CHOICE LARGE & MID CAP FUND

SCHEME INFORMATION DOCUMENT

SECTION I CHOICE LARGE & MID CAP FUND (Consolidated Std. Obs. 1) (An open ended equity scheme investing in both large cap and mid cap stocks) (Consolidated Std. Obs. 2) The face value of the Units is Rs. 10/- per unit (Consolidated Std. Obs. 3) This product is suitable for Scheme Risk-o-meter Benchmark Risk-o-meter investors who are seeking*: Consolidated Std. Obs.03 NIFTY Large Midcap 250 Total Return Index (as per AMFI Tier I Benchmark) • Long term capital appreciation • Investment predominantly in large cap and mid cap stocks Benchmark Risk-o-meter is at Very Risk of the Scheme is at Very High Risk High Risk The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or portfolio and the same may vary post NFO when the actual investments are made.

model Offer for face value of ₹10/- per unit during New Fund Offer and at continuous offer for units at NAV based prices

New Fund Offer opens on: (_______________)

New Fund Offer closes on: (_______________) Scheme re-opens for continuous sale and repurchase within five Business Days from the date of allotment Name of the Mutual Fund Choice Mutual Fund Choice AMC Private Limited

Name of the Asset Management Company CIN: U66190MH2007PTC177075 Choice Trustees Services Private Limited

Name of the Trustee Company CIN : U66190MH2025PTC440639 Sunil Patodia Tower, Plot No 156-158 J.B. Nagar, Andheri (East), Address of the above entities Mumbai 400099

Website https://www.choicemf.com/ The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 2026, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public Subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.

1The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, Investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers.

The Investors are advised to refer to the Statement of Additional Information (SAI) for details of Choice Mutual Fund, Standard Risk Factors, Special Considerations, Tax and Legal issues and general information on

https://www.choicemf.com/ SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.

The Scheme Information Document (Section I and II) should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated September 01, 2026.

2INDEX SR. NO. PARTICULARS PAGE NO.

I Section I 5 I Highlights/Summary Of The Scheme 5 Due Diligence By The Asset Management Company 13 II Information About The Scheme 14 A How Will The Scheme Allocate Its Assets? 14 B Where Will The Scheme Invest? 18 C Investment Strategies 19 D How Will The Scheme Benchmark Its Performance? 20 E Who Manages The Scheme? 21 F How Is The Scheme Different From Existing Schemes Of The Mutual Fund? 21 G How Has The Scheme Performed? 21 H Additional Scheme Related Disclosures 21 Iii Other Details 23 A Computation Of NAV 23 B New Fund Offer (NFO) Expenses 24 C Annual Scheme Recurring Expenses 24 D Load Structure 28 II SECTION II 30 I INTRODUCTION 30 A Definitions/interpretation 30 B Risk factors (Scheme specific risk factors) 30 C Risk Management Strategies 39 II MORE INFORMATION ABOUT THE SCHEME 41 A Where will the Scheme invest ? 41 B What are the investment restrictions? 48 C Fundamental Attributes 53 D Index Methodology 54 3E Other Scheme Specific Disclosures 40 III OTHER DETAILS In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 A Holding/ link to Top 10 holding of the underlying fund - Not Applicable 65 Periodic Disclosures such as Half yearly disclosures, half yearly results, annual B report Monthly / Half yearly Portfolio Disclosures 65 C Transparency/NAV Disclosure 70 D Transaction Charges and Stamp duty 71 E Associate Transactions 71 F Taxation 71 G Rights of Unitholders 65 H List of Official Points of Acceptance 65 Penalties, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of I being taken by any Regulatory Authority 66 4SECTION I PART I. HIGHLIGHTS/SUMMARY OF THE SCHEME Sr. No. Title Description I. Name of the scheme Choice Large & Mid Cap Fund II. Category of the Scheme Large & Mid Cap Fund III. Scheme type An open ended equity scheme investing in both large cap and mid cap stocks IV. Scheme code Will be provided at the time of final filing (Consolidated Std. Obs.

7) V. Investment objective The objective of the scheme is to generate long-term capital (Consolidated Std. Obs. 5) appreciation through a portfolio predominantly invested in equity and equity related instruments of large cap and mid cap companies.

However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved.

VI. Liquidity/listing details The Scheme offered being an open-ended scheme, it will be open for sale and repurchase/redemption of units within 5 (five) Business Days from the date of the allotment under the NFO. The Scheme will offer Units for Sale/Switch-in and Redemption/Switch- out on every Business Day at NAV based prices.

The scheme would not be listed on any of the stock exchanges. The AMC/Trustees, may at its discretion, can undertake listing on any of the stock exchange in future.

VII. Benchmark Name of Benchmark: (Consolidated Std. Obs. 25) NIFTY Large Midcap 250 Total Return Index (TRI)

Rationale for adoption of benchmark:

As prescribed under SEBI Master Circular for Mutual Funds dated March 20, 2026, NIFTY Large Midcap 250 Total Return Index (TRI) has been selected from amongst those notified by AMFI for the Scheme. The NIFTY Large Midcap 250 Total Return Index reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on NSE, represented through the NIFTY 100 and the NIFTY Midcap 150 index respectively. Hence the benchmark would be appropriate to compare performance of the Scheme. The performance will be benchmarked to the Total Returns Variant of 5the Index.

The Trustee reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other prevalent guidelines.

VIII. NAV disclosure (Consolidated Std. Obs. 41) The AMC will calculate and disclose the first NAV upto four decimal places of the scheme within a period of 5 (five) Business Days from the date of allotment. Subsequently, the AMC will calculate and disclose the NAVs upto four decimal places on all Business Days.

NAVs of the Scheme shall be made available on the website of AMFI (www.amfiindia.com) and the Mutual Fund (https://www.choicemf.com/) by 11.00 p.m. on all Business Days.

The NAVs shall also be available on the call free number 18002663866 and on the website of the Registrar CAMS (www.camsonline.com).

In case the schemes invests in ETCDs, the NAV will be calculated and disclosed at the close of every Business Day and uploaded on the website of AMFI (www.amfiindia.com) and the Mutual Fund (https://www.choicemf.com/) by 9.00 a.m. of the following business day.

Please refer to Part II (Information about the Scheme) – III (Other Details) – B (Transparency / NAV Disclosure) for further details.

IX. Applicable timelines Dispatch of Redemption proceeds: The Fund shall dispatch the Redemption proceeds within 3 (three) Business Days from the date of acceptance of valid Redemption request at any of the Official Points of Acceptance of transactions.

In case the Redemption proceeds are not made within 3 Business Days from the date of Redemption or Repurchase, interest will be paid @15% per annum or such other rate from the 4th day onwards, as may be prescribed by SEBI from time to time.

Further, Investors may note that in case of exceptional scenarios as prescribed by AMFI vide its communication no. AMFI/ 35P/ MEM- COR/ 74 / 2022-23 dated January 16, 2023, read with clause 15.3.3 of SEBI Master Circular dated March 20, 2026, the AMC may follow the additional timelines as prescribed. In case the Redemption 6proceeds are not made within 3 Business Days from the date of Redemption or Repurchase, interest will be paid @15% per annum or such other rate from the 4th day onwards, as may be prescribed by SEBI from time to time. Please refer to the SAI for details on exceptional scenarios.

Dispatch of IDCW: Not Applicable as Scheme currently does not offer IDCW Option.

X. Plans and Options Plans: Regular & Direct Plans/Options and sub options Each Plan offers following Option: Growth under the Scheme No Income Distribution cum Capital Withdrawal (IDCW) option will be

provided.

Default scenarios available to the Investors under the Plans of the Scheme Treatment of applications under "Direct" / "Regular" Plans:

Scenario Broker Code Plan mentioned Default Plan mentioned by the by the Investor to be Investor captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not mentioned Regular Plan For detailed disclosure on default Plans and options, kindly refer SAI Both the Plans will have a common portfolio. The Trustee reserves the right to add/discontinue any other options/ sub-options under the Scheme.

XI Load Structure Entry Load : Not Applicable (Consolidated Std. Obs. 47) Exit Load :

1. Where units are redeemed / switched out before 365 days

from the date of allotment: 1%

2. Where units are redeemed / switched-out after 365 days from the date of allotment — no exit load is payable.

3. No load shall be levied on switches between plans/options 7and sub-options of the Scheme.

4. Any Exit Load charged shall be credited back to the scheme, net of Goods & Services Tax.

5. In respect of Systematic Transactions such as SIP, STPs etc., Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.

6. The Trustee shall have the right to modify the Exit Load structure with prospective effect subject to a maximum prescribed under the SEBI MF Regulations.

XII. Minimum Application Amount During New Fund Offer and on-going offer: (including switch-ins) Lumpsum purchase: Rs. 1,000/- and in multiples of Re. 1/- thereafter.

SIP: Please refer table below Minimum Minimum SIP Dates Amount Instalments / Days (Nos.) Daily Rs.250/- and in 30 All multiples of business Rs.1/- days thereafter Weekly Rs.250/- and in 12 Any Day multiples of from Rs.1/- Monday thereafter to Friday Fortnightly Rs.500/- and in 12 1st & 16th multiples of of the Rs.1/- month thereafter Monthly Rs.500/- and in 12 Any date multiples of Rs.1/- thereafter Quarterly Rs.1,000/- and 4 Any date in multiples of (1st–28th) Rs.1/- thereafter Semi Rs.5,000/- and 4 Any date Annually in multiples of (1st–28th) Rs.1/- thereafter 8Annually Rs.5,000/- and 4 Any date in multiples of (1st–28th) Rs.1/- thereafter Chhoti SIP INR 250 per 60 Any date

(Monthly) SIP (for first- (1st–28th) time MF investors).

Minimum Switch Amount Minimum switch-in amount will be as per the minimum application amount in the Scheme.

Note: Allotment of units will be done after deduction of applicable stamp duty and other charges, if any.

XIII Minimum Additional Purchase Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Amount (including switch-ins during on-going offer) XIV Minimum Redemption / switch Minimum Redemption / switch out amount out amount Rs.1000 or 1 unit or folio available balance (Whichever is lower) There is no minimum amount requirement, in case of investors opting to switch “all units” from any existing mutual fund schemes of Choice Mutual Fund to this Scheme.

New Fund Offer (“NFO”) Switch - Investors also have the option to switch out all or part of their investments available in the Growth option of the Scheme to any NFO of the Fund, during its NFO period. Investors having investments in the Scheme (investments in Growth Option) need to submit their switch-out request before the cut off timings of the switch-out scheme on the NFO closing date. All valid switch out requests for clear units adhering to the above time frame will be processed and executed on the Fund’s respective NFO closing date or on any business day before the NFO closing date in order to ensure availability of clear units for the switch outs to the NFO scheme.

All the other applicable provisions pertaining to switch/ redemption including the exit loads if any, and purchase of the Units of the Scheme/ respective NFO of the Fund shall apply to such switches, unless otherwise specified.

There is no minimum balance requirement. (Consolidated Std. Obs.

36) 9XV New Fund Offer Period NFO opens on : (_______________)

This is the period during which NFO closes on : (_______________) a new scheme sells its units to Minimum duration of the NFO will be 3 working days and will not its Investors. be kept open for more than 15 calendar days. Any changes in the NFO dates will be announced through an addendum uploaded on the AMC website (https://choicemf.com/). (Consolidated Std. Obs.

34) XVI New Fund Offer Price This is Rs. 10/- per unit. the price per unit that the Investors have to pay to invest during the NFO.

XVII Segregated portfolio The AMC may create a segregated portfolio of debt and Money / side pocketing disclosure Market Instruments in the Scheme in case of a credit event/actual default and to deal with liquidity risk.

(Consolidated Std. Obs. 53) In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or Money Market Instrument affected by a credit event / actual default that has been segregated in a mutual fund scheme and the term ‘main portfolio’ shall mean the scheme portfolio excluding the segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio including the securities affected by the credit event / actual default.

For more details, kindly refer to SAI.

XVIII Swing pricing disclosure Not Applicable (Consolidated Std. Obs. 54) XIX Stock Lending The Scheme may engage in short selling of securities in accordance with the framework specified by SEBI.

For Details, kindly refer SAI.

XX How to apply and where can Application form and Key Information Memorandum may be applications for obtained from Official Points of Acceptance (OPAs) / Investor Subscription / Service Centres (ISCs) of the AMC or CAMS or can be downloaded

Redemption be submitted from our website https://www.choicemf.com/ . (Consolidated Std.

Obs. 35) The list of the OPA / ISC are available on our website as well.

During the New Fund Offer (“NFO”) period, the applications for Subscription/Redemption/switches can be submitted at the designated Official Points of Acceptance of the AMC and CAMS whose addresses are available on the website of the AMC. These

include:

101. AMC/RTA branches i.e. Investor Service Centres

2. AMC website for investor to transact

3. RTA website for investor to transact

4. BSE STAR MF / MFSS platform of the Stock Exchanges

5. MF Central Investor can also subscribe to the NFO through ASBA facility. For further details, refer to the SAI. Details in Section II.

XXI Investor Services Contact details for general service requests and for complaint

resolution:

E-mail : support@choicemf.com Toll-Free : 18002663866

Details of Investor Relations Officer:

Name: Ms. Ratnavali Kalse

Address and Contact Number: Choice AMC Private Limited Sunil Patodia Tower, Plot No 156-158 J.B. Nagar, Andheri (East), Mumbai 400099.

Tel. No. : 69419999 For any grievances with respect to transactions through NSE/BSE, the Investor should approach the investor grievance cell of the respective stock exchange.

XXII Specific attribute of Not applicable the Scheme XXIII Special products Systematic Investment Plan (SIP), Systematic Withdrawal Plan /facilities available during the (SWP)*, Systematic Transfer Plan (STP)* NFO and on ongoing basis *Available on ongoing basis SIP Table Minimum Minimum SIP Dates Amount Instalments / Days (Nos.) Daily Rs.250/- and in 30 All multiples of business Rs.1/- days thereafter Weekly Rs.250/- and in 12 Any Day multiples of from Rs.1/- Monday thereafter to Friday 11Fortnightly Rs.500/- and in 12 1st & 16th multiples of of the Rs.1/- month thereafter Monthly Rs.500/- and in 12 Any date multiples of Rs.1/- thereafter Quarterly Rs.1,000/- and 4 Any date in multiples of (1st–28th) Rs.1/- thereafter Semi Rs.5,000/- and 4 Any date Annually in multiples of (1st–28th) Rs.1/- thereafter Annually Rs.5,000/- and 4 Any date in multiples of (1st–28th) Rs.1/- thereafter Chhoti SIP INR 250 per 60 Any date

(Monthly) SIP (for first- (1st–28th) time MF investors).

Systematic Transfer Plan (STP) & Systematic Withdrawal Plan

(SWP) Facility Frequency Minimum Min.

Amount Installments (Nos.) Systematic Daily, Weekly, INR 1,000 and 6 (4 for Transfer Plan Fortnightly, in multiples of Quarterly) Monthly & Re. 1 Quarterly. thereafter (INR 500 for Daily).

Systematic Weekly, INR 500 and 6 (4 for Withdrawal Monthly, in multiples of Quarterly / Plan Quarterly, Re. 1 longer) Semi-Annual thereafter & Annual.

For further details on the above, please refer to the SAI XIV Weblink The Total Expense Ratio (TER):

https://www.choicemf.com/daily-ter

For Scheme Factsheet:

https://www.choicemf.com/disclosures/factsheets 12DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

It is confirmed that:

(i) The Scheme Information Document (SID) of CHOICE LARGE & MID CAP FUND submitted to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

(ii) All legal requirements connected with the launch of CHOICE LARGE & MID CAP FUND, as well as the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme.

(iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

(v) The contents of the Scheme Information Document including figures, data, yields etc. have been checked and are factually correct.

(vi) A confirmation that the AMC has complied with the compliance checklist applicable for Scheme Information Documents and other than cited deviations/that there are no deviations from the SEBI MF Regulations.

(vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 2026 and the guidelines thereunder shall be applicable.

(viii) The Trustee (Choice Trustees Services Private Limited) has ensured that CHOICE LARGE & MID CAP FUND, as approved by them, is a new product offered (NFO) by Choice Mutual Fund and is not a minor modification of any existing fund.

Date : September 01, 2026 Name : Mayuresh Sonavane

Place : Mumbai Designation : Compliance Officer 13PART II. INFORMATION ABOUT THE SCHEME A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?

Asset Allocation:

Under normal circumstances, the asset allocation will be as follows: ( Consolidated Std. Obs. 13) Instruments Indicative allocations (% of total assets) Minimum Maximum Equity and Equity Related Instruments^ 70% 100% a) Large Cap Companies 35% 65% b) Mid Cap Companies 35% 65% c) Other than Large Cap and Mid Cap Companies 0% 30% Debt securities (including securitized debt & debt derivatives), money market 0% 30% instruments and Gold and Silver Instruments Units issued by InvITs 0% 10% ^Equity and Equity related instruments include (but not limited to) convertible debentures, equity warrants, convertible preference shares, equity derivatives and units of Real Estate Investment Trust (ReITs).

In terms of Paragraph 3.9.1 of the SEBI Master Circular for Mutual Funds dated March 20, 2026, “Large Cap” shall consist of 1st -100th entities in terms of full market capitalization, “Mid Cap “shall be 101st -250th entities and “Small Cap” 251st company onwards in terms of full market capitalization. Investment universe of “Large & Mid Cap” will be as per Paragraph 3.9.1 of the SEBI Master Circular for Mutual Funds and as defined by SEBI/AMFI from time to time shall comprise companies as defined by SEBI from time to time. The list of stocks of Large & Mid Cap companies prepared by AMFI in this regard will be adopted.

As per Paragraph 13.8.2 of the SEBI Master Circular for Mutual Funds dated March 20, 2026, the cumulative gross exposure through equity, debt, derivative positions (including fixed income derivatives), repo transactions, Infrastructure Investment Trusts (InvITs), other permitted securities/assets and such other securities/ assets as may be permitted by SEBI from time to time shall not exceed 100% of the net assets of the Scheme. (Consolidated Std. Obs. 17).

The scheme may invest residual portion in equity, money market instruments and other liquid instruments, gold and silver instruments as permitted by SEBI and in InvITs, subject to the ceilings laid out in MF Regulations with respect to the respective asset class.

In addition to the instruments stated in the table above the Scheme may undertake such other transactions in accordance with guidelines issued by SEBI and may also hold cash from time to time.

14Pursuant to para 13.18.6 of SEBI Master Circular for Mutual Funds dated March 20, 2026 and reference of Letter to AMFI dated November 03, 2021, Cash or cash equivalents with a residual maturity of less than 91 days may be considered as not creating any exposure. Cash equivalents shall include Government Securities, Treasury Bills, and repo transactions in Government Securities. (Consolidated Std. Obs. 14).

Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars) Sr. Type of Instrument Percentage of Exposure Circular References No.

1. Securities Lending and 1. Up to 20%of net assets Paragraph 13.6 of SEBI Master Short Selling Circular for Mutual Funds dated

2. Up to 5% of net assets to March 20, 2026 any single intermediary in case of debt instruments.

2 Equity Derivatives for Up to 50% of net assets of equity Paragraph 13.15 of SEBI Master component hedging purpose Circular for Mutual Funds dated March 20, 2026 3 Debt Derivatives for Up to 50% of net assets of debt Paragraph 13.15 of SEBI Master hedging purpose component Circular for Mutual Funds dated March 20, 2026 a. 1.

4. Equity derivatives for The scheme will not invest in Paragraph 13.15 of SEBI Master non-hedging purpose equity derivatives for non- Circular for Mutual Funds (Consolidated Std. Obs. 20) hedging purpose dated March 20, 2026

5. Debt derivatives for The scheme will not invest in debt Paragraph 8.5 & 13.15 of SEBI non-hedging purpose derivatives for non-hedging Master circular for Mutual (Consolidated Std. Obs. 20) purpose Funds dated March 20, 2026 6 Securitized Debt Up to 30% of net assets of the Paragraph 13.1(2) of SEBI scheme Master Circular for Mutual Funds dated March 20, 2026 7 Investment in debt Upto 10% of the debt portfolio of Paragraph 13.11 of SEBI Master instruments having the scheme Circular for Mutual Funds structured obligations/ dated March 20, 2026 credit enhancements 8 Repo/Reverse Repo/ Up to 30% of net assets of the Paragraph 13.8 of SEBI Master Tri- Party repos (TREPS) Scheme Circular for Mutual Funds dated on Government March 20, 2026 Securities and Treasury Bills (G-Secs and T-Bills) 9 Credit Default Swaps Up to 10% of AUM of scheme, Paragraph 13.17 of SEBI Master within overall derivatives Circular for Mutual Funds exposure limit dated March 20, 2026 1510 Infrastructure Paragraph 13.13.5 of the SEBI a) Investment by mutual fund Investment Trusts Master Circular for Mutual under all its schemes upto 10%

(InvITs) of units issued by asingle Funds dated March 20, 2026 issuer of InvIT b) Up to 10% of its NAV in the units of InviTs, c) Upto 5% of its NAV in the units of InvITs at single issuer level 11 Repo/ Reverse Repo in a) Up to 10% of net assets of the Paragraph 13.8 of the SEBI permitted Corporate scheme; Master Circular for Mutual Debt Securities Funds dated March 20, 2026 b) Restricted to Listed AA & above rated corporate debt, CPs, CDs;

12 Units of mutual fund Up to 5% of the NAV of the Clause 3 of Sixth Schedule of schemes of the AMC or mutual fund (i.e. across all the SEBI (Mutual Funds) in the Scheme of other schemes of the AMC or in the Regulations 2026, read with mutual funds schemes of other mutual funds) Paragraph 13.14.1 of SEBI Master Circular for Mutual Funds dated March 20, 2026 13 Unlisted Non- Up to 10% of debt portfolio of Paragraph 13.1(3) of SEBI Convertible Debentures the scheme Master Circular for Mutual Funds dated March 20, 2026.

14 Unrated Debt and Up to 5% of net assets of the Paragraph 13.1(4) of SEBI Money Market scheme Master Circular for Mutual Instruments Funds dated March 20, 2026.

15 AT1 and AT2 bonds a) Up to 10% of its NAV of the Paragraph 13.1(9) of SEBI debt portfolio of the scheme Master Circular for Mutual in perpetual debt instruments, and Funds dated March 20, 2026. b) Up to 5% of its NAV of the debt portfolio of the scheme at single issuer level.

The above exposure will be subject to the overall limit for debt instruments issued by a single issuer and other prudential limits with respect to the debt instruments.

16 Gold Instruments Up to 30% of net assets (residual Clause 3 of Sixth Schedule of portion) subject to the ceilings (including ETFs and SEBI (Mutual Funds) laid out in MF Regulations with ETCDs) respect to the respective asset Regulations 2026, read with class.

Paragraph 13.14.1 and

Investment limit for ETCD : Not exceeding 10% of NAV of the 13.16.9 of SEBI Master scheme Circular for Mutual Funds dated March 20, 2026 1617 Silver Instruments Up to 30% of net assets (residual Clause 3 of Sixth Schedule of (including ETFs and portion) subject to the ceilings SEBI (Mutual Funds) ETCDs) laid out in MF Regulations with Regulations 2026, read with respect to the respective asset Paragraph 13.14.1 and class. 13.16.9 of SEBI Master

Investment limit for ETCD : Not Circular for Mutual Funds exceeding 10% of NAV of the dated March 20, 2026 scheme In addition to the instruments stated in the table above the Scheme may undertake such other transactions in accordance with guidelines issued by SEBI and may also hold cash from time to time.

The Scheme will not invest/engage into the following instruments: (Consolidated Std. Obs. 18) Sr. No. Type of Instrument 1 Fund of Funds Scheme Investment in InViTs The Scheme may invest in the units of InvITs as per Paragraph 13.13.5 of the SEBI Master Circular for Mutual Funds dated March 20, 2026 , as amended from time to time, subject to the following: a. No mutual fund under all its schemes shall own more than 10% of units issued by a single issuer of InvIT; and b. A mutual fund scheme shall

not invest: i. more than 10% of its NAV in the units of InvIT; and ii. more than 5% of its NAV in the units of InvIT issued by a single issuer.

Investment in ETCD The Scheme may invest in the ETCD’s, as per Paragraph 13.16 of the SEBI Master Circular for Mutual Funds dated March 20, 2026, as amended from time to time. Prior to participation in ETCDs, the AMCs shall adhere to the following as per Paragraph 13.16.6 of the SEBI Master Circular for Mutual Funds dated March 20, 2026, as

amended from time to time:

(a) Board of AMC should ensure that person appointed to manage investment shall have adequate expertise and experience in managing such funds. However, appointment of dedicated fund manager shall be optional.

(b) Appoint a custodian registered with the Board for custody of the underlying goods arising due to physical settlement of contracts.

(c) Have written down investment policy for participation in ETCDs approved by the Board of the AMC and the Board of Trustees

(d) Have written down valuation policies approved by the Board of the AMC and the Board of Trustees for valuation of commodity derivatives and the underlying goods, arising due to physical settlement of contracts. The approved valuation policies shall be subject to the principles of fair valuation of the assets of mutual fund schemes.

Deployment of NFO proceeds Deployment of NFO proceeds after the NFO closure period and prior to allotment of units shall be invested in triparty repo on Government securities or treasury bills in line with the provision for deployment prior to the NFO closure period as mentioned in para 1.7.3 of SEBI Master Circular for Mutual Funds dated March 20, 2026. Portfolio construction in accordance with the scheme’s asset allocation shall commence only after completion of unit allotment. Deployment of the funds garnered in the NFO shall be made within 30 (thirty) Business Days from the date of allotment of units. In an exceptional case, if the AMC is not able to deploy the funds in 30 Business Days, reasons in writing, including details of efforts taken to deploy the funds, shall be placed before the Investment 17Committee. The Investment Committee, after examining the root cause for delay, may extend the timeline by 30 Business Days. In case the funds are not deployed as per the asset allocation mentioned above and as per the aforesaid mandated plus extended timelines, the AMC shall comply with the provisions mentioned in SEBI circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23 dated February 27, 2025.

CHANGE IN INVESTMENT PATTERN / PORTFOLIO REBALANCING(Consolidated Std. Obs. 22, 23 & 24)

Portfolio Rebalancing Due To Short Term Defensive Consideration:

Any alteration in the investment pattern will be for a short term on defensive considerations as per paragraph

1.9.1(b) of the SEBI Master Circular dated March 20, 2026, the intention being at all times to protect the interests of the Unit holders and the Scheme shall rebalance the portfolio within 30 calendar days from the date of deviation. It may be noted that no prior intimation/indication will be given to Investors when the composition/asset allocation pattern under the Scheme undergoes changes within the permitted band as indicated above.

In the event of change in the asset allocation, the fund manager will carry out portfolio rebalancing within 30

(thirty) calendar days from the date of such deviation or such other timeline as may be prescribed by SEBI from time to time.

It may be noted that no prior intimation/indication would be given to investors when the composition/asset allocation pattern under the scheme undergo changes within the permitted band as indicated above and for defensive considerations owing to changes in factors such as market conditions, market opportunities, applicable regulations and political and economic factors.

Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Scheme shall be effected only in accordance with the provisions of sub regulation (15A) of Regulation 18 of the Regulations.

Portfolio Rebalancing In Case of Passive Breaches :

Pursuant to Paragraph 3.11.2 of SEBI Master Circular for Mutual Funds dated March 20, 2026, in case of any deviation due to passive breaches, the asset allocation would be restored in line with the above-mentioned asset allocation pattern within 30 business days from the date of deviation.

In case the asset allocation is not rebalanced within the above mandated timelines, justification in writing, including details of efforts taken to rebalance the portfolio shall be placed before Investment Committee. The Investment Committee, if so desires, can extend the timelines up to sixty (60) business days from the date of completion of mandated rebalancing period. However, at all times the portfolio will adhere to the overall investment objective of the scheme.

In case the scheme is not rebalanced within the afore mentioned mandate plus extended timelines: a. The AMC shall not be permitted to launch any new scheme till the time the portfolio is rebalanced. b. The AMC shall not levy any exit load, (if any), on the investor exiting the Scheme.

In case the AUM of the deviated portfolio is more than 10% of the AUM of the main portfolio of the scheme.

1. The AMC shall immediately communicate the same to the investors of the scheme after the expiry of the mandated rebalancing period (i.e. 30 Business Days) through SMS and email/letter including details of 18portfolio not rebalanced.

2. The AMC shall also immediately communicate to the investors through SMS and email/letter when the portfolio is rebalanced.

3. The AMC shall disclose scheme wise deviation of the portfolio (beyond aforesaid 10% limit) from the mandated asset allocation beyond 30 (thirty) business days, on the AMC‘s website i.e.

https://www.choicemf.com/ B. WHERE WILL THE SCHEME INVEST? (Consolidated Std. Obs. 29) Subject to the applicable Regulations, the amount collected under the Scheme may be invested in the following securities/instruments, in accordance with the indicative asset allocation provided under the heading “How will the Scheme allocate its assets”:

The corpus of the Scheme will be predominantly invested in Equity & Equity Related Instruments of Largecap and Midcap companies, Debt and Money Market Instruments and other permitted securities which will include but

not limited to:

1. Equity and Equity Related Instruments

2. Non-convertible debentures *

3. Floating rate debt instruments

4. Securitised Assets

5. Pass Through Certificate (PTC)

6. Securities created and issued by the Central and State Governments as may be permitted by RBI

7. Debt Instruments with special features

8. Non-Convertible Preference Shares (NCPS)

9. Debt derivative instruments

10. Certificate of Deposits

11. Commercial Paper

12. Treasury Bills (T-Bills)

13. Tri-party Repo

14. Repo (Repurchase Agreement) or Reverse Repo

15. Bills Rediscounting

16. Cash Management Bills

17. Debt Instruments having Structured Obligation (SO rating) and / or Credit Enhancements (CE rating) Clearcorp Repo Order Matching System (CROMS)

18. Any other Scheme of Choice Mutual Fund or of any other mutual fund

19. Short Term Deposits of the Scheduled Commercial Banks

20. Infrastructure Investment Trusts (InVITs)

21. Units of domestic Mutual Fund Schemes including Exchange Traded Funds (ETFs)

22. Short Term deposits

23. Derivatives

24. Any other securities as may be permitted by SEBI / RBI from time to time. * As per Note 2 under Para 13.1 of SEBI Master Circular for Mutual Funds dated March 20, 2026, Non-Convertible Preference Shares (NCPS) shall be treated as Debt instruments.

Detailed definition and applicable regulations/guidelines for each instrument is included in Section II.

C. INVESTMENT STRATEGIES (Consolidated Std. Obs. 27) The investment objective of the Scheme is to generate long term capital appreciation/income through a portfolio comprising predominantly of equity and equity related instruments of large cap and midcap 19companies. The Scheme will be actively managed.

There is no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy The Scheme shall predominantly invest in companies across the market capitalization spectrum that, in the

assessment of the Fund Manager: a) are likely to achieve above average growth; b) enjoy distinct competitive advantages; c) have superior financial strength; d) are trading at relatively attractive valuations; and/or e) have value unlocking potential.

The equity investment strategy shall be oriented towards constructing a portfolio of fundamentally strong companies appropriate to the prevailing market environment. The Scheme shall endeavour to maintain a reasonably diversified portfolio at all times.

Investment in Debt and Money Market Instruments The Scheme may invest up to 30% of its net assets in debt and money market instruments, subject to the limits specified in the asset allocation table of the Scheme and the permissible limits prescribed under the SEBI (Mutual Funds) Regulations, 2026, and circulars issued thereunder. Investments in debt securities shall be made having regard to credit quality, liquidity, prevailing interest rates and the interest rate outlook.

Investment in Units of REITs and InvITs The Scheme may, for the purpose of diversification, invest in hybrid securities, viz. units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), subject to such stipulations as may be prescribed by SEBI from time to time.

Securities Lending Subject to the SEBI (Mutual Funds) Regulations and the guidelines issued thereunder, the Scheme may engage in Stock Lending activities.

Investment in Schemes of Mutual Funds and Derivatives The Scheme may invest in the schemes of mutual funds, in accordance with the provisions of the SEBI (Mutual Funds) Regulations, as amended from time to time. As part of the fund management process, the Scheme may use derivative instruments, including but not limited to futures and options, or such other derivative instruments as may be permissible under applicable regulations, whether presently or in future. Trading in derivatives by the Scheme shall be undertaken only for such purposes as are permitted under the applicable regulations.

Derivatives are highly leveraged instruments and a small price fluctuation in the underlying can have a larger impact on its value. Thus, its use can lead to disproportionate gains or losses to the portfolio. Execution of derivatives instruments depends on the ability of the fund manager to identify good 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. The fund manager will be able to identify or execute such strategies (Consolidated Std. Obs. 28) For details of derivative strategies employed by the Scheme, investors are requested to refer to the Statement of Additional Information (SAI).

20Disclaimer Notwithstanding that every endeavour shall be made to achieve the investment objective of the Scheme, the AMC/Sponsor(s)/Trustee do not guarantee that the investment objective of the Scheme shall be achieved. The Scheme does not offer any guaranteed or assured returns.

Portfolio Turnover The Scheme being an open-ended Scheme, it is expected that there would be a number of Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading opportunities may arise due to changes in system liquidity, interest rate policy announced by RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the fund manager these opportunities can be played out to enhance the total return of the portfolio, which will result in increase in portfolio turnover. There may be an increase in transaction cost such as brokerage paid, if trading is done frequently. However, the cost would be negligible as compared to the total expenses of the Scheme. The fund manager will endeavour to optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate with reasonable measure accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to portfolio turnover.

D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? (Consolidated Std. Obs. 25) The performance of the Scheme will be benchmarked against the performance of the Scheme will be benchmarked with NIFTY Large Midcap 250 Total Return Index (TRI), (Tier I Benchmark).

Rationale for adoption of benchmark:

As prescribed under SEBI Master Circular for Mutual Funds dated March 20, 2026, NIFTY Large Midcap 250 Total Return Index (TRI) has been selected from amongst those notified by AMFI for the Scheme. The NIFTY Large Midcap 250 Total Return Index reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on NSE, represented through the NIFTY 100 and the NIFTY Midcap 150 index respectively. Hence the benchmark would be appropriate to compare performance of the Scheme. The performance will be benchmarked to the Total Returns Variant of the Index. The Trustee reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other prevalent guidelines.

E. WHO MANAGES THE SCHEME? (Consolidated Std. Obs. 33) Name Age / Qualification Brief Experience Other schemes managed / co- managed 21Mr. 47 Mr. Rochan Pattnayak has over 15 years of work Choice Gold ETF Rochan M.B.A. (Indian School of experience in the financial services industry. Choice Nifty 50 Pattnayak* Business, Hyderabad) Index Fund

Please find below brief details of his experience: Choice Nifty Next

1. 2020-2024: Head of Institutional Research – 50 Index Fund Choice Equity Broking. Choice Overnight

2. 2019-2020 : Fund Manager – Quant Capital Fund Finance & Investments Private Limited

3. 2017-2019 : Sr. Investment Analyst - Edelweiss Asset Management

4. 2011-2016 : Research Analyst – Indus Equity Advisors

5. 2008-2010 : Trading Analyst – Wolverine Equities & Markets UK *(Managing Since – Not Applicable being a new scheme ) F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL FUND? There are no existing Equity scheme(s) of the Mutual Fund G. HOW HAS THE SCHEME PERFORMED? The Scheme is a new scheme and does not have any performance track record.

H. ADDITIONAL SCHEME RELATED DISCLOSURES I. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors to be provided through a functional website link that contains detailed description.): Not Applicable as this is a new scheme and does not have any portfolio holdings. Investors can refer to the below link for any

information on the above point as and when applicable https://www.choicemf.com/disclosures II. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of debt and equity ETFs/index funds through a functional website link that contains

detailed description: Not Applicable III. Functional website link for Portfolio Disclosure: Appropriate disclosure in this respect will be available at - https://www.choicemf.com/disclosures IV. Functional website link to the respective addendums to the SID. Not Applicable as it is a new scheme.

V. Portfolio Turnover Rate: The Scheme is a new scheme and hence, this is currently not applicable.

VI. Aggregate investment in the Scheme by :

Sr. No. Category of Persons Net Value Market Value (in Rs.) Units NAV per units Not Applicable* *The Scheme is a new scheme and hence, this disclosure is currently not applicable. For details of investments made by the Directors and Key Personnel of the AMC, please refer to SAI.

225. Investments of AMC in the Scheme:

The AMC may invest in the Scheme(s) anytime during the continuous offer period subject to the SEBI (MF) Regulations, 2026. The AMC may also invest in existing schemes of the Mutual Fund. As per the existing SEBI

(MF) Regulations, 2026, the AMC will not charge Investment Management and Advisory fee on the investment made by it in the Scheme(s) or existing Schemes of the Mutual Fund. (Consolidated Std. Obs. 58) Subject to sub-regulation 3(a) in Regulation 22 of SEBI (Mutual Funds) Regulations, 2026 read with Paragraph

7.13.1 of SEBI Master Circular for Mutual Funds dated March 2026, the AMC shall invest such amounts in such schemes of the mutual fund, based on the risks associated with the schemes, as may be specified by SEBI from time to time. Such investment shall be maintained at all times and shall not be redeemed unless the scheme is wound up.

The investors can refer to the investments made by the AMC (if any) in the Scheme on the website of the

Company at https://www.choicemf.com/disclosures?category=scheme-documents 23PART III- OTHER DETAILS A. COMPUTATION OF NAV (Consolidated Std. Obs. 42) The Net Asset Value (NAV) per Unit of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Seventh Schedule of the SEBI (MF) Regulations, 2026, or such norms as may be specified by SEBI from time to time. In case of any conflict between the Principles of Fair Valuation and valuation guidelines specified by SEBI, the Principles of Fair Valuation shall prevail.

The NAV of Units under each Scheme/Plan shall be computed as indicated below:

NAV (Rs.) Per Unit = Market or Fair Value of the Scheme's Investments + Current Assets - Current Liabilities & Provisions / Nos. of Units outstanding under the Scheme/Plan The NAV of the Scheme will be calculated and disclosed at the close of every Business Day based on the

following guidelines: • Separate NAV will be calculated and announced for each of the Plans / Options. • The NAVs will be computed up to 4 decimals • Units will be allotted up to 3 decimals

Illustration for Computation of NAV:

NAV for the scheme shall be calculated as shown below:

Particulars Amount (In INR) Assets Investments (at Market Value) 15000 (Equity/Debt/Derivatives/Other Applicable Securities) Current Assets Interest Receivable 1000 Dividend Receivables 550 Trades Receivables 1500 Total Assets (A) 18050 Liabilities Current Liabilities Trade Payables 3005 Expense Payable 85 Dividend Payable 110 Total Liabilities (B) 3200 Net Assets (C) (A-B) 14850 Unit Outstanding (D) 1000 NAV Per Unit (C/D) ₹ 14.8500 24Methodology for Calculation of Sale and Re-purchase Price of Units Ongoing Price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors. (This is the price you need to pay for purchase/switch-in):

The Sale Price for a valid purchase will be the Applicable NAV

Formula: Sale / Subscription Price = Applicable NAV x (1 + Entry Load) Particulars Value Applicable NAV (Rs. per unit) 11.00 Entry Load 0% Sale / Subscription Price (Rs. per unit) 11.00

Note: Stamp duty at the applicable rate will be levied on applicable transactions, i.e. purchase, switch-in, and instalments under the Systematic Investment Plan / Systematic Transfer Plan. Accordingly, pursuant to levy of stamp duty, the number of units allotted will be lower to that extent. For more details and the impact of stamp duty on the number of units allotted, refer to the SAI.

Ongoing Price for Redemption (Sale) / Switch-out This is the price which a Unit holder will receive for redemption / switch-out. During the continuous offer of the Scheme, the Unit holder can redeem Units at the Applicable NAV, subject to payment of Exit Load, if any.

Formula: Redemption Price = Applicable NAV x (1 - Exit Load, if any) Particulars Example 1 Example 2 Applicable NAV (Rs. per unit) 11.00 11.00 Exit Load 1% 0% Redemption / Repurchase Price 10.89 11.00 (Rs. per unit) The securities transaction tax levied under the Income-tax Act, 1961, at the applicable rate, on the amount of redemption will be reduced from the amount of redemption.

Investors / Unit holders should note that the Trustee has the right to modify the existing load structure and to introduce Exit Load and / or any other Load, subject to a maximum limit prescribed under the SEBI Regulations.

Any change in load structure will be effective on a prospective basis and will not affect the existing Unit holder in any manner.

The Repurchase Price will not be lower than 95% of the NAV. (Consolidated Std. Obs. 47) For details on policies related to computation of NAV, rounding off, procedure in case of delay in disclosure of NAV, etc. please refer to SAI.

B. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like marketing and advertising, Registrar expenses, printing and stationery, bank charges etc. Such expenses shall be borne by the AMC and will not be charged to the Scheme.

C. ANNUAL SCHEME RECURRING EXPENSES All expenses of the scheme shall be clearly identified and shall be paid from the scheme. The expenses shall be subject to the base expense limits, brokerage limits, transaction cost and statutory levy permissible under these regulations.

25The base expense ratio (“BER”) of the scheme shall be sum of expenses mentioned at sub-regulation (4), sub- regulation (5) and sub-regulation (6) but excluded statutory levy applicable, if any, on the said expenses and transaction cost specified under sub-regulation (10) of Regulation 66 of MF Regulations.

Total expense ratio (“TER”) shall be total of expense charged within the base limit, brokerage cost permitted, transaction cost incurred for the purpose of execution of trade and statutory levies charged to the investors, as may be permitted under the SEBI (Mutual Funds) Regulations and circulars issued thereunder from time to time.

As per the Regulations, the maximum recurring expenses that can be charged to equity Schemes shall be

subject to a percentage limit of daily net assets as in the table below:

On the first On the On the On the On the Next INR On balance INR 500 next INR next INR next INR next 40000 Crores of the crores 250 crores 1,250 3,000 INR assets crores crores 5,000 crores

2.10 1.90% 1.60 1.50 1.40 Expense ratio 0.95 reduction of

0.05% for every increase of Rs.5,000 crores of daily net assets or part thereof The AMC has estimated that up to 2.10 of the daily net assets of the Scheme shall be charged to the scheme as expenses. For the actual current expenses being charged, the investor should refer to the website of the mutual

fund https://www.choicemf.com/daily-ter Expense Head % p.a. of daily Net Assets* (Estimated p.a.) Investment Management & Advisory Fee Upto 2.10% Audit fees/fees and expenses of trustees Custodial Fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / Redemption cheques/ warrants Marketing & selling expenses including fees , commission and charges towards distribution of mutual fund schemes Costs related to Investor communications Costs of fund transfer from location to location Cost towards Investor education, awareness and financial inclusion Brokerage & transaction cost pertaining to execution of trade Costs of statutory advertisements 26Such other expenses as may be specified in the Regulations* Maximum Base expenses ratio (BER) permissible under Regulation 66 Maximum Base expenses ratio (BER) permissible under Regulation 66 Upto 2.10% Statutory levies (including GST) on all expenses excluding brokerage and As applicable transaction cost (including GST of 18%) Additionally, levies Statutory levies (including GST) on brokerage and transaction cost such as Stamp Duty, STT etc. will be charged on Turnover / transaction value of securities which will be at prescribed rates.

Any other expenses which are directly attributable to the Scheme may be charged with the approval of the Trustee within the overall limits as specified in the Regulations except those expenses which are specifically prohibited.

The base expenses of the scheme (s) including the investment management and advisory fee shall not exceed the limit as specified in the Regulations and amendments thereto.

The total of all expenses i.e. Total Expense Ratio (TER) charged to the investors of the scheme shall be total of expense charged within the base limit specified above, brokerage cost, transaction cost incurred for the purpose of execution of trade and statutory levies charged to the investors, as specified in the Regulations.

Pursuant to Chapter XI on SEBI (Mutual Funds) Regulations read with Paragraph 11.9.1 of SEBI Master Circular for Mutual Funds dated March 20, 2026, the AMC shall annually set aside 0.02% of daily net assets of the scheme for investor education, awareness and financial inclusion initiatives. (Consolidated Std. Obs. 43) The expenses towards Investment Management and Advisory Fees under Regulation 66 (4) and the various sub heads of recurring expenses mentioned under Regulation 66 (5) of SEBI (MF) Regulations, 2026 can be apportioned under various expense heads/ sub heads without any sub limit, as permitted under the applicable regulations.

Thus, there shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 66 (4) and (5) respectively.

In addition to the limits as specified in Regulation 66(7) of SEBI (MF) Regulations, 2026 or the Base Recurring Expenses (Base Expense Limit) as specified above, the following costs or expenses may be charged to the Scheme namely- • The Scheme may charge expense incurred towards brokerage, for the purpose of execution of trade, over and above the base expense ratio subject to a maximum of 0.06 per cent of trade value in case of cash market transactions and 0.02 per cent of trade value in case of derivatives transactions. Expense charged towards brokerage, over and above the specified limit, shall be part of the base expense ratio limit specified in the Regulations.

• Transaction cost incurred for the purpose of execution of a trade shall mean regulatory levies and any other expenses charged by the stock exchanges, clearing corporation, and clearing house, as applicable.

Such transaction costs shall not form part of the base expense ratio.

27Within the Total Expense Limit chargeable to the Scheme, following will be charged to the Scheme: a. GST on investment and advisory fees, brokerage and transaction costs on execution of trades shall be borne by the Scheme.

b. Investor education and awareness initiative fees of at least 2 basis points on daily net assets of the Scheme.

Direct Plan under the Scheme shall have a lower expense ratio than Regular Plan, excluding distribution expenses, commission, etc., and no commission shall be paid from Direct Plan. All fees and expenses charged in a Direct Plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in a Regular Plan.

Additional expenses for gross new inflows from specified cities. (Consolidated Std. Obs. 46) In line with the provisions of Clause 11.6 of Master Circular dated March 20, 2026, the AMC shall pay additional

commission in the following manner:

1. Additional commission is payable to distributors for onboarding new eligible investors as follows: • New individual investors (new PAN) from B-30 cities at the mutual fund industry level; • New women individual investors (new PAN) from both Top 30 and B-30 cities.

2. The structure of additional commission will be as follows: • Lumpsum Investments: 1% of amount of the first application subject to a maximum of ₹2,000, provided the investor remains invested for a minimum period of one year.

• Systematic Investment Plan, 1% of the total investment made during the first year, subject to a maximum of ₹2,000.

3. Additional distribution commission will be paid from the 2 basis points on daily net assets, mandated to be set apart annually by AMCs for investor education, awareness and financial inclusion initiatives and will be subject to adequate claw back provisions.

4. The additional commission will be in addition to the existing trail commission paid to the distributor from the Scheme.

5. Distributor will be eligible to receive additional commission for mobilizing investments from new women investors from Top-30 cities and in cases where the commission for new investments from B-30 cities has not been claimed for the same women investors / investment. Dual incentives for the same investor / investment will not be permitted.

6. Payment of additional commission will be applicable as per stipulated timelines and will subject to implementation standards as may be prescribed by AMFI via email dated December 27, 2025.

All scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not from the books of the AMC, its associate, sponsor, trustee or any other entity through any route.

Provided that the expenses that are very small in value but high in volume may be paid out of AMC’s books. Such expenses can be paid out of AMC’s books at actuals or not exceeding 2 bps of respective scheme AUM, whichever is lower. A list of such miscellaneous expenses shall be as provided by AMFI in consultation with SEBI. Such expenses incurred by AMC shall be properly recorded in the books of account of AMC and audited at year end.

28Illustration – Impact of Expense Ratio on the returns of the Scheme : (Consolidated Std. Obs. 44) Expense ratio, normally expressed as a percentage of Average Assets under Management, is calculated by dividing the permissible expenses under the Regulations by the average net assets.

To further illustrate in rupee terms the above, for the Scheme under reference, suppose an Investor invested Rs.

10,000/- (after deduction of stamp duty, if any) under the Growth Option, the impact of expenses charged will be

as under:

Particulars Regular Plan Direct Plan Amount invested at the beginning of the year (Rs.) 10,000 10,000 Returns before expenses (Rs.) 1,500 1,500 Expenses other than Distribution expenses (Rs.) 150 150 Distribution expenses (Rs.) 50 0 Returns after expenses at the end of the year (Rs.) 1300 1350 Returns (in %) 13.0% 13.5% Note(s):

a. The purpose of the above illustration is purely to explain the impact of expense ratio charged to the Plan(s) under the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments.

b. It is assumed that the expenses charged are evenly distributed throughout the year. c. The expenses of the Direct Plan of the Scheme will be lower to the extent of the distribution expenses/ commission.

d. Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to seek appropriate advice.

For the actual current expenses being charged to the Scheme, the Investor should refer to the website of the

Mutual Fund at https://www.choicemf.com/daily-ter . Any change in the expense ratio will be communicated to the Unitholders through notice via SMS / e-mail at least three working days prior to the effective date of change. Such notice of change in TER shall also be updated on the AMC website at least three working days prior to effecting such change.

D. LOAD STRUCTURE (Consolidated Std. Obs. 47)

Entry Load : Not Applicable Exit Load is an amount which is paid by the Investor to redeem the units from the Scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the

website of the https://choicemf.com/ or call at toll free no. 18002663866 or reach out to your distributor.

Type of Load Load chargeable (as % of NAV)

1. Where units are redeemed / switched out before 365 days from the date of

Exit Load allotment: 1%

2. Where units are redeemed / switched-out after 365 days from the date of allotment — no exit load is payable.

3. No load shall be levied on switches between plans/options and sub-options of the Scheme.

4. Any Exit Load charged shall be credited back to the scheme, net of Goods & Services Tax.

5. In respect of Systematic Transactions such as SIP, STPs etc., Exit Load, if any, prevailing on the date of registration / enrolment shall be levied.

29However, the Trustee shall have a right to prescribe or modify the load structure with prospective effect subject to a maximum prescribed under the Regulations. The Repurchase Price will not be lower than 95% of the NAV.

(Consolidated Std. Obs. 47) In accordance with Paragraph 11.7.4 of SEBI Master Circular for Mutual Funds dated March 20, 2026, to bring about parity among all class of unit holders, no distinction among unit holders would be made based on the amount of subscription while charging exit loads. The exit load charged, if any, shall be credited to the scheme.

Goods and Services tax on exit load shall be paid out of the exit load proceeds and exit load net of Goods and Services tax shall be credited to the schemes. Exit Load, if any, prevailing on the date of enrolment of SIP/ STP shall be levied in the Scheme.

Investors are requested to check the prevailing load structure of the Scheme before investing. Any imposition or enhancement in the load shall be applicable on prospective investments only.

Subject to the SEBI MF Regulations, the Trustee reserves the right to modify/alter the Load structure on the Units subscribed/redeemed on any Business Day. At the time of changing the Load structure, the AMC / Mutual

Fund may adopt the following procedure: • The AMC shall issue an addendum and display the same on its website immediately. The addendum detailing the changes shall be part of SID and KIM. (E.g. in case of changes in load structure, the addendum carrying the latest applicable load structure shall be attached to all KIM and SID till it is updated). Further, the account statements shall continue to include applicable load structure.

• The digital copies of SID shall have a functional website link to the respective addendums to the SID issued after the last update of SID. • The addendum shall be sent via email to all the distributors/brokers/Investor Service Centre (ISC), so that the same can be provided along with the SID and KIM till it is updated.

• Any other measures which the mutual funds may feel necessary.

The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in Load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis).

REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME Pursuant to paragraph 7.19 of SEBI Master Circular for Mutual Funds dated March 20, 2026, the Scheme shall

have:

I. minimum of 20 investors and II. no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s).

In case the Scheme does not have a minimum of 20 investors, the provisions of Regulation 36(2)(c) of the SEBI

(MF) Regulations, 2026 would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over 25% limit. Failure on the part of the said investor to redeem his exposure over 25% limit within the aforesaid 15 Calendar days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th Calendar day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard.

30SECTION II I. INTRODUCTION A. Definitions/Interpretation Please refer the following link for Definitions/Interpretations :

https://static.choicemf.com/Definitions_&_Interpretation.pdf B. Risk factors (Scheme specific risk factors) (Consolidated Std. Obs. 8) Some of the specific risk factors related to the Scheme include, but are not limited to the following:

I. Risks factors associated with Equity and Equity Related Instruments:

Equity and Equity Related Instruments by nature are volatile and prone to price fluctuations on a daily basis due to macro and micro economic factors. The value of Equity and Equity Related Instruments may fluctuate due to factors affecting the securities markets such as price volatility, volumes traded, interest rates, currency exchange rates, changes in law/policies of the Government, taxation laws, political, economic or other developments, which may have an adverse impact on individual securities, a specific sector or all sectors. Consequently, the NAV of the Units issued under the Scheme may be adversely affected. Equity and Equity Related Instruments listed on the stock exchange carry lower liquidity risk;

however, the Scheme’s ability to sell these investments is limited by the overall trading volume on the stock exchanges. In certain cases, settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities held in the Scheme's portfolio may result, at times, in potential losses to the Scheme, if there is a subsequent decline in the value of securities held in the Scheme's portfolio.

Investments in equity and equity related instruments involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risk of losing their investment.

The various types of risks factors associated with Equity and Equity related instruments are: • Quality Risk: Risk of investing in unsustainable/weak companies • Price Risk: Risk of overpaying for a stock • Concentration Risk: Risk of Concentration • Liquidity Risk: High Impact Costs • Volatility Risk: Price Volatility due to company or portfolio specific factors • Event Risk: Price risk due to company, sector specific or market event • Corporate Governance Risk: Risk of investing in companies with poor governance practices • Macroeconomic Risk: Impact of interest rates, inflation, or GDP changes 31II. Risks factors associated with Fixed Income Securities:

• The Net Asset Value (NAV) of the Scheme, to the extent invested in Debt and Money Market instruments, will be affected by changes in the general level of interest rates. The NAV of the Scheme is expected to increase from a fall in interest rates while it would be adversely affected by an increase in the level of interest rates.

• Money market instruments, while fairly liquid, lack a well developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold.

• Investments in money market instruments involve credit risk commensurate with short term rating of the issuers. • Investment in Debt instruments are subject to varying degree of credit risk or default (i.e. the risk of an issuer's inability to meet interest or principal payments on its obligations) or any other issues, which may have their credit ratings downgraded. Changes in financial conditions of an issuer, changes in economic and political conditions in general, or changes in economic or and political conditions specific to an issuer, all of which are factors that may have an adverse impact on an issuer's credit quality and security values.

This may increase the risk of the portfolio. The Investment Manager will endeavour to manage credit risk through in-house credit analysis. • Prepayment Risk: Certain fixed income securities give an issuer the right to call back its securities before their maturity date, in periods of declining interest rates. The possibility of such prepayment may force the Scheme to reinvest the proceeds of such investments in securities offering lower yields, resulting in lower interest income for the Scheme.

• Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme are reinvested. The additional income from reinvestment is the "interest on interest" component. The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assumed.

• Settlement risk: Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are uninvested and no return is earned thereon. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities.

Similarly, the inability to sell securities held in the Scheme's portfolio, due to the absence of a well developed and liquid secondary market for debt securities, may result at times in potential losses to the Scheme in the event of a subsequent decline in the value of securities held in the Scheme's portfolio.

• Government securities where a fixed return is offered run price-risk like any other fixed income security.

Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates. The new level of interest rate is determined by the rates at which government raises new money and/or the price levels at which the market is already dealing in existing securities. The price-risk is not unique to Government Securities. It exists for all fixed income securities. However, Government Securities are unique in the sense that their credit risk generally remains zero. Therefore, their prices are influenced only by movement in interest rates in the financial system.

• Different types of fixed income securities in which the Scheme would invest as given in the Scheme Information Document carry different levels and types of risk. Accordingly, the Scheme risk may increase or decrease depending upon its investment pattern. e.g. corporate bonds carry a higher level of risk than Government securities. Further even among corporate bonds, AAA rated bonds are comparatively less risky than AA rated bonds.

• The AMC may, considering the overall level of risk of the portfolio, invest in lower rated / unrated 32securities offering higher yields as well as zero coupon securities that offer attractive yields. This may increase the absolute level of risk of the portfolio.

• As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rates and are subject to issuer default risk. Therefore, the interest rate risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio. Zero coupon or deep discount bonds are debt obligations that do not entitle the holder to any periodic payment of interest prior to maturity or a specified date when the securities begin paying current interest and therefore, are generally issued and traded at a discount to their face values. The discount depends on the time remaining until maturity or the date when securities begin paying current interest. It also varies depending on the prevailing interest rates, liquidity of the security and the perceived credit risk of the Issuer. The market prices of zero coupon securities are generally more volatile than the market prices of securities that pay interest periodically.

III. Risks factors associated with Derivatives Transactions

Systematic Risk: Systematic Risk is the risk associated with the entire market. Unlike unsystematic risk, it is not linked to a specific security or sector. Systematic risk is a market risk which can be due to macro- economic factors, news events, etc.

Mark to Market Risk: This risk is on account of day to day fluctuations in the underlying Security and its derivative instrument, which can adversely impact the portfolio.

Credit Risk: The credit risk is the risk that the counter party will default in its obligations and is generally small as in a Derivative transaction there is generally no exchange of the principal amount.

Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates.

Basis Risk: When a security is hedged using a Derivative, the change in price of the security and the change in price of the Derivative may not be fully correlated leading to basis risk in the portfolio.

Liquidity risk: During the life of the Derivative, the benchmark might become Illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio.

Model Risk: The risk of mis–pricing or improper valuation of Derivatives.

Trade Execution: Risk where the final execution price is different from the screen price, leading to dilution in the spreads and hence impacting the profitability of the reverse arbitrage strategy.

Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put the whole system at risk and the whole system can come to a halt.

The scheme may invest in various derivative products in accordance with and to the extent permitted under the regulations from time to time.

33Derivatives are financial contracts of pre-determined fixed duration, like stock Futures/options and index futures and options, whose values are derived from the value of an underlying primary financial

instrument such as: Equities, Interest rates, Exchange rates and Commodities.

Derivative products are specialized instruments that require investment techniques and risk analysis which are different from those associated with stocks and other traditional securities. (Consolidated Std. Obs. 28) Derivatives are highly leveraged instruments and a small price fluctuation in the underlying can have a larger impact on its value. Thus, its use can lead to disproportionate gains or losses to the portfolio.

Execution of derivatives instruments depends on the ability of the fund manager to identify good 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. 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.” IV. Risks factors associated with Short Selling & Securities Lending:

Securities Lending is a lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. There are risks inherent in securities lending, including the risk of failure of the other party, in this case the approved intermediary to comply with the terms of the agreement.

Such failure can result in a possible loss of rights to the collateral, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of corporate benefits accruing thereon. Short-selling is the sale of shares or securities that the seller does not own at the time of trading. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock/security he shorted and returns the stock/security to the lender to close out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security being borrowed. The security being short sold might be illiquid or become illiquid and covering of the security might occur at a much higher price level than anticipated, leading to losses.

V. Risk factors associated with processing of transactions through Stock Exchange Mechanism:

The trading mechanism introduced by the Stock Exchange(s) is configured to accept and process transactions for mutual fund Units in both Physical and Demat Form. The allotment and/or redemption of Units through NSE and/or BSE or any other recognised Stock Exchange(s), on any Business Day will depend upon the modalities of processing viz. collection of application form, order processing /settlement, etc. upon which the Fund has no control. Moreover, transactions conducted through the Stock Exchange mechanism shall be governed by the operating guidelines and directives issued by respective recognized Stock Exchange(s).

VI. Risk factors associated with Securitized Debt:

The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc.

MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential/ commercial properties. At present in Indian market, following types of loans

are securitized:

34a. Auto Loans (cars/commercial vehicles/two wheelers) b. Residential Mortgages or Housing Loans c. Consumer Durable Loans d. Personal Loans e. Corporate Loans In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The other main risks pertaining to

Securitised debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate.

VII. Risks factors associated with Investing in Structured Obligation (SO) & Credit Enhancement (CE) rated securities The risks factors stated below for the Structured Obligations & Credit Enhancement are in addition to the risk factors associated with debt instruments. -Credit rating agencies assign CE rating to an instrument based on any identifiable credit enhancement for the debt instrument issued by an issuer.

The credit enhancement could be in various forms and could include guarantee, shortfall undertaking, letter of comfort, etc. from another entity. This entity could be either related or non-related to the issuer like a bank, financial institution, etc. Credit enhancement could include additional security in form of pledge of shares listed on stock exchanges, etc. SO transactions are asset backed/ mortgage backed securities, securitized paper backed by hypothecation of car loan receivables, securities backed by trade receivables, credit card receivables etc. Hence, for CE rated instruments evaluation of the credit enhancement provider, as well as the issuer is undertaken to determine the issuer rating. In case of SO rated issuer, the underlying loan pools or securitization, etc. is assessed to arrive at rating for the issuer.

Liquidity Risk: SO rated securities are often complex structures, with a variety of credit enhancements.

Debt securities lack a well-developed secondary market in India, and due to the credit enhanced nature of CE securities as well as structured nature of SO securities, the liquidity in the market for these instruments is adversely affected compared to similar rated debt instruments. Hence, lower liquidity of such instruments, could lead to inability of the scheme to sell such debt instruments and generate liquidity for the scheme or higher impact cost when such instruments are sold. Credit Risk: The credit risk of debt instruments which are CE rated derives rating based on the combined strength of the issuer as well as the structure. Hence, any weakness in either the issuer or the structure could have an adverse credit impact on the debt instrument. Inability of the investors to enforce the structure due to issues such as legal risk, inability to sell the underlying collateral or enforce guarantee, etc. In case of SO transactions, co-mingling risk and risk of servicer increases the overall risk for the securitized debt or assets backed transactions. Therefore, apart from issuer level credit risk such debt instruments are also susceptible to structure related credit risk.

VIII. Risks factors associated with segregated portfolio a. Investor holding units of segregated portfolio may not able to liquidate their holding till the time recovery of money from the issuer.

35b. Security comprises of segregated portfolio may not realise any value. c. Listing of units of segregated portfolio on recognised stock exchange does not necessarily guarantee their liquidity. There may not be active trading of units in the stock market. Further trading price of units on the stock market may be significantly lower than the prevailing NAV.

IX. Risk Factors Associated with Investments in InvITS • Market Risk: InvITs Investments are volatile and subject to price fluctuations on a daily basis owing to factors impacting the underlying assets. AMC/Fund Manager’s will do the necessary due diligence, but actual market movements may be at variance with the anticipated trends.

• Liquidity Risk: As the liquidity of the investments made by the Scheme(s) could, at times, be restricted by trading volumes, settlement periods, dissolution of the trust, potential delisting of units on the exchange etc, the time taken by the Mutual Fund for liquidating the investments in the scheme may be high in the event of immediate redemption requirement. Investment in such securities may lead to increase in the scheme portfolio risk.

• Reinvestment Risk: Investments in InvITs may carry reinvestment risk as there could be repatriation of funds by the Trusts in form of buyback of units or dividend pay-outs, etc.

Consequently, the proceeds may get invested in assets providing lower returns. • Regulatory/Legal Risk: InvITs being new asset classes, rights of unit holders such as right to information etc may differ from existing capital market asset classes under Indian Law. The above are some of the common risks associated with investments in InvITs. Investment results may vary substantially on a monthly, quarterly or annual basis. Risks associated with investment in units of mutual fund Investment in Mutual Fund Units involves investment risks, including but not limited to risks such as liquidity risk, volatility risk, default risk including the possible loss of principal.

• Volatility risks: There is the risk of volatility in markets due to external factors like liquidity flows, changes in the business environment, economic policy etc. The scheme will manage volatility risk through diversification across companies and sectors.

• Default risk: Credit risk is risk resulting from uncertainty in counterparty's ability or willingness to meet its contractual obligations. This risk pertains to the risk of default of payment of principal and interest. Government Securities have zero credit risk while other debt instruments are rated according to the issuer's ability to meet the obligations.

X. Risk Associated with investment in Instruments having Special Features:

Credit Risk/Principal at risk: The issuer has the option to write off the principal in times of severe financial stress. Since these bonds are unsecured investor will have any recourse to recover money in case issuer write off the principal. Such bonds may get converted into equity on happening of certain pre-defined event. Central Bank may instruct issuer of the bonds to write down the entire value of its outstanding AT1 bonds, if it thinks the bank has passed the Point of Non Viability (PONV), or requires a capital infusion to remain a going concern. Also, issuer may not pay interest under certain circumstances. Such interest cannot be recovered in future also.

Interest Rate Risk: where there is no defined maturity, it may yield lower interest especially when the interest rates are rising.

Liquidity Risk: There is no surety that bond holder will get your principal back on the call date as the issuer may choose to extend the tenure of bonds at a future date. Bond holder has the option of selling these bonds in the secondary market, but bond holder may have to 36exit at a loss as the bond’s price may differ from the cost price. Also, some of these are bonds are thinly traded, which means there are limited buyers.

XI. Risk factors associated with investment in unrated securities:

The scheme may invest in unrated securities as permitted under regulation. Investment in unrated securities involve a risk of default or decline in market value higher than rated instruments due to adverse economic and issuer-specific developments. Such investments display increased price sensitivity to changing interest rates and to a deteriorating economic environment. The market values for unrated investments tends to be more volatile and such securities tend to be less liquid than rated debt securities.

XII. Risks associated with investment in unlisted debt securities: • Except for any security of an associate or group company, the scheme can invest in securities which are not listed on a stock exchange (“unlisted Securities”) which in general are subject to greater price fluctuations, less liquidity and greater risk than those which are traded in the open market. Unlisted debt securities may lack a liquid secondary market and there can be no assurance that the Scheme will realise their investments in unlisted securities at a fair value.

• Investment in unrated instruments may involve a risk of default or decline in market value higher than rated instruments due to adverse economic and issuer-specific developments. Such investments display increased price sensitivity to changing interest rates and to a deteriorating economic environment. The market values for unrated investments tends to be more volatile and such securities tend to be less liquid than rated debt securities.

XIII. Risk Factor Associated with Investing in Tier I and Tier II Bonds:

Tier I and Tier II Bonds are unsecured, and RBI prescribes certain restrictions in relation to the terms of these Bonds. Tier I and Tier II bonds are unsecured in nature. The claims of the Bondholders shall (i) be subordinated to the claims of all depositors and general creditors of the Bank; (ii) neither be secured nor covered by any guarantee of the Issuer or its related entity or other arrangement that legally or economically enhances the seniority of the claim vis-a-vis creditors of the Bank; (iii) Unless the terms of any subsequent issuance of bonds/ debentures by the Bank specifies that the claims of such subsequent bond holders are senior or subordinate to the Bonds issued under the Disclosure Document or unless the RBI specifies otherwise in its guidelines, the claims of the Bondholders shall be pari passu with claims of holders of such subsequent debentures/bond issuances of the Bank; (iv) rank pari passu without preference amongst themselves and other subordinated debt eligible for inclusion in Tier 1 / Tier 2 Capital as the case may be. The Bonds are not redeemable at the option of the Bondholders or without the prior consent of RBI.

The Bonds (including all claims, demands on the Bonds and interest thereon, whether accrued or contingent) are issued subject to loss absorbency features applicable for non-equity capital instruments issued in terms of Basel III Guidelines including in compliance with the requirements of Annex 5 thereof and are subject to certain loss absorbency features as described in bond prospectus and required of Tier 1/Tier 2 instruments at the Point of Non Viability as provided for in Annex 16 of the aforesaid Basel III Guidelines as amended from time to time. The Bonds are essentially non-equity regulatory instruments, forming part of a Bank's capital, governed by Reserve Bank of India (RBI) guidelines and issued under the issuance and listing framework given under Chapter VI of the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 (“NCRPS Regulations”). These instruments have certain unique features which, inter-alia, grant the issuer (i.e. banks, in consultation with RBI) a discretion in terms of writing down the principal/interest, to skip interest payments, to make an early recall etc. without commensurate right for investors to legal recourse, even if such actions of the issuer might result in potential loss to investors.

Payment of coupon on the Bonds is subject to the terms of Information Memorandum, including Coupon Discretion, Dividend Stopper Clause, Loss Absorption as contained in the Information Memorandum. The Bonds are subject to loss absorption features as per the guidelines prescribed by RBI.

37There may be no active market for the Bonds on the platform of the Stock Exchanges. As a result, the liquidity and market prices of the Bonds may fail to develop and may accordingly be adversely affected.

There is no assurance that a trading market for the Bonds will exist and no assurance as to the liquidity of any trading market. Although an application will be made to list the Bonds on the NSE and/or BSE, there can be no assurance that an active market for the Bonds will develop, and if such a market were to develop, there is no obligation on the issuer to maintain such a market. The liquidity and market prices of the Bonds can be expected to vary with changes in market and economic conditions, financial condition and prospects and other factors that generally influence market price of such instruments. Such fluctuations may significantly affect the liquidity and market price of the Bonds, which may trade at a discount to the price at which one purchases these Bonds.Issuer is not required to and will not create or maintain a Debenture Redemption Reserve (DRR) for the Bonds issued under this Disclosure Document.

As per the Companies (Share Capital and Debentures) Rules, 2014, as amended, no Debenture Redemption Reserve is required to be created by Banking Companies issuing debentures.

There is no assurance that the Tier I/Tier II bonds will not be downgrade.

The Rating agencies, which rate the Bonds, have a slightly different rating methodology for Tier I and Tier II bonds. In the event of deterioration of the financial health of the Issuer or due to other reasons, the rating of the Bonds may be downgraded whilst the ratings of other bonds issued by the issuer may remain constant.

In such a scenario, for Tier I and Tier II Bond holders may incur losses on their investment.

XIV. Risk factors associated with investment in Tri-Party Repo The mutual fund is a member of securities segment and Triparty Repo trade settlement of the Clearing Corporation of India (CCIL). All transactions of the mutual fund in government securities and in Tri-party Repo trades are settled centrally through the infrastructure and settlement systems provided by CCIL;

Thus, reducing the settlement and counterparty risks considerably for transactions in the said segments.

The members are required to contribute an amount as communicated by CCIL from time to time to the default fund maintained by CCIL as a part of the default waterfall (a loss mitigating measure of CCIL in case of default by any member in settling transactions routed through CCIL).

As per the waterfall mechanism, after the defaulter's margins and the defaulter's contribution to the default fund have been appropriated, CCIL's contribution is used to meet the losses. Post utilization of CCIL's contribution if there is a residual loss, it is appropriated from the default fund contributions of the non-defaulting members. Thus, the scheme is subject to risk of the initial margin and default fund contribution being invoked in the event of failure of any settlement obligations. In addition, the fund contribution is allowed to be used to meet the residual loss in case of default by the other clearing member (the defaulting member).

CCIL shall maintain two separate Default Funds in respect of its Securities Segment, one with a view to meet losses arising out of any default by its members from outright and repo trades and the other for meeting losses arising out of any default by its members from Triparty Repo trades. The mutual fund is exposed to the extent of its contribution to the default fund of CCIL, in the event that the contribution of the mutual fund is called upon to absorb settlement/default losses of another member by CCIL, as a result the scheme may lose an amount equivalent to its contribution to the default fund.

XV. Risk factors associated with Short Selling Short-selling is the sale of shares which are not owned by the seller at the time of trade. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock he shorted and returns the stock to close out the loan. If the price of the stock corrects, Short seller can buy the stock 38back for less than he received for selling it and earn profit (the difference between higher short sale price and the lower purchase price).If the price of stock appreciates, short selling results in loss. Thus, Short positions carry the risk of losing money and these losses may grow theoretically unlimited if the price increases without limit and shall result into major losses in the portfolio.

XVI. Risk factors associated with Repo in permitted Corporate Debt Securities In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at later date. The repurchase price should be greater than the original sale price, the difference effectively representing interest. A repo in corporate debt securities is economically similar to a secured loan, with the buyer receiving corporate debt securities as collateral to protect against default. Some of the risks associated with repo in corporate debt are given below:

Counterparty Risk: Counterparty risk refers to the inability of the seller to meet the obligation to buy back securities at the contracted price on the contracted date. In case of over the counter (OTC) repo trades, the investment manager will endeavour to manage counterparty risk by dealing only with counterparties having strong credit profiles. Also, the counter-party risk is to an extent mitigated by taking collateral equivalent in value to the transaction after knocking off a minimum haircut on the intrinsic value of the collateral. In the event of default by the repo counterparty, the scheme shall have recourse to the corporate debt securities. In case the repo transaction is executed on exchange platform approved by RBI/SEBI, the exchange may also provide settlement guarantee.

Collateral Risk: Collateral risk arises when the market value of the securities is inadequate to meet the repo obligations. This risk can be partly mitigated by restricting participation in repo transactions only in corporate debt securities which are approved by credit risk team. Additionally, to address the risk related to reduction in market value of corporate debt security held as collateral due to credit rating downgrade, the repo contract can incorporate either an early termination of the repo agreement or call for fresh margin to meet the minimum haircut requirement or call for replacement of security with eligible security.

Moreover, the investment manager may apply a higher haircut on the underlying security than required as per RBI/SEBI regulation to adjust for the illiquidity and interest rate risk on the underlying instrument.

To mitigate the risk of price reduction due to interest rate changes, the adequacy of the collateral can be monitored on a daily basis by considering the daily market value & applying the prescribed haircut. The fund manager or the exchange can then arrange for additional collateral from the counterparty, within a prespecified period. If the counterparty is not able to top-up either in form of cash / collateral, it would tantamount to early termination of the repo agreement, and the outstanding amount can be recovered by sale of collateral.

XVII. Risk factors related to Silver / Gold Instruments: • The NAV of Silver / Gold ETFs is related to the value of Silver / Gold held by the Silver / Gold ETF. The value (price) of Silver / Gold may fluctuate for several reasons and all such fluctuations will result in changes in the NAV of Silver / Gold ETFs. The factors that may affect the price of Silver / Gold, among other things, include demand and supply for Silver / Gold in India and in the global market, Indian and foreign exchange rates, interest rates, inflation trends, trading in Silver / Gold as commodity, legal restrictions on the movement/trade of Silver / Gold that may be imposed by RBI, Government of India or countries that supply or purchase Silver / Gold to/from India, trends and restrictions on import/export of Silver / Gold jewellery in and out of India, etc.

• Listing of the units of the Silver / Gold ETFs does not necessarily guarantee their liquidity and there can be no assurance that an active secondary market for the units will develop or be maintained.

Consequently, the ETF may quote below its face value / NAV. The market price of the Units of the ETF, like any other listed security, is largely dependent on two factors, viz., (1) the intrinsic value of the Unit (or NAV), and (2) demand and supply of Units in the market. Sizeable demand or supply of the Units in the Exchange may lead to market price of the Units to quote at premium or discount to NAV. To that extent the return from the Scheme shall differ from the return on Silver / Gold.

39XVIII. Risk factors associated for investments in Mutual Fund Schemes

1. Movements in the Net Asset Value (NAV) of these Schemes may impact the performance. Any change in the investment policies or fundamental attributes of these Schemes will affect the performance of the Scheme to the extent of investment in such schemes.

2. Redemptions by in these Schemes would be subject to applicable exit loads.

XIX. General Risk factors • Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. Different segments of the Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances leading to delays in receipt of proceeds from sale of securities. The NAV of the Units of the Scheme can go up or down because of various factors that affect the capital markets in general.

• As the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for redemption of Units may be significant in the event of an inordinately large number of redemption requests or restructuring of the Scheme. In view of the above, the Trustee has the right, in its sole discretion, to limit redemptions (including suspending redemptions) under certain circumstances, as described under section Right to Restrict Redemption and / or Suspend Redemption of the units.

• At times, due to the forces and factors affecting the capital market, the Scheme may not be able to invest in securities falling within its investment objective resulting in holding the monies collected by it in cash or cash equivalent or invest the same in other permissible securities / investments amounting to substantial reduction in the earning capability of the Scheme. The Scheme may retain certain investments in cash or cash equivalents for its day-to-day liquidity requirements.

• Investment strategy to be adopted by the Scheme may carry the risk of significant variance between the portfolio allocation of the Scheme and the Benchmark particularly over a short to medium term period.

• Performance of the Scheme may be affected by political, social, and economic developments, which may include changes in government policies, diplomatic conditions, and taxation policies. • The Scheme at times may receive large number of redemption requests, leading to an asset-liability mismatch and therefore, requiring the investment manager to make a distress sale of the securities leading to realignment of the portfolio and consequently resulting in investment in lower yield instruments.

C. Risk Management Strategies : (Consolidated Std. Obs. 9) The Fund by utilizing a holistic risk management strategy will endeavor to manage risks associated with investing.

Adequate safeguards would be incorporated in the portfolio management process. The main instrument for reducing risk is through diversification.

The fund will endeavour to manage the various risks associated with investing in equity and equity related instruments. Risk is expected to be reduced through diversification of portfolio across various sectors and market capitalizations. The various types of risks identified, and their risk management strategies are as follows:

Risk Type Risk Management Strategy

Quality Risk: Risk of investing in Investment Universe to be created based on qualitative and unsustainable/weak companies quantitative factors so as to select good quality companies.

40Price Risk: Risk of overpaying for a stock A detailed research to be done on a company before investing, about business fundamentals and valuations.

Concentration Risk: Risk of Concentration To invest across the market capitalization spectrum (though within the defined limits) and various industries.

Liquidity Risk: High Impact Costs To control liquidity at the portfolio construction stage.

Volatility Risk: Price Volatility due to To monitor overall portfolio volatility and control risk - company or portfolio specific factors stock/ sector exposures as required.

Event Risk: Price risk due to company, Understand businesses, macro-economic and global sector specific or market event events so as to respond to events effectively and speedily.

Corporate Governance Risk: Risk of investing Incorporate governance checks in the investment in companies with poor governance practices process, including board structure, disclosures, and audit quality.

Macroeconomic Risk: Impact of interest Regular macroeconomic analysis and scenario planning to rates, inflation, or GDP changes adjust sector and stock allocations.

Risk Mitigation measures for the major risks associated with fixed income securities are given below:

Risk Type Risk Management Strategy Interest Rate Risk The modified duration of a portfolio is one of the means Fixed income securities such as of measuring the interest rate risk of the portfolio. government bonds, corporate bonds, Higher is the modified duration, the fund stands exposed Money Market Instruments and to a higher degree of interest rate risk. The Fund Manager Derivatives run price-risk or interest-rate would decide on the modified duration to be risk. Generally, when interest rates rise, maintained for the portfolio at a particular point of time prices of existing fixed income securities after taking into account the current scenario and the fall and when interest rates drop, such investment objective of the scheme. The portfolio prices increase. The extent of fall or rise in duration will be decided after doing a thorough the prices depends upon the coupon and research on the general macroeconomic condition, maturity of the security. It also depends political environment, systemic liquidity, inflationary upon the yield level at which the security is expectations, corporate performance and other being traded.

macroeconomic considerations. The Investment Committee of the AMC would be monitoring the portfolios constantly and would be giving direction regarding portfolio modified duration to the Fund Manager.

Credit Risk The Investment Team would follow a bottom up This is the risk associated with the issuer of approach to create a debt Investment universe. The a debenture/bond or a Money Market investment team would carry out rigorous in depth Instrument defaulting on coupon payments credit evaluation of the money market and debt or in paying back the principal amount on instruments the scheme proposes to invest in. The maturity. Even when there is no default, credit evaluation will essentially be a bottom up the price of a security may change with approach and include a study of the operating expected changes in the credit rating of the environment of the issuer, the past track record as well issuer. It is to be noted here that a as the future prospects of the issuer and the short Government Security is a sovereign security term/long term financial health of the issuer. Data from and is the safest. Corporate bonds carry a external Credit Rating Agencies like CRISIL, ICRA, FITCH higher amount of credit risk than and CARE would be taken into account while Government Securities. Within corporate constructing this universe. This universe would be bonds also there are different levels of constantly monitored by the Investment Committee safety and a bond rated higher by a which would recommend any additions/deletions from particular rating agency is safer than a bond the investment universe.

41rated lower by the same rating agency.

Liquidity Risk The Fund Manager would maintain adequate cash/cash The liquidity of a bond may change, equivalent securities to manage the day to day depending on market conditions leading to redemptions of the fund. Attention would be given to changes in the liquidity premium attached the historic redemption trends while deciding on the to the price of the bond. At the time of cash equivalent component of the portfolios. Also, the selling the security, the security can Fund Manager and Dealer would be keeping track become illiquid, leading to loss in value of of various securities being traded in the market and the portfolio.

would strive to keep the component of illiquid securities in the portfolio at a low percentage of the total portfolio.

Debt Derivatives Risk The AMC has provision for using derivative instruments The use of debt derivatives involves for portfolio balancing and hedging purposes. Interest exposure to risks such as interest rate Rate Swaps will be done with approved counter parties movements, credit spreads, liquidity under pre-approved ISDA agreements. Mark to Market constraints, and counterparty defaults. of swaps, netting off of cash flow and default provision While derivatives can be effective tools for clauses will be provided as per standard practice on a hedging and portfolio rebalancing, they reciprocal basis. Interest Rate Swaps and other may also amplify losses if not managed derivative instruments will be used as per local (RBI and prudently.

SEBI) regulatory guidelines.

Concentration Risk The AMC will attempt to mitigate this risk by Concentration risk arises when a significant maintaining adequate diversification across issuers/ portion of the portfolio is invested in a sectors / instrument type in line with the scheme single issuer, sector, or geographical objectives, investment strategy and applicable region, which can lead to heightened regulations. This will also be managed by keeping volatility and potential losses during prudent investment limits on any particular industry or adverse market conditions.

issuer or issuer group based on the size, credit profile, etc. to reduce issuer or industry specific risk.

While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated.

II MORE INFORMATION ABOUT THE SCHEME:

A. Where will the scheme invest ? (Consolidated Std. Obs. 29) The Scheme will invest in securities as mentioned below. The investments will be made as per the limits specified in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations or any other applicable laws and guidelines.

• Equity and Equity related instruments: including (but not limited to) convertible debentures, equity warrants, convertible preference shares, equity derivatives and units of ReITs. • Debt securities:

Debt issuances by various types of issuers such as Government of India, State and local Governments, Government Agencies and statutory bodies, Corporate Entities, Public / Private sector undertakings, Public / Private sector banks and development financial institutions, etc. Debt issuances may include but are not

limited to:

1. Non-convertible debentures;

2. Bonds;

423. Secured premium notes;

4. Zero interest bonds;

5. Deep discount bonds;

6. Floating rate bond / notes;

7. Pass through certificates;

8. Asset backed securities;

9. Mortgage backed securities;

10. Securitized Debt, Structured Obligations, Credit enhanced Debt;

11. Non Convertible Preference Shares;

12. Debt with special features such as AT1 and AT2 Bonds

13. Reverse/ Reverse Repo in permitted corporate debt securities;

14. Any other permissible domestic fixed income instrument. • Money Market Instruments include:

1. Commercial papers

2. Commercial bills

3. Treasury bills

4. Government securities having an unexpired maturity upto one year

5. Tri-party Repos/ Reverse Repos on Government securities or treasury bills (TREPS)

6. Certificate of deposit

7. Usance bills

8. Permitted securities under a repo / reverse repo agreement Units of mutual funds The Scheme may, for meeting liquidity requirements invest in units of overnight schemes / liquid schemes of any mutual fund provided that aggregate inter-scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund. The AMC shall not charge any investment management fees with respect to such investment.

Investment in debt will usually be in instruments, which have been assessed as “high investment grade” by at least one credit rating agency authorized to carry out such activity under the applicable regulations.

Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC’s view regarding current market conditions, interest rate outlook and the stability of ratings.

Investments in Debt and Money Market Instruments will be as per the limits specified in the asset allocation table(s) of the Scheme, subject to permissible limits laid under SEBI (MF) Regulations. • Units of domestic Mutual Fund Schemes including Exchange Traded Funds (ETFs) • Derivatives • Short Term deposits • Infrastructure Investment Trusts (InVITs) • Any other domestic fixed income securities as permitted by SEBI, subject to requisite approvals from SEBI/RBI, if needed • Cash & cash equivalents.

• Any other instruments as may be permitted by RBI / SEBI from time to time, subject to necessary regulatory approvals.

Investments in both equity and debt will be made through secondary market purchases, initial public offers, other 43public offers, placements and right offers (including renunciation). The securities could be listed, unlisted (as permitted), privately placed, secured/unsecured, rated/unrated.

The following are certain additional disclosures w.r.t. investment in securitized debt:

1. How the risk profile of securitized debt fits into the risk appetite of the scheme Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn issues Pass-Through-Certificates (PTCs).

These PTCs are transferable securities with fixed income characteristics. The risk of investing in securitized debt is similar to investing in debt securities. However it differs in two respects.

Typically the liquidity of securitized debt is less than similar debt securities. For certain types of securitized debt (backed by mortgages, credit card debt, etc.), there is an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which may reduce returns if the re- investment rates are lower than initially envisaged.

Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns, he may invest in securitized debt up to the limits specified in the asset allocation table above.

2. Policy relating to originators based on nature of originator, track record, NPAs, losses in earlier securitized debt, etc.

The originator is the person who has initially given the loan. The originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). An analysis of the originator is especially important in case of retail loans as this affects the credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of the originator. For example, losses or performance of earlier issuances does not indicate quality of current series. However such past performance may be used as a guide to evaluate the loan standards, servicing capability and performance of the originator.

Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies, etc. The fund manager/credit analyst evaluates originators based on the following parameters: • Track record • Willingness to pay, through credit enhancement facilities etc.

• Ability to pay • Business risk assessment, wherein following factors are considered: - Outlook for the economy (domestic and global) - Outlook for the industry - Company specific factors In addition a detailed review and assessment of rating rationale is done including interactions with the originator as well as the credit rating agency.

The following additional evaluation parameters are used as applicable for the originator / underlying issuer

for pool loan and single loan securitization transactions: • Default track record/ frequent alteration of redemption conditions / covenants • High leverage ratios of the ultimate borrower (for single-sell downs) - both on a standalone basis as well on a consolidated level/ group level • Higher proportion of reschedulement of underlying assets of the pool or loan, as the case may be 44• Higher proportion of overdue assets of the pool or the underlying loan, as the case may be • Poor reputation in market • Insufficient track record of servicing of the pool or the loan, as the case may be.

3. Risk mitigation strategies for investments with each kind of originator An analysis of the originator is especially important in case of retail loans as the size and reach affects the credit quality and servicing of the PTC. In addition, the quality of the collection process, infrastructure and follow-up mechanism; quality of MIS; and credit enhancement mechanism are key risk mitigants for the better originators/servicers.

In case of securitization involving single loans or a small pool of loans, the credit risk of the underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of evaluating the performance potential of the PTC. Securitization transactions may include some risk mitigants (to reduce credit risk). These may include interest subvention (difference in interest rates on the underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the senior tranches get paid before the junior tranche) and/ or guarantees.

4. The level of diversification with respect to the underlying assets, and risk mitigation measures for less diversified investments In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk.

The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of judging the performance potential of the PTC. Additional risk mitigants may include interest subvention, over collateralization, presence of an equity / subordinate tranche and / or guarantees. The credit analyst also uses analysis by credit rating agencies on the risk profile of the securitized debt.

Currently, the following parameters are used while evaluating investment decision relating to a pool securitization transaction. The Investment Committee may revise the parameters from time to time:

Characteristics/ Type Mortgage Commercial CAR 2 Micro Personal Single Others of Pool Loan Vehicle and wheelers Finance Loans* Sell Construction Pools* Downs Equipment Approximate Average Up to 10 Up to 3 years Up to 3 Up to 3 NA NA Refer Refer Maturity (in years years years Note 1 Note months) 2 Collateral margin >10% >10% >10% >10% NA NA Refer Refer (including cash, Note 1 Note guarantees, excess 2 interest spread, subordinate tranche) 45Average Loan to <90% <80% <80% <80% NA NA Refer Refer Value Ratio Note 1 Note 2 Average seasoning >3 >3 months >3 >3 NA NA Refer Refer of months months months Note 1 Note the Pool 2 Maximum single <1% <1% <1% <1% NA NA Refer Refer exposure range Note 1 Note 2 Average single <1% <1% <1% <1% NA NA Refer Refer exposure range Note 1 Note % 2 * Currently, the Schemes will not invest in these types of securitized debt Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. The investment limits applicable to the underlying borrower are applied to the single loan sell-down.

Note 2: Other investments will be decided on a case-to-case basis The credit analyst may consider the following risk mitigating measures in his analysis of the securitized

debt: • Size of the loan • Average original maturity of the pool • Loan to Value Ratio • Average seasoning of the pool • Default rate distribution • Geographical Distribution • Credit enhancement facility • Liquid facility • Structure of the pool

5. Minimum retention period of the debt by originator prior to securitization Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period of between nine and twelve months for assets before they can be securitized.

The minimum holding period depends on the tenor of the securitization transaction. The Fund will invest in securitized debt that are compliant with the laws and regulations.

6. Minimum retention percentage by originator of debts to be securitized Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements, including maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention requirement of between five and ten percent of the book value of the loans by the originator. The minimum retention requirement depends on the tenor and structure of the securitization transaction. The Fund will invest in securitized debt that are compliant with the laws and regulations.

467. The mechanism to tackle conflict of interest when the mutual fund invests in securitized debt of an originator and the originator in turn makes investments in that particular scheme of the fund The key risk is securitized debt relates to the underlying borrowers and not the originator. In a securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer. However, the originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). As the originators may also invest in the scheme, the fund manager shall ensure that the investment decision is based on parameters as set by the Investment Review Committee (IRC) of the asset management company and IRC shall review the same at regular interval.

8. The resources and mechanism of individual risk assessment with the AMC for monitoring investment in securitized debt The fund management team including the credit analyst has the experience to analyze securitized debt.

In addition, credit research agencies provide analysis of individual instruments and pools. On an on- going basis (typically monthly) the servicer provides reports regarding the performance of the pool.

These reports would form the base for ongoing evaluation where applicable. In addition, rating reports indicating rating changes would be monitored for changes in rating agency opinion of the credit risk.

a) Repo As per Section 45U (c) of RBI Act, 1934, “repo” means an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed.

b) Reverse repo As per Section 45U (c) of RBI Act, 1934, “reverse repo” means an instrument for lending funds by purchasing securities with an agreement to resell the securities on a mutually agreed future date at an agreed price which includes interest for the funds lent.

c) Triparty Repo According to Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018, triparty repo means a repo contract where a third entity (apart from the borrower and lender), called a Triparty Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody, and management during the life of the transaction.

d) Derivative instruments like Stock/Index Futures, Stock/Index Options, Interest Rate Future, Interest Rate Swap, Forward Rate Agreement and such other derivative instruments permitted by SEBI. e) Cash & cash equivalents Cash Equivalent shall consist of following securities having residual maturity of less than 91 days: (Consolidated Std. Obs.14)

(i) Government Securities; (ii) T-Bills; and (iii) Repo on Government securities f) Investment in debt instruments having structured obligations/credit enhancements. g) Non-convertible Preference shares.

h) Repo transactions in corporate debt securities. i) Units of REITs & InvITs “REIT” or “Real Estate Investment Trust” under SEBI (Real Estate Investment Trusts) Regulations, 472014 means a person that pools rupees fifty crores or more for the purpose of issuing units to at least two hundred investors so as to acquire and manage real estate asset(s) or property(ies), that would entitle such investors to receive the income generated therefrom without giving them the day-to-day control over the management and operation of such real estate asset(s) or property(ies).

“InvIT” or “Infrastructure Investment Trust” shall mean the trust registered as such under SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Explanation 1. –For the purpose of these regulations, a REIT or Real Estate Investment Trust shall include an SM REIT under Chapter VIB of these regulations.

Explanation 2. –For the removal of doubts, it is hereby clarified that for the purpose of these regulations, any company which acquires and manages real estate asset(s) or property(ies) and offers or issues securities to the investors, shall not be construed as a REIT or Real Estate Investment Trust.

j) Debt instruments with special features. Investments in debt instruments with special features will be made in accordance with Para 13.1.9 of SEBI Master Circular for Mutual Funds dated March 20, 2026.

k) Units of Mutual Funds Schemes/Exchange Traded Funds. l) Any other domestic fixed income securities subject to requisite approvals from SEBI/RBI, if needed. m) Pending deployment of funds of the scheme in securities in terms of the investment objective of the scheme, the AMC may park the funds of the scheme in short term deposits of scheduled commercial banks, subject to the guidelines as amended from time to time.

Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be allowed, in lines with Para 13.19 of SEBI Master Circular for Mutual Funds dated March 20, 2026.

The Fund Manager reserves the right to invest in any other securities that may be permitted from time to time and that align with the scheme's investment objectives. Any change in the asset allocation affecting the investment profile of the scheme will be effected only in accordance with SEBI (MF) Regulations.

Overview of Debt Market:

The major players in the Indian Debt Markets are banks, financial institutions, insurance companies and mutual funds. The instruments in the market can be broadly categorized as those issued by corporate, banks, financial institutions and those issued by state/central governments. The risk associated with any investments are – credit risk, interest rate risks and liquidity risk. While corporate papers carry credit risk due to changing business conditions, government securities are perceived to have zero credit risk. Interest rate risk is present in all debt securities and depends on a variety of macroeconomic factors. The liquidity risk in corporate securities market is higher compared to those of government securities. The liquidity risk in corporate securities market is higher compared to those of government securities. Liquidity in the corporate debt market has been improving due to the entry of more players and due to various measures taken by the regulators to increase the liquidity and transparency such as introduction of repo in corporate bonds, Credit Default Swaps, compulsory reporting of secondary market OTC transactions on exchange platforms to name a few. Moreover, the recent successful introduction of Interest Rate Future in the benchmark 10 year Government Bond will also likely to increase the depth in the debt market.

48The market participants in the corporate debt and gilt markets are banks, financial institutions, mutual funds, corporates, insurance companies, FPIs, primary dealers and provident funds. The main debt instruments in the market are those issued by Corporates and State/Central Governments. Corporate papers carry credit risk while government securities are believed to carry no credit risk. The main risks with investments in debt securities are interest rate risk, credit risk and liquidity risk. Interest rate risk associated with debt instruments depend on the macroeconomic environment. It includes both market price changes due to change in yields as well as coupon reinvestment rate risk. Corporate papers carry higher liquidity risk as compared to gilts due to the depth of the gilt market.

Money Market:

Money market encompasses a wide range of instruments with maturities ranging from one day to a year, issued by Government, Banks and corporates etc. and traded in markets of varying liquidity. The risk associated with any investments are – credit risk, interest rate risk and liquidity risk. However, such risks are lower in case of money market instruments compare to other debt instruments. Further, within the gamut of money market instruments as available in the market, such risks are very low in case of instruments issued by government. While corporate papers carry credit risk due to changing business conditions, government securities are perceived to have zero credit risk.

The following table attempts to give a broad overview of the available instruments in the financial markets and their risk return profile. The data given in the table is based on market conditions during the month ended January 2026 and can at best be considered indicative:

Expected Yields Range on Debt Securities as on 31.01.2026 Instrument Yield Range (% per annum) Inter bank Call Money 4.89 – 5.52 91 Day Treasury Bill 5.31 – 5.50 364 Day Treasury Bill 5.58 – 5.74 A1+ Commercial Paper 90 Days 6.00 – 6.50 5 Year Government of India Security 6.31 – 6.53 10 Year Government of India Security 6.58 – 6.72 15 Year Government of India Security 6.99 – 7.14 1 Year Corporate Bond – AAA Rated 6.83 – 7.18 3 Year Corporate Bond – AAA Rated 6.89 – 7.21 5 Year Corporate Bond – AAA Rated 7.12 – 7.34 B. What are the investment restrictions? Pursuant to SEBI (MF) Regulations, 2026 and Master Circular for Mutual Funds dated March 20, 2026, the

following investment restrictions are applicable to the scheme:

1. The Scheme shall not invest more than 10% of its NAV in the equity shares or equity related instruments of any entity.

2. All investments by a mutual fund scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed.

3. The Mutual Fund under all its Scheme(s) shall not own more than 10% of any company’s paid up capital carrying voting rights or ten per cent of units of REITs issued by a single issuer, as the case may be.

49Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.

4. As per to Paragraph 13.1.2(a) &(b) of Master Circular for Mutual Funds dated March 20, 2026 , the Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Act Such investment limit may be extended to 12% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of directors of the asset management company. Within the limits specified in to Paragraph 13.1.2(a) &(b) of Master Circular for Mutual Funds dated March 20, 2026, a

mutual fund scheme shall not invest more than: a. 10% of its NAV in debt and money market securities rated AAA issued by a single issuer; or b. 8% of its NAV in debt and money market securities rated AA issued by a single issuer; or c. 6% of its NAV in debt and money market securities rated A and below issued by a single issuer The above investment limits may be extended by up to 2% of the NAV of the scheme with prior approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with the overall 12% limit specified in Paragraph 13.1.2 (b) of Master Circular for Mutual Funds for Mutual Funds dated March 20, 2026. The long-term rating of issuers shall be considered for the money market instruments.

Such limit shall not be applicable for investments in debt exchange traded funds, Government Securities, treasury bills and triparty repo on Government securities or treasury bills.

Provided further that investments within such limit can be made in the mortgaged backed securitised debt, which are rated not below investment grade by a credit rating agency registered with SEBI.

Such limit is not applicable for investment in securitized debt (mortgage backed securities and asset backed securities), at the originator level.

The long term rating of issuers shall be considered for the money market instruments. However, if there is no long term rating available for the same issuer, then based on credit rating mapping of Credit Rating Agencies between short term and long term ratings, the most conservative long term rating shall be taken for a given short term rating. Exposure to government money market instruments such as TREPS on G-Sec/ T-bills shall be treated as exposure to government securities.

5. The Scheme shall invest in unlisted Non Convertible Debentures (NCDs) having 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, up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified from time to time.

Provided further that the scheme shall not invest in any other 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.

6. The Scheme shall invest up to 5% of the net assets of the scheme, in unrated debt instruments/securities including bills re-discounting, usance bills, etc., that are generally not rated and for which separate investment norms or limits are not provided in MF Regulations and various circulars issued thereunder subject to such conditions as may be specified from time to time.

50Provided that all such investments shall be made with the prior approval of the Board of AMC and the Board of trustees.

Provided further that the limit specified is for investment in unrated debt and money market instruments, other than government securities, treasury bills, derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF) etc. by mutual fund schemes.

7. The investment of the Scheme in the following instruments as per Paragraph 13.1.10 of SEBI Master

Circular for Mutual Funds dated March 20, 2026, shall not exceed 10% of the debt portfolio of the Scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the

Scheme: • Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements) is below investment grade; and • Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is above investment grade. The above limits shall not be applicable on investments in securitized debt instruments. Investment by the Scheme in debt instruments, having credit enhancements backed by equity shares directly or indirectly, shall have a minimum cover of 4 times considering the market value of such shares. Further, the investment in debt instruments having credit enhancements should be sufficiently covered to address the market volatility and reduce the inefficiencies of invoking of the pledge or cover, whenever required, without impacting the interest of the investors. In case of fall in the value of the cover below the specified limit, AMCs will initiate necessary steps to ensure protection of the interest of the investors.

8. Prudential investment norms as per MF Regulations stipulating limits for investments in debt securities issued by a single issuer are applicable to all debt securities issued by public bodies or institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either State / Central Government. Government securities issued by Central and/or State Government or on its behalf, by the RBI are however exempt from these limits.

9. The Scheme may invest in another scheme under the same AMC or any other mutual fund without charging any fees, provided that aggregate inter-scheme investment made by all schemes under the same AMC or in schemes under the management of any other asset management shall not exceed 5% of the net asset value of the Mutual Fund.

10. The Scheme shall not make any investments in: (a) any unlisted security of an associate or group company of the Sponsors; or (b) any security issued by way of private placement by an associate or group company of the Sponsors; or (c) the listed securities of group companies of the Sponsors which is in excess of 25% of the net assets.

11. The Scheme shall not invest in any Fund of Funds Scheme.

12. Transfer of investments from one scheme to another scheme in the same Mutual Fund, shall be

allowed only if: - a) such transfers are made at the prevailing market price for quoted Securities on spot basis (spot basis shall have the same meaning as specified by Stock Exchange for spot transactions).

b) the securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. c) the same are in line with Paragraph 13.19 of SEBI Master Circular for Mutual Funds dated March 20, 2026. Consolidated Std. Obs. 30

5113. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities:

• Provided that the Mutual Fund may engage in securities lending in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. • Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI.

• Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard.

14. The Mutual Fund shall enter into transactions relating to Government Securities only in Electronic form.

15. The mutual fund shall get the securities purchased / transferred in the name of the mutual fund on account of the concerned scheme, except in respect of such securities as may be specified by the board from time to time.

16. Pending deployment of funds of a scheme in terms of investment objectives of the scheme, a mutual fund may invest them in short term deposits of schedule commercial banks, subject to Paragraph 13.7 and 5.6 of Master Circular for Mutual funds dated March 20, 2026 , as may be amended from time to time. The AMC shall not charge any investment management and advisory fees for parking of funds in such short term deposits of scheduled commercial banks for the scheme.

a. The term ‘short term’ for parking of funds shall be treated as a period not exceeding 91 days. b. Such deposits shall be held in the name of each Scheme. c. Each Scheme shall not park more than 15% of its net assets in the short term deposit(s) of all the scheduled commercial banks put together. However, it may be raised to 20% with the prior approval of the Trustee. Also, parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits.

d. Each Scheme shall not park more than 10% of its net assets in short term deposit(s) with any one scheduled commercial bank including its subsidiaries. e. Trustees /AMC will ensure that no funds of a scheme is parked in Short term deposit of a bank which has invested in that scheme and the bank in which a scheme has short term deposit do not invest in that scheme until the scheme has short term deposit with such bank. The above provisions do not apply to term deposits placed as margins for trading in cash and derivative market.

17. Investments in Derivatives shall be in accordance with the guidelines as stated under Paragraph 8.5,8.6 and 13.15 of SEBI Master Circular for Mutual Funds dated March 20, 2026,as may be amended from time to time.

18. Investment restrictions w.r.t. InvITS: a. The Mutual Fund under all its schemes shall not own more than 10% of units issued by a single issuer of InvIT. b. The Scheme shall not invest more than 10% of its NAV in the units of InvITs.

c. The Scheme shall not invest more than 5% of its NAV in the units of InvITs issued by a single issuer.

19. Participation in Repo in Corporate Debt Securities is subject to the following restrictions: a. Gross exposure to corporate bond repo transaction should not be more than 10% of the net asset of the scheme.

b. The total cumulative gross exposure (i.e. Repo + Equity + Debt + Derivatives) shall not exceed 100% of the net assets of the scheme c. The Scheme will participate in repo transactions only in Listed AA and above rated corporate debt 52securities, Commercial Papers (CPs) and Certificates of Deposits (CDs).

d. In terms of Regulation 42(1) of SEBI (MF) Regulations, 2026, mutual funds shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months.

20. The scheme may invest in certain debt instruments with special features viz. subordination to equity (absorbs losses before equity capital) and/or convertible to equity upon trigger of a pre-specified event for loss absorption (For e.g. Additional Tier I bonds and Tier 2 bonds issued under Basel III framework)

subject to the following: a. A Mutual Fund, under all its schemes shall not own more than 10% of such instruments issued by a single issuer b. A Mutual Fund scheme shall not invest: i. more than 10% of its NAV of the debt portfolio of the scheme in such instruments; and ii. more than 5% of its NAV of the debt portfolio of the scheme in such instruments issued by a single issuer.

The above investment limit for a mutual fund scheme shall be within the overall limit for debt instruments issued by a single issuer, as specified at Paragraph 13.1(2) of SEBI master Circular for Mutual Funds dated March 20, 2026, and other prudential limits with respect to the debt instruments.

21. The Scheme may write call options only under a covered call strategy for constituent stocks of NIFTY 50 and BSE SENSEX subject to the following: i. The total notional value (taking into account strike price as well as premium value) of call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme.

ii. The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism, margin or any other kind of encumbrances.

iii. At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph (i) and

(ii) above. In case of any passive breach of the requirement at paragraph (i), the respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing period, no additional call options can be written in the said scheme. iv. In case the Scheme needs to sell securities on which a call option is written under a covered call strategy; it must ensure compliance with paragraphs (i) and (ii) above while selling the securities. v. In no case, the scheme shall write a call option without holding the underlying equity shares. A call option can be written only on shares which are not hedged using other derivative contracts iv. The premium received shall be within the requirements prescribed in terms of Paragraph 13.18.3 of SEBI Master Circular for Mutual Funds dated March 20, 2026 i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets of the scheme.

v. The exposure on account of the call option written under the covered call strategy shall not be considered as exposure in terms of Paragraph 13.15.1 of SEBI Master Circular for Mutual Funds dated March 20, 2026.

vi. The call option written shall be marked to market daily and the respective gains or losses factored into the daily NAV of the respective scheme(s) until the position is closed or expired.

22. Borrowings by Mutual Fund The amount of intraday borrowings shall not exceed the guaranteed receivables due on the same day from Government of India, Reserve Bank of India and Clearing Corporation of India Limited. The

following receivables on the day of redemption shall be eligible for intraday borrowings:

(i) Maturity proceeds from TREPS 53(ii) Proceeds from Reverse Repo

(iii) Maturity proceeds from G-Sec/ T-bill/ SDL/ STRIPS

(iv) Interest on G-Sec/ SDL

(v) Sale proceeds of G-Sec/ T-bill/ SDL/ STRIPS The conditions for Intraday borrowing by Mutuals funds shall be in terms of Regulation 42(1) and Regulation 42(2) of SEBI (MF) Regulations.

There are no internal norms vis-à-vis limiting exposure to a particular scrip or sector, etc. apart from the aforementioned investment restrictions. (Consolidated Std. Obs. 19) The AMC/Trustee may alter these above stated restrictions from time to time to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective.

C. Fundamental Attributes (Consolidated Std. Obs. 59) Following are the “fundamental attributes” of the Scheme, in terms of in terms of clause 1.14 of SEBI Master

Circular dated June 27, 2024:

1. Type of a scheme: An open ended equity scheme investing in both large cap and mid cap stocks.

2. Investment Objective ● Main Objective: The objective of the scheme is to generate long-term capital appreciation through a portfolio predominantly invested in equity and equity related instruments of large cap and mid cap companies.

However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. ● Investment Pattern: Please refer to Section-I - Part II – Section “How will the scheme allocate it’s assets”.

3. Terms of Issue ● Sale of Units: The Scheme(s) will offer Units for Redemption/Switch out on every Business Day at NAV based prices except in special circumstances described in this Scheme Information Document.

● Liquidity: The scheme would provide repurchase facility to investors on an ongoing basis on all business day. ● Aggregate Fees and Expenses: Please refer to Section-I – Part III - C. Annual Scheme Recurring Expenses.

● Any safety net or guarantee provided- None.

In accordance with Regulation 22(9)(c)) of the SEBI (MF) Regulations, 2026 and Paragraph 1.9.2 of SEBI Master

Circular for Mutual Funds the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plans(s)/Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out

unless: ● SEBI has reviewed and provided its comments on the proposal; ● A written communication (including digital modes such as email/sms etc.) about the proposed change is sent to each Unitholder and details as specified by the Board are appropriately displayed on the 54website of the AMC; and ● The Unit holders are given an option for a period of at least 30 calendar days to exit at the prevailing Net Asset Value without any Exit Load.

D. Index Methodology (for index funds, ETFs and FOFs having one underlying domestic ETF): Not Applicable E. Principles of incentive structure for market makers (for ETFs) : Not Applicable F. Floors and ceiling within a range of 5% of the intended allocation against each sub class of asset, as per Paragraph 14.5 of SEBI Master Circular for Mutual Funds (only for close ended debt schemes) – Not Applicable G. Other Scheme Specific Disclosures:

Listing and transfer of units The scheme is an open ended scheme and would not be listed on any of the stock exchanges. The Trustees, at its discretion, can undertake listing on any of the stock exchange on a later date. The units of the schemes in Demat mode are freely transferable. The units of the scheme can be transferred in demat form in addition to the account statement. Additions/ deletion of names will not be allowed under any folio of the scheme. This however will not apply in case of death of unitholder (in respect of joint holdings) as this would be treated as transmission of units and not transfer.

For more details, refer SAI.

Dematerialization of units Pursuant to Paragraph 15.7.3 of SEBI Master Circular for (Consolidated Std. Obs. 57) Mutual Funds dated March 20, 2026, Choice Mutual Fund will provide an option to the investors of the Fund to mention demat account details in the subscription form, in case they desire to hold units in the dematerialised mode. The option to subscribe to the units in the dematerialised mode is available for all the schemes of the Fund, except for subscription through Systematic Investment Plan (SIP) and for plans/options.

Minimum Target amount The Scheme seeks to collect Rs. 10,00,00,000/- (Rupees Ten (This is the minimum amount Crores) as the minimum Subscription and would retain any required to operate the scheme and if excess Subscription collected. If the Scheme does not collect this is not collected during the NFO the minimum Subscription during the NFO, refund will be made period, then all the investors would within 5 Business Days from closure of the NFO.

be refunded the amount invested without any return.) Maximum Amount to be raised (if There is no limit to the maximum amount that can be raised by any) the Scheme.

Dividend Policy (IDCW) Not Applicable.

Allotment (Detailed procedure) • AMC will allot Units within 5 business days of NFO closure (Consolidated Std. Obs. 60) to those applicants whose valid applications have been accepted and funds have been credited to the Scheme’s bank account.

• For applicants applying through ASBA on allotment, the amount will be unblocked in their respective bank 55accounts and their bank accounts will be debited only to the extent required to pay for allotment of Units applied in the application form.

• The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 Business Days of receipt of valid application/transaction to the unitholders to their registered e-mail address and/ or mobile number.

• The amount for fractional units, if any, will be refunded to the Investor. The AMC/Trustee may reject any application for Subscription if found incomplete. • Post-NFO, on an ongoing basis, units will be allotted for purchases, switch-ins, and SIP instalments at the applicable NAV (subject to applicable cut-off timings and realization of funds) • Post NFO the asset management company shall issue units in dematerialized form to a unit holder in a scheme within two working days of the receipt of request from the unit holder.

• For allotment undertaken in demat form, the account statement shall be sent by the depository / depository participant and not by the AMC • For those investors who have provided an e-mail address, the AMC would send the account statement by e-mail instead of physical statement. The investor may request for an account statement by contacting us at any of the service centers and the AMC shall provide the account statement to the investor within five business days from the receipt of such request.

• Consolidated Account Statement (CAS) for each calendar month would be issued to the investors within 12 days from the month end in case of delivery through electronic mode and within 15 days from the month end in case of delivery through physical mode. Further, in case of electronic mode, CAS would be sent by email to the email id of the first unitholder as per KYC records.

• Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before the eighteenth day of April and October, to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable. In case CAS is 56requested through physical mode, same shall be sent on or before the twenty-first day of April and October.

• In case of a specific request received from the unitholder, the AMC shall provide the account statement to such unitholder within 5 business days from the receipt of such request. • In the case of joint holding in a folio, the first named unitholder shall receive the CAS/account statement. The holding pattern must be the same across all folios across all the Mutual Funds for the unitholder(s) to receive CAS.

• In case no transactions have taken place in a folio during the period of six months ended September 30 and March 31, CAS detailing holdings across all schemes across all mutual funds shall be emailed at the registered email address of the unitholders on half yearly basis, on or before the eighteenth day of April and October, unless a specific request is made to receive the same in physical form. In case CAS is requested through physical mode, same shall be sent on or before the twenty-first day of April and October.

• Each CAS issued to the investors shall also provide the total purchase value / cost of investment in each scheme. • Further, CAS issued for the half-year (September/ March)

shall also provide: i. The amount of actual commission paid by the Mutual Fund to distributors (in absolute terms) during the half-year period against the concerned investor’s total investments in each MF scheme. The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by AMCs/MFs to distributors.

ii. The scheme’s average Total Expense Ratio (in percentage terms) along with the break up between Investment and Advisory fees, commission paid to the distributor and other expenses for the period for each scheme’s applicable plan where the concerned investor has actually invested in.

• This CAS on a half year basis shall be issued to all MF investors excluding those investors who do not have any holdings in mutual fund schemes and where no 57commission against their investment has been paid to distributors during the concerned half year period.

• In case of the units are held in dematerialized (demat) form, the statement of holding of the beneficiary account holder will be sent by the respective Depository Participant periodically. • CAS for investors having Demat account:

i. Investors having mutual fund investments and holding securities in demat account shall receive a single CAS from the Depository. ii. CAS shall be done on the basis of Permanent Account Number (PAN). In case of multiple holding, it shall be PAN of the first holder and pattern of holding. The CAS shall be generated on a monthly basis.

iii. If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, depositories shall send the CAS within 12 days from the month end in case of delivery through electronic mode and within 15 days from the month end in case of delivery through physical mode. In case, there is no transaction in any of the mutual fund folios and demat accounts, CAS with holding details shall be sent to the investor on half yearly basis on or before the eighteenth day of April and October, unless a specific request is made to receive the same in physical form. In case CAS is requested through physical mode, same shall be sent on or before the twenty-first day of April and October.

iv. In case an investor has multiple accounts across two depositories, the depository with whom the account has been opened earlier will be the default depository for the purpose of sending CAS to such investor.

• The dispatch of CAS by the depositories would constitute compliance with the requirement under Regulation 36(4) of SEBI (Mutual Funds) Regulations.

Refund If application is rejected, the full amount is refunded within 5 business days of NFO closure; no interest if refunded within this period. Delays beyond 5 business days attract 15% p.a. interest, charged to AMC for the period from the day following the date of expiry of five Business Days until the actual date of the refund. Refunds are made to the applicant (sole) or first applicant (joint) using bank details specified in the application.

Any bank/collection charges are borne by the applicant.

Refunds are sent via registered post, courier, or as per SEBI regulations.

58Who can invest The following persons may apply for Subscription to the units This is an indicative list and investors of the Scheme (subject, wherever relevant, to purchase of units shall consult their financial advisor to of mutual funds being permitted under respective ascertain whether the scheme is constitutions, relevant statutory regulations and with all suitable to their risk profile.

applicable approvals): ● Resident individuals (single/joint up to 3) or on anyone/survivor basis ● Minors through parent/guardian ● Companies, bodies corporate, Public Sector Undertakings (PSUs), co-operative societies, Association of Persons or Body of Individuals whether incorporated or not and, societies registered under the Societies Registration Act, 1860 (so long as the purchase of units is permitted under the respective constitutions) ● Charitable or religious trusts, wakf boards, endowments, private trusts authorised to invest in mutual fund schemes under their trust deeds ● Non Government Organisations as may be permitted by their regulator) ● Proprietorship in the name of Sole proprietor, partnership firms, Limited Liability Partnerships (LLPs) ● Hindu Undivided Family (HUFs) in the name of Karta ● Banks (including co-operative banks & regional rural banks), financial institutions & investment institutions ● Non-resident Indians / Persons of Indian origin residing abroad (NRIs) on full repatriation basis or non- repatriation basis) ● Qualified Foreign Investors (QFI) on repatriation basis ● Foreign Portfolio Investors (FPIs)/sub-accounts registered with SEBI (subject to to regulations / directions prescribed by the RBI/SEBI from time to time relating to FPI investments in mutual fund schemes) on repatriation basis.

● Army, Air Force, Navy, Armed forces, paramilitary funds, and other eligible institutions ● Scientific & industrial research organizations ● SEBI-registered Mutual Funds/Alternative Investment Funds ● Provident, pension, gratuity, superannuation & such other retirement and employee benefit and other similar funds as and when permitted to invest ● International multilateral agencies/bodies corporates incorporated outside India approved by the Government of India/RBI.

59● Special Purpose Vehicles (SPVs) (with authority/RBI approval) ● Unincorporated bodies accepted by AMC/Trustee ● Trustee, AMC, Sponsor of MF or their associates ● Other schemes of Choice MF subject to the conditions and limits prescribed by SEBI and/or by the Trustee/ AMC ● Insurers, insurance companies / corporations registered with the Insurance Regulatory Development Authority ● Any other category of investor permitted to invest under their respective constitution / applicable law The above list is indicative and the applicable law, if any, would supersede the above list. Investors are requested to ensure compliance with the regulatory guidelines applicable to them, while making such investments.

Subject to the Regulations, any application for subscription of Units may be accepted or rejected if found incomplete or due to unavailability of underlying securities, etc. For example, the Trustee may reject any application for the Purchase of Units if the application is invalid or incomplete or if, in its opinion, increasing the size of any or all of the Scheme's Unit capital is not in the general interest of the investors, or if the Trustee for any other reason does not believe that it would be in the best interest of the Scheme or its investors to accept such an application.

Who cannot invest The following persons are not eligible to subscribe to the Units

of the Scheme: ● Residents in Canada. ● United States Persons (U.S. Persons) and Non-resident Indians/Persons of Indian Origin residing in the United States and Canada. ● Persons residing in the Financial Action Task Force

(FATF) Non Compliant Countries and Territories

(NCCTs).

Any entity who is not permitted to invest in the Scheme as per its constitution / applicable regulations.

The Fund reserves the right to include/exclude new/existing categories of investors who can invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, as applicable.

The AMC/Trustee shall not be liable for any loss or expenses incurred in respect of those transaction requests/allotted units which have been kept on hold or rejected or reversed.

60How to Apply and other details Refer to the SAI and application form on

https://www.choicemf.com/ for detailed process (physical/online), including NFO, ongoing purchases, NRIs, FPIs, foreign investors, and joint applications.

Applications for subscription/redemption/switches can be

submitted at: ● Official Points of Acceptance of AMC & CAMS ● AMC website & digital platforms ● Distributor/RIA platforms, Stock Exchange mechanism ● CAMS electronic platform, MF Central ● NFO subscriptions are also allowed through ASBA facility (only via SEBI-listed banks).

MANDATORY QUOTING OF BANK MANDATE BY INVESTORS As per the directives issued by SEBI, it is mandatory for applicants to mention their bank account numbers in their applications and therefore, Investors are requested to fill-up the appropriate box in the application form failing which applications are liable to be rejected.

The policy regarding reissue of The units under the Scheme once Repurchased, shall not be repurchased units, including the reissued. maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same.

Restrictions, if any, on the right to The units of the Scheme held in demat mode, the same are freely retain or dispose of units being freely transferable. Further, the unit holders will have to offered.

approach their DP for transfer, transmission, pledge related requests etc. which shall be done by the DP in accordance with the procedural requirements laid down by the Depositories, viz. NSDL/ CDSL and/or in accordance with the provisions laid under the Depositories Act, 1996 and the Regulations thereunder.

Suspension of Sale and Redemption of Units:

Suspension of Sale and Redemption of Units Suspension or restriction of repurchase/ redemption facility under any scheme of the mutual fund shall be made applicable only after obtaining the approval from the Boards of Directors of the AMC and the Trustees.

Pursuant to paragraph -No. 1.12 of SEBI Master Circular No.

SEBI/HO/IMD/IMD-PoD-1/P/CIR/2024/90 dated June 27, 2024, following requirements shall need to be observed before

imposing restriction on redemptions:

61a) Restriction may be imposed when there are circumstances leading to a systemic crisis or event that severely constricts

market liquidity or the efficient functioning of markets such as: i. Liquidity issues - when market at large becomes illiquid affecting almost all securities rather than any issuer specific security. ii. Market failures, exchange closures - when markets are affected by unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies.

iii. Operational issues – when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out). Such cases can only be considered if they are reasonably unpredictable and occur in spite of appropriate diligence of third parties, adequate and effective disaster recovery procedures and systems.

b) Restriction on redemption may be imposed for a specified period of time not exceeding 10 working days in any 90 days period. c) Any imposition of restriction would require specific approval of Board of AMC and Trustees and the same should be informed to SEBI immediately.

d) When restriction on redemption is imposed, the following

procedure shall be applied:

1. No redemption requests up to INR 2 lakh shall be subject to such restriction.

2. Where redemption requests are above INR 2 lakh, AMCs shall redeem the first INR 2 lakh without such restriction and remaining part over and above INR 2 lakh shall be subject to such restriction.

The AMC / Trustee reserves the right to change / modify the provisions pertaining to the right to restrict Redemption of the Units in the Scheme(s) of the Fund in accordance with SEBI (Mutual Funds) Regulations.

62Cut off timing for subscriptions/ redemptions/ switches Definition: The cut-off timings and applicability of NAV below shall be applicable in respect of valid applications (complete in all respects) received at the Official Point(s) of Acceptance on a Business Day:

This is the time before which your application (complete in all respects) A] For Purchase (including switch-in) of any amount: should reach the official points of acceptance. Closing NAV of the day on which the funds are available for utilization shall be applicable irrespective of the size and time of receipt of such application For this purpose, the cut-off time for credit of funds to bank account of respective scheme shall be 3:00 pm.

B] For Redemptions including Switch – outs:

For determining the applicable NAV, the following shall be ensured:  In respect of valid applications received upto 3 p.m. on a Business Day by the Fund, same day's closing NAV shall be applicable.  In respect of valid applications received after 3 p.m. on a Business Day by the Fund or any time on a Non- Business day, the closing NAV of the next Business Day shall be applicable.

C] Systematic Transactions For investments through systematic investment routes such as Systematic Investment Plans, Systematic Transfer Plan Transfer of Income Distribution cum Capital Withdrawal (IDCW), etc. the units will be allotted as per the closing NAV of the day on which the funds are available for utilization by the Target Scheme irrespective of the instalment date of the SIP, STP or record date of IDCW etc.

D] Transactions through online facilities / electronic modes For transactions executed through the online or electronic facilities provided by the AMC, the applicable NAV shall be determined based on the time at which the request for purchase, redemption, or switch of Units is received on the servers of the AMC and/or the RTA.

With respect to investors who transact through the stock exchange, a confirmation slip given by the stock exchange mechanism shall be considered for the purpose of determining Applicable NAV for the Scheme and cut off timing for the transactions.

The AMC reserves the right to revise the cut-off timings, subject to the provisions of the SEBI (Mutual Funds) Regulations, in the interest of smooth and efficient functioning of the Scheme.

63Minimum amount for During New Fund Offer and on-going offer: purchase/redemption/switches Minimum purchase / switch in amount

Lumpsum purchase: Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Minimum Additional Purchase Amount Rs. 1,000/- and in multiples of Re. 1/- thereafter.

Minimum Redemption / switch out amount Minimum Redemption Amount Rs.1000 or 1 unit or folio available balance (Whichever is lower) There is no minimum amount requirement, in case of investors opting to switch “all units” from any existing mutual fund schemes of Choice Mutual Fund to this Scheme.

New Fund Offer (“NFO”) Switch - Investors also have the option to switch out all or part of their investments available in the Growth option of the Scheme to any NFO of the Fund, during its NFO period. Investors having investments in the Scheme (investments in Growth Option) need to submit their switch-out request before the cut off timings of the switch-out scheme on the NFO closing date. All valid switch out requests for clear units adhering to the above time frame will be processed and executed on the Fund’s respective NFO closing date or on any business day before the NFO closing date in

order to ensure availability of clear units for the switch outs to the NFO scheme.

All the other applicable provisions pertaining to switch/ redemption including the exit loads if any, and purchase of the Units of the Scheme/ respective NFO of the Fund shall apply to such switches, unless otherwise specified.

Minimum balance to be maintained and Not Applicable. (Consolidated Std. Obs. 36) consequences of non-maintenance 64Accounts Statements As per SEBI Master Circular for Mutual Funds dated March 20, 2026, the AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working days of receipt of valid application/transaction to the Unit holders registered e-mail address and/ or mobile number (whether units are held in demat mode or in account statement form).

A Consolidated Account Statement (CAS) detailing all the transactions across all mutual funds (including transaction charges paid to the distributor) and holding at the end of the month shall be sent to the Unit holders in whose folio(s) transaction(s) have taken place during the month by mail or email within 12 days from the month end and within 15 days from the month end in case of delivery through physical mode.

Half-yearly CAS shall be issued at the end of every six months (i.e. September/ March) on or before the eighteenth day of April and October, to all investors providing the prescribed details across all schemes of mutual funds and securities held in dematerialized form across demat accounts, if applicable. In case CAS is requested through physical mode, same shall be sent on or before the twenty-first day of April and October.

For further details, refer SAI.

Dividend/ IDCW Not Applicable.

Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three working days from the date of redemption or repurchase.

For list of exceptional circumstances refer para 15.3.3 of SEBI Master Circular for Mutual Funds dated March 20, 2026.

Bank Mandate As per the directives issued by SEBI, it is mandatory for (Consolidated Std. Obs. 61) applicants to mention their bank account numbers in their ``````````````````````````````````````````````````````` applications and therefore, Investors are requested to fill-up the appropriate box in the application form failing which applications are liable to be rejected. Additionally, if the bank details provided by Investors are different from the details available on instrument, the AMC may seek additional details from Investors to validate the bank details provided by Investors.

Delay in payment of redemption / The Asset Management Company shall be liable to pay interest repurchase proceeds/dividend to the unitholders @ 15% per annum as specified vide paragraph 15.4 of the SEBI Master Circular dated March 20, 2026, for the period of such delay.

However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the 65AMC/Trustee is required to obtain from the Investor/Unit holder, verification of identity or such other details relating to Subscription/Redemption for Units under any applicable law or as may be requested by a Regulatory Authority or any government authority, which may result in delay in processing the application.

Unclaimed Redemption and Income In accordance with Paragraph 15.5 of SEBI Master Circular for Distribution cum Capital Withdrawal Mutual Funds dated March 20, 2026, the unclaimed Amount (Consolidated Std. Obs. 52) Redemption amount may be deployed by the Mutual Fund in call money market or money market Instruments as well as in a separate plan or liquid scheme/overnight scheme/money market mutual fund scheme floated by mutual funds. Investors who claim these amounts during a period of three years from the due date shall be paid initial unclaimed amount along with the income earned on its deployment. Investors who claim these amounts after 3 years, shall be paid initial unclaimed amount along with the income earned on its deployment till the end of the third year. After the third year, the income earned on such unclaimed amounts shall be used for the purpose of investor education. AMC shall play a proactive role in tracing the rightful owner of the unclaimed amounts considering the steps suggested by regulator vide the referred

circular.

Refer to SAI for full details.

Disclosure w.r.t investment by minors A minor can invest through his/her parent/lawful guardian.

Minors can complete their KYC requirements for their folio through guardians. Payment for investment by any mode shall be accepted from the bank account of the minor, parent or legal guardian of the minor with parent or legal guardian.

(Consolidated Std. Obs. 37) For further details, please refer to SAI.

III. OTHER DETAILS A. In case of Fund of Funds Scheme, Details of Benchmark, Investment Objective, Investment Strategy, TER, AUM, Year wise performance, Top 10 Holding/ link to Top 10 holding of the underlying fund - Not Applicable B. Periodic Disclosures such as Half yearly disclosures, half yearly results, annual report:

66Monthly Disclosures: Paragraph 6.1 of SEBI Master Circular for Mutual Funds dated March 20, 2026, the Mutual Fund shall disclose the Portfolio of the Scheme as on the last day of the month on its website on

https://www.choicemf.com/disclosures/monthly-portfolio or before the tenth day of the succeeding month in the prescribed format.

AMC shall declare on their website the hosting of the monthly statement of its schemes portfolio on their website and on the website of AMFI.

In case of unitholder whose email addresses are registered with the Fund, the portfolios disclosed as above shall be sent to the unitholders via email.

The unitholders whose e-mail address are not registered with the Fund are requested to update / provide their email address to the Fund for updating the database. Investors may also place a specific request through modes such as SMS, telephone, email or written request (letter) for a physical or electronic copy of the statement of scheme portfolio.

Half Yearly Results The Mutual Fund shall within one month from the close of each half year, that is on 31st March and on 30th September, host a soft copy of its unaudited

financial results on https://www.choicemf.com/disclosures/financial- statements the website of the AMC and AMFI.

Written communication (including digital modes such as email/SMS etc.) shall be sent to unitholders by the asset management company about the availability of financial results.

Annual Report The scheme wise annual report, in machine readable format, shall be hosted on the website of the AMCs and on the website of AMFI. The AMCs shall display the link prominently on their websites and make the physical copies available to the unit holders, at their registered offices at all times.

The websites of the AMCs shall also be linked with AMFI website so that the investors and analyst(s) can access the annual reports of all mutual funds at one place.

AMCs shall send an email/SMS to all unitholders regarding the hosting of scheme wise annual report on their website and on the website of AMFI.

AMCs shall e-mail the scheme annual reports or abridged summary thereof, in machine readable formats, to all such unit holders, whose email addresses are registered with the Mutual Fund, within 4 months from the date of closure of the relevant financial year. The said communication shall also include details of modes such as SMS, telephone, email or written request

(letter), etc. through which unit holders can submit a request for a physical copy of the scheme wise annual report or abridged summary thereof.

AMC shall provide physical copy of the abridged summary of the Annual Report without any cost, if a request through any mode is received from a unitholder. The full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees.

67Scheme Summary Document The Scheme Summary Document of each scheme shall be disclosed on AMC

(SSD) Consolidated Std. Obs. 38 website https://www.choicemf.com/disclosures/etf-summary and to be uploaded AMFI portal in three different formats, i.e. Pdf, excel and xml.

Risk-o-meter Consolidated Std. In accordance with Paragraph 6.16 of SEBI Master Circular for Mutual Obs. 38 Funds dated March 20, 2026, the Risk-o-meter shall have following six

levels of risk: i. Low Risk ii. Low to Moderate Risk iii. Moderate Risk iv. Moderately High Risk v. High Risk and vi. Very High Risk Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders. The risk-o-meter shall be evaluated on a monthly basis and the risk-o-meter along with portfolio disclosure shall be disclosed on the AMC website as well as AMFI website within 10 days from the close of each month.

Further, Paragraph 6.17 of SEBI Master Circular for Mutual Funds dated March 20, 2026:

AMCs shall disclose the following in all disclosures, including promotional

material or that stipulated by SEBI:

I. Risk-o-meter of the scheme wherever the performance of the scheme is disclosed.

II. Risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that of the benchmark is disclosed.

The portfolio disclosure in terms of paragraph 6.16.1(j) of SEBI Master

Circular for Mutual Funds dated March 20, 2026, on ‘Go Green Initiative in Mutual Funds’ shall also include the scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark. Investors may refer to the website/portfolio disclosure for the latest Risk-o-meter of the Scheme.

AMFI Best Practice Guidelines Non-individual Investors are requested to note the following:

Circular No.118/2024-25) on Acceptance of financial 1. Risks Involved in Transacting via Email transactions through email in respect of non-individual The Non-individual investor acknowledges and accepts the inherent investor. risks associated with conducting financial transactions via email. These risks include, but are not limited to, the possibility of unauthorized access to email communications, transmission delays, data loss, or alteration due to technical glitches or cyberattacks, which could impact the completeness or accuracy of the transaction. Additionally, emails may be susceptible to interception, unauthorized access, and other security vulnerabilities, which could lead to fraudulent transactions.

Therefore, investors must be cautious while initiating financial transactions via email and should ensure the confidentiality and integrity of their communication.

682. Limitation of Liability of AMC/RTAs.

The Asset Management Company (AMC) and the Registrar and Transfer Agent (RTA) shall not be held liable for any loss or damage caused by the non-receipt or delay in receiving any transaction sent by the investor via email. This includes situations where emails are not delivered, are delayed, or are intercepted due to issues beyond the control of the AMC or RTA, including but not limited to, technical failures, service provider errors, or unauthorized access to the email account. The AMC and RTA will not be responsible for any transactions that are erroneously processed or not processed due to such issues.

The liability of the AMC and RTA is limited solely to the extent of ensuring that the transaction is processed once received in the proper format and within a reasonable timeframe, subject to system availability and security checks. responsible for any transactions that are erroneously processed or not processed due to such issues. The liability of the AMC and RTA is limited solely to the extent of ensuring that the transaction is processed once received in the proper format and within a reasonable timeframe, subject to system availability and security checks.

3. Security Measures to Ensure Safe Email Communication.

The AMC and RTA are committed to ensuring the highest level of security for email communications and shall implement appropriate safeguards. These measures include the use of encrypted email services, secure authentication protocols, and virus/malware scanning for all incoming and outgoing emails. Additionally, access to email accounts and transaction systems shall be restricted to authorized personnel only, and multi-factor authentication will be employed to verify the identity of the individuals initiating transactions. The AMC shall take all reasonable steps to prevent unauthorized access, disclosure, or alteration of the financial data transmitted via email.

4. Retention of Transaction Records:

The AMC and RTA will retain records of all transactions routed via email in accordance with applicable laws and regulations. These records will include, but are not limited to, transaction requests, email correspondence, and confirmation receipts, for a minimum period as mandated by regulatory authorities. The Non-Individual investor agrees that these records shall be stored in a secure digital format to ensure their integrity and availability for future reference. The trail for each transaction, allowing for the traceability of emails and the status of each request submitted via email.

5. Procedure for Addition/Deletion of Authorized Signatories:

69The facility to transact via email shall follow an appropriate procedure for the addition or deletion of authorized signatories. Such changes must be communicated to the AMC through a formal notification, in the form of a signed letter or email from the authorized representative of the entity, accompanied by the requisite board resolution or authority letter. The AMC shall process these changes only upon receipt of valid documentation confirming the updated list of authorized signatories and only be effective once the AMC has acknowledged receipt and validation of the notification.

6. Authorization for Non-Individual Investors:

For non-individual investors, including registered mutual fund distributors or third parties authorized by the investor, to submit financial transactions via email on behalf of the entity, the AMC and RTA require prior written authorization from the investor. This authorization should clearly state the scope of authority granted to the third party and must be submitted with each transaction request. The AMC will accept such transactions only if the relevant authorization documents are in place and the corresponds with the pre-registered contact information for the entity or authorized third party.

7. Security Procedures for Transaction Confirmation To confirm and authenticate email-based financial transactions, the AMC will employ a range of security procedures, including digital signatures, encrypted communication, and multi-step verification processes.

These procedures are designed to verify that the transaction is genuinely authorized by the investor and ensure that the instructions have not been tampered with. Upon receipt of an email transaction, the AMC will conduct thorough checks to confirm the authenticity of the request, including comparing it against the pre-registered information (email addresses, signatories, etc.) Only upon successful verification will the transaction be processed.

8. Electronic Time Stamping and Audit Trail for Email Transactions Each transaction processed via email shall be subject to an electronic time-stamping mechanism that records the exact time and date of receipt. This time stamp will serve as a reference point for any future inquiries or disputes regarding the transaction. Furthermore, AMC shall maintain an audit trail, tracking all actions related to the email transaction, including receipt, verification, and processing. The audit trail will provide transparency, ensure accountability, and facilitate the resolution of any issues related to email-based transactions.

9. Change in Registered Email Address/Contact Details 70Any change in the registered email address or contact details of the entity must be communicated to the AMC via a physical letter, including a scanned copy, signed by the designated authorized officials of the entity. This change request must also be supported by a copy of the relevant board resolutions or authority letter from the entity, issued on the official letterhead. The AMC will not accept email requests for such changes. Further, changes in the registered email address will not be processed unless the request complies with these requirements.

This ensures that only authorized personnel can modify the contact details associated with the Non-individual investor’s account.

10. Changes in Bank Mandate:

No changes to the bank mandate (including adding or modifying bank account details) will be accepted via email/ phone. Such changes must be submitted using the prescribed service request form, duly signed by the entity’s authorized signatories, along with the requisite supporting documents pertaining to both the new and existing bank details. The form must also be accompanied by the wet signatures of the designated officials of the entity. This ensures the authenticity and validity of any change in the bank details associated with the Non- individual Investor’s account, and that no unauthorized modifications made via email /phone.

11. Digital Signatures and Validity of Electronically Executed

Documents:

In case of any document executed electronically, the AMC recognizes the validity of Digital Signature Certificates (DSCs) or Aadhaar-based e- signatures provided by the authorized officials of the entity. These digitally signed documents will be treated as legally binding and valid, even if they are not sent from the registered email address of the authorized officials. However, the email domain from which the document is sent must match the official domain name of the entity.

Such documents, when executed with a valid DSC or e-signature, will be processed by the AMC without requiring further verification through physical signatures B. Transparency/NAV Disclosure: (Consolidated Std. Obs. 41) The AMC will calculate and disclose the first NAV of the Scheme within a period of 5 Business Days from the date of allotment of units under the NFO. Subsequently, the AMC will calculate and disclose the NAVs at the close of all Business Days in the manner specified by SEBI.

NAVs of the Scheme shall be made available on the website of AMFI (www.amfiindia.com) and the Mutual Fund (https://www.choicemf.com/daily-nav ) by 11.00 p.m. on all Business Days. In case the schemes invests in ETCDs, the NAV will be calculated and disclosed at the close of every Business Day and uploaded on the website of AMFI (www.amfiindia.com) and the Mutual Fund (https://www.choicemf.com/daily-nav ) by 9.00 a.m. of the following business day.

71The NAVs shall also be available on the call free number 18002663866 and on the website of the Registrar CAMS (www.camsonline.com).

In case the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the AMC shall issue a press release giving reasons for the delay and explain when it would be able to publish the NAVs. Further, the AMC will extend the facility of sending the latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard.

C. Transaction Charges and Stamp duty:

Transaction Charges: Not Applicable.

Stamp Duty :

Pursuant to the notification no. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by the Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of the notification dated February 21, 2019 issued by the Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019 and Clause 10.1 of SEBI Master Circular dated May 19, 2023, a stamp duty @ 0.005% of the transaction value would be levied on applicable mutual fund transactions, with effect from July 01, 2020.

Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase/ switch-in transactions Systematic Investment Plan (SIP) installments, Systematic Transfer Plan (STP-ins ) installments etc. to the unitholders would be reduced to that extent. Please refer to SAI for further details.

D. Associate Transactions :

Please refer to Statement of Additional Information (SAI).

E. Taxation:

For details on taxation please refer to the clause on Taxation in the SAI apart from the following:

Tax* Resident Non-Resident Mutual Investors Investors Fund Tax on Dividend Taxable at 20%/Taxable at Nil Income income slab slab rates rates# Capital Gain Long-term (held for more than 12 months) for transfer on 12.5% 12.5% Nil or after July 23, 2024^ Short-term (held for 12 months or less) for transfer on or 20% 20% Nil after July 23, 2024

1) *These should be increased by the surcharge as applicable and health & education cess @ 4%.

2) # 20% rate is applicable for (i) FPIs and (ii) units purchased in foreign currency. For other non-resident investor, such income is taxable as per applicable rate in India.

3) ^Any long-term capital gains arising on transfer of unit of an equity oriented mutual fund will be taxable without indexation benefit and on capital gains in excess of Rs.1,25,000/-. This limit includes capital gains from listed equity shares and/or units of listed REITs/InvITs. Grandfathering benefit should also be available in certain cases.

4) Equity scheme will also attract securities transaction tax (STT) at applicable rates and the beneficial rate discussed above is subject to payment of STT.

5) Mutual Funds are required to deduct TDS @ 10% on IDCW payment (above Rs 5000) for resident unitholders and @ 20% (plus applicable surcharge and cess) for non-resident unitholders. No tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gain in the hands of resident 72unitholder and FPIs. For other non-resident unitholders, tax shall be deducted as per applicable rates. Tax treaty benefit, if any, should be provided to non-resident unitholders subject to providing certain information/documents as required (especially, tax residency certificate and Form 10F). d6) In certain cases, higher TDS may be applicable as per section 206AA (relating to non-furnishing of PAN).

F. Rights of Unitholders:

Please refer to SAI for details.

G. List of Official Points of Acceptance:

Official point of acceptance of transactions (AMC office):

Sunil Patodia Tower, Plot No 156-158 J.B. Nagar, Andheri (East), Mumbai 400099 R&T Computer Age Management Services Limited (CAMS) No.178/10, Ground floor, Kodambakkam High Road, Opp.

Hotel Palmgrove, Nungambakkam, Chennai, Tamil Nadu 600034. Contact numbers : 18002663866 | E-Mail ID: enq_choicemf@camsonline.com |website: www.camsonline.com

The details pertaining to official points of acceptance of RTA are available on the website of the AMC at:

https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fstatic.choicemf.com%2FCAMS%2BBran ches.xlsx&wdOrigin=BROWSELINK).

H. Penalties, pending litigation or proceedings, findings of inspections or investigations for which action may

have been taken or is in the process of being taken by any Regulatory Authority: (Consolidated Std. Obs. 48) & (Consolidated Std. Obs. 49) There have been no penalties or pending litigation on the AMC since incorporation.

The investors may refer to the details on the website of the Company at link:

https://doc.choicemf.com/document-master/1773432853-penalties__pending_litigations.pdf The Scheme under this Scheme Information Document was approved by the Trustees on August 31, 2026. The Trustee has ensured that CHOICE LARGE & MID CAP FUND approved by the Trustees, is a new product offered by Choice Mutual Fund and is not a minor modification of any existing scheme/fund/product.

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations 2026, and the guidelines thereunder shall be applicable. (Consolidated Std. Obs. 63) For and on behalf of Choice AMC Private Limited Sd/- Ajay Kejriwal Chief Executive Officer 73Note- Changes made to align with regulatory mandate shall not be considered as fundamental attribute change.

Other Details of the OPAs are also mentioned below:

Website / Electronic modes – Choice AMC shall accept transactions through its website (https://choicemf.com).

Transactions shall also be accepted through other electronic means including through secured internet sites operated by CAMS with specified channel partners (i.e. distributors) with whom AMC has entered into specific arrangements. The servers of Choice AMC and CAMS, where such transactions shall be sent to the official point of acceptance for all such online / electronic transaction facilities offered by the AMC.

NSE MFSS / BSE STAR / ICEX - Eligible Brokers/Clearing Members/Depository Participants / Distributors will be considered as the Official Point of Acceptance for the transactions through NSE MFSS, BSE STAR and ICEX platforms.

MFCentral as Official Point of Acceptance:

For enhancing investors' experience in Mutual Fund transactions / service requests, the Qualified RTAs (QRTA’s), Kfin Technologies Private Limited (Kfintech) and Computer Age Management Services Limited

(CAMS) have jointly developed MFCentral - A digital platform for Mutual Fund Investors. MFCentral is created with an intent to be a one stop portal / mobile app for all Mutual fund investments and service- related needs that significantly reduces the need for submission of physical documents by enabling various digital / phygital services to Mutual fund Investors across fund houses subject to applicable Terms & Conditions of the Platform.

MFCentral may be accessed using https://mfcentral.com/ Any registered user of MFCentral, requiring submission of physical documents as per the requirements of MFCentral, may do so at any of the designated Investor Service Centres or collection centres of Kfintech or CAMS.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. ************************************************************************************** 74