|Instruments||Indicative allocation (% of total assets)||Risk Profile|
|Equity and equity related securities*||65%||100%||Medium to High|
|Equity Derivatives*||65%||100%||Medium to High|
|Debt & Money market securities/instruments||0%||35%||Low|
The fund manager will evaluate the mismatch between the price of a stock in the futures market and in the spot market on a market neutral basis. If the price of a stock in the futures market is higher than in the spot market, after adjusting for cost of carry and taxes the scheme shall buy the stock in the spot market and sell the same stock in equal quantity in the futures market simultaneously. The Scheme will endeavour to build similar market neutral positions that offer an arbitrage potential for e.g. buying the basket of index constituents in the cash segment and selling the index futures, Buying ADR/GDR and selling the corresponding stock future etc. The Scheme would also look to avail of opportunities between one futures contract and another.