APMI – Revised Benchmarks

Annexure 1

Strategy	Benchmark 1	Benchmark 2		Benchmark 3
Equity	Nifty 50		S&P BSE 500	MSEI SX 40
Debt	Nifty Medium to Long Duration Debt Index	CRISIL Credit Index $ Composition: 33%: AA+/AA 17%: AA- 50%: A+/A/A- with a 22.5-year duration		CRISIL Composite Bond Fund Index
Hybrid	Nifty 50 Hybrid Composite Debt 50:50 Index	BSE S&P Hybrid $ Composition: 50%: BSE 500 Index & 50%:S&P BSE Arbitrage Rate Index		Crisil Hybrid 50+50 Moderate Index
Multi-Asset	NSE Multi Asset Index 1$ Composition: 50%: Nifty 500 40%: Nifty 50 Arbitrage Index 10%: REIT & INVIT	NSE Multi Asset Index 2 $ Composition: 50%: NIFTY 500 20%: NIFTY Medium Duration Index 20%: NIFTY Arbitrage index 10%: INVIT/REIT		Crisil Multi Asset Index 3 $ Composition:** 50%: S&P BSE 500 20%: S&P BSE Arbitrage Rate Index 20%: Gold 10%: REIT & INVIT

$ These are customised indices and have a pre-defined time line for construction. **CRISIL will provide the composite benchmark including S&P BSE 500. NOTE: All equity indices are TRI.

Comparative table of quotes

NSE

S&P BSE

MSEI

CRISIL

Annual Fees (Rs.)

Rs. 1,00,000 p.a.

Rs. 1,55,000 p.a.

Rs. 1,50,000 p.a.

Nil for FY 23-24

Rs. 1,10,000 p.a

Rs. 1,25,000 p.a.

Please refer to the following links for commercial proposals along with detailed terms and conditions.

B. Rationale for selecting the benchmarks

Strategy 1: EQUITY

Discussions:

APMI Benchmarking & Valuation Committee considered the feedback received from the portfolio managers, feedback received during consultation with SEBI, inputs received during the group meetings with the portfolio managers, industry data of existing benchmarks, data received from SEBI, feedback collected through the personal meetings with the portfolio managers and the benchmarking data from the MF Industry and concluded that there are 4 broad methodologies for classifying and selecting the benchmark:

Market Cap Based
Style / Factor Based
Theme Based
Sector Based

Given that the current task is to select only three 3 benchmarks under the ‘’Strategy- Equity’’ as defined by SEBI, the committee concluded that given the work-flow, spectrum & the universe of data analysed, a Market Cap Based Methodology is the most appropriate method for shortlisting the three benchmarks under the ‘’Strategy- Equity’.

Following are the three (3) benchmarks which APMI is prescribing for the Strategy- Equity as defined in the SEBI Circular dated 16^th Dec’22.

Nifty 50
S&P BSE 500
MSEI SX 40

Strategy 2: DEBT

This has background to the current size of the Debt AUM in the PMS Industry, the future that is envisaged & the current space which the industry participants are exploring.

Following are the three (3) benchmarks which APMI is prescribing for the Strategy-Debt as defined in the SEBI Circular dated 16^th Dec’22.

Nifty Medium to Long Duration Debt Index
CRISIL Credit Index $ o Composition: o 33%: AA+/AA, o 17%: AA-,

o 50%: A+/A/A- with a 2-2.5-year duration

CRISIL Composite Bond Fund Index

Strategy 3: HYBRID

Following are the three (3) benchmarks which the APMI is prescribing for the Strategy-Hybrid as defined in the SEBI Circular dated 16^th Dec’22.

Nifty 50 Hybrid Composite Debt 50:50 Index
BSE S&P $ o Composition:

o 50%: BSE 500 Index & o50%: S&P BSE Arbitrage Rate Index

Crisil Hybrid 50+50 Moderate Index

Strategy 4: MULTI ASSET

Following are the three (3) benchmarks which the APMI is prescribing for the Strategy-Multi Asset as defined in the SEBI Circular dated 16^th Dec’22.

NSE Multi Asset Index 1$ o Composition:
- 50%: Nifty 500
- 40%: Nifty 50 Arbitrage Index o 10%: REIT & INVIT
NSE Multi Asset Index 2 $ o Composition:

50%: NIFTY 500
20%: NIFTY Medium Duration Index, o 20%: NIFTY Arbitrage index, o 10%: INVIT/REIT

Crisil Multi Asset Index 3 $ ** o Composition:
- 50%: S&P BSE 500
- 20%: S&P BSE Arbitrage Rate Index
- 20%: Gold o 10%: REIT & INVIT

$ These are customised indices and have a pre-defined time line for construction.

**CRISIL will provide the composite benchmark including S&P BSE 500.

Note: All equity indices are TRI.