ETF Strategic Sectorial PortfolioType of Model Portfolio: Multi-Asset PortfolioLaunch Date: 13th May 2026Risk Level: HighMethodology: This portfolio follows a diversified multi-asset investment strategy aimed at achieving balanced growth, sectoral diversification, and risk management through exposure to equities, commodities, and liquid assets. The methodology is based on the following key principles:1. Diversification Across Market CapitalizationLarge-Cap & Broad Market ETFs: Exposure to established companies through NIFTYBEES and JUNIORBEES for long-term stability and consistent market-linked returns.Mid-Cap & Small-Cap ETFs : Allocation to MID150BEES and HDFCSML250 to capture higher growth potential from emerging and expanding businesses.2. Sector ETFs: Exposure to high-potential sectors including:Banking & PSU Banking (BANKBEES & PSUBNKIETF)Information Technology (ITBEES)Pharma (PHARMABEES)Auto Sector (AUTOBEES)3. Exposure to Alternative Assets for Risk HedgingGold ETF & Silver ETF: Allocation to GOLDBEES and SILVERBEES may act as a hedge against inflation, currency depreciation, and market volatility.4. Liquidity & Stability AllocationLiquid ETF / Debt Allocation: Investment in LIQUIDBEES provides portfolio stability, liquidity management, and lower volatility during uncertain market conditions.5. Balanced Asset Allocation ApproachThe portfolio is structured to maintain a balance between:Growth-oriented equity exposure with Sectoral opportunitiesDefensive commodity allocationStable liquid investments This approach aims to generate sustainable long-term wealth creation while managing overall portfolio risk through diversification across asset classes and sectors.6. Tactical Allocation Based on Market ConditionsThe portfolio follows a flexible allocation strategy where exposure across Equity ETFs, Sector ETFs, Commodity ETFs, and Liquid ETFs may be periodically reviewed based on market conditions, valuations, economic outlook, and sector-specific opportunities.During periods of elevated market valuations or heightened volatility, allocation may be gradually shifted towards LIQUIDBEES, GOLDBEES, or SILVERBEES to enhance portfolio stability and reduce downside risk.During market corrections or attractive valuation phases, higher allocation may be directed towards broad market ETFs such as NIFTYBEES, JUNIORBEES, MID150BEES, and HDFCSML250 to capitalize on long-term growth opportunities.Sector allocations including Banking, PSU Banking, IT, Pharma, and Auto may be tactically increased or reduced depending on economic cycles, earnings visibility, government policies, and sector momentum.Gold and Silver allocations may also be actively managed based on inflation trends, currency movement, global uncertainty, and interest rate outlook.All portfolio adjustments are made within a disciplined asset allocation framework with the objective of balancing growth potential, liquidity, diversification, and risk management.This methodology ensures a structured yet dynamic investment approach that adapts to changing market environments while maintaining focus on long-term wealth creation and portfolio stability.Investment Horizon: up to 6 MonthsFrequency of portfolio review and update: The model portfolio does not follow a fixed review schedule. Instead, it is assessed dynamically based on prevailing market conditions, macroeconomic developments, and emerging investment opportunities. Portfolio rebalancing, if required, is conducted within the overall framework of the model portfolio to optimize risk-adjusted returns. Any changes, along with the underlying rationale, will be communicated to clients in a timely and transparent manner.Risk Disclosures for the Model Portfolio:The model portfolio carries inherent market risks that investors should be aware of. The key risks associated with this portfolio are as follows:1. Market Risk: The portfolio is exposed to fluctuations in equity markets, which may lead to volatility in returns.2. Interest Rate Risk: The Debt ETF allocation is subject to interest rate movements. Any changes in interest rates may negatively impact bond prices, affecting portfolio stability.3. Gold Price & Silver Price Volatility: The Gold ETF & Silver ETF allocation, while acting as a hedge, is subject to international price fluctuations and currency exchange rates. A sharp decline in prices may impact portfolio performance.4. Liquidity Risk: Some ETFs may have lower liquidity, leading to challenges in executing trades at desired prices, especially in volatile market conditions.5. Rebalancing & Tactical Risk: The portfolio does not follow a fixed review schedule and adjustments are made based on market conditions. Delays in rebalancing or changes in asset allocation may impact expected risk-return dynamics.6. Inflation & Economic Risks: Macro-economic factors such as inflation, GDP growth, and geopolitical events can impact overall market performance and, in turn, portfolio returns.Risk Management ApproachDiversification across asset classes, sectors, and market caps helps reduce concentration risk.The presence of Debt ETFs may provide downside protection.Investors should align their risk tolerance with the portfolio's risk profile before investing.Benchmarking of the Model Portfolio:The Nifty 500 Index has been chosen as the benchmark for this model portfolio, as it represents the broader Indian equity market, covering large-cap, midcap, and small-cap stocks. Given the portfolio’s diversified nature, Nifty 500 provides an appropriate reference for performance evaluation. Since Nifty 500 encompasses companies across different growth cycles, it serves as an effective reference point for assessing the relative performance of the model portfolio. The portfolio’s returns will be compared against the Nifty 500 Total Return Index (TRI), which includes dividends for a more accurate performance assessment.Any significant deviations from the benchmark will be analysed, and rebalancing decisions, if necessary, will be communicated accordingly.Model Portfolio – Key NotesPricing Methodology: For calculation purposes, closing price will be considered as the entry or exit price for any security. This approach ensures consistency and fairness in tracking portfolio performance.Performance Calculation: Portfolio performance will be measured from its launch date, assuming the initial NAV (Net Asset Value) as 100. Returns will be calculated based on the portfolio’s movements over different timeframes.Cash Flows & Rebalancing Adjustments: Any cash inflows or outflows arising from rebalancing, dividends received, or corporate actions will be accounted for in the cash balance. The next portfolio update will include a detailed annexure reflecting these changes along with proper workings.Dividend & Corporate Actions Treatment: Any dividends received will be considered in cash balance, and their impact will be reflected in the next update. Corporate actions like stock splits, bonus issues, or rights issues will be adjusted in the portfolio allocation accordingly.Rationale for the Model Portfolio:This ETF Strategic Sectorial Portfolio is designed to achieve balanced long-term wealth creation through diversification across broad market indices, sector-specific opportunities, precious metals, and liquid assets. The portfolio aims to optimize risk-adjusted returns by combining growth-oriented equity exposure with defensive and stabilizing asset classes.The allocation strategy focuses on capturing India’s long-term economic growth through diversified equity participation while maintaining portfolio stability through Gold, Silver, and Debt exposure.1. Broad Market Equity Allocation – Core Growth EngineBroad market ETFs form the foundation of the portfolio, providing diversified exposure across market capitalizations for sustainable long-term capital appreciation.a) NIFTYBEES – Large Cap StabilityTracks the Nifty 50 Index and provides exposure to India’s leading large-cap companies across major sectors. These companies generally possess strong balance sheets, stable earnings, and market leadership positions. This allocation acts as the portfolio’s stability anchor with relatively lower volatility.b) JUNIORBEES – Next Generation Market LeadersTracks the Nifty Next 50 Index, consisting of emerging large-cap companies that have the potential to become future Nifty 50 constituents. These businesses are generally in a high-growth phase and may offer superior long-term growth compared to traditional large caps while maintaining diversification.c) MID150BEES – Mid Cap Growth PotentialProvides exposure to mid-cap companies with scalable business models and strong expansion potential. Mid-cap companies often outperform during economic growth cycles and help enhance portfolio return potential while maintaining moderate diversification.d) HDFCSML250 – Small Cap High Growth ExposureFocuses on small-cap businesses that possess significant long-term growth opportunities. Although relatively more volatile, small caps can generate substantial wealth creation over extended investment horizons. This allocation enhances the portfolio’s growth potential.2. Sectoral Allocation – Tactical Growth OpportunitiesSector ETFs are included to capture opportunities in sectors expected to benefit from economic expansion, government policies, technological advancement, and consumption growth.a) BANKBEES – Banking Sector ExposureProvides exposure to India’s leading banking institutions, which play a critical role in economic growth, credit expansion, and financial inclusion. Banking sector performance is generally linked with economic recovery and rising credit demand.b) PSUBNKIETF – PSU Banking OpportunityFocuses on Public Sector Banks that may benefit from improving asset quality, government reforms, credit growth, and attractive valuations. PSU banks can outperform during strong economic and infrastructure cycles.c) ITBEES – Information Technology SectorOffers exposure to India’s globally competitive IT companies benefiting from digital transformation, cloud adoption, artificial intelligence, and global outsourcing demand. The IT sector also provides export-oriented diversification to the portfolio.d) PHARMABEES – Defensive Healthcare AllocationProvides exposure to pharmaceutical and healthcare companies. The pharma sector generally performs relatively better during uncertain market conditions due to consistent healthcare demand, thereby adding defensive stability to the portfolio.c) AUTOBEES – Consumption & Manufacturing GrowthTracks the automobile sector, which benefits from rising consumer demand, infrastructure development, electric vehicle adoption, and economic expansion. The allocation provides exposure to India’s manufacturing and consumption growth story.3. Commodity Allocation – Hedge Against Uncertainty & InflationCommodity ETFs are included to reduce overall portfolio volatility and provide diversification benefits during uncertain economic conditions.a) GOLDBEES – Portfolio Stability & Inflation HedgeProvides exposure to gold, which historically acts as a safe-haven asset during geopolitical uncertainty, inflationary periods, and market volatility. Gold helps improve portfolio stability and long-term wealth preservation.b) SILVERBEES – Industrial & Precious Metal ExposureOffers exposure to silver, which combines characteristics of both a precious metal and an industrial commodity. Silver may benefit from increasing industrial demand driven by electronics, renewable energy, and electric vehicle industries while also acting as a diversification asset.4. Debt & Liquidity Allocation – Stability and Flexibilitya) LIQUIDBEES – Capital Protection & LiquidityInvests in low-risk money market and debt instruments that provide liquidity, stability, and lower volatility. This allocation helps manage portfolio risk, provides flexibility for rebalancing during market corrections, and acts as a buffer during uncertain market phases. Disclaimers: 1. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.2. We do not give any assurance or guarantee of profit or protection from loss in any form. We only provide research recommendations. We do not provide any service based on profit sharing, fixed returns, or similar services.3. The research analyst or research entity or his associate or his relative does not have financial interest in the subject companies.4. The research analyst or its associates or relatives does not have actual/beneficial ownership of one percent or more securities of the subject companies, at the end of the month immediately preceding the date of publication of the research report/ document or date of the public appearance.5. The research analyst or his associate or his relative does not have any other material conflict of interest at the time of publication of the research document/ Model Portfolio or at the time of public appearance.6. The research analyst or its associates does not have received any compensation from the subject companies in the past twelve months. The research analyst or its associates does not have managed or co-managed a public offering of securities for the subject company in the past twelve months.7. 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