Consistent with its Objective, First Capital Mutual Fund (�FCMF� or �the Fund� or �the Scheme�) shall invest its net assets in high quality dividend yielding stocks. While the remaining assets shall be invested in cash and/or near cash instruments, including bank deposits (excluding TDRs) and T.Bills of maturities not exceeding 90 days.

The Scheme shall be subject to such exposure limits as are specified in the Regulations and SECP�s directives. Currently, the limits are as follows:

a). At least 70% of its Net Assets shall remain invested in listed equity securities during the year based on quarterly average investment calculated on daily basis;

b). The remaining Net Assets shall be invested in cash and / or near cash instruments. Cash and near cash instruments which include cash in bank accounts (excluding TDRs) and treasury bills not exceeding 90 days remaining maturity;

c). The Scheme shall not take exposure to Margin Trading System (MTS)

Any Investment may at any time be disinvested at the sole discretion of the Management Company either in order to invest the proceeds of sale in other Authorized Investments or to provide funds required for the purpose of any provision of Trust Deed or may retain the proceeds of sale in cash deposit as aforesaid or any combination of the aforesaid. Any Investment, which ceases to be an Authorized Investment, would be disinvested within the prescribed period in the best interest of the Unit Holders.

In case the rating of a Bank is reduced or institution is placed on watch list, the Investment shall be realized to reasonably protect the interest of the Unit Holders.