: The balances in the unit-holder's account will

stand reduced by the number of units redeemed. Units once redeemed
will be extinguished and will not be reissued.

Units can be redeemed (sold back to the Mutual Fund) at the

Redemption Price during the Ongoing Offer Period
Where Units under a Scheme are held under both Existing and Direct
Plans and the redemption / Switch request pertains to the Direct Plan, the
same must clearly be mentioned on the request (along with the folio
number), failing which the request would be processed from the Existing
Plan. However, where Units under the requested Option are held only
under one Plan, the request would be processed under such Plan.

Unclaimed Redemptions and IDCW:

As per the SEBI Master Circular dated May 19, 2023, The unclaimed
redemption and income distribution cum capital withdrawal amounts,
that are currently allowed to be deployed only in call money market
or money market instruments, shall also be allowed to be invested in
a separate plan of only Overnight scheme / Liquid scheme / Money
Market Mutual Fund scheme floated by Mutual Funds specifically for
deployment of the unclaimed amounts. Provided that such schemes
where the unclaimed redemption and income distribution cum capital
withdrawal 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 as per SEBI Master Circular dated
May 19, 2023.

b) AMCs shall not be permitted to charge any exit load in this plan
and TER (Total Expense Ratio) of such plan shall be capped as per the
TER of direct plan of such scheme or at 50bps whichever is lower.

The investment management fee charged by the AMC for managing such
unclaimed amounts shall not exceed 50 basis points. Investors claiming
these amounts during a period of three years from the due date shall be
paid at the prevailing NAV. After a period of three years, this amount shall
be transferred to a pool account and the investors can claim the said
amounts at the NAV prevailing at the end of the third year. Income earned
on such funds 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. The details of such unclaimed amounts
shall be disclosed in the annual report sent to the Unit Holders.

The 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

104
 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 the AMC may specify from time to time.

Unit-holders should note that while remitting your redemption proceeds,

tax will be deducted at source in accordance with applicable tax laws.

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 the point on Registration
of Multiple Bank Accounts in respect of an Investor Folio given in this
document.

Tax Status of the investor For all new purchases, the AMC reserves the right to update the tax status
of investors on a best effort basis by referring to the information furnished
on the application form by the applicant(s) and as per the documents
provided for Permanent Account Number/ Bank Account details or such
other documents submitted along with the application form. The AMC will
rely on the information provided in feed files by entities like Channel
Partners / MFU / Stock exchange platforms. The AMC shall not be
responsible for any claims made by the investor/ third party on account of
updation of tax status basis the stated process.

Delay in payment of redemption / Under normal circumstances, the redemption or repurchase proceeds
repurchase proceeds/ IDCW shall be released to the unitholders within 3 working days from the date of
redemption or repurchase and in case of exceptional circumstances it
shall be 5 working days as per SEBI and/or AMFI Guidelines. For IDCW,
Under normal circumstances, the IDCW proceeds shall be released to
unitholders within 7 working days from the record date and in case of
exceptional circumstances it shall be within 9 working days from the
record date as per SEBI and/or AMFI Guidelines. The AMC shall be liable
to pay interest to the unitholders at such rate as may be specified by SEBI
for the period of such delay (presently @ 15% per annum). 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. The interest for the delayed payment
of IDCW shall be calculated from the record date.

C. PERIODIC DISCLOSURES

Net Asset Value The first NAV of the Scheme will be calculated and disclosed within a period of
This is the value per unit of the 5 business days from the date of allotment. Subsequently, the AMC will calculate
scheme on a particular day. You and disclose the NAVs on all the Business Days. The AMC shall update the
can ascertain the value of your NAVs on its website ([Link]) and of the Association of Mutual
investments by multiplying the Funds in India - AMFI ([Link]) before 11.00 p.m. on every Business
NAV with your unit balance. Day.
Due to any reason, if the NAVs of the Scheme are not available before the
commencement of Business Hours on the following day, the Mutual Fund shall
issue a press release giving reasons and explaining when the Mutual Fund would

105
 be able to publish the NAV.

SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May

19, 2023 states that Mutual Fund shall declare separate NAV for Direct and
Regular Plan.

Accordingly, Direct and Regular Plan shall have different NAV. The difference in
NAV will be the commission paid to the distributor/s. NAV will be declared with 4
decimal points.

Information regarding NAV can be obtained by the unitholders’ or investors by

calling or visiting the nearest ISC or visiting the website of the Mutual Fund.

Daily Performance Disclosure The AMC shall upload performance of the Scheme on a daily basis on AMFI
website in the prescribed format along with other details such as Scheme AUM
and previous day NAV, as prescribed by SEBI from time to time.

Monthly and Half yearly The AMC shall disclose the portfolio of the Scheme along with ISIN as on the
Disclosures: last day of each month / half year on its website viz. [Link] and on
Portfolio / Financial Results the website of AMFI viz. [Link] within 10 days from the close of
This is a list of securities where each month/ half-year respectively in a user-friendly and downloadable
the corpus of the Scheme is spreadsheet format.
currently invested. The market
value of these investments is In case of Unitholders whose e-mail addresses are registered, the AMC shall
also stated in portfolio send via e-mail both the monthly and half-yearly statement of the Scheme
disclosures advertisement. portfolio within 10 days from the close of each month/ half-year respectively.
Further, the AMC shall publish an advertisement in all India edition of at least two
daily newspapers, one each in English and Hindi, every half year disclosing the
hosting of the half-yearly statement of the schemes’ portfolio(s) on the AMC’s
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.

Portfolio Rebalancing- As per SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated

Disclosure requirements to May 19, 2023, as may be amended from time to time, on Portfolio rebalancing
Unitholders due to passive breaches, the following disclosures will be made:
i. In case the AUM of deviated portfolio is more than 10% of the AUM of main
portfolio of the scheme the AMC will immediately after the expiry of the
mandated rebalancing period (i.e.. 30 business days):
1. disclose the same to investors through SMS and email / letter including
details of portfolio not rebalanced.
2. communicate to investors through SMS and email / letter when the
portfolio is rebalanced.
Further, scheme wise deviation of the portfolio (beyond the above limit) from
the mandated asset allocation beyond 30 days shall also be disclosed on
the website.
ii Any deviation from the mandated asset allocation shall also be disclosed
along with periodic portfolio disclosures as specified by SEBI from the date
of lapse of mandated plus extended rebalancing timelines.

Monthly Average Asset under The Mutual Fund shall disclose the Monthly AAUM under different categories
Management (Monthly AAUM) of Schemes as specified by SEBI in the prescribed format on a monthly basis on
Disclosure its website viz. [Link] and forward to AMFI within 7 working days
from the end of the month.

Product Labelling / Risk-o- The Product labeling mandated by SEBI is to provide investors an easy
meter understanding of the risk involved in the kind of product / scheme they are
investing to meet their financial goals. The Riskometer categorizes various

106
 schemes under different levels of risk based on the investment objective, asset
allocation pattern, investment strategy and typical investment time horizon of
investors. Therefore, the schemes falling under the same level of risk in the
Riskometer may not be similar in nature. Investors are advised before investing
to evaluate a Scheme not only on the basis of the Product labeling (including the
Riskometer) but also on other quantitative and qualitative factors such as
performance, portfolio, fund managers, asset manager, etc. and shall seek
appropriate advise, if they are unsure about the suitability of the Scheme before
investing.
As per SEBI Guidelines, Riskometer of the Scheme shall be reviewed on a
monthly basis based on evaluation of risk level of Scheme’s month end portfolios.
Notice about changes in Scheme's Risk-o-meters, if any, shall be issued. The
product labeling assigned during the NFO is based on internal assessment of the
scheme characteristics or model portfolio and the same may vary post NFO
when the actual investments are made. For latest riskometers of the Scheme
and the Benchmark, investors may refer to the monthly portfolios disclosed on
the website of the Fund viz. [Link] as well as AMFI website within
10 days from the close of each month.

Half Yearly Results The Mutual Fund shall within one month from the close of each half year (i.e.
31st March and 30th September), host a soft copy of its unaudited financial
results on its website [Link]. The Mutual Fund shall also publish
an advertisement disclosing the hosting of such financial results on its website,
in at least one English daily newspaper having nationwide circulation and in a
newspaper having wide circulation published in the language of the region where
the Head Office of the Mutual Fund is situated. The unaudited financial results
shall also be displayed on the website of AMFI.

Annual Report The scheme wise annual report shall be hosted on the website of the AMC /
Mutual Fund ([Link]) and AMFI ([Link]) 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). Further, the physical copy of the scheme wise annual report shall be
made available to the Unitholders at the registered / corporate office of the AMC
at all times.

In case of Unitholders whose e-mail addresses are registered with the Fund, the
AMC shall e-mail the annual report or an abridged summary thereof to such
Unitholders. The Unitholders whose e-mail addresses are not registered with the
Fund may submit a request to the AMC / Registrar & Transfer Agent to update
their email ids or communicate their preference to continue receiving a physical
copy of the scheme wise annual report or an abridged summary thereof.
Unitholders may also request for a physical or electronic copy of the annual
report / abridged summary, by writing to the AMC at mf@[Link] from their
registered email ids or calling the AMC on the toll free number 1800 266 7790 or
by submitting a written request at any of the nearest investor service centers of
the Fund.

Further, the AMC shall publish an advertisement in all India edition of at least two
daily newspapers, one each in English and Hindi, every year disclosing the
hosting of the scheme wise annual report on its website and on the website of
AMFI. 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.

Associate Transactions Please refer to the Statement of Additional Information (SAI).

Other disclosures/ Scheme To enhance investor awareness and information dissemination to investors,

107
Summary Document SEBI prescribes various additional disclosures to be made by Mutual Funds from
time to time on its website / on the website of AMFI, stock exchanges, etc.
These disclosures include Scheme Summary Documents, Investor charter
(which details the services provided to Investors, Rights of Investors, various
activities of Mutual Funds with timelines, DOs and DON'Ts for Investors,
Grievance Redressal Mechanism, etc.) Investors may refer to the same.

Repurchase and Sale Price- The repurchase price shall not be lower than 95% of the NAV and the sale price
Limits shall not be higher than 105% of the NAV and the difference between the
repurchase price and sale price shall not exceed 5% on the sale price.

Taxation PPFAS Mutual Fund is a Mutual Fund registered with the Securities &
The information is provided for Exchange Board of India and hence the entire income of the Mutual Fund will
general information only. be exempt from the Income tax in accordance with the provisions of section
However, in view of the 10(23D) of the Income Tax Act, 1961 (the Act). The applicability of tax laws, if
individual nature of the any, on PPFAS Mutual Fund/ Scheme(s)/ investments made by the Scheme(s)/
implications, each investor is investors/ income attributable to or distributions or other payments made to
advised to consult his or her Unitholders are based on the understanding of the current tax legislations.
own tax advisors/authorised
dealers with respect to the Equity oriented Funds +
specific amount of tax and other Tax implications on distributed income (hereinafter referred to as either
implications arising out of his or 'Dividend' or 'capital gains') by Mutual Funds:
her participation in the schemes.
Resident Non- Resident Mutual
Investors^^ Investors^^ Fund^^

Dividend:

TDS**: 10% (if Dividend 20%*+ applicable Nil (refer

income exceeds Surcharge + 4% Note A
INR 5,000 in a Cess# below)
financial year)

Tax Rates Individual / HUF: 20%+ applicable Nil (refer

Income tax rate Surcharge + 4% Note A
applicable to the Cess# below)
Unit holders as per
their income slabs.

Domestic
Company: 30% +
Surcharge as
applicable + 4%
Cess#
25%$ +Surcharge
as applicable + 4%
Cess#
22%@ + 10%
Surcharge@ + 4%
Cess#
15%@ + 10%
Surcharge^ + 4%
Cess#

Capital Gains*/^=:

108
 Long Term 10% without 10% without Nil
(Period of indexation & indexation and
holding more + applicable foreign currency
than 12 Surcharge + 4% fluctuation benefits &
months) & Cess# + applicable
Surcharge + 4%
Cess#

Short Term 15% + applicable 15% + applicable Nil

(period of Surcharge + 4% Surcharge + 4%
holding less Cess# Cess#
than or equal
to 12
months)

Note :
='Long term capital gains’ arising from transfer of a long term capital asset
being an equity share in a company or a unit of an equity oriented fund or a unit
of a business trust shall be taxed at 10% without indexation and without foreign
currency fluctuation benefit of such capital gains exceeding one lakh rupees. The
concessional rate of 10% shall be available only if securities transaction tax
(STT) has been paid on both acquisition and transfer in case of equity shares
and on transfer in case of units of equity-oriented mutual funds or units of
business trust. Further, grandfathering benefit has been provided for long term
capital gains upto January 31, 2018.

+ Equity Oriented Funds will also attract Securities Transaction Tax at applicable
rates.

* As per the provisions of section 196A which is specifically applicable in case of

non-resident unitholders, a withholding tax rate of 20% (plus applicable
surcharge and cess) on any income in respect of units of a Mutual Fund credited/
paid to non-resident unitholders shall apply, as section 196A does not make
reference to "rates in force" but provides the withholding tax rate of 20% (plus
applicable surcharge and cess).

# Health and education Cess shall be applicable at 4% on aggregate of base tax

and surcharge.

$ The Finance Act, 2022 provides that in case of domestic company, the rate of
income-tax shall be 25% if its total turnover or gross receipts in the financial year
2019-20 does not exceed Rs. 400 crores.

@ The corporate tax rates for domestic companies (not claiming specified
incentives and deductions) at the rate of 22% under section 115BAA and
domestic manufacturing companies (not claiming specified incentives and
deductions) set- up and registered on or after 1 October 2019 at the rate of 15%
under section 115BAB. The tax computed in case of domestic companies whose
income is chargeable to tax under section 115BAA or section 115BAB shall be
increased by a surcharge at the rate of 10%.

^ Short term/ long term capital gain tax will be deducted at the time of redemption
of units in case of NRI investors only. However, as per section 196A of the Act

109
 the withholding tax of 20%(plus applicable surcharge and cess) is applicable on
any income in respect of units of mutual fund in case of non-residents. Hence,
based on language provided in said section, it seems that apart from any income
distributed to NRI, withholding tax at 20% may be applicable on capital gains
notwithstanding that such capital gains are taxable at a rate lower than 20%
& Section 112A provides that long term capital gains arising from transfer of a
long term capital asset being a unit of an equity oriented fund shall be taxed at
10% (without indexation and foreign currency fluctuation benefit) of such capital
gains exceeding one lakh rupees. The concessional rate of 10% shall be
available only if STT has been paid on transfer in case of units of equity- oriented
mutual funds.

**Section 206AB relating to deduction of TDS at higher rates is applicable on any

sum or income or amount paid, or payable or credited, by a person (herein
referred to as deductee) to a specified person, as defined. This section shall not
apply where the tax is required to be deducted under sections 192, 192A, 194B,
194BB, 194LBC or 194N of the Act. The TDS rate in this section is higher of the
followings rates:
• twice the rate specified in the relevant provision of the Act; or
• twice the rate or rates in force; or
• the rate of five per cent.

It is also provided that if the provision of section 206AA of the Act is applicable
to a specified person, in addition to the provision of this section, the tax shall be
deducted at higher of the two rates provided in this section and in section 206AA
of the Act.

^^ The information given herein is as per the prevailing tax laws.

For Further details on taxation, please refer to the Section on ‘Taxation on

investing in Mutual Funds’ in ‘Statement of Additional Information (‘SAI’).
Investors should be aware that the fiscal rules/ tax laws may change and
there can be no guarantee that the current tax position may continue
indefinitely. In view of the individual nature of tax implications, investors
are advised to consult their professional tax advisor.

Investor services Investors can enquire about NAVs, Unit Holdings, Valuation, IDCW etc. or lodge
any service request at toll-free number 1800 266 7790. Alternatively, the
investors can call the AMC head office as well for any information. In order to
protect confidentiality of information, the service representatives at the AMC’s
head office/ AMC ISCs may require personal information of the investor for
verification of his identity. The AMC will at all times endeavour to handle
transactions efficiently and to resolve any investor grievances promptly.

Investor grievances should be addressed to the ISC of the AMC, or at CAMS

ISC directly. All grievances received at the ISC of the AMC will then be forwarded
to CAMS, if required, for necessary action. The complaints will closely be
followed up with CAMS by the AMC to ensure timely redressal and prompt
investor service.

CAMS Call Centre will be handling the investor’s query/complaint/grievances

along with AMC staff who will also be available at your service.(Contact details
are available on the website)

Investors can also address their queries to the Chief Sales Officer – Direct
Channel and Head - Investor Relations Officer, Mr. Aalok Mehta, 81/82, 8th
Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230-Nariman Point, Mumbai-
400 021, Maharashtra, India. Investors may also send their complaints by email

110
 to mf@[Link].

Investors can also address their queries to CAMS Call Centre Address at
Computer Age Management Services Ltd., C 101 TO 106, ITC Park 1st Floor,
Tower No.8, Belapur Railway Station Complex, CBD Belapur, Navi Mumbai -
400614. Phone no. Board Line: 022-61406537, Working Days- Monday to Friday
(9.00 am to 6.00 pm) Saturday – 9.00 am to 1.00 pm (1st and 3rd Saturday would
be working)

D. COMPUTATION OF NAV

The Net Asset Value (NAV) per Unit of the Scheme(s) will be computed by dividing the net assets of the Scheme(s) by
the number of Units outstanding under the Scheme on the valuation date. The Mutual Fund will value its investments
according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may
be specified by SEBI from time to time. NAV of Units under each Scheme / Plan shall be calculated as shown below:

Market or Fair Value of the Scheme's Investments

+ Current Assets including Accrued income
- Current Liabilities and Provisions
NAV (Rs) per unit = _________________________________________
No. of Units outstanding under the Scheme / Plan/ Option on the Valuation day

The AMC will calculate and disclose the NAV of the Scheme(s) at the close of every Business Day.

Separate NAV will be calculated and disclosed for each Plan/Option.

The NAV of the Scheme(s) will be calculated up-to 4 decimals. Units will be allotted up-to 3 decimals.

NAV will also be displayed on the website of the Mutual Fund. In addition, the ISCs would also display the NAV.
IV. FEES AND EXPENSES

This section outlines the expenses that will be charged to the schemes and also about the transaction charges, if any,
to be borne by the investors.

A. NEW FUND OFFER (NFO) EXPENSES

These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees,
marketing and advertising expenses, Registrar & Transfer Agents’ expenses, printing and stationary, bank charges etc.

The entire amount subscribed by the investor subject to deduction of transaction charges, if any, in the scheme during
the New Fund Offer (NFO) will be available to the scheme for investment. The NFO expenses shall be borne by the
AMC/ Trustee/Sponsor and not by the scheme of mutual fund.

B. ANNUAL SCHEME RECURRING EXPENSES

These are the fees and expenses for operating the Scheme. These expenses include Investment Management and
Advisory Fee charged by the AMC, Registrar and Transfer Agents' fee, marketing and selling costs etc. as given in the
table below:

The AMC has estimated that the following % of the daily net assets of the Scheme will be charged to the Scheme as
expenses. Please refer to the table below for details. For the actual current expenses being charged, the investor
should refer to the website of the Mutual Fund viz. [Link]
TER/

C. SCHEME EXPENSE STRUCTURE:

111
 Expense Head % of daily Net Assets

Investment Management and Advisory Fees

Trustee fee

Audit fees

Custodian fees

RTA Fees

Marketing & Selling expense incl. agent commission

Cost related to investor communications

Upto 2.25%
Cost of fund transfer from location to location

Cost of providing account statements and IDCW redemption cheques and warrants

Costs of statutory Advertisements

Cost towards investor education & awareness (at least 2 bps)

Brokerage & transaction cost over and above 12 bps and 5 bps for cash and derivative
market trades resp.

GST on expenses other than investment and advisory fees

GST on brokerage and transaction cost

Other Expenses

Maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) Upto 2.25%

Additional expenses under regulation 52 (6A) (c)^ Upto 0.05%

Additional expenses for gross new inflows from specified cities Upto 0.30%

^ In terms of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, in case exit load
is not levied / not applicable, the AMC shall not charge the said additional expenses.

All scheme related expenses including commission paid to distributors, by whatever name it may be called and in
whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not
from the books of the Asset Management Companies (AMC), its associate, sponsor, trustee or any other entity through
any route. However, expenses that are very small in value but high in volume may be paid out of AMC’s books at
actuals or not exceeding 2 bps of respective Scheme AUM, whichever is lower. A list of such miscellaneous expenses
will be as provided by AMFI in consultation with SEBI.

Notes: Expense structure for Direct Plan will be lower than the regular plan to the extent of Commission.

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for
distribution of Units will be paid/ charged under Direct Plan.

These estimates have been made in good faith as per the information available to the Investment Manager and are
subject to change inter-se or in total subject to prevailing Regulations. The AMC may incur actual expenses which

112
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 SEBI Regulations.

In accordance with the Trust Deed constituting the Mutual Fund, the Trustee is entitled to receive Trustee fees, in
addition to the reimbursement of all costs, charges and expenses. Such fee shall be accrued and paid on a monthly
basis and paid to the Trustee Company. The Trustee Company may charge further expenses as permitted from time
to time under the Trust Deed and SEBI (MF) Regulations.

As per Point 10.3 of the SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, GST
shall be charged as follows:

1. GST on investment management and advisory fees shall be charged to the Scheme in addition to the maximum limit
of TER as prescribed in Regulation 52 (6) of the SEBI (MF) Regulations.

2. GST on other than investment management and advisory fees, if any, shall be borne by the Scheme within the
maximum limit of TER as prescribed in Regulation 52 (6) of the SEBI (MF) Regulations.

3. GST on exit load, if any, shall be paid out of the exit load proceeds and exit load net of GST, if any, shall be credited
to the Scheme.

4. GST on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under
Regulation 52 of the SEBI (MF) Regulations.

The AMC shall charge the Mutual Fund with investment and advisory fee as prescribed in the SEBI (MF) Regulations
from time to time. Presently, the SEBI (MF) Regulations permit fees as follows:

The recurring expenses of the Scheme shall be as per the limits prescribed under the SEBI (MF) Regulations.
These are as follows:

Maximum Total Expense Ratio under Regulation 52 (6) when the Scheme follows asset allocation pattern under
normal circumstances: **

● on the first Rs.500 cores of the daily net assets 2.25% p.a.;
● on the next Rs.250 crores of the daily net assets 2.00% p.a.;
● on the next Rs.1,250 crores of the daily net assets 1.75% p.a.;
● on the next Rs.3,000 crores of the daily net assets 1.60% p.a.
● on the next Rs.5,000 crores of the daily net assets 1.50% p.a.
● 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 the balance of the assets 1.05% p.a.

** Minimum of 0.02% shall be allocated annually to investor education and awareness initiatives

It is possible that the AMC may charge the maximum recurring expenses provided above as investment management
and advisory fees. In such case the other recurring expenses will not be charged to the Scheme.

In terms of SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, the AMC shall
annually set apart at least 0.02% on daily net assets within the maximum limit of recurring expenses as per
Regulation 52 for investor education and awareness initiatives.

In addition to the limits specified above as permitted under Regulation 52 (6A) of the SEBI Regulations, the
following costs or expenses may be charged to the Scheme:

1. brokerage and transaction costs which are incurred for the purpose of execution of trade and included in the cost of
investment, not exceeding 0.12% in case of cash market transactions and 0.05% in case of derivatives transactions;

113
In accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, any
payment towards brokerage and transaction cost, over and above the said 0.12% and 0.05% 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 (6) of the SEBI (MF) Regulations, 1996.

2. expenses not exceeding of 0.30% of daily net assets, if the new inflows from beyond the top 30 cities are at least:
(i) 30 % of gross new inflows in the Scheme or;
(ii) 15 % of the average assets under management (year to date) of the Scheme,
whichever is higher:

As per SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, additional expenses
of 30 basis points, shall be charged based on inflows only from retail investors from beyond top 30 cities.

As per SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, inflows of amount upto
Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investor”.

In case inflows from such cities are less than the higher of (a) or (b) above, such expenses on daily net assets of the
Scheme shall be charged on proportionate basis in accordance with SEBI Master Circular no. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated May 19, 2023.

Note: SEBI vide its letter no. SEBI/HO/IMD-SEC-3/P/OW/2023/5823/1 dated February 24, 2023 and AMFI letter dated
No.35P/MEM-COR/85-a/2022-23 dated March 02, 2023 has directed AMCs to keep B-30 incentive structure in
abeyance with effect from March 01, 2023 till further notice.

The amount so charged shall be utilised for distribution expenses incurred for bringing inflows from such cities.
However, the amount incurred as expense on account of inflows from such cities shall be credited back to the Scheme
in case the said inflows are redeemed within a period of one year from the date of investment.

Currently, SEBI has specified that the above additional expense may be charged for inflows from beyond 'Top 30 cities'.
Top 30 cities shall mean top 30 cities based on Association of Mutual Funds in India (AMFI) data on 'AUM by Geography
- Consolidated Data for Mutual Fund Industry' as at the end of the previous financial year.

3. Expenses not exceeding 0.05% p.a. of daily net assets towards Investment Management and Advisory Fees and
the various sub-heads of recurring expenses mentioned under Regulation 52 (2) and (4) respectively of SEBI (MF)
Regulations. However, in terms of SEBI Master Circular No SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19,
2023, in case exit load is not levied / not applicable, the AMC shall not charge the said additional expenses.

The total expenses of the Scheme including the Investment Management and Advisory Fee shall not exceed the limits
stated in Regulation 52 of the SEBI (MF) Regulations.

The total expense ratios of the schemes of the Fund are available in downloadable spreadsheet format on the AMC
website and AMFI website. Any change in the current expense ratios will be updated at least three working days prior
to the effective date of the change. For the total expense ratio details of the Scheme, investors may visit
[Link] available on the website of the AMC viz.,
[Link] and AMFI’s website viz., [Link].

Further, any change in the base TER (i.e. TER excluding additional expenses provided in Regulation 52 (6A) (b) and
52 (6A) (c) of SEBI (Mutual Funds) Regulations, 1996) and Goods & Service Tax on investment and advisory fees in
comparison to previous base TER charged to the Scheme/Plan shall be communicated to investors of the Scheme/Plan
through notice via email or SMS and the notice of change in base TER will be uploaded on the website
([Link] at least three working days prior to effecting
such change.

Illustration: Impact of Expense Ratio on Scheme’s Return

Expense ratio, normally expressed as a percentage of Average Assets under Management, is calculated by
dividing the permissible expenses under the Regulations by the average net assets.

To further illustrate the above, for the Scheme under reference, suppose an Investor invested ₹ 10,000/- under the
Growth Option, the impact of expenses charged will be as under:

114
 Particulars Regular Plan Direct Plan

Amount invested at the beginning of the year (Rs.) 10,000 10,000

Returns before expenses (Rs.) 1,500 1,500

Expenses other than Distribution expenses (Rs.) 150 150

Distribution expenses (Rs.) 50 0

Returns after expenses at the end of the year (Rs.) 1300 1350

Returns (in %) 13% 13.5%

Note(s):
• The purpose of the above illustration is purely to explain the impact of expense ratio charged to the Plan(s) under the
Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on
investments.
• It is assumed that the expenses charged are evenly distributed throughout the year.
• The expenses of the Direct Plan of the Scheme will be lower to the extent of the distribution expenses/commission
• Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications.
Each investor is advised to seek appropriate advice.

Link for TER Disclosure - [Link]

D. TRANSACTION CHARGES

For Details - Refer “Highlights/Summary of the Scheme”.

E. LOAD STRUCTURE

Load is an amount, which is paid by the investor to subscribe to the units or to redeem the units from the scheme. This
amount is used by the AMC to pay commissions to the distributor and to take care of other marketing and selling
expenses. 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 ([Link] or call at Toll Free No. 1800 266 7790 or your distributor.

Details of Load Structure (On Ongoing basis)

Particulars (as a % of Parag Parikh Dynamic Asset Allocation Fund

Applicable NAV) #

Entry Load Not Applicable

Exit Load ● In respect of each purchase / switch-in of Units, 10% of the units (“the
limit”) may be redeemed without any exit load from the date of allotment.
● Any redemption or switch-out in excess of the limit shall be subject to the
following exit load:
- Exit load of 1.00% is payable if Units are redeemed / switched-out
within 1 year from the date of allotment of units.
- No Exit Load is payable if Units are redeemed / switched-out after 1
year from the date of allotment.

Any exit load charged (net off GST, if any) shall be credited back to the
Scheme.

115
#Applicable for normal subscriptions / redemptions including transactions under special products such as SIP, STP,
SWP, switches, etc. offered by the AMC

Under the Scheme, the Trustee / AMC reserves the right to modify / change the Load structure if it so deems fit in the
interest of smooth and efficient functioning of the Mutual Fund. The AMC reserves the right to introduce / modify the
Load Structure depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under
the SEBI (Mutual Funds) Regulations.

The Load may also be changed from time to time and in the case of an Exit / Redemption Load this may be linked to
the period of holding. The investor is requested to check the prevailing load structure of the scheme before investing.

The Redemption Price however, will not be lower than 95% of the NAV, and the Sale Price will not be higher than 105%
of the NAV, provided that the difference between the Redemption price and Sale price at any point in time shall not
exceed the permitted limit as prescribed by SEBI from time to time which is presently 5% calculated on the Sale Price.

Any imposition or enhancement of Exit Load in the load shall be applicable on prospective investments only.
However, AMC shall not charge any load on issue of bonus units and units allotted on re-investment of IDCW for
existing as well as prospective investors. At the time of changing the load structure the AMC / Mutual Fund may
adopt the following procedure:

1. The addendum detailing the changes will be attached to Scheme Information Document and Key Information
Memorandum and displayed on our website [Link] The addendum will be circulated to all the
distributors / brokers so that the same can be attached to all Scheme Information Document and Key Information
Memorandum already in stock.

2. Arrangements will be made to display the changes / modifications in the Scheme Information Document in the
form of a notice in all the Investor Service Centers and distributors / brokers office.

3. The introduction of the Load along with the details will be stamped in the acknowledgment slip issued to the
investors on submission of the application form and will also be disclosed in the Account Statement or in the covering
letter issued to the Unit holders after the introduction of such Load.

4. A public notice shall be given in respect of such changes in one English daily newspaper having nationwide
circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is
situated.

5. GST on exit load, if any, shall be paid out of the exit load proceeds. The entire exit load (net of GST), charged, if
any, shall be credited to the Scheme.

6. Any other majors which the mutual fund may feel necessary.

F. WAIVER OF LOAD FOR DIRECT APPLICATIONS

Not Applicable

Pursuant to SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated May 19, 2023, no entry load
shall be charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications is no
longer applicable.

V. RIGHTS OF UNITHOLDERS

Please refer to SAI for details.

VI. 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

116
This section shall contain the details of penalties, pending litigation, and action taken by SEBI, other regulatory and
Govt. Agencies.

1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction
of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where
the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall
be disclosed.
Not Applicable.

2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken during the last three
years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC
and/ or the Board of Trustee /Trustee Company; for irregularities or for violations in the financial services sector, or for
defaults with respect to shareholders or debenture holders and depositors, or for economic offenses, or for violation of
securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also
be disclosed.
Nil.

3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of
SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or
cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)
and/ or the AMC and/ or the Board of Trustee /Trustee Company and/ or any of the directors and/ or key personnel
(especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall
also be disclosed.
Nil.

4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s)
and/ or the AMC and/ or the Board of Trustee /Trustee Company and/ or any of the directors and/ or key personnel are
a party should also be disclosed separately.
Nil.

5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of
Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the Scheme Information Document,
or which has been notified by any other regulatory Agency, shall be disclosed.
Nil.

Note:
(a)Further, any amendments / replacement / re-enactment of SEBI (MF) Regulations subsequent to the date of
the Scheme Information Document shall prevail over those specified in this Scheme Information Document.

(b)Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines thereunder shall be applicable.

For and on behalf of

PPFAS Asset Management Private Limited.

Sd/-
Neil Parag Parikh
Place: Mumbai Chief Executive Officer & Director
Date: February 05, 2024

117
LIST OF INVESTOR SERVICE CENTRES AND OFFICIAL POINTS OF ACCEPTANCE OF TRANSACTIONS

OFFICES OF PPFAS ASSET MANAGEMENT PRIVATE LIMITED IDENTIFIED AS:

1. OFFICIAL POINTS OF ACCEPTANCE

Mumbai- 81/82, 8th Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230, Nariman Point, Mumbai-
400021,Maharashtra, India.
Andheri- 305, 3rd Floor, 349 Business Point Commercial Premises Co-Op. Society Ltd., Western Express Highway,
Andheri (East), Mumbai - 400069, Maharashtra, India.
Delhi- 903, 9th Floor, Mercantile House, Kasturba Gandhi Marg, New Delhi, 110001.
Bengaluru- Unit No. 508, 4th Floor (Level 5), Prestige Meridian-II, No. 30/39, M.G. Road, Bengaluru – 560001.
Pune- Office no. 3, B wing, Third Floor, Aditya Centeegra, Opposite Hotel Niranjan DP Chowk, FC Road, Pune –
411004.
Kolkata- Suite No A-10, 5th Floor, Chatterjee International Centre, 33- A Jawaharlal Nehru Rd, Park Street Area,
Kolkata, West Bengal - 700071

2. INVESTOR SERVICE CENTRES

Mumbai- 81/82, 8th Floor, Sakhar Bhavan, Ramnath Goenka Marg, 230, Nariman Point, Mumbai- 400021,
Maharashtra, India
Andheri- 305, 3rd Floor, 349 Business Point Commercial Premises Co-Op. Society Ltd., Western Express Highway,
Andheri (East), Mumbai - 400069,
Delhi- 903, 9th Floor, Mercantile House, Kasturba Gandhi Marg, New Delhi, 110001,
Bengaluru- Unit No. 508, 4th Floor (Level 5), Prestige Meridian-II, No. 30/39, M.G. Road, Bengaluru – 560001.
Pune- Office no. 3, B wing, Third Floor, Aditya Centeegra, Opposite Hotel Niranjan DP Chowk, FC Road, Pune –
411004.
Chennai- Raheja Tower, Unit No:0002A (B Block),177, Mount Road, Annasalai, Chennai – 600002,
Hyderabad- Plot No. 4, H. No. 1-11-254/11/A, 1st Floor, Rama Mansion, Motilal Nagar, Begumpet, Hyderabad -
500016.
Kolkata- Suite No A-10, 5th Floor, Chatterjee International Centre, 33- A Jawaharlal Nehru Road, Park Street Area,
Kolkata, West Bengal - 700071
Ahmedabad- Office No. 607, D & C Dynasty Plaza, CG Road, Near Stadium Circle, Navrangpura, Ahmedabad –
380009
Vadodara- Pavanveer Square, Unit No. 303, 3rd Floor, Behind Jagdish Farsan, Near Malhar Point, Old Padra Road,
Vadodara – 390007
Gurugram- Office No. 109, First floor, "Vipul Agora" situated at Sector - 28, Mehrauli Gurgaon Road, Near M.G. Road
Metro Station, Gurugram-122001 Haryana.
Chandigarh- SCO 2475-76, 2nd floor, Sector 22-C, Chandigarh – 160022, India.

For updated list of CAMS ISCs - [Link]

OFFICES OF COMPUTER AGE MANAGEMENT SERVICES LIMITED IDENTIFIED AS OFFICIAL POINTS OF

ACCEPTANCE

Andhra Pradesh: 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M.G Road, Labbipet, Vijayawada
- 520010. Door No 48-3-2, Flat No 2, 1st Floor, Sidhi Plaza, Near Visakha Library, Srinagar, Visakhapatnam - 530016.
Door No 31-13-1158, 1st Floor, 13/1 Arundelpet, Ward No 6, Guntur - 522002. 97/56, I Floor, Immadisetty Towers,
Ranganayakulapet Road, Santhapet, Nellore - 524001. Door No: 6-2-12, 1st Floor, Rajeswari Nilayam, Near
Vamsikrishna Hospital, Nyapathi Vari Street, T Nagar, Rajahmundry - 533101. Shop No : 6, Door No: 19-10-8, (Opp to
Passport Office), AIR Bypass Road, Tirupati - 517501. Bandi Subbaramaiah Complex, [Link]/1718, Shop No: 8, Raja
Reddy Street, Kadapa - 516001. 15-570-33, I FloorPallavi Towers, Subash Road, Opp Canara Bank, Anantapur -
515001. Shop Nos. 26 and 27, Door No. 39/265A and 39/265B, Second Floor, Skanda Shopping Mall, Old Chad
Talkies, Vaddageri, 39th Ward, Kurnool - 518001. D No-25-4-29,1St floor, Kommireddy vari Street, Beside Warf Road,
Opp Swathi Madicals, Kakinada-533001. Door No 4—4-96, 1st Floor, Vijaya Ganapathi Temple Back Side, Nanubala
Street , Srikakulam - 532001. Assam: Piyali Phukan Road, K. C. Path, House No 1, Rehabari, Guwahati -781008.
Bhowal Complex Ground Floor, Near Dena Bank, Rongagora Road, Tinsukia - 786125. Bihar: G-3, Ground Floor, OM
Complex Near Saket Tower, SP Verma Road, Patna - 800001. Brahman Toli, DurgasthanGola Road, Muzaffarpur -
842001. Ground Floor, Gurudwara Road, Near Old Vijaya Bank, Bhagalpur - 812001. Ground Floor, Belbhadrapur,

118
Near Sahara Office, Laheriasarai Tower Chowk, Laheriasarai, Darbhanga - 846001. Chattisgarh: First Floor, Plot No.
3, Block No. 1, Priyadarshini Parisar West, Behind IDBI Bank, Nehru Nagar, Bhilai - 490020. HIG, C-23 Sector - 1,
Devendra Nagar, Raipur - 492004. Shop No. B - 104, First Floor, Narayan Plaza, Link Road Bilaspur 495001 Goa:
No.103, 1st Floor, UNITECH City Centre, M G Road, Panaji - 403001. F4- Classic Heritage Near Axis Bank, opp. BPS
Club Pajifond Margao, Goa 403 601 Office No 503, Buildmore Business Park,New Canca By Pass Road,
Ximer,Mapusa,Goa - 403 507 No DU 8, Upper Ground Floor, Behind Techoclean Clinic, Suvidha Complex Near ICICI
Bank, Vasco - 403802. Gujarat: 111- 113, 1 st Floor - Devpath Building, Off C G Road, Behind Lal Bungalow, Ellis
Bridge, Ahmedabad - 380006. G-5 Internation Commercial Center, Nr. Kadiwala School, Majuragate Ring Road, Surat-
395002 103 Aries Complex, BPC Road, Off [Link] Road, Alkapuri, Vadodara - 390007. 101, A.P. Tower, B/H,
Sardhar Gunj, Next to Nathwani Chambers, Anand - 388001. 305-306, Sterling Point, Waghawadi Road, Opp HDFC
BANK, Bhavnagar - 364002. 207, Manek Centre, P N Marg, Jamnagar - 361001. Office 207 - 210, Everest Building,
Harihar Chowk, Opp Shastri Maidan, Limda Chowk, Rajkot - 360001. 3rd floor, Gita Nivas, Opp Head Post Office, Halar
Cross Lane, Valsad - 396001. 214-215 2nd Floor Shivani Park,Opp. Shankheswar Complex,Kaliawadi,Navsari-396445.
Office No. 4-5 First Floor, RTO Relocation Commercial Complex-B, Opp. Fire Station, Near RTO Circle, Bhuj-Kutch
Pin -370001. "Aastha Plus", 202-A, 2nd Floor, Sardarbag Road, Near. Alkapuri, Opp. Zansi Rani Statue, Junagadh -
362001. Shop No - F -56, First Floor, Omkar Complex, Opp Old Colony, Near Valia Char Rasta, GIDC, Ankleshwar -
393002. 1st Floor, Subhadra Complex, Urban Bank Road, Mehsana - 384002. 208, 2nd Floor, HEENA ARCADE, Opp.
Tirupati Tower, Near G.I.D.C. Char Rasta, Vapi - 396195. A-111 First Floor,R K Casta,Behind Patel Super
Market,Station Road,Bharuch -392001. F-134, First Floor, Ghantakarna Complex, Gunj Bazar, Nadiad - 387001. A/177,
Kailash Complex, Opp. Khedut Decor Gondal - 360311. Shyam Sadan, First Floor, Plot No 120, Sector 1/A,
Gandhidham – 370201. D-78, First Floor, New Durga Bazar, Near Railway Crossing, Himmatnagar - 383001. Gopal
Trade Center, Shop No. 13-14 3rd Floor, Nr. BK Mercantile Bank, Opp. Old Gunj, Palanpur - 385001. "Shop No. 12,M.D.
Residency,Swastik Cross Road,Surendranagar - 363001". Haryana: B-49, 1st Floor, Nehru Ground, Behind Anupam
Sweet House NIT, Faridabad - 121001. SCO - 16, Sector - 14, First floor, Gurgaon - 122001. SCO 83-84, First Floor,
Devi Lal Shopping Complex, Opp RBL Bank, [Link] , Panipat - 132103. 205, 2nd floor, Building No 2 Munjal
Complex, Delhi Road, Rohtak - 124001. 124-B/R, Model Town, Yamuna Nagar - 135001. 12, Opp. Bank of Baroda,
Red Square Market, Hisar - 125001. Shop no 48-49, Ground Floor, Opp Peer, Bal Bhawan Road, Ambala City - 134003.
M G Complex, Bhawna Marg , Beside Over Bridge, Sirsa - 125055. Cams Collection Centre,29 Avtar Colony Behind
Vishal Mega Mart Karnal - 132001. Himachal Pradesh: I Floor, Opp. Panchayat Bhawan Main gate, Bus stand, Shimla
- 171001. 1st Floor, Above Sharma General Store, Near Sanki Rest house, The Mall, Solan - 173212. Jammu &
Kashmir: JRDS Heights, Lane Opp. S&S Computers, Near RBI Building, Sector 14, Nanak Nagar Jammu - 180004.
Jharkhand: Mazzanine Floor, F-4, City Centre, Sector 4, Bokaro Steel City, Bokaro - 827004. Urmila Towers, Room
No: 111(1st Floor) Bank More, Dhanbad - 826001. Millennium Tower, "R" RoadRoom No:15 First Floor, Bistupur,
Jamshedpur - 831001. 4, HB RoadNo: 206, 2nd Floor Shri Lok Complex, H B Road, Near Firayalal, Ranchi - 834001.
S S M Jalan Road, Ground floor, Opp. Hotel Ashoke, Caster Town, Deoghar - 814112. Municipal Market, Annanda
Chowk, Hazaribag - 825301. Karnataka: Trade Centre, 1st Floor45, Dikensen Road ( Next to Manipal Centre ),
Bengaluru - 560042. No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank, Kadri Main Road, Kadri, Mangalore -
575003. Classic Complex, Block no 104, 1st Floor, Saraf Colony, Khanapur Road, Tilakwadi, Belgaum – 590006. 13,
Ist Floor, Akkamahadevi Samaj Complex, Church Road, [Link], Davangere - 577002. No.204 - 205, 1st Floor'
B ' Block, Kundagol Complex, Opp. Court, Club Road, Hubli - 580029. No.1, 1st Floor, CH.26 7th Main, 5th Cross
(Above Trishakthi Medicals), Saraswati Puram, Mysore - 570009. 18/47/A Govind Nilaya, Ward No 20, Sangankal
Moka Road, Gandhinagar, BALLARI-583102. KARNATAKA. No.65, 1st Floor, Kishnappa Compound, 1st Cross,
Hosmane Extn, Shimoga - 577201. Pal Complex, Ist Floor, Opp. City Bus Stop, SuperMarket, Gulbarga - 585101. Shop
no A2 Basement floor, Academy Tower, Opposite Corporation Bank, Manipal - 576104. Kerala: Building Name Modayil,
Door No. 39/2638 DJ, 2nd Floor 2A M.G. Road, Cochin - 682 016. 29/97G 2nd Floor, Gulf Air Building, Mavoor Road,
Arayidathupalam, Calicut - 673016. 1307 B Puthenparambil Building,KSACS Road, Opp. ESIC office,Behind Malayala
Manorama,Muttambalam P O.,Kottayam 686501. Room No. 26 & 27, Dee Pee Plaza, Kokkalai, Trichur - 680001. R S
Complex, Opp of LIC Building, Pattom PO, Trivandrum - 695004. Uthram Chambers (Ground
Floor),Thamarakulam,Kollam,Kerala - 691 006. Room [Link].14/435, Casa Marina Shopping Centre, Talap, Kannur -
670004. 10/688, Sreedevi Residency, Mettupalayam Street, Palakkad - 678001. 1st Floor Room No - 61(63),
International Shopping Mall,Opp. St. Thomas Evangelical Church, Above Thomson Bakery, Manjady,Thiruvalla,Kerala
- 689105. Doctor's Tower Building, Door No. 14/2562, 1st floor, North of Iorn Bridge, Near Hotel Arcadia Regency,
Alleppey - 688001. Madhya Pradesh: 101, Shalimar Corporate Centre8-B, South Tukogunj, [Link], Indore -
452001. Plot no 10, 2nd Floor, Alankar Complex, Near ICICI Bank, MP Nagar, Zone II, Bhopal - 462011. G-6 Global
Apartment, Kailash Vihar Colony, Opp. Income Tax Office, City Centre, Gwalior - 474002. 8, Ground Floor, Datt Towers,
Behind Commercial Automobiles, Napier Town, Jabalpur - 482001. Cams Service Centre, 2nd Floor Parasia Road,
Near Surya Lodge Sood Complex, Above Nagpur CT Scan, Chhindwara- 480 001. 1st Floor, Gurunanak Dharmakanta,
Jabalpur Road, Bargawan, Katni - 483501. Dafria & Co, No.18, Ram Bagh, Near Scholar's School, Ratlam - 457001.
Opp. Somani Automobile, S Bhagwanganj Sagar - 470002. 123, 1st Floor, Siddhi Vinanyaka Trade Centre, Saheed

119
Park, Ujjain - 456010. Maharashtra: Rajabahdur Compound, Ground Floor, Opp Allahabad Bank, Behind ICICI Bank,
30, Mumbai Samachar Marg, Fort, Mumbai - 400023. 145 , Lendra, New Ramdaspeth, Nagpur - 440010. Vartak Pride
1st floor Survey No 46, City Survey No 1477 Hingne Budruk, D. P Road, Behind Dinanath Mangeshkar Hospital,
Karvenagar, Pune - 411 052. 81, Gulsham Tower, 2nd Floor, Near Panchsheel Talkies, Amaravati - 444601. 2nd Floor,
Block No. D-21-D22 Motiwala Trade Center, Nirala Bazar New Samarth Nagar, Opp. HDFC Bank, Aurangabad –
431001. Rustomji Infotech Services, 70, Navipeth, Opp. Old Bus Stand, Jalgaon - 425001. 2 B, 3rd Floor, Ayodhya
Towers, Station Road, Kolhapur - 416001. 1st Floor, "Sharada Niketan" Tilak Wadi, Opp. Hotel City Pride, Sharanpur
Road, Nasik – 422002. Flat No 109, 1st FloorA Wing, Kalyani Tower, 126 Siddheshwar Peth, NearPangal High School,
Solapur - 413001. 117 / A / 3 / 22, Shukrawar Peth, Sargam Apartment, Satara - 415002. Opp. RLT Science College,
Civil Lines, Akola - 444001. Dev Corpora, 1st floor, Office no. 102, Cadbury Junction, Eastern Express way, Thane
(West) - 400 601. 351, Icon, 501, 5th floor, Western Express Highway, Andheri East, Mumbai - 400069. Jiveshwar
Krupa Bldg, Shop. NO.2, Ground Floor, Tilak Chowk, Harbhat Road, Sangli - 416416. Shop No 6, Ground Floor, Anand
Plaza Complex, Bharat Nagar, Shivaji Putla Road, Jalna - 431203. 3, Adelade Apartment, Christain Mohala, Behind
Gulshan-E-Iran Hotel, Amardeep Talkies Road, Bhusawal - 425201. Office No 3, 1st Floor, Shree Parvati,Plot no 1/175,
Opp. Mauli Sabhagruh,Zopadi Canteen, Savedi,Ahmednagar - 414 003. House No 3140, Opp Liberty Furniture,
Jamnalal Bajaj Road, Near Tower Garden, Dhule - 424001. Orchid Tower Ground Floor Gala No 06, [Link].301/Paiki
1/2 Nachane Munciple Aat, Arogya Mandir, Nachane Link Road, At Post Tal. Ratnagiri, Dist. Ratnagiri – 415612.
Pushpam, Tilakwadi, Opp. Dr. Shrotri Hospital, Yavatmal - 445001. New Delhi: 7-E, 4th Floor, Deen Dayaal Research
Institute Building, Swami Ram Tirath Nagar, Near Videocon Tower, Jhandewalan Extension, New Delhi - 110055. Flat
no.512, Narian Manzil, 23 Barakhamba Road, Connaught Place, NewDelhi - 110001. Orissa: Plot No -111, Varaha
Complex Building, 3rd Floor, Station Square, Kharvel Nagar, Unit 3, Bhubaneswar - 751001. Kalika Temple Street.,
Ground Floor,Beside SBI BAZAR Branch. Berhampur- 760 002,Ganjanm (ODISHA). Near Indian Overseas Bank,
Cantonment Road, Mata Math, Cuttack - 753001. 2nd Floor, J B S Market Complex, Udit Nagar, Rourkela – 769012.
C/o Raj Tibrewal & Associates, Opp. Town High School, Sansarak Sambalpur - 768001. B C Sen Road, Balasore -
756001. Pondicherry: S-8, 100, Jawaharlal Nehru Street (New Complex, Opp. Indian Coffee House), Pondicherry -
605001. Punjab: Deepak Tower, SCO 154-155, 1st Floor-Sector 17, Chandigarh - 160017. U/GF, Prince Market, Green
Field, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, Ludhiana - 141002. 3rd Floor Bearing Unit no-
313,Mukut House,Amritsar – 143001. 144, Vijay Nagar, Near Capital Small Finance Bank, Football Chowk, Jalandhar
City – 144001. 35, New Lal Bagh Colony, Patiala - 147001. 2907 GH, GT Road, Near Zila Parishad, Bhatinda - 151001.
Near Archies Gallery, Shimla Pahari Chowk, Hoshiarpur - 146001. 9 NO. New Town,Opp. Jaiswal Hotel,Daman
Building,Moga – 142001. Rajasthan: R-7, Yudhisthir Marg, C-Scheme, Behind Ashok Nagar Police Station, Jaipur -
302001. AMC No. 423/30 Near Church, Opp T B Hospital, Jaipur Road, Ajmer - 305001. 256A, Scheme No:1, Arya
Nagar, Alwar - 301001. C/o Kodwani Associtates, Shop No 211-213, 2nd floor, Indra Prasth Tower, Syam Ki Sabji
Mandi, Near Mukerjee Garden Bhilwara - 311001. 1/5, Nirmal Tower, 1st Chopasani Road, Jodhpur - 342003. B-33
'Kalyan Bhawan, Triangle Part, Vallabh Nagar, Kota - 324007. 32 Ahinsapuri, Fatehpura Circle, Udaipur - 313004. 18
L Block, Sri Ganganagar - 335001. Behind Rajasthan patrika In front of Vijaya bank 1404,amar singh pura Bikaner-
334001. 3, Ashok Nagar, Near Heera Vatika, Chittorgarh - 312001. Tamilnadu: Ground Floor No.178/10,
Kodambakkam High Road, Opp. Hotel Palmgrove, Nungambakkam-Chennai - 600034. No 1334 Thadagam Road,
Thirumoorthy Layout, R S Puram, (Behind Venakteshwara Bakery), Coimbatore – 641002. Shop No 3, 2nd Floor, Suriya
Towers, 272/273-Goodshed Street, Madurai - 625001. 197, Seshaiyer Complex, Agraharam Street, Erode - 638001.
No.2, I Floor Vivekananda Street, New Fairlands, Salem - 636016. 1(1), Binny Compound, II Street, Kumaran Road,
Tirupur, - 641601. No. F4 Magnem Suraksaa Apartments,Tiruvananthapuram Road,Tirunelveli 627 002. No 8, 1st
Floor, 8th Cross West Extn, Thillainagar, Trichy - 620018. AKT Complex 2nd floor, No 1 and 3 New Sankaranpalayam
Road Tolgate, Vellore - 632001. Jailani Complex47, Mutt Street, Kumbakonam - 612001. 126 G, [Link], Kovai
Road, Basement of Axis Bank, Karur - 639002. 16A/63A, Pidamaneri Road, Near Indoor Stadium, Dharmapuri -
636701. Survey No.25/204,Attibele Road HCF Post,Mathigiri Above Time Kids School,Opposite to Kuttys Frozen
Foods,Hosur - 635 110. 156A / 1, First Floor, Lakshmi Vilas Building, Opp. District Registrar Office, Trichy Road,
Namakkal - 637001. No 59 A/1, Railway Feeder Road(Near Railway Station)Rajapalayam - 626117. 4B/A16, Mangal
Mall Complex, Ground Floor, Mani Nagar, Tuticorin - 628003. No.158, Rayala Tower-1, Anna salai, Chennai - 600002.
Telangana: HNo.7-1-257, Upstairs S B H Mangammathota, Karimnagar - 505001. Shop No: 11 - 2 - 31/3, 1st floor,
Philips Complex, Balajinagar, Wyra Road, Near Baburao Petrol Bunk, Khammam - 507001. No. 15-31-2M-1/4 1st Floor,
14-A, MIG, KPHB Colony, Kukatpally Hyderabad - 500072. Hno. 2-4-641, F-7, 1st Floor, A.B.K Mall, Old Bus Depot
Road, Ramnagar, Hanamkonda, Warangal - 506001. Tripura: Advisor Chowmuhani (Ground Floor), Krishnanagar,
Agartala -799001. Uttarakhand: 204/121 Nari Shilp Mandir Marg, Old Connaught Place, Dehradun - 248001. 22, Civil
Lines, Ground Floor, Hotel Krish Residency, Roorkee - 247667. Uttar Pradesh: 1st Floor 106 to 108, City Centre
Phase II, 63/ 2, The Mall, Kanpur -208001. First Floor C-10 RDC RAJNAGAR, Opp Kacheri Gate No.2,Ghaziabad-
201002. Office No,107, 1st Floor,Vaishali Arcade Building,Plot No 11, 6 Park Road,Lucknow – 226001. No. 8, 2nd
Floor, Maruti Tower Sanjay Place, Agra - 282002. 30/2, A&B, Civil Lines Station, Besides Vishal Mega Mart, Strachey
Road, Allahabad - 211001. Shop No. 5 & 6 3rd Floor, Cross Road The Mall, A D Tiraha, Bank Road, Gorakhpur –

120
273001. 108 1st Floor, Shivam Plaza, Opp Eves Cinema, Hapur Road, Meerut - 250002. H 21-22, Ist Floor, Ram
Ganga Vihar Shopping Complex, Opposite Sale Tax Office, Moradabad - 244001. Office no 1, Second floor, Bhawani
Market, Building No. D-58/2-A1, Rathyatra Beside Kuber Complex, Varanasi - 221010. 372/18 D, Ist Floor above IDBI
Bank, Beside V-Mart, Near "RASKHAN" Gwalior Road, Jhansi - 284001. City Enclave, Opp. Kumar Nursing Home,
Ramghat Road, Aligarh - 202001. F-62-63, Butler Plaza Commercial Complex, Civil Lines, Bareilly - 243001. 1st Floor,
Krishna Complex, Opp. Hathi Gate, Court Road, Saharanpur - 247001. E-3 Ground Floor, sector 3, Near Fresh Food
Factory, Noida - 201301. CAMS C/O RAJESH MAHADEV & CO, SHOP NO 3, JAMIA COMLEX STATION ROAD,
BASTI - 272002. 1/13/196, A, Civil Lines,Behind Triupati Hotel, Faizabad - 224001. Durga City Centre, Nainital Road,
Haldwani - 263139. 248, Fort Road, Near Amber Hotel, Jaunpur - 222001. 159/160 Vikas Bazar Mathura - 281001. 17,
Anand Nagar Complex, Opposite Moti Lal Nehru Stadium, SAI Hostel, Jail Road, Rae Bareilly - 229001. Bijlipura, Near
Old Distt Hospital, Jail Road , Shahjahanpur - 242001. Arya Nagar, Near Arya Kanya School, Sitapur - 261001. 967,
Civil Lines, Near Pant Stadium, Sultanpur - 228001. West Bengal: Plot No 3601 Nazrul Sarani City Centre, Durgapur
-713216. Kankaria Centre,2nd Floor,2/1,Russell Street, Kolkata - 700071. Block – G 1st Floor, P C Chatterjee Market
Complex, Rambandhu Talab PO, Ushagram, Asansol - 713303. 399, G T Road, Basement of Talk of the Town,
Burdwan - 713101. 78 , Haren Mukherjee Road , 1st floor, Beside SBI Hakimpara, Siliguri - 734001. A – 1/50, Block A,
Kalyani - 741235. Silver Palace" OT Road, Inda Kharagpur G.P Barakola P.S Kharagpur Local -721305. 2A, Ganesh
Chandra Avenue, Room No.3A, Commerce House 4th Floor, Kolkata - 700013. MOUZA-BASUDEVPUR, [Link].126,
Haldia Municipality, Ward No 10, Durgachak, Haldia - 721602. Daxhinapan Abasan, Opp Lane of Hotel, Kalinga, SM
Pally, Malda - 732101

121