EDELWEISS FIXED MATURITY PLAN - SERIES 49 (A 1119 Days Close ended Income Scheme)

Transcription

1 MUTUAL FUND EDELWEISS FIXED MATURITY PLAN - SERIES 49 (A 1119 Days Close ended Income Scheme) KEY INFORMATION MEMORANDUM (KIM) Income over medium to long term. Investment in Debt and Money Market Instruments. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Offer of Units of Rs. 10/- each during the New Fund Offer Period NEW FUND OFFER OPENS ON: June 20, 2018 NEW FUND OFFER CLOSES ON: June 27, 2018 INVESTORS SHOULD NOTE THAT: Investors understand that their principal will be at moderate risk 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. Disclaimer of NSE: It is to be dis nctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Informa on Document has been cleared or approved by NSE nor does it cer fy the correctness or completeness of any of the contents of the Scheme Informa on Document. The investors are advised to refer to the Scheme Informa on Document for the full text of the Disclaimer Clause of NSE. This KIM is dated June 8, LOW HIGH NAME OF 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 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 To generate income through investment in Debt and Money Market Securities maturing on or before the Maturity Date of the Scheme. 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. ASSET ALLOCATION PATTERN OF THE SCHEME Under normal circumstances, the anticipated asset allocation of each Scheme would be as follows: Instruments Risk Profile Indicative Allocation (% of net assets) Minimum Maximum Debt Securities Low to Medium Money Market Securities Low 0 20 Note: The Scheme will invest only in such securities which mature on or before the Maturity Date of the Scheme. The Scheme will invest in securitized debt up to 50% of the net assets of the Scheme. The Scheme will not invest in credit default swaps and foreign securities. Exposure to fixed income derivatives will be limited up to 50% of the net assets of the Scheme. Total gross exposure in debt, money market securities and derivatives shall not exceed 100% of the net assets of the Scheme. In addition to the instruments stated in the table above, the Scheme may enter into Collateralised Borrowing & Lending Obligations (CBLO) or repo/reverse repo or in an alternative investment as may be provided by SEBI/RBI from time to time. However, the Scheme shall not participate in repos of corporate debt securities. The Scheme may, if the Trustees permit, engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. The Scheme shall not deploy more than 20% of its net assets in stock lending and not more than 5% of the net assets of the Scheme will be deployed in Stock lending to any single counterparty. Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as may be amended from time to time. INTENDED PORTFOLIO ALLOCATION The intended Portfolio for the Schemes will be as under. The exact allocation percentage to net assets would be determined at the time of launch of each scheme. The Scheme shall invest in various securities/instruments as mentioned below with the ratings mentioned against the type of instruments. As per the Regulations, the Scheme is allowed to invest within a range of 5% of the intended allocation (floor and cap) against each sub asset class/credit rating. The indicative allocation shall be provided at the time of launch of the Scheme: 1

3 Indicative allocation (as % to Net Assets) Asset Class /Instruments Credit Rating assigned by an accredited SEBI registered credit rating agency AAA equivalent AA equivalent A equivalent BBB equivalent Unrated Sovereign CDs 0-5% CPs 0-5% NCDs 70-75% 25-30% Government Securities/ SDL/ Treasury Bills / CMB Securitized Debt Cash and Cash equivalent % Note: a. Securities with Rating AA will include AA+, AA and AA-. Similarly, AAA equivalent rating shall also include A1+ which are the highest rating provided for the instruments in short term category i.e. instruments having maturity of equal to or less than one year. Also, securities with Rating A will include A+, A and A-. In case an instrument has more than one publicly available rating, the more conservative rating will be considered for the purpose of investment. b. Positive variation: The Scheme may deviate from the indicated asset allocation in favour of higher credit rated instruments within the same asset class. c. In case of non-availability of CPs/NCDs the Scheme may invest in the highest rated CDs and CBLOs/T-Bills. Such deviation may exist till suitable NCD/CP of desired credit quality is not available. d. At the time of building up the portfolio post NFO Period and also towards the maturity of the Scheme, there may be higher allocation to cash and cash equivalent instruments. e. In the event of any deviation from the floor and ceiling of credit ratings specified for any instrument, the Fund Manager shall review and rebalance the portfolio within 30 days from the date of said deviation. In case the rebalancing is not done within the specified period, justification for the same shall be provided to the Investment Committee and the reason for the same shall be recorded in writing. The Investment Committee shall then decide on the course of action. The aforementioned table on indicative portfolio allocation will be finalized and incorporated in the SID of the Scheme at the time of the launch of the Scheme and the same shall be filed with 2

4 SEBI prior to the date of launch. RISK PROFILE OF THE SCHEME 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. Some of the risks are listed below: 1. Risks Associated with Fixed Income and Money M arket Instruments: Interest rate risk: Price of a fixed income instrument falls when the interest rates move up and vice- versa, which will affect the NAV accordingly. Spread risk: Investments in corporate bonds are exposed to the risk of widening of the spread between corporate bonds and gilts. Prices of corporate bonds tend to fall if this spread widens which will affect the NAV of the Scheme accordingly. Credit risk or default risk: Credit risk is the risk that the issuer of a debenture/ bond or a money market instrument may default on interest &/or principal payment obligations. Liquidity: The Risk of non execution of sale/purchase order due to low volumes is liquidity risk. Reinvestment risk: Interest rates may vary from time to time. The rate at which intermediate cash flows are reinvested may differ from the original interest rates on the security, which can affect the total earnings from the security. Performance Risk: Performance of the Scheme may be impacted with changes in factors, which affect the capital market and in particular the debt market. Market risk: Lower rated or unrated securities are more likely to react to developments affecting the market as they tend to be more sensitive to changes in economic conditions than higher rated securities. 2. Risks associated with investment in Derivatives: Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. 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. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Trading in derivatives has the following risks: a. An exposure to derivatives in excess of the hedging requirements can lead to losses. b. An exposure to derivatives can also limit the profits from a genuine investment transaction. c. Efficiency of a derivatives market depends on the development of a liquid and efficient market for the underlying securities. d. Derivatives carry the risk of adverse changes in the market price. f. Illiquidity Risk i.e. risk that a derivative trade cannot be executed or reversed quickly enough at a fair price, due to lack of liquidity in the market. The Fund may use derivative instruments as permitted under the Regulations and guidelines. Usage of derivatives will expose the Scheme to liquidity risk, open position risk, and opportunities risk etc. Such risks include the risk of mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying assets, rates and indices. Debt derivatives instruments like interest rate swaps, forward rate agreements or other derivative instruments also involve certain risks. For details, please refer SAI. 3. Risk Associated with Securitized Debt: Securitized debt may suffer credit losses in the event of the delinquencies and credit losses in the underlying pool exceeding the credit enhancement provided. As compared to the normal 3

5 corporate or sovereign debt, securitized debt is normally exposed to a higher level of reinvestment risk. For further details please refer SAI. Limited Liquidity & Price Risk There is no assurance that a deep secondary market will develop for the pass-through certificates (PTC). This could limit the ability of the investor to resell them. Limited Recourse, Delinquency and Credit Risk The Credit Enhancement mechanism stipulated represents a finite loss cover to the Investors. These PTCs represent an undivided beneficial interest in the underlying assets and the cash flow generated by these assets. They do not represent an obligation of either the Issuer or the Seller or the originator, or the parent or any affiliate of the Seller, Issuer and Originator. In general, no financial recourse is available to the PTC Holders against the seller / originator. Higher-than-expected delinquencies and /or credit losses may result in lowerthan-expected generation of cash flow and may cause depletion of the amount available under the Credit Enhancement mechanism. Thereby the Investor Payouts to the PTC Holders may get affected if the amount available in the Credit Enhancement facility is not enough to cover the shortfall. Risks due to possible prepayments and Charge Offs: In the event of prepayments, investors may be exposed to reinvestment risk. Also, higherthan-expected prepayments would result in the reduction in the tenor of the Pass Through Certificates (PTCs). Risk of Co-mingling: With respect to the Certificates, the Servicer will deposit all payments received from the Obligors into the Collection Account. However, there could be a time gap between collection by a Servicer and depositing the same into the Collection account especially considering that some of the collections may be in the form of cash. In this interim period, collections from the Loan Agreements may not be segregated from other funds of originator. If originator in its capacity as Servicer fails to remit such funds due to Investors, the Investors may be exposed to a potential loss. 4. Risks Associated with Stock Lending & Short Selling: The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. It may be noted that this activity would have the inherent probability of collateral value drastically falling in times of strong downward market trends, rendering the value of collateral inadequate until such time as that diminution in value is replenished by additional security. It is also possible that the borrowing party and/or the approved intermediary may suddenly suffer severe business setback and become unable to honor its commitments. This, along with a simultaneous fall in value of collateral would render potential loss to the Scheme. Besides, there can be temporary illiquidity of the securities that are lent out and the scheme will not be able to sell such lent out securities until they are returned. There is also a possibility of opportunity loss. For details please refer SAI. 5. Risks Associated with Trading of Units on Stock Exchange(s): - Although Units of the respective Plan(s) as mentioned in this Scheme Information Document are to be listed on the Exchange, there can be no assurance that an active secondary market will develop or be maintained. - The Units of the respective Plan(s) may trade above or below their NAV. The NAV of the respective Plan(s) will fluctuate with changes in the market value of Scheme s holdings. 4

6 PLANS OPTIONS AND The trading prices of Units of the respective Plan(s) will fluctuate in accordance with changes in their NAV as well as demand and supply of the Units of the respective Plan(s) in the market. - Trading in Units of the respective Plan(s) on the exchange may be halted because of market conditions or for reasons that in view of exchange authorities or SEBI, trading in Units of the respective Plan(s) is not advisable. In addition, trading in Units of the respective Plan(s) is subject to trading halts caused by extraordinary market volatility and pursuant to Exchange and SEBI 'circuit filter' rules. There can be no assurance that the requirements of Exchange necessary to maintain the listing of Units of the respective Plan(s) will continue to be met or will remain unchanged. - The Units will be issued in demat form through depositories. The records of the depository are final with respect to the number of Units available to the credit of Unit holder. Settlement of trades, repurchase of Units by the Mutual Fund on the Maturity Date / Final Redemption Date will depend upon the confirmations to be received from depository(ies) on which the Mutual Fund has no control. - As the Units allotted under respective Plan(s) will be listed on the Exchange, the Mutual Fund shall not provide for redemption / repurchase of Units prior to Maturity Date of the respective Plan(s). 6. Risk associated with Close Ended Scheme In a close ended scheme, redemption / repurchase shall not be allowed prior to maturity of the Scheme. Redemption will be allowed only on maturity of the scheme. The Scheme will mature at the end of the tenure of the Scheme. For liquidity purpose units of the Scheme are to be listed on Stock Exchange. Investors who wish to trade on the exchange and Investors wishing to exit / redeem before the scheduled maturity may do so through stock exchange mode where the Scheme will be listed. For the units listed on the exchange it is possible that the market price at which the units are traded may be at a discount to the NAV of such Units and investor may not get the desired return. Also there may not be sufficient liquidity on the stock exchange for the investors to exit from the stock exchange mode. The Scheme offers a choice of two plans: 1. Direct Plan; and 2. Regular Plan Each Plan to the Scheme offers Growth and Dividend Option. Under the Growth Option, no dividend will be declared and the Dividend Option offers Dividend Payout Facility, only. If the application is received incomplete with respect to not selecting Regular/Direct Plan, the application will be processed as under: 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

7 5 Direct Not mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not mentioned Regular Plan In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load. Default Option: If the investor does not clearly specify the choice of Option at the time of investing, the Units of the respective Scheme(s) will be allotted in the Growth Option of the Scheme. APPLICABLE NAV (after the Scheme opens for repurchase and sale) MINIMUM APPLICATION AMOUNT MATURITY PROCEEDS In case of Purchase / Redemption directly with Mutual Fund: The Units of the Scheme will not be available for purchase / redemption after the closure of NFO Period. Therefore, the provisions of cut off timing will not be applicable to the Scheme. In case of Purchase/Redemption through Stock Exchange: An investor can buy/sell Units on a continuous basis on NSE or such other stock exchange where the Scheme shall be listed during the trading hours on all trading days. Minimum of Rs. 5,000/- and in multiples of Re. 10/- thereafter per application which includes switch-ins from other Schemes of the Edelweiss Mutual Fund. The Scheme shall be fully redeemed/switched-out at the end of maturity period; i.e. July 20, On maturity of the Scheme, the outstanding Units shall either be redeemed and proceeds will be paid to the unitholder or will be switched-out to any existing open ended scheme of the Fund in the respective options, as opted by the unitholder, as the case may be. However, in case the scheme as opted for in the switch option/facility is not in existence on the maturity date, the Units will be redeemed and the maturity proceeds paid out in the registered bank mandate. Further, if the investor does not select any of the aforesaid options then the units will be redeemed by default. The switch option/facility as mentioned above shall not be applicable for Units held in demat form. Maturity proceeds would be payable to investors as per the bank details provided in beneficiary position details received from depositories, in case of units held in demat form. If the maturity date falls on a non-business day, the immediately following business day will be considered as the maturity date for the Scheme. The Trustee reserves the right to suspend/ deactivate / freeze trading, ISIN of the Scheme. With respect to closure of the Scheme at the time of maturity, trading of units on stock exchange will automatically get suspended from the effective date mentioned in the notice. The proceeds on maturity will be payable to the persons whose names are appearing in beneficiary position details received from depositories after the suspension/deactivation 6

8 /freezing of ISIN. DESPATCH OF REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY Scheme shall be fully redeemed at the end of its tenure. The Mutual Fund will dispatch the Redemption proceeds within 10 (Ten) Business Days from the date of maturity of the Scheme; in line with the current regulatory timelines. In case the Redemption proceeds are not made within 10 Business Days of the date of redemption or repurchase, interest will be 15% per annum or such other rate from the 11th Business Day onwards, as may be prescribed by SEBI from time to time. CRISIL Short Term Bond Fund Index (Since the Macaulay Duration of the Scheme shall be within 1-3 year) Dividend will be declared at the discretion of the Trustees, subject to availability of distributable surplus as computed in accordance with SEBI Regulations. If and when dividends are declared, dividends will be distributed to all unit holders registered on the registers of the depositories on the record date. The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend. In the event of failure to dispatch dividend within 30 days, the AMC shall be liable to pay interest at 15% per annum to the unit holders. There is no assurance or guarantee to the Unit holders as to the rate of Dividend distribution nor that the Dividend will be paid regularly. If the Fund declares Dividend, the NAV of the Scheme will stand reduced by the amount of Dividend and Dividend distribution tax (if applicable) paid. All the Dividend payments shall be in accordance and compliance with SEBI & Stock Exchange Regulations, as applicable from time to time. NAME OF THE FUND MANAGERS NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE SCHEME EXPENSES OF THE SCHEME Mr. Gautam Kaul Mr. Rahul Dedhia (Managing the Scheme since inception of the Scheme) Edelweiss Trusteeship Company Limited The Scheme is a new Scheme and does not have any performance track record. (i) Load Structure The Load Structure would comprise of an Entry Load and /or an Exit Load, as may be permissible under the Regulations. Type of Load Entry* Exit ** Load chargeable (as %age of NAV) Nil Nil *No entry load will be charged for purchase / switch-in transaction(s) accepted by the Scheme. 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. **The entire exit load (net of Goods & Service Tax), charged, if any, shall be credited to the Scheme. AMC reserves the right to revise the load structure from time to time. Such changes will 7

9 become effective prospectively from the date such changes are incorporated. For any change in load structure AMC will issue an addendum and display it on the website/investor Service Centres The investor is requested to check the prevailing load structure of the Scheme under respective Scheme(s), before investing. (ii) Recurring expenses The total expense ratio of the Scheme (including investment management and Advisory Fees) shall not exceed 2.25% of the daily net assets as stated in Regulation 52(6)(b) of SEBI (MF) Regulations. The aforesaid expenses are fungible within the overall maximum limit prescribed under SEBI Regulations. This means that mutual fund can charge expenses within overall limits, without any internal cap on the aforesaid expenses head. Additional Expenses under Regulation 52 (6A): 1. The AMC may charge 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 Scheme. However, such additional expenses will not be charged if exit load is not levied/ not applicable to the Scheme. 2. To improve the geographical reach of the Fund in smaller cities/towns as may be specified by SEBI from time to time, expenses not exceeding of 0.30 % p.a. of daily net assets, if the new inflows from such cities (i.e. beyond Top 30 cities*) are at least: (i)30 % of gross new inflows in the Scheme, or; (ii)15 % 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 (i) or (ii) 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. 3. Brokerage and transactions costs incurred for the purpose of execution of trades and are included in the cost of investments shall be charged to the Scheme in addition to the limits on total expenses prescribed under Regulation 52(6) and will not exceed 0.12% in case of cash market transactions and 0.05% in case of derivatives transactions. As per SEBI Circular no. CIR/IMD/DF/24/2012 dated November 19, 2012, the brokerage and transaction cost incurred for the purpose of execution of trade may be capitalized to the extent of 0.12% for cash market transactions and 0.05% for derivatives transactions. Any payment towards brokerage and transaction cost, over and above the said 0.12% for cash market transactions and 0.05% in case of derivatives transactions may be charged to the 8

10 scheme within the maximum limit of TER as prescribed under Regulation 52 (6) of the SEBI (MF) Regulations. Any expenditure in excess of the said prescribed limit shall be borne by the AMC/Trustees. The Scheme shall not incur any distribution expenses and no commission shall be paid by this Scheme. Goods & Service Tax: In addition to the expenses under Regulation 52 (6) and (6A), AMC shall 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 52 (6). 2. 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 prescribed in Regulation 52 (6). 3. Goods & Service Tax on brokerage and transaction cost paid for execution of trade, if any, shall be within the limit prescribed under Regulation Goods & Service Tax on exit load, if any, shall be paid out of the exit load proceeds and exit load net of Goods & Service Tax, if any, shall be credited to the Scheme 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. For the actual current expenses being charged, the investor may refer to the website of the mutual fund. For more details please refer point B Annual Scheme Recurring Expenses under the section Fees and Expenses in the SID. WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS) DAILY NET ASSET VALUE (NAV) PUBLICATION Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ /09 dated June 30, 2009 no entry load shall be charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications is no longer applicable. Investors are advised to refer to the details in the SID and Statement of Additional Information and also independently refer to his tax advisor. The AMC will calculate and disclose the first NAV not later than 5 Business Days from the date of allotment. Subsequently, the Fund shall calculate NAV on daily basis. The NAVs declared, will also be uploaded on the AMFI website ( by 9.00 p.m and also on Edelweiss Mutual Fund's website ( every Business Day. In case of any delay in uploading the NAV on AMFI website, the reasons for such delay would be explained to AMFI by the next business day. If the NAVs are not available before the commencement of business hours on the following business day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. Investors can also visit the website of the Fund or contact any of the Investor Service Centres (ISCs) of the Fund for the latest NAV. Further, the Fund/ AMC shall extend facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request. 9

11 FOR INVESTOR GRIEVANCES PLEASE CONTACT Name and Address of Registrar Karvy Computershare Pvt. Ltd., Unit - Edelweiss Mutual Fund, Karvy Selenium Tower B, Plot number 31 & 32, Financial District, Gachibowli, 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.) For any grievance with respect to transactions through NSE, the investors/unit holders should approach either their stock broker or the investor grievance cell of the Stock Exchange. UNIT HOLDERS' INFORMATION Account Statements: For investors who opt to hold Units in Physical Form (Non-demat form): On receipt of valid application for subscription/transaction request, an Allotment Confirmation will be sent by way of SMS and/or within 5 Business Days from the date of receipt of application/transaction request to the Unit holder s registered mobile number and/or address. Unit holders who have not registered their address/mobile number with the Fund will receive a physical Account Statement giving details of the transaction. A Consolidated Account Statement (CAS) for each calendar month to the Unit holder(s) in whose folio(s) transaction(s) has/have taken place during the month on or before 10th of the succeeding month shall be sent by mail/ . The Unit holder may request for a physical Account Statement by writing/calling the AMC/ISC/R&T. The Mutual Fund/ AMC shall dispatch an Account Statement within 5 Business Days from the date of the receipt of request from the Unit holder. In the event the account has more than one registered holder, the first named Unit holder shall receive the CAS/ Account Statement. The transactions viz. purchase, redemption, switch, dividend payout, etc., carried out by the Unit holders shall be reflected in the CAS on the basis of Permanent Account Number (PAN). The CAS shall not be received by the Unit holders for the folio(s) not updated with PAN details. The Unit holders are therefore requested to ensure that the folio(s) are updated with their PAN. For folios not included in CAS (due to non availability of PAN), EAML shall issue Account Statement to such Unit holders on a monthly basis, pursuant to any financial transaction in their folios, on or before tenth day of succeeding month by way of to the registered address and if the same is not available with EAML, a physical statement will be sent. Unit holders who receive Account Statements by e mail may download the documents after receiving the same from the Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder shall promptly advise the Fund to enable the Fund to make the delivery through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents and contents of the documents becoming known to third parties. For Investors who opt to hold Units in Demat Form: Investors shall receive a single CAS from the Depository. Consolidation of account statement shall be done on the basis of Permanent Account Number (PAN). In case of multiple holding, it shall be PAN of the first holder and pattern of 10

12 holding. In case an investor has multiple accounts across two Depositories, the Depository with whom the account has been opened earlier will be the default Depository. The CAS shall be generated on a monthly basis. If there is any transaction in any of the Demat accounts of the investor or in any of his Mutual Fund folios, Depositories shall send the CAS within ten days from the month end. In case there is no transaction in any of the mutual fund folios and demat accounts then CAS with holding details shall be sent to the investor on half yearly basis. In case of demat accounts with nil balance and no transactions in securities and in Mutual Fund folios, the Depository shall send holding statement in terms of regulations applicable to the Depositories. For Unit holders who have provided an address to the Fund or have updated the same in KYC records, CAS will be sent to such Unit holders by . However, where an investor does not wish to receive CAS through , option shall be given to such investor to receive the CAS in physical form at the address registered with the Depository. Investors who do not wish to receive CAS sent by Depositories have an option to indicate their negative consent. Such investors may contact the Depositories to opt out. The dispatch of CAS by the Depositories would constitute compliance by the AMC/the Fund with the requirement under Regulation 36(4) of SEBI (Mutual Funds) Regulations, Annual Financial Results: As per SEBI Regulations, Scheme wise annual report or an abridged summary shall be made available to the unit holder in the manner mentioned below: 1. The scheme 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 scheme 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 scheme 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 scheme 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 half-year 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 halfyearly statement of scheme 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 schemes 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 scheme 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 scheme 11

13 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 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. TRANSACTION CHARGES 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. The distributors have an option either to opt in or opt out of levying transaction charge based on type of the product. 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 investor and the balance amount will be invested. (iii) No Transaction Charges shall be deducted: 1. Where the ARN Holder/distributor of the investor has not opted to receive any Transaction Charges; 2. For purchases/subscriptions of an amount less than Rs. 10,000/ ; 3. For transactions other than purchases/ subscriptions relating to new inflows such as Switches etc; 4. For purchases/subscriptions made directly with the Mutual Fund (i.e. not through any distributor); 12

14 5. For purchase/subscription routed through the Stock Exchange Platform. 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. TOP 10 HOLDINGS AND SECTOR ALLOCATION PORTFOLIO TURNOVER RATIO Not applicable since the Scheme is a new Scheme. Not applicable since the Scheme is a new Scheme. 13

15 NFO Form - Edelweiss Fixed Maturity Plan -Series 49 A 1119 Days Close ended Income Scheme NEW FUND OFFER OPENS ON: 20th June, 2018 NEW FUND OFFER CLOSES ON: 27th June, 2018 Please read Product Labelling available on front page and instructions before filing this form (all points marked * are mandatory) Sponsor: Edelweiss Financial Services Limited Trustee Company: Edelweiss Trusteeship Company Limited Investment Manager: Edelweiss Asset Management Limited. Edelweiss Mutual Fund, 801, 802 & 803, 8th Floor, Windsor, Off C.S.T. Road, Kalina, Santacruz (E), Mumbai , Maharashtra. 1 Name & Distributor Code DISTRIBUTOR INFORMATION Sub-Broker Code Sub-Broker Code Employee Unique E-Code RIA CODE ARN INTERNAL CODE IDENTIFICATION NO. (EUIN) ONLY FOR DIRECT INVESTMENT APPLICATION NO. *Investors should mention the EUIN of the person who has advised the investor. If left blank, the fund will assume following declaration by the investor I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this transaction is executed without any interaction or advice by the employee/relationship manager/sales person of the above distributor/sub broker or notwithstanding the advice of in-appropriateness, if any, provided by the employee/relationship manager/sales person of the distributor/sub broker. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributor. For Direct investments, please mention Direct in the column Name & Distributor Code SIGNATURE (s) 2 SOLE / FIRST APPLICANT SECOND APPLICANT THIRD APPLICANT All sections to be filled in English and in BLOCK LETTERS. Use this form If you are making a one time investment. All columns marked * are mandatory. TRANSACTION CHARGES (PLEASE ) (Default option Existing Investor) I am a First Time Investor in Mutual Funds I am an Existing Investor in Mutual Funds In case the subscription amount is r10,000/- or more and your Distributor has opted to receive Transaction Charges, r 150 (for first time mutual fund investor) or r100/- (for investor other than first time mutual fund investor) will be deducted from the subscription amount and paid to the distributor. Units will be issued against the balance amount invested. 3 EXISTING UNIT HOLDER INFORMATION / EXISTING ZERO BALANCE FOLIO NO. (If you have existing folio, please fill in section 2 and proceed to section 8.) FOLIO NO. NAME OF FIRST APPLICANT (Refer Instruction No.XI) # 4 MANDATORY* PAN / PEKRN # Know Your Customer (KYC) 1ST APPLICANT/GUARDIAN P A N N U M B E R 5 CKYC Key Identification Number ( Refer Instruction no. XVI) Aadhaar No. (UID No.) (Refer Instruction no. XVII) APPLICANT INFORMATION TO BE FILLED IN BLOCK LETTERS* NAME OF SOLE /1ST APPLICANT Mr. Ms. M/s. YES (Please submit proof) YES (Please submit KYC Application form) APPLICANTS FROM CANADA WILL NOT BE ACCEPTED (Refer Instruction No.II) DATE OF BIRTH (DOB) DATE OF INCORPORATION (DOI) GUARDIAN (s) NAME (In case if minor / Parent / Legal Guardian) RELATIONSHIP WITH MINOR / DESIGNATION CONTACT MAILING ADDRESS OF SOLE / 1ST APPLICANT (P.O.BOX alone may not be sufficient) Overseas Investor must provide Indian Address CITY MANDATORY PROOF OF DATE OF BIRTH FOR MINORS (ANY ONE) & Relationship Proof BIRTH CERTIFICATE MARKSHEET (HSC/ICSE/CBSE) SCHOOL LEAVING CERTIFICATE PASSPORT OTHERS OVERSEAS APPLICANT DETAILS ADDRESS (Mandatory for NRI/FII applicant*) COMMUNICATION [Please ] I/We wish to receive the following document via in lieu of physical document(s) Account Statement / Newsletter / Annual Report / Other Statutory Information : YES NO ID & Mobile No. are essential to enable us to communicate with you better GROSS ANNUAL INCOME [Please ] STATE COUNTRY PIN MOBILE RESI. OFF. FAX COUNTRY ZIP CODE For NRI applicants Indian Overseas Below 1 Lac 1-5 Lacs 5-10 Lacs Lacs 25 Lacs - 1 crore > 1 crore Net-worth in (Mandatory for Non-Individuals) A as on / / (Not older than 1 year) ACKNOWLEDGEMENT SLIP To be filled in by the investor Received from: Mr. / Ms. / M/s an application for allotment Scheme EDELWEISS FIXED MATURITY PLAN - SERIES 49 Plan Regular Direct Option Growth Dividend vide Cheque No Dated / / Amount (r) Drawn on Bank and Branch Please note: All purchases are subject to realization of cheques and as per applicable load structure (please refer Scheme Information Document) Application No: Collection Center s Stamp & Receipt Date and Time

16 Occupation* [Please ] Business Service Professional Agriculturist Housewife Student Defence Bureaucrat Forex Dealer Unlisted Company Body Corporate Listed Company Others For Individual Investor* Politically Exposed Person (PEP) YES NO Related to PEP YES NO Legal Status* [Please ] Resident Individual FII s Society/Club AOP/BOP NRI/PIO FI HUF Minor Partnership Firm Bank Trust Company/Body Corporate NPO Others Mandatory for Non-Individual Investor Is the entity involved/providing any of the following services YES NO [Also attach Ultimate Beneficiary Ownership form] For Foreign Exchange/Money Changer Service YES NO Gaming/Gambling/Lottery Services (e.g. casinos, betting syndicates) YES NO Money Lending/Pawning YES NO Mode of Holding* [Please ] Single Joint Any one or survivor (s) (Default) NAME OF 2ND APPLICANT Mr. Ms. M/s. CKYC Key Identification Number (Refer Instruction no. XVI) Aadhaar No. (UID No.) (Refer Instruction no. XVII) PAN #/ PEKRN # DOB GROSS ANNUAL INCOME [Please ] Below 1 Lac 1-5 Lacs 5-10 Lacs Lacs 25 Lacs - 1 crore > 1 crore Net-worth in (Mandatory for Non-Individuals) A as on / / (Not older than 1 year) Occupation* [Please ] Business Service Professional Agriculturist Housewife Student Defence Bureaucrat Forex Dealer Unlisted Company Body Corporate Listed Company Others For Individual Investor* Politically Exposed Person (PEP) YES NO Related to PEP YES NO Legal Status* [Please ] Resident Individual FII s Society/Club AOP/BOP NRI/PIO FI HUF Minor Partnership Firm Bank Trust Company/Body Corporate NPO Others NAME OF 3RD APPLICANT Mr. Ms. M/s. CKYC Key Identification Number (Refer Instruction no. XVI) Aadhaar No. (UID No.) (Refer Instruction no. XVII) PAN #/ PEKRN # DOB GROSS ANNUAL INCOME [Please ] Below 1 Lac 1-5 Lacs 5-10 Lacs Lacs 25 Lacs - 1 crore > 1 crore Net-worth in (Mandatory for Non-Individuals) A as on / / (Not older than 1 year) Occupation* [Please ] Business Service Professional Agriculturist Housewife Student Defence Bureaucrat Forex Dealer Unlisted Company Body Corporate Listed Company Others For Individual Investor* Politically Exposed Person (PEP) YES NO Related to PEP YES NO Legal Status* [Please ] Resident Individual FII s Society/Club AOP/BOP NRI/PIO FI HUF Minor Partnership Firm Bank Trust Company/Body Corporate NPO Others 6 FATCA/CRS/KYC ADDITIONAL DETAILS Sole / First Applicant / Guardian Non Individual Investors should mandatory fill separate FATCA/CRS details form 2nd Applicant 3rd Applicant Place & Country of Birth : / Place & Country of Birth : / Place & Country of Birth : / #Please indicate all countries, other than India, in which you are a resident for tax purpose, associated Taxpayer Identification Number & it s Identification type e.g: TIN etc. Tax Identification Identification Tax Identification Identification Tax Identification Identification Country # Country # Country # Number Types Number Types Number Types (Refer Instruction No. XV) POA CHECKLIST ( Please submit the following documents with your application (where applicable). All documents should be original/true copies certified by a Director/Trustee /Company Secretary /Authorised signatory / Notary Public.) Documents Individual Companies Societies Partnership Firms Investment through POA Trusts NRI FIIs PIO Resolution/ Authorisation to invest List of authorised signatories with specimen signatures Memorandum & Articles of Association Trust Deed Bye-laws Partnership Deed Overseas Auditor Certificate Notarised POA Proof of Address Copy of PAN Card / PEKRN KYC Compliance PIO Card Foreign Inward Remittance Certificate

17 POWER OF ATTORNEY (POA) If investment is being made by a Constitutional Attorney, please submit notarised copy of POA POA NAME Mr. Ms. M/s. PAN BANK ACCOUNT DETAILS (Refer Instruction No.IV) Account No. Account Type [Please ] SB Current NRO NRE FCNR Bank Name Branch Add. Pin IFSC CODE MICR CODE PAYMENT DETAILS Mode of Payment [Please ] RTGS/NEFT Transfer Letter Cheque Cheque No. Date Gross Amount (A) DD Charges (A) Net Amount (A) Bank/Branch & City Account No. Account Type [Please ] SB Current NRO NRE FCNR FOR LUMPSUM DETAILS* Choice of Scheme/Plan/Option (Refer Instruction No.VI) Scheme/Plan/Option/Facility EDELWEISS FIXED MATURITY PLAN SERIES 49 Plan Regular Direct Option/Facility Growth Dividend (Default Plan/Option/Facility will be adapted in case of no information, ambiguity or discrepancy) 11 SWITCH ON MATURITY OF THE SCHEME Investor will have the option to set trigger at the time of application. On maturity, all the units can be switched into one of the pre-selected open-ended schemes of Edelweiss Mutual Fund. The trigger facility is available only for the investor who holds units under physical mode. SOURCE SCHEME : EDELWEISS FIXED MATURITY PLAN SERIES TARGET SCHEME : Scheme Plan Option/Facility (If an investor fails to specify the option, he will be allotted units under the default option/sub-option of the Target scheme) I/We have read and understood the terms and conditions applicable to the trigger facility and am/are fully aware of the risk associated with such event. I/We read and understood the Scheme Information Document (SID) / Statement of Additional Information (SAI) and Key Information Memorandum (KIM) of the Target Scheme and have understood the investment objectives, investment pattern and risk factors applicable to the Target Scheme. I/We have not received nor been induced by any rebate or gifts, directly or indirectly, in opting the Trigger facility. DEMAT ACCOUNT DETAILS* Do you want units in demat Form? [Please ] Yes No [Please ensure that the sequence of names as mentioned in the application form matches with that of the demat A/c. held with the depository participant]. In case unit holders do not provide their demat account details, an account statement shall be sent to them. NATIONAL SECURITIES DEPOSITORY LTD. (NSDL) Depository Participant (DP) Name : DP ID NO.: NOMINATION DETAILS* CENTRAL DEPOSITORY SERVICES (INDIA) LTD. (CSDL) I/We hereby nominate the under mentioned nominee to receive the amounts to my/our credit in event of my/our death. I/We also understand that all payments and settlements made to such Nominee shall be valid discharge by the AMC/Mutual Fund/Trustee Company. Name of Nominee Date of Birth (If Nominee is minor) Beneficiary A/C No. Allocation (%) Name of Legal Guardian/Parent (If Nominee is minor) Relationship with Nominee Address of Nominee/ Legal Guardian 14 DECLARATION AND SIGNATURE(S) Having read and understood the contents of the Scheme Information Document of the Scheme and Statement of Additional Information and subsequent amendments thereto including the section on who cannot invest, "Prevention of Money Laundering" and "Know Your Customer", I/We hereby apply to the Trustee of Edelweiss Mutual fund for units of the Scheme as indicated above and agree to abide by the terms and conditions, rules and regulations of the Scheme. I/We further declare, I am / we are authorised to invest the amount & that the amount invested by me/us in the above mentioned Scheme(s) is derived through legitimate sources and is not held or designed for the purpose of contravention of any acts, rules, regulations or any statute or legislation or any other applicable laws or notifications, directions issued by the governmental or statutory authority from time to time. It is expressly understood that I/We have the express authority from our constitutional documents to invest in the units of the Scheme(s) and the AMC/Trustee/Fund would not be responsible if the investment is ultra vires thereto and the investment is contrary to the relevant constitutional documents. I/We agree that in case my/our investment in the Scheme(s) is equal to or more than 25% of the corpus of the Scheme, then Edelweiss Asset Management Ltd., Investment Manager to the Edelweiss Mutual Fund, has full right to refund the excess to me/us to bring my/our investment below 25%. I/We have not received nor been induced by any rebate or gifts, directly or indirectly in making this investments. I /We hereby authorise Edelweiss Mutual Fund, its Investment Manager and its agents to disclose details of my investment to my bank(s) / Edelweiss Mutual Fund's bank(s) and / or Distributor / Broker / Investment Advisor. I/We hereby authorize you to disclose, share, remit in any form, mode or manner, all/ any of the information provided by me/ us, including all changes, update to such information as and when provided by me/ us to Edelweiss Mutual Fund/ Edelweiss Asset Management Limited to any Indian or foreign governmental or statutory or judicial authorities/ agencies, the tax/ revenue authority and other investigation agencies without obligation on advising me/ us of the same. I/We authorise Edelweiss Mutual Fund to reject the application, revert the units credited/redeem units created at applicable NAV, restrain me/us from making any further investment in any of the Schemes of the fund, recover/debit my/our folios(s) with the penal interest and take any appropriate action against me/us in case the cheque(s)/payment instrument is/are returned by my/our banker for any reason whatsoever. I/We undertake that these investments are my/our own and acknowledge that AMC reserves the right to call for such other additional information/documents as required to comply with PMLA/KYC/FATCA norms. I/We hereby, further agree that the Fund can directly credit all the dividend payouts and redemption amount to my bank details given above. I/We hereby declare that the particulars stated above are correct. The ARN holder has disclosed to me/us all the commissions (in the form of trail commission or any other mode), payable to him for the different competing Schemes of various Mutual Funds from amongst which the Scheme is being recommended to me/us. I/We further agree that the Fund/AMC can send us all types of SMS relating to the products offered by them. Applicable to investors who have not opted for nomination facility. I/We hereby confirm that it is my/our informed decision not to avail the nomination facility offered by Edelweiss Mutual Fund. I / We confirm that I am/we are not resident(s) of Canada under the laws of Canada. In case of change to this status, I / We shall notify the AMC, in which event the AMC reserves the right to redeem my/our investments in the Scheme(s). I/We hereby provide my/our consent in accordance with Aadhar Act, 2016 and regulations made there under, for (i) collecting,storing and usage (ii) validating/authenticating and Updating my/our Aadhar numbers(s) in accordance with the Aadhar Act, 2016 (and regulations made there under) and PMLA. I/We hereby provide my/our consent for sharing/disclose of the Aadhar number(s) including demographic information with the asset management companies of SEBI registered mutual fund and their Registrar and Transfer Agent(RTA) for the purpose of updating the same in my/our folios with my/our PAN. Applicable to NRI only: I/We confirm that I am / we are Non Resident of Indian Nationality/Origin and I/We hereby confirm that the funds for subscription have been remitted from abroad through approved banking channels from funds in my/our Non-Resident External/Ordinary Account/FCNR Account. Please (ü) (Including amount of Additional Purchase Transaction made in future) Repatriation Non Repatriation SIGNATURE (s) SOLE / FIRST APPLICANT SECOND APPLICANT THIRD APPLICANT DATE : / / PLACE :