Fund Selection & Review Policy

1. Purpose

To describe how schemes are selected for recommendation on an advisory basis, incidental to distribution, and how investor portfolios are reviewed.

2. How Schemes are Selected

Scheme selection starts from the investor’s risk profile, goals and time horizon, and only schemes suitable for the investor’s risk category are considered. Within the suitable set, schemes are compared on: (a) risk-adjusted performance measures such as the Sharpe ratio and the Sortino ratio; (b) consistency of performance against the scheme’s benchmark over multiple periods; (c) the quality and stability of the fund management team; and (d) the track record and stability of the AMC’s top management. A scheme is recommended only after it passes both the suitability check and this comparison.

3. Information Given with Every Recommendation

With every recommendation the investor is told the scheme’s category, its Riskometer level, the risks that apply (market risk, credit risk, liquidity risk and interest-rate risk, as applicable), and that past performance does not indicate future returns. The link to the Scheme Information Document and Key Information Memorandum is shared. Any illustration uses an assumed rate not exceeding 12% p.a., as per AMFI Best Practices Guidelines.

4. Portfolio Review

The portfolio is reviewed with the investor at least once a year. The review compares each scheme with its benchmark, checks the portfolio against the investor’s target allocation, checks for changes in any scheme’s Riskometer, and revisits the risk profile where needed. Recommendations arising from the review – such as rebalancing or switches – go through the same suitability check, and the discussion and decisions are recorded.

5. What is Never Done

No churning, splitting of applications or transactions intended only to earn commission. No scheme is recommended merely because it pays a higher commission. No assured, guaranteed or indicative return is ever quoted.