The investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in financial services businesses. There is no assurance that the investment objective of the scheme will be achieved.
Investment Approach and Risk Control The aim of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in financial services businesses. Financial Services Sector companies include: Banks & Non-Banking Financial Institutions Stock Broking & Allied Entities, Asset Management Company(s), Depositories, Credit Rating Agencies, Clearing Houses and Other Intermediaries Financial Technology (Fintech), Exchanges and Data Platforms Investment Banking Companies Wealth Management Entities Distributors of Financial Products Insurance Companies - General, Life Microfinance, Housing Finance and payment companies Companies engaged in the Financial Services sector from Sector list provided by AMFI / SEBI in Industry Classification data or other financial services as identified by Fund Manager, etc. This above list is only indicative, and the Scheme will explore to invest in new and emerging areas of Financial Services. The Scheme will invest in companies engaged in the Financial Services sector from Sector list provided by AMFI / SEBI / NSE / BSE from time to time. The fund manager in selecting scrips will focus on fundamentals of the business, industry structure and relative business strength amongst peers, quality of the management, sensitivity to economic factors, financial strength of the company and the key earnings drivers. Valuation methods such as relative valuation, fundamental valuation, etc. will also be used for identifying the investment opportunities. Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process. Risk may also be reduced through adequate diversification of the portfolio. Diversification may be achieved by spreading the investments over a range of sub-sectors. The Scheme aims to be predominantly invested in equity and equity related securities. However, it could move its assets between equity and fixed income securities depending on its view on markets subject to asset allocation pattern. The Scheme may invest in units of REITs and InvITs for diversificationand subject to necessary stipulations by SEBI from time to time. The Scheme may also invest in overseas securities which may offer new investment and portfolio diversificationopportunities. The Scheme may also invest in derivatives. SEBI has permitted all mutual funds to participate in derivatives trading subject to observance of guidelines issued by it in this behalf. Pursuant to this, mutual funds may use various derivative products from time to time, as would be available and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders` interest. Accordingly, the Fund may use derivative instruments like stock index futures, options on stocks, stock indices or such other derivative instruments as may be introduced from time to time as permitted under the Regulations and guidelines. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The Scheme may, however, invest in unlisted and / or privately placed and / or unrated debt securities subject to the limits indicated under "Investment Restrictions for the Scheme(s)" prescribed in the SID, from issuers of repute and sound financial standing. If investment is made in unrated debt securities, the approval of the Board of the AMC and the Trustee Company or the Investment Management Committee (within the broad parameters approved by the Board of the AMC and the Trustee Company) shall be obtained, as per the Regulations. As per the asset allocation pattern indicated above, for investment in debt securities and money market instruments, the Fund may invest a part of the portfolio in various debt securities issued by corporates and / or state and central government. Such government securities may include securities which are supported by the ability to borrow from the treasury or supported only by the sovereign guarantee or of the state government or supported by GOI / state government in some other way. With the aim of controlling risks, rigorous in-depth credit evaluation of the instruments proposed to be invested in will be carried out by the Investment Team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as long-term financial The AMC will also be guided by the ratings of rating agencies such as CRISIL, CARE and ICRA or any other rating agency as approved by the regulators. In addition, the Investment Team of the AMC will study the macro-economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The AMC may use this analysis to position the portfolio appropriately. The Scheme may invest in other Scheme(s) managed by the AMC or in the schemes of any other mutual fund not exceeding 5% of net assets of the Scheme, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments. Disclosure on derivatives exposure for non-hedging purpose SEBI has permitted all mutual funds to participate in derivatives trading subject to observance of guidelines issued by it in this behalf. Pursuant to this, mutual funds may use various derivative products from time to time, as would be available and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders` interest. Accordingly, the Fund may use derivative instruments like stock index futures, options on stocks, stock indices, interest rate swaps, forward rate agreements or such other derivative instruments as may be introduced from time to time as permitted under the SEBI Regulations and guidelines. Derivative positions in equity instruments for other than hedging purposes shall not exceed 50% of equity total assets. The Scheme shall have derivative exposure as per the SEBI regulations issued and as amended from time to time.
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