Nsuregrowth- Overview

a. Understanding

The company has categorized it mutual funds into various categories depending on the liquidity & the type of the funds the mutual fund is comprised of:

i) Equity

Equity-oriented mutual fund schemes are investment options that allocate at least 65% of their assets to equities and equity-related instruments. Consequently, the portfolio of these funds is skewed in favor of equity investments.

ii) Hybrid Investments

Hybrid funds are a combination of equity and debt investments. The blend of these asset classes varies based on the fund's investment goals. Allocates 75-90% to debt and 10-25% to equity. Invest in a mix of equity, debt, and arbitrage opportunities.

Share (Hybrid)-This classification is done for those investments which were debenture initially and are then converted to equity shares.

InvIT's - An Infrastructure Investment Trust (InvITs) is Collective Investment Scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. They are a combination of both equity and debt instruments

iii)Liquid Investments

a. Liquid investments are financial assets that can be readily bought or sold in the market without causing significant price fluctuations. These investments offer investors the ability to access their funds quickly and with minimal loss in value, which can be particularly beneficial during periods of market uncertainty or personal financial needs.

b. The bifurcation of Liquid fund in two types has been done in Investments for the convenience of company. The bifurcations are:

♦Liquid

♦Liquid (Pure)

c. Liquid funds are invested for brief periods and are often reserved for specific investments. These funds are held in a temporary state until they are allocated to their intended investments by the due date.

The company has classified some of its investments as "Liquid (Pure)", even though they are essentially the same as regular Liquid investments. This classification allows the company to withdraw funds from these investments at its discretion whenever needed as these are the surplus funds which the comapny has invested for a short period of time.These funds are used for buying raw materials or as margin money for things like Letters of Credit. In other words, the company can use this money for various needs, such as making deposits or funding purchases.