NOTICE. 2. SBI Magnum Equity Fund (contd.) * Money Market Instruments will include Commercial Paper,

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1 Notice is hereby given that SEBI vide its Circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 6, 2017 read with SEBI Circular no. SEBI/HO/IMD/DF3/CIR/P/2017/126 dated December 4, 2017, had advised to re-classify and categorise different open-ended Schemes managed by AMCs in line with the categories defined in the said Circular(s) in order to ensure that different schemes launched by a Mutual Fund are clearly distinct in terms of asset allocation, investment strategy etc. In this regard, the Board of Directors of SBI Funds Management Private Limited (the AMC) & SBI Mutual Fund Trustee Company Private Limited (Trustee to the Fund) have approved the modifications in the provisions of the Scheme(s) in line with the requirement of the said Circular(s). In this regard, the following sections under the Scheme Information Document (SID)/Key information Memorandum (KIM), as applicable, of the Scheme(s) will be modified as under: 1. SBI Blue Chip Fund Type of Scheme An open-ended Growth Scheme. An open-ended Equity Scheme predominantly investing in large cap stocks. To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is atleast equal to or more than the least market capitalised stock of S&P BSE 100 Index. Type of Normal Allocation Equities and equity related High Foreign Securities/ 0-10 ADRs/GDRs ~ Fixed/Floating Rate Debt Low * Maximum limit for stock lending - Not more than 20% of the Limit for Derivative transactions - Limits as permitted under SEBI Regulations ~s in foreign securities/adr/gdr would comply with the Guidelines and overall limits laid down for Mutual Funds by SEBI for investments in foreign securities. s in foreign securities/adr/gdr would also be in companies regarded as blue chip companies. * will include Commercial Paper, Bills Rediscounting, Repos, CBLO, Government securities having an unexpired maturity of less than 1 year, alternate to Call or notice money, Usance Bills and any other such short-term as may be allowed under the regulations prevailing in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc and in derivatives. Performance will depend on the Asset Management Company s ability to assess accurately The scheme may also enter into repurchase and reverse repurchase obligation in all securities held by it as per the guidelines and regulations applicable for such transactions. Any investment in Government securities may be in securities supported by ability to borrow from the Treasury, or sovereign or state government guarantee, or supported by the Government of India/a State Government in any other manner. Further, the scheme may participate in securities lending, invest in foreign securities and trade in derivatives as permitted under SEBI (MF) Regulations, The scheme would not invest in Securitized Debt. changed by the Fund Manager from time to time, keeping in view market conditions, market opportunities, applicable regulations, legislative amendments and other political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Magnum/Unit Holders. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) Regulations, 1996 as amended The scheme would at all times have an exposure of atleast 70% of its investments in the equity stocks. The scheme would invest in a diversified basket of equity stocks of companies whose market capitalization is atleast equal to or more than the least market capitalized stock of BSE 100 Index. Within the permissible universe of stocks for the scheme, blue chip stocks would normally qualify as those stocks which are typically large companies with an established business presence, good reputation and are possibly market leaders in their industries with less uncertainty in topline/bottom line growth. Blue chip companies normally have a history of successful growth, high visibility and reach, good credit ratings and excellent brand equity amongst the general public and widespread interest amongst investing public. To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time). Indicative Asset Equity and equity 80% 100% High related of large cap companies* (including Derivatives) Other equities and 0% 20% High Units issued by 0% 10% Debt 0% 20% 0% 20% Low The scheme may engage in stock lending - upto 20% of Exposure to derivatives to the extent of 50% of the Net Assets as The Scheme may seek investment opportunities in foreign securities including ADRs/GDRs/Foreign equity and debt securities subject to the Regulations. Such investment shall not exceed 20% of the net assets of the Scheme. The scheme may invest in mutual fund units as permissible. *Large Cap Stocks - 1 st th company in terms of full market capitalization. This will be in line with limits/ classification defined by AMFI/SEBI Other equities could include mid and small cap stocks. Mid Cap:101 st to 250 th company in terms of full market capitalization. Small Cap: 251 st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI The Managers may at their discretion, alter the Committee for further direction. The The scheme follows a blend of growth and value style of investing. The scheme will follow a combination of top down and bottom-up approach to stock-picking and choose companies across sectors. The scheme will predominantly invest in diversified portfolio of large cap stocks. Large Cap Stocks are - 1 st th company in terms of full market capitalization. This will be in line with limits/classification defined by AMFI/SEBI 2. SBI Magnum Equity Fund Name of Scheme SBI Magnum Equity Fund SBI Magnum Equity ESG Fund Type of Scheme An open-ended Equity Scheme. An open-ended Equity Scheme investing in companies following the ESG theme. To provide the investor long-term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market. To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of companies following Environmental, Social and Governance (ESG) criteria. Indicative Asset Indicative Asset Minimum & Maximum Equity and Equity Not less than 70% related Debt Not more than 30% Low to Securitized debt Not more than 10% of the investments in debt Money market Balance Low * Equity and equity 80% 100% High related following Environmental, Social and Governance (ESG) criteria ( and foreign securities) Other equities and equity 0% 20% High related 2. SBI Magnum Equity Fund (contd.) * will include Commercial Paper, Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, alternate to call or notice money, Usance Bills and any other such shortterm as may be allowed under the regulations prevailing in derivatives will be upto 50% of the net However, the above investment pattern may be changed at the discretion of Fund Manager in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) in debentures and corporate bonds will be of investment grade rated securities. In case of short-term, investments will be restricted to the having CRISIL rating of P-2 and above and/or ICRA rating of A-2 and above or equivalent rating by other rating agencies. The fund may invest in foreign equities and may use any hedging technique that are permissible or in future may become permissible under SEBI regulations. Such investments carry the risk of fluctuations in foreign exchange rates. Benchmark Index The scheme will be investing in primarily in equity & equity related derivatives as also debt, Government Securities and money market (such repos, reverse repos and any alternative to the call money market as may be directed by the RBI) and derivative. Nifty SBI Magnum Multicap Fund Indicative Asset Units issued byreit/ 0% 10% InVIT* Debt 0% 20% 0% 20% Low * The exposure will be in line with SEBI/AMFI limits specified The scheme may engage in stock lending - upto 20% of Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and equity related including derivative position, debt, will not exceed 100% of the The Scheme may seek investment opportunities in foreign securities including ADRs/GDRs/Foreign equity and debt securities subject to the Regulations. Such investment shall not exceed 35% of the net assets of the Scheme. The scheme may invest in mutual fund units as permissible. If the exposure falls outside the above-mentioned asset Committee for further direction. The The scheme is likely to have a comprehensive check list across parameters from Governance, Social & Environmental aspects of the company s management of its affairs. The endeavour would be to follow ESG Framework in order to delve deeper into a company s management practices, culture and risk profile which would thereby help us in understanding the impact on long-term shareholders. Each security will be scored, using publicly available data, on ESG parameters which can impact or pose risks to the long-term sustainability of the business. External specialist service providers may be sought to enable this. Active weights of a security will be determined by the ESG scores. A positive score will enable a positive active weight, and vice-versa. For securities lacking data, the portfolio manager will look to engage with the company. Active weights may be capped to zero. Nifty 100 ESG Index Type of Scheme An open-ended Growth Scheme. An open-ended Equity Scheme investing across large cap, mid cap, small cap stocks. Type of Normal Allocation Equities and equity related High Foreign Securities/ 0-10 ADRs/GDRs ^ Fixed/Floating Rate 0-30 Debt 0-30 Low * Maximum limit for stock lending - Not more than 20% of the The allocation of investments between the various market capitalization segments in equity would be as follows: Market Capitalization Segment allocation allocation Large Cap 50% 90% Mid Cap 10% 40% Small Cap 0% 10% The scheme would at all times have an exposure of atleast 70% of its investments in the equity stocks. Exposure to derivatives in the scheme can be upto a maximum of 50% of the equity portfolio Exposure to derivatives would be in addition to the equity exposure in the scheme and the scheme s trading in derivatives shall be restricted to hedging and portfolio balancing purposes only. The Mutual Fund has set exposure limits in respect of the various types of derivative transactions that are permitted by the SEBI guidelines as detailed in this chapter. ^s in foreign securities/adr/gdr would comply with the Guidelines and overall limits laid down for Mutual Funds by SEBI for investments in foreign securities. * will include Commercial Paper, Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, Call or notice money, Usance Bills and any other such short-term as may be allowed under the regulations prevailing in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc and in derivatives. Performance will depend on the Asset Management Company s ability to assess accurately and react to changing market conditions. The scheme may also enter into repurchase and reverse repurchase obligation in all securities held by it as per the guidelines and regulations Indicative Asset Equity and equity 65% 100% High related () Units issued by 0% 10% REIT/InVIT* Debt 0% 35% 0% 35% Low *The exposure will be in line with SEBI/AMFI limits specified The scheme may engage in stock lending - upto 20% of Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and equity related including derivative position, debt, will not exceed 100% of the The Scheme may seek investment opportunities in foreign securities including ADRs/GDRs/Foreign equity and debt securities subject to the Regulations. Such investment shall not exceed 35% of the net assets of the Scheme. The scheme may invest in mutual fund units as permissible. The Managers may at their discretion, alter the Page:1 (continued...)

2 3. SBI Magnum Multicap Fund (contd.) 4. SBI Magnum Midcap Fund applicable for such transactions. Any investment in Government securities may be in securities supported by ability to borrow from the Treasury, or sovereign or state government guarantee, or supported by the Government of India/a State Government in any other manner. Further, the scheme may participate in securities lending, invest in foreign securities and trade in derivatives as permitted under SEBI (MF) The scheme would not invest in Securitized Debt. changed by the Fund Manager from time to time, keeping in view market conditions, market opportunities, applicable regulations, legislative amendments and other political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Magnum Holders/Unit Holders. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) Regulations, 1996 as amended The scheme would at all times have an exposure of atleast 70% of its investments in the equity stocks. Exposure to derivatives in the scheme can be upto a maximum of 50% of the equity portfolio Exposure to derivatives would be in addition to the equity exposure in the scheme and the scheme s trading in derivatives shall be restricted to hedging and portfolio balancing purposes only. The allocation of investments between the various market capitalization segments in equity would be as follows: Large Cap - 50% - 90%, Midcap - 10% - 40%, Small Cap - 0% - 10%. Committee for further direction. The The scheme will follow a bottom-up approach to stockpicking and choose companies across sectors/styles. The scheme will invest in diversified portfolio of stocks across market capitalization. Large Cap Stocks : 1 st th company in terms of full market capitalization. Mid Cap Stocks : 101 st to 250 th company in terms of full market capitalization. Small Cap Stocks: 251 st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI Type of Scheme An open-ended Growth Scheme. An open-ended Equity Scheme predominantly investing in mid cap stocks. Indicative Allocation (% of Total Assets)* Profile Equities and equity 65% 100% High related of Midcap companies Equity and equity 0% 35% High related of smallcap Companies Equity and equity 0% 20% High related of largecap Companies Foreign Securities/ 0% 10% High ADRs/GDRs Debt and Money 0% 30% Low to Market Largecaps are defined as top 100 stocks in terms of market capitalisation. Midcaps are defined as 101 st to the 400 th stock in terms of market capitalisation. Smallcaps are defined as any stock beyond 401 st stock in terms of market capitalisation. *Exposure to derivatives in the scheme can be upto a maximum of 50% of the equity portfolio of the scheme. The cumulative gross exposure through equity, debt, foreign securities/adr s/gdr s and derivative position will not exceed 100% of the net assets of the scheme. s in foreign securities/adrs/gdrs will be in accordance with the Guidelines and overall limits laid down for Mutual Funds by SEBI. will include Commercial Paper, Bills Rediscounting, Repos, Collateralised Borrowing & Lending Obligation (CBLO), Government securities having an unexpired maturity of less than 1 year, Call or notice money, Usance Bills and any other such short-term as may be allowed under the regulations prevailing in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc and in derivatives. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) Performance will depend on the Asset Management Company s ability to assess accurately and react to changing market conditions. The scheme may also enter into repurchase and reverse repurchase obligation in all securities held by it as per the guidelines and regulations applicable for such transactions. Any investment in Government securities may be in securities supported by ability to borrow from the Treasury, or sovereign or state government guarantee, or supported by the Government of India/a State Government in any other manner. Further, the scheme may participate in securities lending, invest in foreign securities and trade in derivatives as permitted under SEBI (MF) changed by the Fund Manager from time to time, keeping in view market conditions, market opportunities, applicable regulations, legislative amendments and other political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and thatthey can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Magnum Holders/ Unit holders. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) Regulations, 1996 as amended The scheme shall invest in a well-diversified basket of equity stocks of Midcap companies. Large caps are the top 100 stocks in terms of market capitalisation,midcaps are the 101 st to the 400 th stock in terms of market capitalisation & Smallcaps are any stock beyond 401 st stock in terms of market capitalisation. Benchmark Index Nifty Midsmall Cap 400 Nifty Free Float Midcap 150 Indicative Asset Equity and equity 65% 100% High related of midcap* companies () Other equities and 0% 35% High Units issued by 0% 10% Debt 0% 35% 0% 35% Low The scheme may engage in stock lending - upto 20% of Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and equity related including derivative position, debt, will not exceed 100% of the *Mid Cap Stocks : 101 st to 250 th company in terms of full market capitalization. The exposure will be as per limits/ classification defined by AMFI/SEBI Other equities may include large cap stocks and small cap stocks. Large Cap Stocks : 1 st th company in terms of full market capitalization. Small Cap Stocks : 251 st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI ^The exposure will be in line with SEBI/AMFI limits specified The Scheme may seek investment opportunities in foreign securities including ADRs/GDRs/Foreign equity and debt securities subject to the Regulations. Such investment shall not exceed 35% of the net assets of the Scheme. The scheme may invest in mutual fund units as permissible. The Managers may at their discretion, alter the Committee for further direction. The The scheme follows a blend of growth and value style of investing. The fund will follow a bottom-up approach to stockpicking and choose companies across sectors. The scheme will invest predominantly in diversified portfolio of mid cap stocks. Mid Cap: 101 st to 250 th company in terms of full market capitalization. The exposure will be as per limits/ classification defined by AMFI/SEBI 5. SBI Magnum Multiplier Fund Name of Scheme SBI Magnum Multiplier Fund SBI Large & Midcap Fund Type of Scheme An open-ended Equity Scheme. An open-ended Equity Scheme investing in both large cap and mid cap stocks. To provide the investor with long-term capital appreciation/ dividends along with the liquidity of an open-ended scheme. The Scheme will invest in diversified portfolio of equities of high growth companies. Indicative Allocation (% of Total Net Assets) Profile Minimum & Maximum High/ / Low Equities and equity Not less than 70% related Debt Not more than 30% Low to (including Securitized Debt) and Govt. Securities Debt Securitized Debt Not more than 10% of investments in debt instrument Balance Low ^ ^ will include Commercial Paper, Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, alternate to Call or notice money, Usance Bills and any other such short-term as may be allowed under the regulations prevailing in derivatives will be upto 50% of the net However, the above investment pattern may be changed at the discretion of the Fund Manager in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1) The fund may invest in foreign securities and may use any hedging techniques that are permissible now or in the future may become permissible under SEBI Regulations. in debentures and corporate bonds will be in investment grade rated securities. In case of short-term, investments will be restricted to the having CRISIL rating of P-2 and above and/or ICRA rating of A-2 and above or equivalent rating by other rating agencies. The scheme would invest the monies in a diversified basket of equity and, debt and money market. The Scheme will invest in diversified portfolio of equities of high growth companies. Benchmark Index S&P BSE 200 S&P BSE Large Mid Cap To provide the investor with the opportunity of long-term capital appreciation by investing in diversified portfolio comprising predominantly large cap and mid cap companies. Indicative Asset Equity and equity 35% 65% High related of large cap* companies () Equity and equity 35% 65% High related of mid cap* companies () Other equities and 0% 30% High Units issued by 0% 10% Debt 0% 30% 0% 30% Low Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and including derivative position, debt, Money Market will not exceed 100% of the net assets *Large Cap: 1 st th company in terms of full market capitalization. Mid Cap: 101 st to 250 th company in terms of full market capitalization. The exposure will be as per limits/ classification defined by AMFI/SEBI Other equities may include small cap stocks. Small Cap st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/ classification defined by AMFI/SEBI The Scheme may seek investment opportunities in foreign shall not exceed 30% of the net assets of the Scheme. The Managers may at their discretion, alter the Committee for further direction. The The scheme follows a blend of growth and value style of investing. The fund will follow a combination of top down and bottom-up approach to stock-picking and choose companies across sectors. The scheme will invest in diversified portfolio of large cap and mid cap stocks. Large Cap: 1 st th company in terms of full market capitalization. Mid Cap: 101 st to 250 th company in terms of full market capitalization. The exposure to these will be as per limits/ classification defined by AMFI/SEBI 6. SBI Magnum Global Fund Type of Scheme An open-ended Equity Scheme. An open-ended Equity Scheme investing in companies following the MNC theme. To provide the investors maximum growth opportunity through well researched investments in Indian equities, PCDs, and FCDs from selected industries with high growth potential, and Bonds. To provide the investor with the opportunity of long-term capital appreciation by investing in diversified portfolio comprising primarily of MNC companies. Benchmark Index S&P BSE Midsmall Cap Nifty MNC Indicative Allocation Indicative Asset (% of Total Net Assets) Profile High/ / Equity and equity Low related companies 80% 100% High Equity Partly within MNC space convertible debentures and and foreign securities# fully convertible debentures and Other equities and Bonds 0% 20% High 0 20 Low ^ Units issued by 0% 10% ^ will include Commercial Paper, REIT/InVIT* Debt 0% 20% Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, alternate to Call or notice money, Usance Bills and any other such shortterm as may be allowed under the regulations prevailing 0% 20% Low Page:2 (continued...)

3 6. SBI Magnum Global Fund (contd.) in derivatives will be upto 50% of the net However, the above investment pattern may be changed at the discretion of Fund Manager in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. Accordingly, investments may be made in select companies in other industries. in equities would be through primary as well as secondary market, private placement, preferential/firm allotments etc. The portfolio will be sufficiently diversified so as to reduce the risk of underperformance due to unexpected security-specific factors. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), 7 Schedule of the SEBI (Mutual Funds) in FCDs & PCDs will be of investment grade rated securities. In case a debt instrument is not rated, mutual funds may constitute committees who can approve such proposals for investments in unrated subject to the approval of the detailed parameters for such investments by the Board of Directors and the Board of The fund may invest in foreign equities or debt and may use any hedging techniques that are permissible under SEBI Regulations. s in foreign securities carry the risk of fluctuations in foreign exchange rates. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. The scheme will invest in select securities, primarily in equities, FCDs, PCDs, NCDs listed on Indian Stock Exchanges, other capital market related, FDs of scheduled commercial banks, call and other money market etc. * The exposure will be in line with SEBI/AMFI limits specified Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and including derivative position, debt, Money Market will not exceed 100% of the net assets #The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the investment. Performance of the scheme will depend on the Asset Management Company s ability to assess accurately in the interest of the investors. If the fund manager for any reason is not able to rebalance the asset allocation within above mentioned period, the matter would be escalated to Committee for further direction. The Committee shall record the reason in writing leading the reason for falling the exposure outside the asset allocation and the Committee shall review and as consider necessary may further direct the manner for rebalancing the same within the range of the asset allocation as mentioned above/further course of action required in this regard. The funds raised under the scheme shall be invested only in transferable securities as per Regulation 44(1), Schedule 7 of the SEBI (Mutual Funds) The fund will follow a bottom-up approach to stock-picking and choose companies across sectors/market capitalization which fall under the criteria of MNC. MNC Companies will be those: 1. Major Shareholding is by foreign entity, 2. Indian companies having over 50% turnover from regions outside India, 3. Foreign listed Companies. 7. SBI Emerging Businesses Fund Name of the SBI Emerging Businesses Fund SBI Focused Equity Fund scheme Type of Scheme An open-ended Equity Fund. An open-ended Equity Scheme investing in maximum 30 stocks across multicap space. To participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic focus. Type of Normal Allocation Equities or equity At least 90 % related across diversified sectors * Upto 10% Low *s in equities would be well diversified across various emerging sectors with exposure to a particular business would be restricted to 25% of the total investment portfolio under normal market conditions. For example exposure to stocks of companies belonging to the Pharmaceutical sector may be capped at 25% of the total investment portfolio. Exposure to a particular sector may be however increased upto a maximum limit of 35% under exceptional circumstances at the discretion of the Fund Manager based on his assessment about the potential of that sector with the approval of the Committee. In addition to the above restriction, this Fund shall not invest more than 10% of its assets in equity shares or of any company and shall not invest more than 5% of its assets in unlisted equity shares or of companies. The business areas listed in the highlights to this sub-fund are only indicative and investments may not be restricted to the above areas only. Since the theme for this sub-fund is emerging businesses, the Fund Manager may in future also invest in other business areas which maybe considered emergent with domestic focus and/or provide export/ outsourcing opportunities and are globally competitive. The Emerging Businesses Fund would primarily focus its investments in emerging business themes, primarily based on the export/outsourcing opportunities and/or global competitiveness of such themes. It will also focus on emerging domestic investment themes. Over the last three to four years a large number of companies have been able to leverage the low cost and high skill advantage of India to make a strong foray into the global markets. This move started with companies in the IT and Pharma sectors where companies like Infosys, Wipro, Ranbaxy etc have made a strong mark in the overseas markets and have established the India brand name. Subsequently this brand name has been well leveraged by other companies in these industries and today we have a whole array of companies from these industries doing well in the overseas markets. However the India advantage is not restricted to just these sectors. Similar skills combined with the ability to take up high technology customized work for overseas clients has made a number of companies in industries like auto, auto ancillaries, Agrochemicals, Engineering etc to make strong moves overseas. This has resulted in a greater acceptance of India as a destination of high quality work not only in the services sector but also in manufacturing. Over the next few years there will be a number of other such emerging themes. For example, with the phasing out of quotas India share of the overall textiles trade is set to go up exponentially over the next few years. Jewellery exports are also an emerging opportunity for Indian companies operating in this field. The advantage of a large domestic base combined with the recent initiatives on duty free import of raw materials has brightened the prospects for this industry. In the domestic arena, businesses which have actually emerged over the last three to four years have been in the growth areas of Telecom and Infrastructure. So in this To provide the investor with the opportunity of long-term capital appreciation by investing in a concentrated portfolio of equity and securities. Indicative Asset Equity and equity 65% 100% High related Units issued by 0% 10% REIT/InVIT* Debt 0% 35% 0% 35% Low *The exposure will be in line with SEBI/AMFI limits specified Exposure to derivatives to the extent of 50% of the Net Assets as The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the Committee for further direction. The 7. SBI Emerging Businesses Fund (contd.) 8. SBI Small & Midcap Fund regard the investment themes would be companies like Bharati Televentures, Gammon India, and IVRCL Construction etc. These companies are primarily focused on the domestic market. Retailing is likely to be a large emerging domestic oriented sector. Also with the focus on power reforms there is the likelihood of some new growth opportunities in this segment. The cost of capital going down significantly in India in combination with the economic reforms is likely to drive new initiatives from companies across sectors. This has the potential of creating tremendous wealth for shareholders if these initiatives are well executed. With the growth rate in the economy accelerating we believe that the potential for new businesses is also likely to accelerate, thus creating good investment opportunities.the investments may be made in primary as well as secondary markets. The portfolio will be sufficiently diversified so as to reduce the risk of underperformance due to unexpected security specific factors. If allowed in future, the fund may invest in overseas markets (subject to relevant RBI guidelines and subject to RBI approval). changed by the fund manager on defensive considerations. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. in equities would be well diversified across various emerging sectors with exposure to a particular business would be restricted to 25% of the total investment portfolio under normal market condition. This Fund shall not invest more than 10% of its assets in equity shares or of any company and shall not invest more than 5% of its assets in unlisted equity shares or of companies. The fund will follow a bottom-up approach to stock-picking and invest in companies across market capitalization and sectors. The fund will take high conviction bets and the total number of securities would be equal to or under 30. Name of the SBI Small & Midcap Fund SBI Small Cap Fund scheme Type of Scheme An open-ended Equity Scheme. An open-ended Equity Scheme predominantly investing in small cap stocks. To generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly in equity and securities of small & midcap Companies. (% of Net Assets) Equity and 90% 100% Debt & Securities* 0% 10% * s in asset backed securities (securitized will not exceed 10% of the net assets of the Scheme. The Scheme will not invest in foreign securitised debt. The corpus of the Scheme will be primarily invested in Small and Midcap equity and securities of the companies in the small and midcap segment. The portfolio will comprise of a maximum of 30 stocks. Allocation between the various market capitalization segments in equity will be on the basis of the entire portfolio and will be subject to the allocations as mentioned below: Market Capitalization Segment Allocation Allocation Small Cap 50% 70% Midcap 30% 40% Large Cap 0% 20% Large caps are defined as top 100 stocks in terms of market capitalisation. Midcaps are defined as 101 st stock in terms of market capitalisation to 400 th stock in terms of market capitalisation. Small Caps are defined as any stock beyond 401 st stock in terms of market capitalisation. The fund will have a capacity constraint of INR 750 crores. Depending on the evolution of the equity markets and liquidity scenario, the trustee reserve the right to change the capacity. If the scheme decides to invest in Foreign Securities in accordance with SEBI Regulations, it is the intention of the fund manager that such investments will not normally exceed 20% of If the Scheme decides to invest in derivatives, it is the intention of the fund manager that such investments will not normally exceed 50% of the net assets of the Scheme. The cumulative gross exposure through Equity & Equity related, Debt & Securities including derivative positions will not exceed 100% of the The Scheme will enter into derivatives transactions for the purposes of hedging and portfolio rebalancing in accordance with the guidelines issued by SEBI to protect the value of the portfolio. Further, the fund manager may engage in short selling of securities in accordance with the Regulations. To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of small cap companies. Indicative Asset Equity and equity 65% 100% High related of small cap* companies () Other equities and 0% 35% High Units issued by 0% 10% Debt 0% 35% 0% 35% Low Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and including derivative position, debt, Money Market will not exceed 100% of the net assets *Small Cap: 251 st company onwards in terms of full market capitalization. The exposure will be as per limits/classification defined by AMFI/SEBI Other equities could include stocks other than small cap. Large Cap: 1 st th company in terms of full market capitalization. Mid Cap: 101 st to 250 th company in terms of full market capitalization. The exposure will be as per limits/classification defined by AMFI/SEBI from time to time. The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the Committee for further direction. The within the range of the asset allocation as mentioned above/further course of action required in this regard. in transferable securities as per Regulation 44(1), Schedule Page:3 (continued...)

4 8. SBI Small & Midcap Fund (contd.) The primary investment strategy of the fund is to invest in the stocks of small & midcap companies. A small portion will be invested in large cap stocks and debt & money market securities. Stocks will be selected on the basis of bottom-up & top-down approach. Basis for selection of approach: The transition of the economy towards a free market/open economy, which began post the 1991 reforms, has continued largely unabated. This has been despite changing political stewardship and a volatile global macro. India is poised for a higher economic growth on a sustained basis given the structural factors. There is a large investment universe (over 5000 listed stocks) across various sectors offering ample opportunities for bottom up stock picking. The changes that offers equity investor s opportunities for active alpha generation are: Changes in the pattern of consumption Rural consumption Consumption of financial services. Mechanism of providing government support Asset ownership Opportunities in outsourcing/exports Change in ownership patters A high degree of efficiency probably exists in large parts of financial markets, but we believe, it is possible to identify mispriced opportunities due to the market s structural and behavioural tendencies, some of which are elaborated below: Time arbitrage Special situations Research arbitrage. These opportunities/arbitrages are recognized at each step of our investment process. Identification of market opportunities is an output of our research process. The scheme will look at following parameters to identify these opportunities: Bottom-up Business Model, Management quality, Valuations and Liquidity are the important ingredients in the bottom-up stock picking process. Business Model: The competitive edge of the business, its position vis-à-vis competition, impact of geo political issues, impact of policy (Local and Global), the scope of business expansion. Management Quality: Management s vision, execution ability, ability to adapt the change, corporate governance and transparency. Valuations: Fair value of the company, Return of capital, Growth, Relative value, current premium/discount, expectations. Liquidity: The scheme will have internal liquidity measures which will be considered by the fund manager before making a buy decision. Top Down: Top down views are essentially used to blend the macro understanding and analysis in bottom up stock-picking. Given the nature of economy and regulatory evolution, government policies and regulatory developments can have significant impact on certain sectors. Some of the domestic variables that are actively tracked to form a top down view: Fiscal policy Macro indicators and industry data Government Policies and regulatory developments Monetary conditions and policy The Top down approach helps us to effectively tilt the portfolio (Defensive, High Beta, Cyclicals etc). The combination of the top down and bottom up approach will help the fund manager to identify market opportunities/ arbitrage. The scheme follows a blend of growth and value style of investing. The scheme will follow a bottom-up approach to stock-picking and choose companies within the small cap space. Small Cap: 251 st company onwards in terms of full market capitalization. The exposure will be as per limits/ classification defined by AMFI/SEBI Please note that The Board of Directors of Trustee Company and the Board of Directors of the AMC, after evaluating the market conditions, may decide to limit/stop accepting fresh subscriptions in the Scheme till such time the market conditions change and can accommodate further investments in the Scheme. 9. SBI Contra Fund Type of Scheme An open-ended Equity Scheme. An open-ended Equity Scheme following contrarian investment strategy. To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. Indicative Asset Equities of a particular 90% 100% High sector Money market 0% 10% Low * in derivatives will be upto 50% of the net * will include Commercial Paper, Certificates of Deposit, Treasury Bills, Bills Rediscounting, Repos, short-term bank deposits, short-term Government securities (of maturities less than 1 year) and any other such short-term as may be allowed under the regulations prevailing The Managers may, however, at their discretion, alter the pattern of investment in keeping with the longterm objectives of the scheme and in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. Accordingly, investments may also be made in select companies in other industries. due to unexpected security specific factors. If allowed in future, the fund may invest in overseas markets (subject to relevant RBI guidelines and subject to RBI approval). changed by the fund manager on defensive considerations. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. To provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and securities following a contrarian investment strategy. Indicative Asset Equity and equity 65% 100% High related of companies which follow the contrarian investment theme () Other equities 0% 35% High and Units issued by 0% 10% REIT/InVIT* Debt 0% 35% 0% 35% Low *The exposure will be in line with SEBI/AMFI limits specified Exposure to derivatives to the extent of 50% of the Net Assets as The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the 9. SBI Contra Fund (contd.) If the exposure falls outside the above mentioned asset Committee for further direction. The Benchmark Index 10. SBI FMCG Fund Fund invests in stocks which are currently out of favour. At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. S&P BSE 100 S&P BSE 500 The fund will follow a combination of top-down and bottomup approach to stock-picking and choose companies within the contrarian investment theme. Name of the SBI FMCG Fund SBI Consumption Opportunities Fund scheme Type of Scheme An open-ended Equity Fund. An open-ended Equity Scheme following consumption theme. Benchmark Index To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. S&P BSE Fast Moving Consumer Goods Index Type of Normal Allocation Equities of a particular High sector 0-10 Low * * will include Commercial Paper, Certificates of Deposit, Treasury Bills, Bills Rediscounting, Repos, short-term bank deposits, short-term Government securities (of maturities less than 1 year) and any other such short-term as may be allowed under the regulations prevailing in derivatives will be upto 50% of the net At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. Remaining funds will be invested in money market. The Managers may, however, at their discretion, alter the pattern of investment in keeping with the longterm objectives of the scheme and in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. Accordingly, investments may also be made in select companies in other industries. due to unexpected security specific factors. If allowed in future, the fund may invest in overseas markets (subject to relevant RBI guidelines and subject to RBI approval). changed by the fund manager on defensive considerations. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. To provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and securities in Consumption space. Nifty India Consumption Indicative Asset Equities and equity 80% 100% High related securities in Consumption sector ( and foreign securities*) Other equities and 0% 20% High Units issued by 0% 10% Debt 0% 20% 0% 20% Low Exposure to derivatives to the extent of 50% of the Net Assets as *The Scheme may seek investment opportunities in foreign Committee for further direction. The The fund will follow a bottom-up approach to stock-picking and choose companies within the Consumption space. The scheme will invest in stocks of companies engaged in: 1. Consumer durables 2. Consumer non-durables 3. Retail 4. Textiles 5. Auto OEM s 6. Media & entertainment 7. Hotels, resorts & travel services. 8. Education services 9. Airlines 10. E-commerce 11. Consumer transportation & logistics services. 11. SBI IT Fund Name of the SBI IT Fund SBI Technology Opportunities Fund scheme Type of Scheme An open-ended Equity Fund. An open-ended Equity Scheme investing in technology and technology related sectors. Benchmark Index To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. S&P BSE - Information Technology Index To provide the investor with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and securities in technology and technology related companies. S&P BSE Teck Page:4 (continued...)

5 11. SBI IT Fund (contd.) Type of Normal Allocation Equities of a particular High sector 0-10 Low * * will include Commercial Paper, Certificates of Deposit, Treasury Bills, Bills Rediscounting, Repos, short-term bank deposits, short-term Government securities (of maturities less than 1 year) and any other such short-term as may be allowed under the regulations prevailing in derivatives will be upto 50% of the net At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. Remaining funds will be invested in money market. The Managers may, however, at their discretion, alter the pattern of investment in keeping with the longterm objectives of the scheme and in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. Accordingly, investments may also be made in select companies in other industries. due to unexpected security specific factors. If allowed in future, the fund may invest in overseas markets (subject to relevant RBI guidelines and subject to RBI approval). changed by the fund manager on defensive considerations. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. Indicative Asset Equities and equity 80% 100% High related securities in technology and technology related securities (including derivatives and foreign securities*) Other equities and 0% 20% High Units issued by 0% 10% Debt 0% 20% 0% 20% Low Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and including derivative position, debt, Money Market will not exceed 100% of the net assets *The Scheme may seek investment opportunities in foreign Committee for further direction. The The fund will follow a bottom-up approach to stock-picking and choose companies which are expected to derive benefit from development, use and advancement of technology. These will predominantly include companies in the following industries: Technology services, including IT management, software, Data and IT Infrastructure services including Cloud computing, mobile computing infrastructure Internet technology enabled services including e-commerce, technology platforms, IoT (Internet of Things) and other online services Electronic technology, including computers, computer products, and electronic components Telecommunications, including networking, wireless, and wireline services, equipment and support; Media and information services, including the distribution of information and content providers IT products, hardware and components like PCs, Laptops, Servers, Chips, Semi-conductors etc. 12. SBI Pharma Fund Name of the SBI Pharma Fund SBI Healthcare Opportunities Fund scheme Type of Scheme An open-ended Equity Fund. An open-ended Equity Scheme investing in healthcare sector. To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. Type of Normal Allocation Equities of a particular High sector 0-10 Low * * will include Commercial Paper, Certificates of Deposit, Treasury Bills, Bills Rediscounting, Repos, short-term bank deposits, short-term Government securities (of maturities less than 1 year) and any other such short-term as may be allowed under the regulations prevailing in derivatives will be upto 50% of the net At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. Remaining funds will be invested in money market. The Managers may, however, at their discretion, alter the pattern of investment in keeping with the longterm objectives of the scheme and in the interest of the investors provided such changes do not result in a change in the fundamental attributes/investment profile of the scheme and are short-term changes on defensive consideration. Accordingly, investments may also be made in select companies in other industries. due to unexpected security specific factors. If allowed in future, the fund may invest in overseas markets (subject to relevant RBI guidelines and subject to RBI approval). changed by the fund manager on defensive considerations. will be invested in highly liquid money market or government paper so as to meet the normal repurchase securities which are either expected to be reasonably liquid or of varying maturities. However, the NAV of the Scheme illiquid after investment. To provide the investors with the opportunity of long-term capital appreciation by investing in a diversified portfolio of equity and securities in Healthcare space. Indicative Asset Equities and equity 80% 100% High related securities in Healthcare space ( and foreign securities*) Other equities and 0% 20% High Units issued by 0% 10% Debt 0% 20% 0% 20% Low Exposure to derivatives to the extent of 50% of the Net Assets as The cumulative gross exposure through Equity and including derivative position, debt, Money Market will not exceed 100% of the net assets *The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the 12. SBI Pharma Fund (contd.) 13. SBI Magnum COMMA Fund At least 90% of the funds collected under the scheme shall be invested in equities of a particular sector. To generate opportunities for growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors - Oil & Gas, Metals, Materials & Agriculture and in debt & money market. Committee for further direction. The The fund will follow a bottom-up approach to stock-picking and choose companies within the healthcare space.the scheme will invest in stocks of companies engaged in: 1. Pharmaceuticals 2. Hospitals 3. Medical Equipment 4. Healthcare service providers 5. Biotechnology Type of Scheme An open-ended Scheme Investing in Stocks of Commodity An open-ended Equity Scheme investing in commodity Based Companies. and commodity related sectors. Type of Normal Allocation Equities and equity High related of commodity based companies# Foreign Securities/ADRs/ 0-10 High GDRs of commodity based companies^ Fixed/Floating Rate 0-30 Debt 0-30 Low * Maximum limit for stock lending - Not more than 20% of the * will include Commercial Paper, Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, alternate to Call or notice money, Usance Bills and any other such shortterm as may be allowed under the regulations prevailing #The scheme would at all times have an exposure of atleast 65% of its investments in stocks of companies engaged in the commodity business. The scheme intends to take exposure only in the following four sectors - (i) Oil & Gas (Petrochemicals, Power, and Gas etc.), (ii) Metals (Zinc, Copper, Aluminum, Bullion, and Silver etc.), (iii) Materials (Paper, jute, cement etc.) (iv) Agriculture (Sugar, Edible Oil, Soya, Tea and Tobacco etc.). The scheme could invest in companies providing inputs to commodity manufacturing companies. A few companies that the scheme intends to invest in within the above commodity sectors, is detailed below: TATA Steel, National Aluminum Company, Sterlite Industries, Ballarpur Industries, HPCL, ONGC, IPCL, GMDC, Hindustan Zinc, Foseco Ltd. Vesuvius India Ltd., ACC and Gujarat Ambuja, TATA Tea, GNFC and BalrampurChini Mills. Exposure to derivatives in the scheme can be upto a maximum of 50% of the portfolio Exposure to derivative maybe either through Stock Options and Futures or Index Options or Futures. However, investments in Stock Options and Futures would be limited only to the stocks within the four sectors of Oil & Gas, Metals, Materials and Agriculture. The scheme s trading in derivatives shall be restricted to hedging and portfolio balancing purposes. The Mutual Fund has set exposure limits in respect of the various types of derivative transactions that are permitted by the SEBI guidelines, which is detailed in Section Trading in Derivatives in this chapter. ^s in foreign securities/adr/gdr would comply with the Guidelines and overall limits laid down for Mutual Funds by SEBI for investments in foreign securities. s in foreign securities would also be only in the stocks of the following sectors - Oil & Gas, Metals, Materials and Agriculture. s in debt may be in debt of any Company and may also include Government Securities. The scheme would not invest in Securitized Debt. The scheme would at all times have an exposure of atleast 65% of its investments in stocks of companies engaged in the commodity business. The scheme intends to take exposure only in the following four sectors - (i) Oil & Gas (Petrochemicals, Power, and Gas etc.), (ii) Metals (Zinc, Copper, Aluminum, Bullion, and Silver etc.), (iii) Materials (Paper, jute, cement etc.) (iv) Agriculture (Sugar, Edible Oil, Soya, Tea and Tobacco etc.). The scheme could invest in companies providing inputs to commodity manufacturing companies. To generate opportunities for growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity and commodity related businesses. Indicative Asset Equity and equity 80% 100% High related securities of commodity and related companies (including foreign securities*) Other equities and 0% 20% High Units issued by 0% 10% Debt 0% 20% 0% 20% Low Exposure to derivatives to the extent of 50% of the Net Assets as *The Scheme may seek investment opportunities in foreign The Managers may at their discretion, alter the Committee for further direction. The The scheme would at all times have an exposure of atleast 80% of its investments in stocks of companies engaged in the commodity and commodity related businesses (derived from commodities). The scheme could invest in companies providing inputs to commodity manufacturing companies. The scheme will invest in stocks of companies engaged in: 1. Oil & Gas (Petrochemicals, Power, and Gas etc.), 2. Metals (Zinc, Copper, Aluminum, Bullion, and Silver etc.), 3. Materials (Paper, jute, cement etc.) Agriculture (Sugar, Edible Oil, Soya, Tea and Tobacco etc.), 4. Textiles 5. Tea & Coffee Page:5 (continued...)