The investment objective of the scheme is to capitalize on the potential upside of equities while attempting to limit the downside by dynamically managing the portfolio through investment in equity & equity related instruments and active use of debt, money market instruments and derivatives. However, there is no assurance or guarantee that the investment objective of the scheme will be realized.

The Scheme may utilise internal proprietary model to monitor the market so as to ascertain the asset allocation opportunities from time to time. This model may provide broad guidance regarding the relative valuation levels and scope of the market opportunities as may be relevant towards investing. While the Fund manager may utilise this model as a broad indicator; the Fund manager shall have the final prerogative to apply his/her own discretion and judgement while determining the allocation percentage, the allocation interval and the allocation approach as may be appropriate to pursue the investment objective of the fund.

The Scheme will seek to measure the market valuation levels by simultaneously gauging both the Price to Earnings and the Price to Book levels of the Nifty 50 Index over periodic intervals. These two measures will be normalised vis-à-vis their long-term historical observations and would be aggregated together into a composite score. This score may be applied to indicate the percentage deviation from the long-term historical average assuming a bell-curve distribution. The size of this deviation from the average in turn may guide the net equity allocation in the scheme. However, the fund manager would hold the final prerogative to further calibrate/increase/decrease the allocation depending on the emergent macro view and assessment.

• The fund follows a fundamental approach to assess equity market valuations at any given point of time to ascertain the desired net equity position of the fund.
• The fund therefore endeavors to provide an optimum equity market participation for an investor. The net equity and arbitrage position exposure helps to achieve equity capital gains taxation for the investor at all points of time. The debt exposure endeavors to provide an income approach to the fund.
• The fund attempts to provide a risk adjusted return experience while smoothening the volatility by actively managing the net equity position in the fund.