| Asset Allocation Pattern
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| Under normal circumstances, the asset allocation pattern will be as follows
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Indicative allocations (% of total assets)
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Instruments
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Minimum
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Maximum
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| Equity & Equity related instruments including derivatives (index futures, stock futures, index options and stock options, etc)
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65
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100
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| Debt (including securitised debt) & Money Market instruments including the margin money deployed in derivative transactions. **
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0
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35
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| Units issued by REITs and InvITs
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0
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10
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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 derivative. If suitable arbitrage opportunities are not available in the opinion of the Investment manager, the Scheme may hedge the equity portfolio by using derivatives or may invest in short term debt / money market instruments.
The notional value of exposure in equity derivatives would be reckoned for equity securities exposure. The notional value of exposure in debt derivatives would be reckoned for debt and money market securities exposure.
The Cumulative Gross Exposure to Equity, Debt, Money market instruments, Derivatives, repo transactions in corporate debt securities etc. and such other securities/assets as may be permitted by SEBI Board from time to time, subject to prior approval from SEBI, if required, should not exceed 100% of the net assets of the scheme in line with clause 12.24 of SEBI Master Circular on Mutual Funds dated June 27, 2024.
According to clause 1A of Seventh Schedule of SEBI (Mutual Funds) Regulations, 1996, a mutual fund scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities and other money market instruments: Provided that Mutual Fund Schemes may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the scheme subject to such conditions as may be specified by the Board from time to time: Provided further that mutual fund schemes shall comply with the norms under this clause within the time and in the manner as may be specified by the Board: Provided further that the norms for investments by mutual fund schemes in unrated debt instruments shall be specified by the Board from time to time.
According to clause 12.1.1 of SEBI Master Circular dated June 27, 2024, mutual fund 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.
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