DSP Financial Services Sectoral Debt Fund - Reg (G)

The Scheme follows an active investment strategy. The primary investment objective of the Scheme is to generate income and capital appreciation by primarily investing in debt securities issued by issuers pertaining to Financial Services sector. The Investment Manager will invest at least 80% in debt securities across duration of Financial Services sector rated AA+ and above. Residual portion of the asset (upto 20%) can be invested in debt & money market securities of any other sector or government securities or any other fixed income securities or INVITs. The investment strategy and duration profile of the Scheme shall be aligned with the duration profile of the Scheme`s benchmark, which is currently prescribed by AMFI, and as maybe amended based on any future Tier-I benchmark prescribed by AMFI from time to time. In the event of any change in the benchmark or prescribed duration profile of the benchmark, the Investment Manager may therefore appropriately modify the Scheme`s duration profile and portfolio positioning to maintain such alignment and such modification would not be a Fundamental Attribute Change. The fixed income investment team aims to select debt & money market securities of entities in the Financial Services sector by emphasizing credit risk & interest rate risk of each such investment. Credit analysis will focus on areas such as issuer`s historical and current financial condition, current and anticipated cash flow and borrowing requirements, value of assets in relation to historical cost, strength of management, responsiveness to business conditions, credit standing, future business prospects as well as current and anticipated operating results. The Investment Manager will also analyze various economic trends in seeking to determine the likely future course of interest rates. The duration of the portfolio can vary depending on the fund management team`s outlook on interest rates and yields.