The investment objective of the Scheme is to generate returns that are commensurate with the performance of the BSE SENSEX Next 30 Index, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved.
1. Strategy for Equity Securities The Scheme will be managed passively with investments in stocks in the same proportion as in BSE SENSEX Next 30 Index (underlying index). The investment strategy would revolve around minimizing the tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental subscriptions / redemptions in the Scheme. A small portion of the net assets may be held as cash & cash equivalents to meet the liquidity requirements under the Scheme. 2. Strategy for Derivatives Exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when equity shares are unavailable, insufficient or for rebalancing in case of corporate actions for a temporary period on defensive considerations. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
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