Large and Mid-Cap Portfolio

A Large- and Mid-Cap Portfolio, i.e., a basket of securities, is prepared and launched as of 17 September 2026 (Thursday), with the objective of providing balanced investment opportunities to a wide range of investors with risk appetites ranging from conservatively moderate to moderately aggressive.

Introduction

A Large and Mid-Cap Portfolio—a curated basket of securities—has been prepared and launched on 17 September 2026 (Thursday). This portfolio is designed to provide balanced investment opportunities by combining the relative stability of large-cap companies with the growth potential of mid-cap companies.

Portfolio Overview

·        Launch Date: 17 September 2026.

·        Investment Horizon: Long-term (3 to 5 years).

·        Benchmark: BSE 100 India TR INR (Morningstar Valuation). Refer to Portfolio Report.

·        Risk Level: Conservatively moderate to moderately aggressive.

Investment Objective

The Dayco Large and Mid-Cap Portfolio aims to provide balanced investment opportunities by selecting securities based on fundamental analysis. It is suitable for investors looking for moderate risk exposure with the potential for steady growth.

Disclosures

The objective of the Large and Mid-Cap Portfolio is to provide balanced investment opportunities to a wide range of investors with risk scores ranging from 35 to 64, representing a risk appetite from conservatively moderate to moderately aggressive.

The long-term five-year average beta of the Large and Mid-Cap Portfolio is maintained at 1, with the BSE 100 India TR INR serving as the benchmark, as per the Morningstar valuation.

The focus of the Large and Mid-Cap Portfolio is value investing, wherein securities have been selected by the RA/IA Division based on predefined cut-off values for Earnings per Share (EPS), Price-to-Earnings (P/E) Ratio, Price-to-Book Value (P/B) Ratio, and Debt-to-Equity (D/E) Ratio, based on the data available as of the portfolio's launch date.

The fundamental ratios presented in the portfolio factsheet have been sourced from Prowess (prowess.cmie.com), while the fair values have been sourced from Morningstar AWS, based on the respective data available as of the launch date.

Portfolio Methodology & Selection Criteria

Value Investing Approach: Stock selection is based on fundamental analysis, supporting long-term value creation.

Process: The Large and Mid-Cap Portfolio is constructed using a quantity-weighted allocation approach, in which each security is assigned a defined number of units rather than a fixed weight. This structure promotes portfolio stability, supports a long-term investment perspective, and helps minimise unnecessary churning by reducing frequent rebalancing driven by short-term price movements.

The portfolio is designed to operate within a target beta range of 0.95–1.05 to maintain the desired risk profile and stay consistent with a moderately balanced investment objective. Security selection and position sizing follow a disciplined framework that balances growth potential with risk control, while avoiding excessive concentration in high-beta or overly defensive assets.

Selection Criteria: Securities included in the portfolio meet the following fundamental thresholds:

For Individual Stocks:

·        Earnings Per Share (EPS) ≥ 25

·        Price to Earnings (P/E) ≤ 70

·        Price to Book Value (P/B) ≤ 14

·        Market Capitalisation – Large Cap & Mid Cap

For Portfolio:

·        Portfolio Beta Range: The portfolio beta should remain within the range of 0.95 to 1.05 (Based on CMIE Prowess Data) on every portfolio review, and rebalancing can be done, if necessary, to achieve the objective.

Risk Classification: The weighted average beta of the portfolio is maintained at approximately 1, supporting a balance between risk and return.

Launch Date

17 September 2026

Frequency of portfolio review and update

Labelling

The weighted average beta based on the quantity allocation of all portfolio stocks is approximately 1. It is labelled as Dayco Moderate Balanced Large and Mid-Cap Portfolio.

Audit Requirements

Compliance with audit requirements under Regulation 25(3) of the RA Regulations shall also cover compliance with obligations set out under the Large and Mid-Cap Portfolio framework. The following have been adhered to strictly and will be followed from time to time.