Edelweiss Multi - Asset Allocation Fund

Transcription

1 Key Information Memorandum (KIM) and Application Form CONTINUOUS OFFER FOR UNITS AT APPLICABLE NAV BASED PRICES This product is suitable for investors who are seeking*: Riskometer MUTUAL FUND: Edelweiss Mutual Fund Unit 801, 802, 803, Windsor, Off. C.S.T Road, Kalina, Mumbai to create wealth in the long term Investment in equity and equity-related securities, Debt and Gold. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. LOW HIGH Investors understand that their principal will be at Moderately High risk TRUSTEE: Edelweiss Trusteeship Company Limited (CIN: U67100MH2007PLC173779) Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai INVESTORS SHOULD NOTE THAT: This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the Scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors' rights & services, risk factors, penalties & pending litigations etc. investors should, before, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centers or distributors or from the website The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. This KIM is dated March 28, 2018 Corporate Office: Unit 801, 802, 803, Windsor, 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) Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai Corporate Office: Unit 801, 802, 803, Windsor, 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 objective of the Scheme is to generate returns through capital appreciation by investing in diversified portfolio of equity and equity-related securities, fixed income s and Gold Exchange Traded Funds. However, there is no assurance that the objective of the Scheme will be realized. Under normal circumstances, the asset allocation would be: Asset Class Allocation Indicative Allocations Risk Profile (% of Total Assets) Equity and Equity related Securities 65% - 80% Medium to High Gold Exchange Traded Funds# 10% - 25% Low to Medium Debt & Money Market Instruments^ 10% - 25% Low to Medium Units of InvITs/REITs 0%-10% Medium to High #The Investment in Gold will be done through Gold Exchange Traded Funds (ETF). The should invest minimum 10% of the net assets of the in Gold ETF. ^Money market s include Commercial Papers, Commercial Bills, Treasury Bills, Collateralized Borrowing & Lending Obligations (CBLO), government securities having unexpired maturity up to one year, Call or Notice Money, Certificate of Deposits, Usance Bills, Repo (with approved government & Corporate Debt Securities as collateral), and any other like securities as specified by the RBI from time to time. Investment in securitised debt may be up to 25% of net assets of the Scheme. The Scheme can also take derivative exposure upto 55 % of the net assets of the Scheme. The Scheme may also take exposure into fixed income derivatives within the overall limit of 50% for hedging and portfolio rebalancing purpose. The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may engage in Stock Lending. Not more than 20% of the net assets of the Scheme can generally be deployed 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. The Scheme may invest in foreign securities up to 50% of the permissible s of net assets of the Scheme. The Scheme may invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Not more than 10% of the net assets of the Scheme will be invested in InvITs and REITs and not more than 1

3 5% of the net assets of the Scheme will be invested in InvITs and REITs of any single issuer. The cumulative gross exposure through equity, debt, Gold ETF, derivative, REITs and InvITs positions should not exceed 100% of the net assets of the Scheme. Cash, cash equivalent with residual maturity up to 91 days will be treated as not creating any exposure. Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above can vary substantially depending upon the perception of the Fund Manager, the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the pattern will be for short term and defensive considerations. The Scheme will rebalance the portfolio within 30 days. Further, at all times, the AMC shall endeavour to ensure that the Portfolio would adhere to the overall Investment objective of the Scheme. 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. Investment Strategy & Approach The Scheme seeks to generate returns through capital appreciation by investing in diversified portfolio of equity and equity-related securities, fixed income s 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 & 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 points in time. 2

4 RISK PROFILE OF THE SCHEME Mutual Fund Units involve risks including the possible loss of principal. Please read the SID carefully for details on risk factors before. Investment in this Scheme will involve certain Scheme specific Risk Factors apart from the General Risk mentioned in SAI/SID which are summarized below: Equity And Equity Related Instruments: The value of the Scheme s s may be affected generally by factors, such as price and volume volatility in the Capital Markets, Settlement Periods, Liquidity Risk or Execution Risk or Redemption Risk or the Risk of NAV going below par value. Derivatives: Derivative products are leveraged s 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. 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 s. ADRs/GDRs and Foreign Securities: Subject to necessary approvals and within the objective of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. Fixed Income and Money Market Instruments: It involves Interest Rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & Settlement Risk, Re Risk, Performance Risk, Prepayment Risk, Market Risk. Risk Factors Associated with Investments in REITs and InvITs: Market Risk: REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. Investors may note that AMC/Fund Manager's decisions may not always be profitable, as actual market movements may be at variance with the anticipated trends. The NAV of the Scheme is vulnerable to movements in the prices of securities invested by the, due to various market related factors like changes in the general market conditions, factors and forces affecting capital market, level of interest rates, trading volumes, settlement periods and transfer procedures. Liquidity Risk: As the liquidity of the s made by the Scheme(s) could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for liquidating the s in the may be high in the event of immediate redemption requirement. Investment in such securities may lead to increase in the portfolio risk. Re Risk: Investments in REITs & InvITs may carry re risk as there could be repatriation of funds by the Trusts in form of buyback of units or dividend pay-outs, etc. Consequently, the proceeds may get invested in assets providing lower returns. The above are some of the common risks associated with s in REITs & InvITs. There can be no assurance that a Scheme's objectives will be 3

5 achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. PLANS & OPTIONS / FACILITIES The Scheme offers two Plans: 1. Edelweiss Multi - Asset Allocation Fund - Regular Plan; and 2. Edelweiss Multi - Asset Allocation Fund- Direct Plan Edelweiss Multi - Asset Allocation Fund -Direct Plan is only for investors who purchase /subscribe Units of the Scheme directly with the Fund and is not available for investors who route their s through a Distributor. The portfolio of the Scheme under these Plans will be common. Each Plan will offer: (i) Growth Option and (ii) Dividend Option. Dividend Option shall have Re, Payout & Sweep Facility. Discontinued Plan: With effect from October 1, 2012, Plan B of the Scheme is not available for fresh subscription. Kindly refer addendum dated September 29, 2012 for discontinued Plan viz. Plan B & addendum dated Oct 19, 2012 for standardizing the nomenclature for Regular Plan / Options. 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 Default Option: If the investor does not clearly specify the choice of Option at the 4

6 time of investing, it will be deemed that the investor has opted for Growth Option. In case, if the investor selects Dividend Option but fails to mention facility, it will be deemed that the investor has opted for Dividend Re facility. APPLICABLE NAV 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 DESPATCH OF Minimum Purchase Additional Purchase Repurchase Amount Amount (Redemption) Amount/Unit Rs. 1,000/- and in Minimum of Rs. 1,000/- Minimum Redemption multiples of Re. 1/- and in multiples of Re. 1/- Amount can be Re. 1/- or thereafter. thereafter. any number of units. For demat transactions, minimum redemption would be mandatorily 50 units. Within 10 business days of the receipt of valid redemption request at the official 5

7 REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY FUND MANAGER NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE SCHEME points of acceptance of Edelweiss Mutual Fund 50% Nifty 50 Total Return Index and 50% CRISIL Liquid Fund 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. Fund Manager : Mr. Bharat Lahoti (Managing the Scheme since October 14, 2015) Fund Manager : Mr. Gautam Kaul (Managing the Scheme since December 11, 2017) Edelweiss Trusteeship Company Limited Edelweiss Multi - Asset Allocation Fund (EMAAF) Returns as on February 28, Scheme Returns % Benchmark Returns %# 2018^ For last 1 year EMAAF Regular Plan Growth~ 14.93% 13.15% EMAAF - Plan B Growth@ 14.88% 13.15% EMAAF Direct Plan 15.60% 13.15% Growth*** For last 3 years EMAAF Regular Plan Growth~ 6.95% 7.53% EMAAF - Plan B Growth@ 6.98% 7.53% EMAAF Direct Plan 7.48% 7.53% Growth*** For last 5 years EMAAF Regular Plan Growth~ 14.99% 11.49% EMAAF - Plan B Growth@ 15.01% 11.49% EMAAF Direct Plan 15.45% 11.49% Growth*** 6

8 Since Inception EMAAF Regular Plan Growth~ 10.89% 9.36% EMAAF - Plan B Growth@ 10.49% 9.46% EMAAF Direct Plan 15.55% 10.74% Growth*** # 50% Nifty 50 Total Return Index and 50% CRISIL Liquid Fund Inception/Allotment Date is June 16, (Discontinued for subscription) ***Inception date for Direct Plan is January 7, ~ Inception/Allotment Date is August 12, Returns below one year are Absolute and those above one year are Compounded Annualised Growth Returns (CAGR) 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 s. 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: 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 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 re 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 s were routed in case of an Regular Plan through a 7

9 distributor (i.e. made with a Distributor Code) whether the s were made before or after the Effective Date, any switches of units from Regular 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 s are made directly i.e. without any Distributor Code, exit load will not be levied on switch of units from Regular 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 Regular 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 Regular 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 re of dividends shall be subject to entry and exit load. The entire exit load shall be credited to the Scheme, net of Goods and Service Tax, if any. (II) RECURRING EXPENSES: The total expense ratio of the Scheme (including 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 15 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 15 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 15 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. *The top 15 cities shall mean top 15 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 8

10 regulations 52(2) and 52(4), not exceeding 0.20 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. 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 and Service Tax: In addition to the expenses under Regulation 52 (6) and (6A), AMC may charge Goods and Service Tax as below: 1. Goods and Service Tax on and advisory fees will be charged to the Scheme in addition to the maximum limit of TER as prescribed in Regulation Goods and Service Tax on other than and advisory fees, if any, will be borne by the Scheme within the maximum limit of TER as per Regulation Goods and 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, not exceeding 0.12 per cent will be capitalized. Any payment towards Brokerage and Transaction costs (including Goods and 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) 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 current expense ratios will be updated on the AMC website viz. within two working days mentioning the effective date of the 9

11 change. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR EPAF (Regular Plan) EPAF (Plan B) EPAF (Direct Plan) Total Expense as a % of Average AUM* *Total expenses include Goods and Service Tax on Management Fees WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS DAILY NET ASSET VALUE (NAV) PUBLICATION FOR INVESTOR GRIEVANCES PLEASE CONTACT 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. 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 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 BSE and/or NSE, the investors/unit holders should approach either their stock broker or the investor grievance cell of the respective stock exchange. 10

12 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 thereof shall be sent in the following manner: (I) By to the Unit holders whose address is available with the AMC/Fund. (II) In physical form to the Unit holders whose address is not available with the AMC/Fund and/or in case of receipt of specific request from the Unit holders for a physical copy. 11

13 The wise annual report or an abridged summary thereof shall be sent by mail/ not later than four months from the date of closure of the relevant accounting year (i.e. 31st March each Year). The physical copy of the same shall be made available to the investors at the registered office of the AMC. A link of the annual report or abridged summary thereof shall be displayed prominently on the website of the Fund and shall also be displayed on the website of Association of Mutual Funds in India (AMFI). Half yearly Portfolio Disclosure: The Mutual Fund/AMC shall publish a complete statement of the Scheme Portfolio, within one month from the close of each half year (i.e. 31st March and 30 th September), by way of an advertisement at least, in one National English daily and one regional newspaper in the language of the region where the head office of the Mutual Fund is located. The Mutual Fund may opt to send the portfolio to all Unit holders in lieu of the advertisement (if applicable). The Half Yearly Portfolio Statement will also be displayed on the website of the AMC and AMFI. Half Yearly Unaudited Financial Results: The Mutual Fund and AMC shall, before the expiry of one month from the close of each half year, i.e. as on March 31st and September 30th, host a soft copy of its unaudited financial results on its website ( The Mutual Fund and AMC shall publish an advertisement disclosing the hosting of such financial results on its website, in atleast 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 Mutual Fund is situated. The unaudited financial results will also be displayed on the website of AMFI. 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 tenth day of the succeeding month, in a user-friendly and downloadable format. The Investors will be able to view and download these monthly portfolio disclosures from the AMC s website. TOP 10 HOLDINGS AND SECTOR ALLOCATION TOP 10 HOLDINGS AS ON FEBRUARY 28, 2018 Sr. No. Issuer % to Net Asset 1 HDFC Bank Ltd. 6.37% 2 Reliance Industries Ltd. 5.31% 3 IndusInd Bank Ltd. 4.73% 4 Infosys Ltd. 4.34% 5 ITC Ltd. 3.31% 6 Yes Bank Ltd. 2.94% 12

14 7 ICICI Bank Ltd. 2.90% 8 Larsen & Toubro Ltd. 2.84% 9 Tata Consultancy Services Ltd. 2.59% 10 Maruti Suzuki India Ltd. 2.28% SECTOR ALLOCATION AS ON FEBRUARY 28, 2018: Sr. No. Sector % to Net Asset 1 Banks 22.01% 2 Auto 10.89% 3 Consumer Non Durables 10.58% 4 Software 9.78% 5 Petroleum Products 7.57% 6 Others* 6.67% 7 Pharmaceuticals 6.26% 8 Finance 4.76% 9 Construction Project 2.84% 10 Power 2.47% 11 Industrial Capital Goods 2.38% 12 Cement 2.12% 13 Gas 2.09% 14 Auto Ancillaries 1.54% 15 Ferrous Metals 1.40% 16 Oil 1.36% 17 Pesticides 1.15% 18 Telecom - Services 1.11% 19 Non - Ferrous Metals 1.05% 20 Consumer Durables 1.02% 21 Minerals/Mining 0.94% Total % 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 tenth day of the succeeding month, in a user-friendly and downloadable format. The Investors will be able to view and download these monthly portfolio disclosures from the AMC s website. PORTFOLIO TURNOVER As on February 28, 2018 : 0.57 times 13

15 RATIO TRANSACTION CHARGE IN RESPECT OF APPLICATIONS ROUTED THROUGH DISTRIBUTORS / BROKERS 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 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 s as gross subscription less Transaction Charges and shall also show the number of units allotted against the net s. 14

16 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, 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 s on the one hand and in pure equity s and equity Equity, Equity related 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 objective. The Scheme will accordingly invest in arbitrage opportunities and in debt and money market s on the one hand and in pure equity s 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 objective of the Scheme. Depending on the market conditions, s will be made in arbitrage opportunities and in debt and money market s and the residual will be a combination of special situations, other derivative strategies and use of An open ended dynamic asset allocation fund 60% Nity 50 TR Index + 40% CRISIL Compos ite Bond Fund Index

17 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, derivative strategies on the other. However there is no assurance that the objective of the Scheme will be realized. quantitative models. Edelweis s Arbitrag e Fund The 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 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 opportunit ies Nifty 50 Arbitrag e Index 6,

18 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, 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 s. However, there is no assurance that the objective of the will be realized. 100%, Debt & Money Market 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 s including derivatives : 0% - 35%, Debt & 17

19 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, Money Market s including the margin money deployed in derivative transaction s : 65% - 100% Edelweis s Large & Mid Cap Fund The 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 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. Though the benchmark is S&P BSE-200 TR Index, the s 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

20 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, equityrelated securities. However, there is no assurance that the objective of the will be realised. Market Instrument s : 0% - 30% Edelweis s Large Cap Fund The objective is to seek to generate long-term capital appreciatio n from a portfolio predomina ntly consisting equity and equityrelated securities Equity & Equity related s of the 100 largest corporates by market capitalizati on, listed in India : 80% - 100%, Equity & Equity related s of other The Scheme aims to generate capital appreciation by investing in equity and equity-related securities of Large Cap by market capitalization and are relatively liquid and widely held. The manager will seek to identify companies that exhibit the following qualities: strong competitive edge and sustainable market share; a proven business model; financial strength (strong balance sheet, good revenue An open ended equity predomin antly investing in large cap stocks Nifty 50 TR Index

21 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, of the 100 largest corporate by market capitalisati on listed in India. However, there is no assurance that the 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% growth); relatively attractive valuations. The focus will be to identify potential outperformers 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 objective of the is to provide Equity & equity related 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 identify growth An Open ended investing in equity, arbitrage 70% of CRISIL Liquid Fund Index and

22 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, capital appreciatio n and income distribution to the investors by using equity and equity related s, arbitrage opportuniti es, and s in debt and money market s. However, there can be no assurance that the 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 s : 10%- 35%, Units of InvITs/REIT s : 0%-10% sectors and bottom up approach to identify individual stocks. The portfolio will be adequately diversified and seeks to invest in companies for long term. and debt 30% in Nifty 50 TR Index 21

23 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, 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 s 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 & gold which have historically had An open ended investing in Equity, Debt and Gold 50% Nifty 50 TR Index and 50% CRISIL Liquid Fund Index

24 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, income s and Gold Exchange Traded Funds. However, there is no assurance that the objective of the Scheme will be realized. s : 0%-10% 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 points in time. Edelweis s Multi- The objective of Equity and Equity related The Scheme will be a diversified equity fund which will invest An open ended equity Nifty 500 TR

25 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, Cap Fund 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 assurance that the objective of the Scheme securities across market cap : 65% - 100%, Debt & Money Market Instrument s : 0% - 35% 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 approach will be bottom-up stock picking - where s 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 s at all times. An exposure to various derivatives s is likely - for the purposes of hedging, portfolio balancing and optimising returns. investing across large cap, mid cap, small cap stocks Index 24

26 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, will be realised. Edelweis s Mid Cap Fund The 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 assurance that the objective of the Scheme 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 s 0% 35%. The Scheme will primarily be a diversified equity fund which will seek to invest in Mid Cap companies for long term. The types of companies that may fall within the scope of such 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 approach will be bottom-up stock picking where s will be selected primarily on the basis of specific criteria relevant to the company in question rather than general macroeconomic An open ended equity predomin antly investing in mid cap stocks Nifty Free Float Midcap 100 TR Index

27 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, will be realised. 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 s at all times. An exposure to various derivatives s is likely for the purposes of hedging, portfolio balancing and optimising returns. Edelweis s Tax Advanta ge Fund The objective of the Scheme is to generate income and long-term capital Equity and equity related Securities %; Debt and Money Market The Scheme will primarily be a diversified equity fund which will seek to invest in companies for long term. Though the benchmark is S&P BSE-200 TR Index, the s will not be limited to the companies constituting the An open ended equity linked saving with a statutory lock in of S&P BSE-200 TR Index

28 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, appreciatio n from a diversified portfolio of predomina ntly equity and equityrelated Securities. However, there can be no assurance that the objective of the Scheme will be realized, as actual market movements may be at variance with anticipated trends. s 0-20%. benchmark. 3 years and tax benefit Edelweis s Long The primary Equity & Equity The Fund will invest in a diversified basket of equity An open ended Nifty 500 TR

29 Comparison of Equity Schemes Name of Investment Asset Investment Strategy Differentiati Benchma AUM No. of the Objective Allocation on rk (in crs.) Folios existing Pattern for the as on month of Febru February ary 28, 28, Term Equity Fund (Tax Savings) objective of the is to generate long-term capital appreciatio n with an option of periodic payouts at the end of lock in periods from a portfolio that invests predomina ntly in equity and equity related s. However, there is no assurance that the objective of the Scheme related s : 80% - 100%, Short Term Debt & Money Market s : 0% - 20% stocks spanning the entire market capitalization spectrum and across multiple sectors, debt and money market. equity linked saving with a statutory lock in of 3 years and tax benefit Index 28

30 Comparison of Equity Schemes Name of the existing Investment Objective Asset Allocation Pattern Investment Strategy Differentiati on Benchma rk AUM No. of (in crs.) Folios for the as on month of Febru February ary 28, 28, will be realized and the Scheme does not assure or guarantee any returns. Risk Mitigation factors The fund has designed a detailed process to identify, measure, monitor and manage the portfolio risk. The aim is not to eliminate the risk completely but to have a structured mechanism towards risk management thereby maximizing potential opportunities and minimize the adverse effects of risk. Few of the key risks identified are : Risk & Description specific to the Scheme Risk mitigants / Management Strategy Market Risk Risk arising due to vulnerability to price fluctuations and volatility, having material impact on the overall returns of the Scheme. Derivatives Risk Various inherent risks arising as a consequence of investing in derivatives. Credit risk Risk associated with repayment of. Endeavour to have a well diversified portfolio of good companies with the ability to use cash/derivatives for hedging. Continuous monitoring of the derivatives positions and strictly adheres to the regulations and internal norms. Investment universe carefully selected to only include issuers with high credit quality. 29