Edelweiss Arbitrage Fund

Transcription

1 Edelweiss Arbitrage Fund Key Informa on Memorandum (KIM) and Applica on Form CONTINUOUS OFFER FOR UNITS AT APPLICABLE NAV BASED PRICES This product is suitable for investors who are seeking*: To generate income by predominantly inves ng in arbitrage opportuni es Investments predominantly in arbitrage opportuni es in the cash and deriva ve segments of the equity markets and the arbitrage opportuni es available within the deriva ve segment and by inves ng the balance in debt and money market instruments *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. LOW Riskometer HIGH Investors understand that their principal will be at Moderately Low risk MUTUAL FUND: Edelweiss Mutual Fund Edelweiss House, Off. C.S.T Road, Kalina, Mumbai TRUSTEE: Edelweiss Trusteeship Company Limited (CIN: U67100MH2007PLC173779) Corporate Office: 801, 802 & 803, 8th Floor, Windsor, Off C.S.T. Road, Kalina Santacruz (E), Mumbai INVESTORS SHOULD NOTE THAT: This Key Informa on Memorandum (KIM) sets forth the informa on, which a prospec ve investor ought to know before inves ng. For further details of the Scheme/Mutual Fund, due diligence cer ficate by the AMC, Key Personnel, investors' rights & services, risk factors, penal es & pending li ga ons etc. investors should, before investment, refer to the Scheme Informa on Document and Statement of Addi onal Informa on available free of cost at any of the Investor Service Centers or distributors or from the website The Scheme par culars have been prepared in accordance with Securi es and Exchange Board of India (Mutual Funds) Regula ons 1996, as amended ll date, and filed with Securi es and Exchange Board of India (SEBI). The units being offered for public subscrip on have not been approved or disapproved by SEBI, nor has SEBI cer fied the accuracy or adequacy of this KIM. This KIM is dated June, 201 Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai SPONSOR: Edelweiss Financial Services Limited Edelweiss House, Off.C.S.T Road, Kalina, Mumbai INVESTMENT MANAGER: Edelweiss Asset Management Limited (CIN: U65991MH2007PLC173409) Corporate Office: 801, 802 & 803, 8th Floor, Windsor, Off C.S.T. Road, Kalina Santacruz (E), Mumbai Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai REGISTRAR: Karvy Computershare Private Limited Unit - Edelweiss Mutual Fund Karvy Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad , Tel:

2 INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the will be realized. The Scheme will aim to have a fully hedged portfolio to meet its Investment Objective. 1. Under normal circumstances, the asset allocation would be as follows: Asset Class Indicative Allocation (% of net assets) Risk Profile Equity & Equity related instruments including derivatives Debt & Money Market instruments including the margin money deployed in derivative transactions 65% - 100% Medium to High 0% - 35% Low 2. Under defensive circumstances, the asset allocation would be as follows: Asset Class Indicative Allocation (% of net assets) Risk Profile Equity & Equity related instruments including derivatives Debt & Money Market instruments including the margin money deployed in derivative transactions 0% - 35% Medium to High 65% - 100% Low The Scheme will not invest in Foreign Securities and ADRs/GDRs issued by Indian or foreign companies. The Scheme will not invest in Stock Lending and Short Selling. Note: Defensive circumstances are when the arbitrage opportunities in the market are negligible or returns are lower than alternative investment opportunities as per the allocation pattern. The allocation under defensive circumstances will be made keeping in view the interest of the Unit holders. Such position will be closely monitored by the Fund Managers and necessary rebalancing will be done at 1

3 suitable opportunity but not later than 30 days. The margin money requirement for the purposes of derivative exposure will be held in the form of Term Deposits, cash or cash equivalents or as may be allowed under the Regulations. Money Market Instruments include CPs, commercial bills, Corporate Debt, T-Bills, and Government securities having an unexpired maturity upto one year, CDs, usance bills, CBLOs, Repo/ Reverse Repo and any other like instruments having a maturity of 1 year or less, as specified by the RBI from time to time. The above percentages are indicative and not absolute. Further, The Scheme will not invest in Securitized Debt, Credit Default Swap or equity linked debentures. The Scheme can take derivative exposure upto a limit as stated in the tables above. The total exposure related to options premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such transactions will not exceed 10% of the net assets of the Scheme. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. The Scheme shall not undertake repo /reverse repo transactions in Corporate Debt Securities. From time to time, the Scheme may hold cash and/or invest in the Collateralized Borrowing & Lending Obligations (CBLO) or repo to meet the liquidity requirements. The Scheme may also invest in other s managed by the AMC or in the s of any other Mutual Fund within the regulatory limits, provided it is in conformity with the investment objectives of the Scheme. Pending deployment of funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from time to time. INVESTMENT STRATEGY OF THE SCHEME The Scheme will invest in arbitrage opportunities between spot and futures prices of exchange traded equities and the arbitrage opportunities available within the derivative segment. If suitable arbitrage opportunities are not available in the opinion of the Fund Manager, the Scheme may invest in short 2

4 term debt and money market securities. The Fund Manager will evaluate the difference between the price of a stock in the futures market and in the spot market. If the price of a stock in the futures market is higher than in the spot market, after adjusting for costs and taxes the shall buy the stock in the spot market and sell the same stock in equal quantity in the futures market, simultaneously. The Scheme will endeavor to build similar market neutral positions that offer an arbitrage potential for e.g. buying the basket of index constituents in the cash or futures segment and selling the index futures, etc. The Scheme would also look to avail of opportunities between one futures contract and another. The margin money requirement for the purposes of derivative exposure will be held in the form of Term Deposits, cash or cash equivalents. RISK PROFILE OF THE SCHEME Mutual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme Information Document carefully for details on risk factors before investment. The performance of the Scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems etc. Investment in Edelweiss Arbitrage Fund will involve certain specific risk factors apart from the general risks mentioned in SAI which are summarized below : There can be no assurance or guarantee that the arbitrage opportunities may exist at all times in the capital market. The lack of arbitrage opportunities shall not provide an opportunity to the Fund Manager to exploit price differences in the capital markets. In case of heavy redemptions before the Expiry Day (last Thursday of every month or any day specified by the exchange), the liquidity and/or NAV of the Scheme might be affected. In such cases, the Fund Manager may be required to unwind positions in derivative segments before the Expiry Day, which may result in a fall in NAV. The performance of the Scheme will depend on the ability of the Fund Manager to identify suitable opportunities in the cash and derivative market. No assurance can be given that Fund Manager will be able to locate investment opportunities or to correctly exploit price spread in the equity markets. There may be instances where the price spread between cash and derivative market is insufficient to meet the cost of carry. In such situations, the Fund Manager due to lack of opportunities in the derivative market, may not be able to outperform liquid/money market funds. In addition to this, there can be increase in number of transactions as the Fund Manager has to take simultaneous calls in cash and derivative market, which may lead to high portfolio turnover and consequently 3

5 will lead to high transaction costs. Equity & Equity related instruments: The value of the Scheme s investments may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, etc. Settlement periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. The Scheme may face liquidity risk or execution risk or redemption risk or the risk of NAV going below par. Debt and Money Market Instruments: Risk associated with investments in Fixed Income and Money Market Instruments involves Price/Interest rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & Settlement Risk, Performance Risk, Prepayment Risk, Market Risk etc. Derivatives: Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. PLANS & OPTIONS / FACILITIES The Scheme offers two Plans: 1. Regular Plan and 2. Direct Plan Each Plan will offer: (i) Growth Option (ii) Dividend Option (iii) Monthly Dividend Option. The Dividend Options has Reinvestment, Payout & Sweep Facility. Details pertaining to Default Plan is as follows: Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan 4

6 APPLICABLE NAV Default Option: If the investor does not clearly specify the choice of Option at the time of investing, it will be deemed that the investor has opted for Growth Option. In case the investor does not clearly specify the choice of Dividend Option at the time of investing, it will be deemed that the investor has opted for the Default Dividend Option; i.e. the Monthly Dividend Option. In case of valid applications received for Monthly Dividend Option without indicating any choice of Facility, the Dividend Reinvestment Facility will be considered by default. Operation Cut off time Applicable NAV Valid Purchase applications of less than 2 lacs received on a Business Day Upto 3.00 P.M. After 3.00 P.M. application Valid Purchase applications of 2 lacs or more received on a Business Day Valid Redemption applications received on a Business Day Upto 3.00 P.M. After 3.00 P.M. Upto 3.00 P.M. After 3.00 P.M. The closing NAV of the day of receipt of valid The closing NAV of the Next Business Day of receipt of valid application The closing NAV of the Business day on which funds are available for utilization before cutoff The closing NAV of the day of receipt of valid application The closing NAV of the Next Business Day of receipt of valid application Note: Investors are requested to read the Business Day definition given in SID. With respect to investors who transact through the stock exchange, Applicable NAV shall be reckoned on the basis of the time stamping as evidenced by confirmation slip given by stock exchange mechanism. Note: Valid applications for 'switch-out' shall be treated as applications for redemption and valid applications for 'switch-in' shall be treated as applications for Purchase, and the provisions of the Applicable NAV and cut-off time as mentioned above shall be applied respectively to the 'switch-out' and 'switch-in' applications. MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS Minimum Amount Purchase Rs. 5,000/- and in multiples of Re. 1/- thereafter. Additional Amount Purchase Minimum of Rs. 1,000/- and in multiples of Re. 1/- thereafter. Repurchase (Redemption) Amount/Unit Minimum Redemption Amount can be Re. 1/- or any number of units. For demat transactions, minimum redemption 5

7 DESPATCH OF REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY FUND MANAGER NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE SCHEME would be mandatorily 50 units. Within 10 business days of the receipt of valid redemption request at the official points of acceptance of Edelweiss Mutual Fund Nifty 50 Arbitrage Index The Fund reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines, if any. Dividend will be declared subject to availability of distributable surplus and at the discretion of the AMC/Trustee. On payment of Dividends, the NAV will stand reduced by the amount of dividend. The Trustee s decision with regard to availability and adequacy, rate, timing and frequency of distribution shall be final. The dividend will be due to only those Unit Holders whose names appear in the Register of Unit Holders in the Dividend option of the Scheme on the record date which will be announced in advance. The Unit Holders have the option of receiving the dividend on reinvesting the same. The dividend will be reinvested at the first ex-dividend NAV. The AMC shall dispatch to the Unit Holders, the dividend warrants within 30 days of the date of declaration of dividend. Equity Portion Fund Manager: Mr. Bhavesh Jain (Managing the Scheme since Inception) Debt Portion Fund Manager: Mr. Dhawal Dalal (Managing the Scheme since December 22, 2016) Edelweiss Trusteeship Company Limited Edelweiss Arbitrage Fund (EAF) Returns as on May 31, Scheme Returns % Benchmark Returns %# ^ For last 1 year EAF Regular Growth 5.95% 4.70% EAF Direct Plan 6.64% 4.70% For last 3 years EAF Regular Growth 6.31% 5.52% EAF Direct Plan 6.93% 5.52% For last 5 years EAF Regular Growth NA NA EAF Direct Plan NA NA Since EAF Regular Growth 6.99% 6.23% EAF Direct Plan 7.56% 6.23% # Nifty 50 Arbitrage Index 6

8 Returns below one year are Absolute and those above one year are Compounded Annualised Growth Returns Date : June 27, 2014 Absolute return for each financial year^ ^ Past performance may or may not be sustained in the future. The above information is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Performance of the Dividend Option for the investor would be net of the applicable dividend distribution tax. EXPENSES OF THE SCHEME (I) LOAD STRUCTURE: Entry Load: Not Applicable Exit Load: If the Units are redeemed / switched out on or before 30 days from the date of allotment 0.25% If the Units are redeemed / switched out after 30 days from the date of allotment Nil No entry load will be charged for purchase / additional purchase / switch in transaction(s) accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans / systematic transfer plans accepted by the Fund. The upfront commission shall be paid by the investor directly to the ARN Holder based on the investor s assessment of various factors including service rendered by the ARN Holder. No exit load will be charged on units allotted on reinvestment of dividends. Investors are requested to check the prevailing load structure before investing. The Trustee reserves the right to change the load structure on prospective date. In case of Direct Plan: a) Where the investments were routed in case of an Existing Plan through a distributor (i.e. made with a Distributor Code) whether the investments were made before or after the Effective Date, any switches of units from Existing 7

9 Plan to Direct Plan of a Scheme/Plan shall be subject to applicable exit load, if any. In such cases, after the switch, exit load under the Scheme prevailing on the date of the switch shall apply for subsequent redemption/switch out from Direct Plan. Where investments are made directly i.e. without any Distributor Code, exit load will not be levied on switch of units from Existing Plan to Direct Plan of that Scheme/Plan. b) No exit load shall be levied in case of switch of units from Direct Plan to Existing Plan of a Scheme/Plan. However, after the switch, exit load under the Scheme prevailing on the date of switch shall apply for subsequent redemptions/switch out from Existing Plan. Exit load will be applicable for inter switches as well as special products under all the Schemes of the Fund such as Systematic Investment Plans(SIP) Systematic Transfer Plans(STP), Trigger based facilities etc. Units issued on reinvestment of dividends shall be subject to entry and exit load. The entire exit load shall be credited to the Scheme, net of Goods & Service tax, if any. (II) RECURRING EXPENSES: The total expense ratio of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regulation 52 of the SEBI (Mutual Fund) Regulations, Accordingly, the AMC has estimated that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. In addition to limits specified in Regulation 52 of the SEBI (Mutual Fund) Regulations, 1996 ( the Regulations ), the following costs or expenses may also be charged to the Scheme as per Regulation 52 (6A) of the Regulations, namely: (a) Expenses not exceeding 0.30 per cent of daily net assets, if the new inflows from beyond top 30 cities* are at least: (i) 30 per cent of gross new inflows in the Scheme, or; (ii) 15 per cent of the average assets under management (year to date) of the Scheme, whichever is higher. In case the inflows from beyond top 30 cities is less than the higher of (a) or (b) above, such additional expenses on daily net assets of the Scheme shall be charged on proportionate basis. The expenses so charged under this clause shall be utilised for distribution expenses incurred for bringing inflows from such cities. Further, the additional expense charged on account of new inflows from beyond top 30 cities shall be credited back to the Scheme, in case the said inflows are redeemed within a period of 1 year from the date of investment. *The top 30 cities shall mean top 30 cities based on Association of Mutual Funds in India (AMFI) data on AUM by Geography Consolidated Data for Mutual Fund Industry as at the end of the previous financial year. (b) Additional expenses, incurred towards different heads mentioned under regulations 52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the 8

10 Scheme. However, such additional expenses will not be charged if exit load is not levied/ not applicable to the Scheme. The total recurring expenses that can be charged to the Scheme will be subject to limits prescribed from time to time under the SEBI Regulations. Expenses over and above the limits prescribed under the SEBI Regulations shall be borne by AMC or by the trustee or sponsors. (c) Goods & Service Tax: In addition to the expenses under Regulation 52 (6) and (6A), AMC may charge Goods & Service tax as below: 1. Goods & Service tax on investment and advisory fees will be charged to the Scheme in addition to the maximum limit of TER as prescribed in Regulation Goods & Service tax on other than investment and advisory fees, if any, will be borne by the Scheme within the maximum limit of TER as per Regulation Goods & Service tax on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under Regulation 52. (d) Brokerage and transaction costs which are incurred for the purpose of execution of trade and are included in the cost of investment, not exceeding 0.12 per cent will be capitalized. Any payment towards Brokerage and Transaction costs (including Goods & Service tax, if any) incurred for the execution of trades, over and above the said 0.12 per cent may be charged to the within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (Mutual Funds) Regulations, Any expenditure in excess of the said prescribed limit (including Brokerage and Transaction costs, if any) shall be borne by the AMC. (e) The Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc and no commission for distribution of Units will be paid/charged under Direct Plan. (f) The AMC may incur expenses on behalf of the Mutual Fund which can be reimbursed on actual basis to the AMC to the extent such expenses are permissible & are within the prescribed SEBI limit. (g) Fungibility of Maximum Permissible expense: The maximum total expense ratio (TER) that can be charged to the Scheme will be subject to such limits as prescribed under the SEBI (MF) Regulations. The said maximum TER shall either be apportioned under various expense heads as enumerated above, without any sub limit or allocated to any of the said expense head(s) at the discretion of AMC. Also, the types of expenses charged shall be as per the SEBI (MF) Regulations (h) Investor Education and Awareness initiatives: As per Para F of the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012, the AMC shall annually set apart at least 2 basis points p.a. (i.e. 0.02% p.a.) on daily net assets of the Scheme within the limits of total expenses prescribed under Regulation 52 of SEBI (MF) 9

11 Regulations for investor education and awareness initiatives undertaken by the Fund (I) Subject to the SEBI Regulations and this document, expenses over and above the prescribed ceiling will be borne by the AMC / Trustee / Sponsors. (j) The Mutual Fund would update the current expense ratios on its website viz. at least three working days prior to the effective date of the change. Investors can refer the Expense Ratio tab under Other Disclosures subsection, falling under Statutory Disclosures section for TER details. ( (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR EAF (Regular Plan) EAF (Direct Plan) Total Expense as a % of Average AUM* WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS DAILY NET ASSET VALUE (NAV) PUBLICATION *Total expenses include Goods & Service Tax on Management Fees Not Applicable. Investor is advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publication in two daily newspapers having circulation all over India. NAV can also be viewed on and Investors can also call up at our toll free number (MTNL/BSNL) and non toll free number for non MTNL/BSNL land line, mobile users and investors outside India. FOR INVESTOR GRIEVANCES PLEASE CONTACT Name and Address of Registrar Karvy Computershare Private Limited Unit - Edelweiss Mutual Fund, Karvy Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial, District, Nanakramguda, Serilingampally, Hyderabad , Tel: Name and Address of Corporate office of Edelweiss Asset Management Ltd. 801, 802 & 803, 8th Floor, Windsor, Off C.S.T. Road, Kalina, Santacruz (E), Mumbai Maharashtra. Tel. No.: (022) / , Fax No.: (022) / Customer Service Center: Toll Free Number : Non Toll Free Number: (For non MTNL/BSNL land line, mobile users and investors outside India.)

12 For any grievance with respect to transactions through BSE and/or NSE, the investors/unit holders should approach either their stock broker or the investor grievance cell of the respective stock exchange. UNITHOLDERS INFORMATION Consolidated Account Statements The AMC/Mutual Fund will send to the investor whose application for Purchase/Redemption has been accepted, a confirmation specifying the number of units allotted/redeemed by way of and/or text message within 5 Business Days from the date of allotment/redemption to the investor s registered address and/or mobile number. A consolidated account statement (CAS) for each calendar month on or before 10th of the succeeding month shall be sent by (wherever investor has provided id) or physical account statement where investor has not provided id., across the s of the mutual funds, to all the investors in whose folio(s) transaction(s) has/have taken place during the month. For the purpose of sending CAS, common investors across mutual funds shall be identified by their Permanent Account Number (PAN). In case of a specific request received from the investors, the AMC/Mutual Fund will provide the physical account statement to the investors within 5 Business Days from the receipt of such request. In the event a folio has more than one registered holder, the first named Unit holder will receive the CAS/account statement. CAS will not be sent to the Unit holders in respect of the folio(s) where the PAN details are not updated. The Unit holders are therefore requested to ensure that the folio(s) are updated with the PAN details. In case of investors in whose folios no transaction has taken place during any half yearly period ended September/March, a Consolidated Account Statement for such a half yearly period will be issued, on or before tenth day of succeeding month, detailing the holding at the end of the respective six month period across all Schemes of all mutual funds. It may be noted that for investors whose addresses are available and registered across any of the Mutual Fund/AMC s, the CAS shall be sent by way of an communication only on any/all of the registered addresses. Investors are requested to maintain uniform Ids across s of all Mutual Funds. For investors holding units in dematerialized mode, provision of CAS shall not be applicable. The statement of holding of the beneficiary account holder for units held in demat will be sent by the respective DPs periodically. For more details, please refer Scheme Information Document (SID) and Statement of Additional Information (SAI). Annual Financial Results: As per SEBI Regulations, Scheme wise annual report or an abridged summary shall be 11

13 made available to the unit holder in the manner mentioned below: 1. The wise annual report shall be hosted on the website of the Fund/AMC and on the website of AMFI. The Fund/AMC shall display the link prominently on its website and physical copies shall be available to the unitholders, at its registered office at all times. 2. The Fund/ AMC shall the annual reports or abridged summary thereof to those unitholders, whose addresses are registered with the Mutual Fund. 3. The Fund/AMC shall publish an advertisement every year disclosing the hosting of the wise annual report on their respective website and on the website of AMFI and the modes such as SMS, telephone, or written request (letter), etc. through which unitholders can submit a request for a physical or electronic copy of the wise annual report or abridged summary thereof. Such advertisement shall be published in the all India edition of at least two daily newspapers, one each in English and Hindi. 4. The Fund/AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on specific request received from a unitholder. Half yearly Portfolio Disclosure: The Fund/AMC shall disclose portfolio (along with ISIN) as on the last day of the halfyear for the Scheme on its website and on the website of AMFI within 10 days from the close of each half-year in a user-friendly and downloadable spreadsheet format. In case of unitholders whose addresses are registered, the AMC shall send via half-yearly statement of portfolio within 10 days from the close of each half-year. The AMC shall publish an advertisement every half-year disclosing the hosting of the half-yearly statement of its s portfolio on its website and on the website of AMFI and the modes such as SMS, telephone, or written request (letter) through which a unitholder can submit a request for a physical or electronic copy of the statement of portfolio. Such advertisement shall be published in the all India edition of at least two daily newspapers, one each in English and Hindi. The AMC shall provide a physical copy of the statement of its portfolio, without charging any cost, on specific request received from a unitholder. Half Yearly Unaudited Financial Results: The Fund/AMC shall within one month from the close of each half year, i.e. on 31 March and on 30 September, host a soft copy of its unaudited financial results on their website Such half-yearly unaudited financial results shall contain details as specified in Twelfth Schedule of SEBI Regulations and such other details as are necessary for the purpose of providing a true and fair view of the operations of the Fund. The Fund/AMC shall publish an advertisement disclosing the hosting of such unaudited financial results on its website, in at least one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in 12

14 the language of the region where the Head Office of the Fund is situated. Monthly Portfolio Disclosure: The Fund/ AMC shall disclose portfolio (along with ISIN) as on the last day of the month for the Scheme on its website and on the website of AMFI within 10 days from the close of each month in a user-friendly and downloadable spreadsheet format. In case of unitholders whose addresses are registered, the Fund/AMC shall send via the monthly portfolio within 10 days from the close of each month. The Fund/AMC shall provide a physical copy of the statement of its Scheme portfolio, without charging any cost, on specific request received from a unitholder. TOP 10 HOLDINGS AND SECTOR ALLOCATION TOP 10 HOLDINGS AS ON MAY 31, Sr. No. Issuer Name % to Net Asset 1 JSW Steel Ltd. 3.39% 2 Indiabulls Housing Finance Ltd. 2.96% 3 Sun Pharmaceutical Ind Ltd. 2.75% 4 Bharti Airtel Ltd. 2.73% 5 Dewan Housing Finance Corporation Ltd. 2.09% 6 United Spirits Ltd. 1.88% 7 Jindal Steel & Power Ltd. 1.67% 8 ITC Ltd. 1.63% 9 L&T Finance Holdings Ltd. 1.59% 10 Aurobindo Pharma Ltd. 1.58% SECTOR ALLOCATION AS ON MAY 31, : Sr. No. Name of the Sector % to Net Assets 1 Finance 15.88% 2 Ferrous Metals 6.01% 3 Pharmaceuticals 5.39% 4 Banks 4.59% 5 Consumer Non Durables 4.25% 6 Telecom - Services 3.10% 7 Auto 3.01% 8 Cement 2.82% 9 Construction 2.61% 10 Power 2.32% 11 Media & Entertainment 2.24% 12 Non - Ferrous Metals 1.97% 13 Petroleum Products 1.85% 14 Construction Project 1.83% 15 Industrial Capital Goods 0.96% 16 Industrial Products 0.76% 13

15 17 Software 0.70% 18 Textile Products 0.59% 19 Pesticides 0.54% 20 Gas 0.45% 21 Minerals/Mining 0.40% 22 Fertilisers 0.36% 23 Transportation 0.28% 24 Trading 0.27% 25 Auto Ancillaries 0.22% 26 Consumer Durables 0.16% 27 Services 0.26% 28 Construction Project 0.20% 29 Textile Products 0.16% 30 Gas 0.09% 31 Fertilisers 0.04% Total 100% Notes*: Others include Derivatives, Govt Securities, Investment in MF's, CBLO, Term Deposit, Cash at bank and Receivable/Payables. Monthly Portfolio Disclosure: The AMC will disclose the portfolios (along with ISIN) of all the Schemes of Edelweiss Mutual Fund as on the last day of the month on the AMC s website ( on or before the 10 th day of the succeeding month, in a userfriendly and downloadable format. The Investors will be able to view and download these monthly portfolio disclosures from the AMC s website. PORTFOLIO TURNOVER RATIO TRANSACTION CHARGE IN RESPECT OF APPLICATIONS ROUTED THROUGH DISTRIBUTORS/ BROKERS As on May 31, : times In accordance with SEBI circular no. Cir/ IMD/ DF/13/ 2011 dated August 22, 2011, the AMC will deduct Transaction Charges on purchase/subscription of Rs.10,000/- and above made through a valid ARN Holder i.e. AMFI Registered distributors/intermediaries, provided such distributor has opted to receive the Transaction Charges. Such Transaction Charges collected by the AMC will be paid to the ARN Holder in the following manner: (i) For the First Time Investor in Mutual Funds (across all mutual funds): Transaction Charge of Rs. 150/- for subscription of Rs. 10,000/- and above will be deducted from the subscription amount and paid to the distributor/agent of such First Time Investor and the balance amount will be invested. (ii) For Investor other than First Time Mutual Fund Investor (existing investors in any mutual fund): Transaction Charge of Rs. 100/- per subscription of Rs.10,000/- and above will be deducted from the subscription amount and paid to the distributor/agent of the 14

16 investor and the balance amount will be invested. (iii) No Transaction Charges shall be deducted: (a) where the ARN Holder/distributor of the investor has not opted to receive any Transaction Charges; (b) for purchases/subscriptions of an amount less than Rs. 10,000/-; (c) for transactions other than purchases/ subscriptions relating to new inflows such as Switches etc. (d) for purchases/subscriptions made directly with the Mutual Fund (i.e. not through any distributor). (e) for purchase/subscription routed through the Stock Exchange Platform In accordance with SEBI circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, distributors shall also have an option either to opt in or opt out of levying transaction charge based on type of the product. Identification of investors as "first time" or "existing" will be based on Permanent Account Number (PAN) at the First/Sole Applicant/ Guardian level. Hence, Unit holders are urged to ensure that their PAN / KYC is updated with the Fund. Unit holders may approach any of the Official Points of Acceptances of the Fund in this regard. The Account Statement / Consolidated Account Statement sent to the Unit holders shall clearly state the net investments as gross subscription less Transaction Charges and shall also show the number of units allotted against the net investments. 15

17 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, Edelweis s Balanced Advanta ge Fund The primary objective of the Scheme is to generate absolute returns with low volatility over a longer tenure of time. The Scheme will accordingly invest in arbitrage opportuniti es and debt and money market instrument s on the one hand and in pure equity investment s and equity Equity, Equity related instrument s & Derivatives : 65% - 100%, Units of InvITs/REIT s : 0% - 10%, Debt and Money Market Instrument s including Securitized Debts : 0% - 35% The Scheme will deploy Absolute Return Strategy to achieve the Scheme s investment objective. The Scheme will accordingly invest in arbitrage opportunities and in debt and money market instruments on the one hand and in pure equity investments and equity derivative strategies on the other, taking care that, as far as possible, the equity oriented nature of the Scheme remains intact. The Fund Manager will deploy a combination of strategies to achieve the investment objective of the Scheme. Depending on the market conditions, investments will be made in arbitrage opportunities and in debt and money market instruments and the residual will be a combination of special situations, other An open ended dynamic asset allocation fund 60% Nifty 50 TR Index + 40% CRISIL Compos ite Bond Fund Index

18 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, derivative strategies on the other. However there is no assurance that the investment objective of the Scheme will be realized. derivative strategies and use of quantitative models. Edelweis s Arbitrag e Fund The investment objective of the Scheme is to generate income by predomina ntly investing in arbitrage opportuniti es in the cash and the derivative 1. Under normal circumstan ces, the anticipated asset allocation would be as follows: Equity & Equity related instrument s including derivatives : 65% - The Scheme will invest in arbitrage opportunities between spot and futures prices of exchange traded equities and the arbitrage opportunities available within the derivative segment. If suitable arbitrage opportunities are not available in the opinion of the Fund Manager, the Scheme may invest in short term debt and money market securities. An open ended investing in arbitrage opportunitie s Nifty 50 Arbitrag e Index

19 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, segments of the equity markets and the arbitrage opportuniti es available within the derivative segment and by investing the balance in debt and money market instrument s. However, there is no assurance that the investment objective of the will be realized. 100%, Debt & Money Market instrument s including the margin money deployed in derivative transaction s : 0% - 35% 2. Under defensive circumstan ces, the anticipated asset allocation would be as follows: Equity & Equity related instrument s including derivatives : 0% - 35%, Debt & 18

20 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, Money Market instrument s including the margin money deployed in derivative transaction s : 65% - 100% Edelweis s Large & Mid Cap Fund The investment objective of the Scheme is to generate long-term capital appreciatio n from a diversified portfolio of predomina ntly Large Cap and Mid Cap equity and Equity and equity related of Large Cap Companies : 35% - 65%, Equity & Equity related instrument s of Mid Cap Companies : 35% - 65% Debt & Money The Scheme will primarily be a diversified equity fund which will seek to invest in companies for long term investment. Though the benchmark is S&P BSE-200 TR Index, the investments will not be limited to the companies constituting the benchmark. An open ended equity investing in both large cap and mid cap stocks S&P BSE 200 TR Index

21 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, equityrelated securities. However, there is no assurance that the investment objective of the will be realised. Market Instrument s : 0% - 30% Edelweis s Large Cap Fund The investment objective is to seek to generate long-term capital appreciatio n from a portfolio predomina ntly consisting equity and equityrelated securities Equity & Equity related instrument s of the 100 largest corporates by market capitalizati on, listed in India : 80% - 100%, Equity & Equity related instrument s of other The Scheme aims to generate capital appreciation by investing in equity and equityrelated securities of Large Cap by market capitalization and are relatively liquid and widely held. The investment manager will seek to identify companies that exhibit the following qualities: strong competitive edge and sustainable market share; a proven business model; financial strength An open ended equity predominan tly investing in large cap stocks Nifty 50 TR Index

22 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, of the 100 largest corporate by market capitalisati on listed in India. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns. companies : 0% - 20%, Debt & Money Market Instrument s : 0% - 20%, Units of InvITs/REIT s : 0%-10% (strong balance sheet, good revenue growth); relatively attractive valuations. The focus will be to identify potential out-performers in the market over the long term. The Scheme will remain diversified across stocks and sectors to mitigate risk. Edelweis s Equity Savings Fund The investment objective of the is to provide Equity & equity related instrument s: 65% - 80%, Asset allocation between equity and debt is a critical function in this fund. Equity Instruments: The fund manager will use top down approach to An Open ended investing in equity, arbitrage 70% of CRISIL Liquid Fund Index and

23 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, capital appreciatio n and income distribution to the investors by using equity and equity related instrument s, arbitrage opportuniti es, and investment s in debt and money market instrument s. However, there can be no assurance that the investment objective of the Scheme will be realized or Derivative including Index Futures, Stock Futures, Index Options, Stock Options etc. : 25%- 55%, Debt Securities & Money Market instrument s : 10%- 35%, Units of InvITs/REIT s : 0%-10% identify growth sectors and bottom up approach to identify individual stocks. The portfolio will be adequately diversified and seeks to invest in companies for long term investment. and debt 30% in Nifty 50 TR Index 22

24 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, that income will be generated and the does not assure or guarantee any returns. Edelweis s Multi - Asset Allocatio n Fund The objective of the Scheme is to generate returns through capital appreciatio n by investing in diversified portfolio of equity and equityrelated securities, fixed Equity and Equity related Securities : 65% - 80%, Gold Exchange Traded Funds : 10% - 25%, Debt & Money Market Instrument s : 10% - 25%, Units of InvITs/REIT The Scheme seeks to generate returns through capital appreciation by investing in diversified portfolio of equity and equity-related securities, fixed income instruments and Gold Exchange Traded Funds. The seeks to benefit from the concept of asset allocation. The aim of asset allocation is to provide superior risk adjusted returns through diversification across various asset classes like equity, fixed income & An open ended investing in Equity, Debt and Gold 50% Nifty 50 TR Index and 50% CRISIL Liquid Fund Index

25 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, income instrument s and Gold Exchange Traded Funds. However, there is no assurance that the investment objective of the Scheme will be realized. s : 0%-10% gold which have historically had low correlation with each other. Depending upon the market condition, the Fund Manager would take cues from seasonal patterns of gold, global & domestic macroeconomic events and Government policy & Central Bank actions and decide on the asset allocation between Asset Classes. The Fund Manager at his discretion can bring down net equity exposure up to 10% of the portfolio value to protect downside risk in the portfolio. Net equity means long only equity exposure after considering corresponding derivative hedge exposure. This however will ensure that the Scheme maintains its equity oriented nature as far as possible at all 24

26 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, points in time. Edelweis s Multi- Cap Fund The investment objective of the Scheme is to generate long-term capital appreciatio n from a diversified portfolio that predomina ntly invests in equity and equityrelated securities of companies across various market capitalisati on.howeve r, there can be no Equity and Equity related securities across market cap : 65% - 100%, Debt & Money Market Instrument s : 0% - 35% The Scheme will be a diversified equity fund which will invest predominantly in equity and equity related securities through allocation in companies across different market capitalisation that is Large Cap, Mid Cap and Small Cap. The investment approach will be bottomup stock picking - where investments will be selected primarily on the basis of specific criteria relevant to the company in question rather than general macroeconomic considerations. There will be no particular bias towards any market cap size or any sector. The Scheme will endeavour to remain fully invested in equity and equity related instruments at all times. An exposure to various An open ended equity investing across large cap, mid cap, small cap stocks Nifty 500 TR Index

27 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, assurance that the investment objective of the Scheme will be realised. derivatives instruments is likely - for the purposes of hedging, portfolio balancing and optimising returns. Edelweis s Mid Cap Fund The investment objective is to seek to generate long-term capital appreciatio n from a portfolio that predomina ntly invests in equity and equityrelated securities of Mid Cap companies. However, there can be no Equity and equity related securities of Mid Cap Companies 65% 100%; Equity and equity related securities of companies other than Mid Cap Companies 0% 35%; Debt and money market instrument The Scheme will primarily be a diversified equity fund which will seek to invest in Mid Cap companies for long term investment. The types of companies that may fall within the scope of such investment would predominantly be the Mid Cap companies including: a)companies with strong growth potential; b)companies with a special product which has a particular market niche and therefore good earnings potential; c) companies undertaking corporate restructuring. The investment approach will be bottom-up stock An open ended equity predominan tly investing in mid cap stocks Nifty Midcap 100 TR Index

28 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, assurance that the investment objective of the Scheme will be realised. s 0% 35%. picking where investments will be selected primarily on the basis of specific criteria relevant to the company in question rather than general macroeconomic considerations. There will be no particular bias towards any sector. The focus will be on Mid Cap stocks listed on Indian Domestic exchanges. The strategy will be to identify companies early or which have potential to scale up significantly to become materially larger in the medium to long term. The Scheme will endeavour to remain fully invested in equity and equity related instruments at all times. An exposure to various derivatives instruments is likely for the purposes of hedging, portfolio balancing and optimising returns. 27

29 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiation Benchma AUM No. of the Objective Allocation rk (in crs.) Folios existing Pattern for the as on month of May May 31, 31, Edelweis s Tax Advanta ge Fund The investment objective of the Scheme is to generate income and long-term capital appreciatio n from a diversified portfolio of predomina ntly equity and equityrelated Securities. However, there can be no assurance that the investment objective of the Scheme will be realized, as actual market Equity and equity related Securities %; Debt and Money Market instrument s 0-20%. The Scheme will primarily be a diversified equity fund which will seek to invest in companies for long term investment. Though the benchmark is S&P BSE-200 TR Index, the investments will not be limited to the companies constituting the benchmark. An open ended equity linked saving with a statutory lock in of 3 years and tax benefit S&P BSE-200 TR Index