MUTUAL FUND Key Information Memorandum (Kim) and Common Application Form Continuous Offer of Units of R 10 per Unit at NAV based prices, subject to applicable Loads except for Edelweiss Liquid Fund & Edelweiss Ultra Short Term Fund for which per Unit price is R 1000 Equity SchemES Edelweiss Dynamic Equity Advantage Fund An Open Ended Equity Edelweiss Arbitrage Fund An Open Ended Equity Edelweiss Prudent Advantage Fund An Open Ended Equity Edelweiss Large Cap Advantage Fund An Open Ended Equity Edelweiss Equity Savings Advantage Fund An open-ended Equity Edelweiss Mid and Small Cap Fund An open-ended Equity Growth Edelweiss Equity Opportunities Fund An open-ended Equity Growth Edelweiss Economic Resurgence Fund An Open-Ended Equity Edelweiss ELSS Fund An Open Ended Equity Linked Savings Edelweiss Tax Advantage Fund# An open-ended Equity Linked Savings #In order to comply with the requirement of ELSS 2005 guidelines, further subscription/switch-in into Edelweiss Tax Advantage Fund is restricted with effect from October 17, 2016. INVESTORS SHOULD NOTE THAT: Liquid Edelweiss Liquid Fund An open-ended liquid scheme FixED income SchemES Edelweiss Ultra Short Term Fund An open-ended income scheme Edelweiss Bond Fund An open-ended income scheme Edelweiss Short Term Fund An open-ended Income Edelweiss Banking and PSU Debt Fund An Open-Ended Income Edelweiss Corporate Debt Opportunities Fund An open-ended Income Edelweiss Government Securities Fund An open ended gilt This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the /Mutual, due diligence certificate by the AMC, Key Personnel, investors rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the Information Document and Statement or Additional Information available free of cost at any of the Investor Service Centers or distributors or from the website www.edelweissmf.com The 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 November 24, 2017 NAME OF MUTUAL FUND Edelweiss Mutual Fund Edelweiss House, Off C.S.T. Road, Kalina, Mumbai - 400 098, Maharashtra www.edelweissmf.com TRUSTEE: Edelweiss Trusteeship Company Limited (CIN: U67100MH2007PLC173779) Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai 400 098 SPONSOR: Edelweiss Financial Services Limited Edelweiss House, Off. C.S.T Road, Kalina, Mumbai - 400 098 www.edelweissfin.com INVESTMENT MANAGER: Edelweiss Asset Management Limited (CIN: U65991MH2007PLC173409) Registered Office: Edelweiss House, Off. C.S.T Road, Kalina, Mumbai 400098 Corporate Office: 801, 802 & 803, 8th Floor, Windsor, Off C.S.T. Road, Kalina, Santacruz (E), Mumbai 400098, Maharashtra www.edelweissfin.com REGISTRAR: Karvy Computershare Private Limited Unit - Edelweiss Mutual Fund Karvy Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad 500 008, Tel: 040-67161500
Equity schemes Edelweiss Dynamic Equity Advantage Fund This product is suitable for investors who are seeking*: To create wealth over long term and prevent capital erosion in medium term Investment predominantly in equity and equity related securities including through arbitrage opportunities with balance exposure to debt and money market securities Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Arbitrage Fund This product is suitable for investors who are seeking*: To generate income by predominantly investing in arbitrage opportunities Investments predominantly in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Prudent Advantage Fund This product is suitable for investors who are seeking*: To create wealth in the long term Investment in equity and equity-related securities including equity derivatives Investors understand that their principal will be at Moderately High risk Riskometer Investors understand that their principal will be at Moderately Low risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Large Cap Advantage Fund This product is suitable for investors who are seeking*: To create wealth in the long term Investment predominantly in equity and equity-related securities including equity derivatives of the 100 largest companies by market capitalization, listed in India. Investors understand that their principal will be at Moderately High risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Equity Savings Advantage Fund This product is suitable for investors who are seeking*: Income distribution by investing in debt and money market instrument and arbitrage opportunities. Long term capital appreciation by using equity and equity related instruments. Investors understand that their principal will be at Moderately High risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Mid and Small Cap Fund This product is suitable for investors who are seeking*: Long Term capital growth Investments predominantly in equity and equity related securities focused on smaller companies (generally, the universe will be the companies constituting the bottom fourth by way of market capitalization of stocks listed on the National Stock Exchange or Bombay Stock Exchange.) ^ Investors understand that their principal will be at Moderately High risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. ^ The Fund Manager may from time to time include other equity and equity related securities outside the universe to achieve optimal portfolio construction Investors understand that their principal will be at High risk Edelweiss Equity Opportunities Fund This product is suitable for investors who are seeking*: Long term capital growth. Investments predominantly in equity and equity related securities. Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investors understand that their principal will be at Moderately High risk Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Page 2
Equity schemes Edelweiss Economic Resurgence Fund This product is suitable for investors who are seeking*: Long-term capital growth. Investment in equity and equity-related securities of companies with a focus on riding economic cycles through dynamic allocation between various sectors and stocks at different stages of economic activity. Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss ELSS Fund This product is suitable for investors who are seeking*: To create wealth in the long term Investment in equity and equity-related securities that will be locked-in for the first three years. Investors understand that their principal will be at High risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Tax Advantage Fund ## This product is suitable for investors who are seeking*: Long Term capital growth Investments predominantly in equity and equity related securities Investors understand that their principal will be at Moderately High risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. ## In order to comply with the requirement of ELSS 2005 guidelines, further subscription on / switch-in into Edelweiss Tax Advantage Fund is restricted with effect from October 17, 2016. Investors understand that their principal will be at Moderately High risk Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Page 3
Liquid Edelweiss Liquid Fund This product is suitable for investors who are seeking*: Income over short term Investments in money market and debt securities Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investors understand that their principal will be at Low risk Fixed income s Edelweiss Ultra Short Term Fund This product is suitable for investors who are seeking*: Optimal returns over short term Investments primarily in a mix of short term debt and money market instruments Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Bond Fund This product is suitable for investors who are seeking*: Optimal returns over medium to long term. Investments in debt and money market instruments with an active management of the portfolio. Investors understand that their principal will be at Moderately low Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Short Term Fund This product is suitable for investors who are seeking*: Income over short to medium term. Investments primarily in money market and short term debt instruments. Investors understand that their principal will be at Moderate risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Banking and PSU Debt Fund This product is suitable for investors who are seeking*: Income over short to medium term. Investments in debt securities and money market instruments issued by Banks and PSUs Investors understand that their principal will be at Moderately Low risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Corporate Debt Opportunities Fund This product is suitable for investors who are seeking*: Regular income & capital appreciation through active management across time frames. Investment in corporate bonds and securities across the investment grade credit rating and maturity spectrum. Investors understand that their principal will be at Moderate risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Edelweiss Government Securities Fund This product is suitable for investors who are seeking*: Credit risk free returns over medium to long term. investment in Government Securities. Investors understand that their principal will be at Moderate risk Riskometer *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Page 4 Investors understand that their principal will be at Moderate risk
Investment ObjECTive Asset Allocation PATTERN Risk Profile of the Plans & OptiONS Applicable NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS Dispatch of REPURChASE (REDEmption) ReqUEST Benchmark FOR PERFORmANCE comparison Dividend Policy Name of the FUND manager(s) AND TENURE of managing the FUND Edelweiss Dynamic Equity ADVANTAGE FUND The primary objective of the is to generate capital appreciation with relatively lower volatility over a longer tenure of time. The will accordingly invest in equities, arbitrage opportunities and derivative strategies on the one hand and debt and money market instruments on the other. The may also invest in Infrastructure Investment Trusts and Real Estate Investment Trusts. However there is no assurance that the investment objective of the will be realized. Under normal circumstances, the anticipated asset allocation pattern is: Type of Instruments Indicative allocation (% of total Assets) Risk Profile Minimum Maximum Equity, Equity related instruments* 65 100 Medium to High Units of InvITs/REITs 0 10 Medium to High Debt and Money Market Instruments 0 35 Low to Medium *The can take derivative exposure up to 50% of the net assets of the. Further, depending on the market conditions and discretion of the Fund Manager the can bring down the Net Equity exposure up to a minimum of 30% of the portfolio value. Net Equity exposure means exposure to equity shares alone without a corresponding equity derivative exposure. The investments in securitised papers including Pass through Certificates (PTCs) may be made upto 35% of the net assets of the. The may invest in units of Infrastructure Investment Trusts and Real Estate Investment Trusts. Not more than 10% of the net assets of the will be invested in InvITs and REITs and not more than 5% of the net assets of the will be invested in InvITs and REITs of any single issuer. The cumulative gross exposure through equity, debt, derivative positions, REITs and InvITs will not exceed 100% of the net assets of the. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. The total exposure related to option premium paid will not exceed 20% of the net assets of the. The may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such transactions will not exceed 10% of the net assets of the. The may engage in Stock Lending. Not more than 20% of the net assets of the can generally be deployed in stock lending and not more than 5% of the net assets of the will be deployed in Stock lending to any single counterparty. The may invest in Foreign Securities upto 35% of the Permissible Investments of net assets of the. Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on risk factors before investment. Investment in this will involve certain 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 s investments 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 instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. 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. ADRs/GDRs and Foreign Securities: Subject to necessary approvals and within the investment objective of the, the 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, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk. Risk Factors Associated with Investments in REITs and InvITS: It Involves Market Risk as REITs and InvITs are volatile and prone to price fluctuations on a daily basis owing to market movements. It also has Liquidity Risk, as the liquidity of the investments made by the (s) could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for liquidating the investments in the scheme may be high in the event of immediate redemption requirement. Investment in such securities may lead to increase in the scheme portfolio risk. It could be subject to Reinvestment Risk as there could be repatriation of funds by the Trusts in form of buyback of units or dividend payouts, etc. Consequently, the proceeds may get invested in assets providing lower returns. The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that a s investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. The offers two Plans: 1. Edelweiss Dynamic Equity Advantage Fund (Regular Plan) and 2. Edelweiss Dynamic Equity Advantage Fund-Direct Plan. Direct Plan will be offered only for investors who purchase /subscribe Units of the directly with the Fund and is not available for investors who route their investments through a Distributor. However, the portfolio of the under both these Plans will be common. Each Plan will offer : (i) Growth Option (ii) Monthly Dividend Option (iii) Quarterly Dividend Option. Dividend Option has Reinvestment, Payout & Sweep Facility. Details pertaining to Default Plan is as follows: Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not mentioned Regular Plan Default Option: If the investor does not clearly specify the choice of Option at the time of investing, it will be deemed that the investor has opted for Growth Option. In case the investor does not clearly specify the choice of Dividend Option at the time of investing, it will be deemed that the investor has opted for the Default Dividend Option; i.e. the Quarterly Dividend Option. In case of valid applications received for Monthly Dividend Option without indicating any choice of Facility, the Dividend Reinvestment Facility will be considered by default. Minimum Purchase Amount Additional Purchase Amount Repurchase (Redemption) Amount/Unit v 1,000/- and in multiples of v 1/- thereafter. Minimum of v 1,000/- and in multiples of v 1/- thereafter. Minimum Redemption Amount can be v 1/- or 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 points of acceptance of Edelweiss Mutual Fund 60% Nifty 50 Index + 40% CRISIL Composite Bond Fund Index The Fund reserves the right to change the benchmark for evaluation of the performance of the from time to time, subject to SEBI Regulations and other prevailing guidelines, if any. Name of the Fund Manager Tenure of Managing the Mr. Bhavesh Jain Since August 07, 2013 Mr. Bharat Lahoti Since September 18, 2017 Name of the TRUSTEE ComPANy Edelweiss Trusteeship Company Limited Page 5
PerformANCE of the Expenses of the Waiver of LOAD FOR DiRECT APPLiCATiONS Tax treatment FOR the investors (Unit holders) Daily Net ASSET VALUE ( NAV ) PUBLiCATion For Investor GriEVANCES PLEASE CONTACT Unitholders information s PORTFOLio holdings Portfolio TURNOVER Ratio Returns as on October 31, 2017 Edelweiss Dynamic Equity ADVANTAGE FUND Regular PLAN GROWTh Option : DiRECT PLAN GROWTh Option : Date Returns (%) Benchmark Returns # (%) Returns (%) Benchmark Returns # (%) ^Returns for the last 1 year 14.55% 15.42% 15.41% 15.42% ^Returns for the last 3 years 8.50% 9.49% 9.27% 9.49% ^Returns for the last 5 years 12.10% 12.54% **N.A. 12.54% ^@Returns since inception 10.06% 10.90% 12.78% 11.87% Absolute Returns for each financial year for the last 5 years Edelweiss Dynamic Equity Advantage Fund-Regular-Growth Edelweiss Dynamic Equity Advantage Fund-Direct-Growth (Inception Date Jan 21, 2013) Benchmark returns% - 60% Nifty 50 + 40% Crisil Composite Bond Fund Index Benchmark returns % - 60% Nifty 50 + 40% Crisil Composite Bond Fund Index (Inception Date Jan 21, 2013) 40.00% 35.52% 36.16% 35.00% 30.00% 25.00% 22.80% 22.80% 20.00% 16.67% 16.67% 15.00% 10.00% 7.14% 9.14% 9.92% 10.31% 13.57% 13.57% 10.62% 11.42% 5.00% -1.25% -3.20% -3.14% -2.43% 0.00% -1.38% -1.38% -5.00% FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 Financial Years # 60% Nifty 50 + 40% Crisil Composite Bond Fund Index @ Inception Date is deemed to be the date of allotment i.e. August 20, 2009; Inception date of Direct Plan is January 21, 2013 ^ CAGR Returns ** Not Applicable Past performance may or may not be sustained in the future. The above information is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Performance of the Dividend Option for the investor would be net of the applicable dividend distribution tax. (I) Load Structure: Entry Load: Not Applicable Exit Load: 10% of the units allotted shall be redeemed without any Exit Load on or before completion of 365 days from the date of allotment of units. Any redemption in excess of such limit within 365 days from the date of allotment shall be subject to the following Exit Load: If redeemed or switched out on or before completion of 365 days from the date of allotment of units 1.00% If redeemed or switched out after completion of 365 days from the date of allotment of units NIL Redemption of units would be done on First in First out Basis (FIFO). Also please refer paragraph on Load Structure under the section INFORMATION COMMON TO ALL SCHEMES (II) Recurring Expenses The total expense ratio of the (including investment management and advisory fees) shall not exceed the limits specified in Regulation 52 of the SEBI (Mutual Fund) Regulations, 1996. Accordingly, the AMC has estimated that upto 2.50% of the daily net asset of the will be charge to the as expenses. In addition to the limits specified above, please refer paragraph Recurring Expenses under the section INFORMATION COMMON TO ALL SCHEMES. (III) Actual Expenses For The Financial Year 2016-17 Plan Total Expense as % of Average AUM* Regular Plan 2.74 Direct Plan 1.98 *Total expenses include Goods & Service Tax on Management Fees Not Applicable. Investor is advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publication in two daily newspapers having circulation all over India. NAV can also be viewed on www.edelweissmf.com and www.amfiindia.com. Investors can also call up at our toll free number 1800 425 0090 (MTNL/BSNL) and non toll free number +91 40 23001181 for non MTNL/BSNL land line, mobile users and investors outside India. Top 10 Holdings as on October 31, 2017 Issuer % to Net Assets HDFC Bank Ltd. 4.30% Reliance Industries Ltd. 3.84% ITC Ltd. 3.38% Kotak Mahindra Bank Ltd. 3.01% Sun Pharmaceutical Ind Ltd. 2.45% State Bank of India 2.43% Infosys Ltd. 2.19% Bharat Financial Inclusion Ltd. 2.13% ICICI Bank Ltd. 2.01% Tata Consultancy Services Ltd. 1.99% Sector Allocation as on October 31, 2017 Sector % to Net Assets Auto Ancillaries 0.48% Power- Transmission 0.78% Media & Entertainment 0.83% Industrial Products 0.86% Commercial Services 0.89% Non - Ferrous Metals 0.93% Telecom - Services 1.00% Petroleum Products 1.07% Transportation 1.08% Textile Products 1.15% Pesticides 1.34% Engineering-Designing-Construction 1.75% Gas 1.92% Housing Finance 2.30% Finance 2.89% Nbfc 3.41% Refineries/Marketing 3.84% Auto 3.90% Pharmaceuticals 5.68% Consumer Non Durables 7.44% Software 8.93% Banks 16.45% Monthly Portfolio Disclosure: The AMC will disclose the portfolios (along with ISIN) of all the s of Edelweiss Mutual Fund as on the last day of the month on the AMC s website (www.edelweissmf.com) 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. As on October 31, 2017: 1.59 times Page 6
Investment ObjECTive Asset Allocation PATTERN Risk Profile of the EDELWEISS ARBITRAGE FUND The investment objective of the is to generate income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments. However, there is no assurance that the investment objective of the scheme will be realized. The will aim to have a fully hedged portfolio to meet its Investment Objective. 1. Under normal circumstances, the asset allocation would be as follows: Types of Instruments Indicative allocation (% of Net Assets) Risk Profile Minimum Maximum Equity & Equity related instruments including derivatives 65% 100% Medium to High Debt & Money Market instruments including the margin money deployed in derivative 0% 35% Low transactions 2. Under defensive circumstances, the asset allocation would be as follows: Types of Instruments Indicative allocation (% of Net Assets) Risk Profile Minimum Maximum Equity & Equity related instruments including derivatives 0% 35% Medium to High Debt & Money Market instruments including the margin money deployed in derivative 65% 100% Low transactions The will not invest in Foreign Securities and ADRs/GDRs issued by Indian or foreign companies. The will not invest in Stock Lending and Short Selling. Note: Defensive circumstances are when the arbitrage opportunities in the market place are negligible or returns are lower than alternative investment opportunities as per the allocation pattern. The allocation under defensive circumstances will be made keeping in view the interest of the unit holders. Such position will be closely monitored by the fund manager and necessary rebalancing will be done at suitable opportunity but not later than 30 days. The margin money requirement for the purposes of derivative exposure will be held in the form of Term Deposits, cash or cash equivalents or as may be allowed under the Regulations. Money Market Instruments include Cps, commercial bills, Corporate Debt, T-Bills, and Government securities having an unexpired maturity upto one year, CDs, usance bills, CBLOs, Repo/ Reverse Repo and any other like instruments having a maturity of 1 year or less, as specified by the RBI from time to time. The above percentages are indicative and not absolute. Further, The will not invest in Securitized Debt, Credit Default Swap or equity linked debentures. The can take derivative exposure upto a limit as stated in the tables above. The total exposure related to options premium paid will not exceed 20% of the net assets of the. The may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such transactions will not exceed 10% of the net assets of the. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. The shall not undertake repo /reverse repo transactions in Corporate Debt Securities. From time to time, the may hold cash and/or invest in the Collateralised Borrowing & Lending Obligations (CBLO) or repo to meet the liquidity requirements. The may also invest in other schemes managed by the AMC or in the schemes of any other Mutual Fund within the regulatory limits, provided it is in conformity with the investment objectives of the. Pending deployment of funds of the in securities in terms of the investment objective of the, the AMC may park the funds of the in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from time to time. Mutual Fund Units involve investment risks including the possible loss of principal. Please read the Information Document carefully for details on risk factors before investment. The performance of the may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems, etc. Investment in Edelweiss Arbitrage Fund will involve certain scheme specific risk factors apart from the general risks mentioned in SAI which are summarized below : There can be no assurance or guarantee that the arbitrage opportunities may exist at all times in the capital market. The lack of arbitrage opportunities shall not provide an opportunity to the Fund Manager to exploit price discrepancies in the capital markets. In case if the fund receives heavy redemptions, before the Expiry Day (last Thursday of every month or any day specified by the exchange), the liquidity and/or NAV of the might be affected. In such cases, the Fund Manager may be required to unwind positions in derivative segments before the expiry day, which may result in a fall in NAV. The performance of the will depend on the ability of the fund manager to identify opportunities due to price spread in the cash and derivative market. No assurance can be given that Fund Manager will be able to locate investment opportunities or to correctly exploit price spread in the equity markets. There may be instances where the price spread between cash and derivative market is insufficient to meet the cost of carry. In such situations, the Fund Manager due to lack of opportunities in the derivative market may not be able to outperform liquid/money market funds. In addition to this, there can be increase in number of transactions as the fund manager has to take simultaneous calls in cash and derivative market, which may lead to high portfolio turnover and consequently will lead to high transaction costs. Equity And Equity Related Instruments: The value of the s investments may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, etc. Settlement periods and transfer procedures may restrict the liquidity of the investments made by the. The may face liquidity risk or execution risk or redemption risk or the risk of NAV going below par. Debt and Money market Instruments: Risk associated with investments in Fixed Income and Money Market Instruments involves Price/Interest rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & Settlement Risk, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk etc. Derivatives: Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. Page 7
Plans & OptiONS Applicable NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/ NO. OF UNITS Dispatch of REPURChASE (REDEmption) ReqUEST Benchmark FOR PERFORmANCE comparison Dividend Policy Name of the FUND manager(s) AND TENURE of managing the FUND Name of the TRUSTEE ComPANy PerformANCE of the EDELWEISS ARBITRAGE FUND The offers two Plans: 1. Regular Plan and 2. Direct Plan Each Plan will offer : (i) Growth Option (ii) Monthly Dividend Option (iii) Dividend Option. Dividend Option has Reinvestment, Payout & Sweep Facility. Details pertaining to Default Plan is as follows: Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not mentioned Regular Plan Default Option: If the investor does not clearly specify the choice of Option at the time of investing, it will be deemed that the investor has opted for Growth Option. In case the investor does not clearly specify the choice of Dividend Option at the time of investing, it will be deemed that the investor has opted for the Default Dividend Option; i.e. the Monthly Dividend Option. In case of valid applications received for Monthly Dividend Option without indicating any choice of Facility, the Dividend Reinvestment Facility will be considered by default. Minimum Purchase Amount Additional Purchase Amount Repurchase (Redemption) Amount/Unit v 5,000/- and in multiples of v 1/- Minimum v 1,000/- and in multiples Minimum Redemption Amount can be v 1/- or any number of units. thereafter of v 1/- thereafter For demat transactions, minimum redemption would be mandatorily 50 units. Within 10 business days of the receipt of valid redemption request at the official points of acceptance of Edelweiss Mutual Fund Nifty 50 Arbitrage Index The Fund reserves the right to change the benchmark for evaluation of the performance of the from time to time, subject to SEBI Regulations and other prevailing guidelines, if any. Dividends 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 on the record date which will be announced in advance. The Unit Holders have the option of receiving the dividend or reinvesting the same. The dividend will be reinvested at the first ex-dividend NAV. The AMC shall despatch to the Unit Holders, the diviend warrants within 30 days of the date of declaration of dividend. Name of the Fund Manager Tenure of Managing the Equity Portion : Mr. Bhavesh Jain Since June 27, 2014 Debt Portion : Mr. Dhawal Dalal Since December 22, 2016 Edelweiss Trusteeship Company Limited Returns as on October 31, 2017 Regular PLAN GROWTh Option : DiRECT PLAN GROWTh Option : Date Returns (%) Benchmark Returns # (%) Returns (%) Benchmark Returns # (%) ^Returns for the last 1 year 5.91% 4.37% 6.60% 4.37% ^Returns for the last 3 years 6.92% 6.34% 7.48% 6.34% ^Returns for the last 5 years **NA **NA **NA **NA ^@Returns since inception 7.18% 6.50% 7.73% 6.50% Absolute Returns for each financial year for the last 3 years Edelweiss Arbitrage Fund-Regular-Growth Benchmark returns% - Nifty 50 Arbitrage Index 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Edelweiss Arbitrage Fund-Direct-Growth (Inception Date Jun 27, 2014) Benchmark returns % - Nifty 50 Arbitrage Index (Inception Date Jun 27, 2014) 7.06% 7.37% 7.43% 7.03% 7.20% 6.68% 6.68% 6.49% 6.49% 6.50% 6.07% 6.07% FY 14-15 FY 15-16 FY 16-17 Financial Years # Nifty 50 Arbitrage Index @Inception Date June 27, 2014 ^CAGR Returns **Not Applicable Past performance may or may not be sustained in the future. The above information is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Performance of the Dividend Option for the investor would be net of the applicable dividend distribution tax. Page 8
Expenses of the Waiver of LOAD FOR DiRECT APPLiCATiONS Tax treatment FOR the investors (Unit holders) Daily Net ASSET VALUE ( NAV ) PUBLiCATion For Investor GriEVANCES PLEASE CONTACT Unitholders information s PORTFOLio holdings Portfolio TURNOVER Ratio (I) Load Structure: Entry Load: Not Applicable Exit Load: EDELWEISS ARBITRAGE FUND If the Units are redeemed / switched out on or before 30 days from the date of allotment 0.25% If the Units are redeemed / switched out on or after 30 days from the date of allotment Nil * Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the to the investor. 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 GST, shall be credited to the. (II) Recurring Expenses: The total expense ratio of the (including investment management and advisory fees) shall not exceed the limits specified in Regulation 52 of the SEBI (Mutual Fund) Regulations, 1996. Accordingly, the AMC has estimated that upto 2.50% of the daily net asset of the will be charge to the as expenses. In addition to the limits specified above, please refer paragraph Recurring Expenses under the section INFORMATION COMMON TO ALL SCHEMES. (III) Actual Expenses For The Financial Year 2016-17 Plan Total Expense as % of Average AUM* Regular Plan 1.11 Direct Plan 0.46 *Total expenses include Goods & Service Tax on Management Fees Not Applicable. Investor is advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publication in two daily newspapers having circulation all over India. NAV can also be viewed on www.edelweissmf.com and www.amfiindia.com. Investors can also call up at our toll free number 1800 425 0090 (MTNL/BSNL) and non toll free number +91 40 23001181 for non MTNL/BSNL land line, mobile users and investors outside India. Top 10 Holdings as on October 31, 2017 Issuer % to Net Assets Dewan Housing Finance Corporation Ltd. 2.92% JSW Steel Ltd. 2.71% Maruti Suzuki India Ltd. 2.00% DLF Ltd. 1.95% Century Textiles & Industries Ltd. 1.88% Sun Pharmaceutical Ind Ltd. 1.72% Bharat Financial Inclusion Ltd. 1.51% Vedanta Ltd. 1.49% Sun TV Network Ltd. 1.48% Reliance Capital Ltd. 1.40% Sector Allocation as on October 31, 2017 Sector % to Net Assets Chemicals 0.02% Gas 0.03% Textiles - Cotton 0.09% Trading 0.26% Minerals/Mining 0.51% Oil 0.53% Transportation 0.62% Finance 0.65% Fertilisers 0.72% Industrial Products 0.80% Healthcare Services 0.83% Pesticides 0.91% Consumer Durables 1.01% Telecom - Services 1.02% Software 1.05% Textile Products 1.07% Construction Project 1.38% Petroleum Products 1.38% Non - Ferrous Metals 1.54% Public Financial Institution 2.11% Industrial Capital Goods 2.19% Auto Ancillaries 2.20% Media & Entertainment 2.39% Cement 3.42% Housing Finance 3.43% Pharmaceuticals 3.78% Ferrous Metals 4.05% Power 4.08% Construction 4.18% Consumer Non Durables 4.28% Banks 4.32% Auto 4.62% Nbfc 7.34% Monthly Portfolio Disclosure: The AMC will disclose the portfolios (along with ISIN) of all the s of Edelweiss Mutual Fund as on the last day of the month on the AMC s website (www.edelweissmf.com) 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. As on October 31, 2017 : 2.81 times Page 9
Investment ObjECTive Asset Allocation PATTERN Risk Profile of the Plans & OptiONS Applicable NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/ NO. OF UNITS Dispatch of REPURChASE (REDEmption) ReqUEST Benchmark FOR PERFORmANCE comparison Dividend Policy Edelweiss PRUDENT ADVANTAGE FUND The objective of the is to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well diversified portfolio of Value Stocks. Value Stocks are those stocks, which tend to trade at a lower price relative to their fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by investors. They have attractive valuations in relation to earnings or book value or current and/or future dividends However, there is no assurance that the investment objective of the will be realized and the does not assure or guarantee any returns. Under normal circumstances, the anticipated asset allocation pattern is: Type of Security Indicative Allocation (% of total assets) Risk Profile Equity & Equity related Securities (Value Stocks) 65% - 100% Medium to High Other Equity & Equity related Securities 0% - 35% Medium to High Debt & Money Market instruments* 0% - 35% Low to Medium Units of InvITs/REITs^ 0% - 10% Medium to High *Money Market Instruments include CPs, Commercial Bills, Corporate Debt, T-Bills, and Government securities having an unexpired maturity upto one year, CDs, usance bills, CBLOs, Repo/ Reverse Repo and any other like instruments having a maturity of 1 year or less, as specified by the RBI from time to time. ^The may invest in units of Infrastructure Investment Trusts and Real Estate Investment Trusts. Not more than 10% of the net assets of the will be invested in InvITs and REITs and not more than 5% of the net assets of the will be invested in InvITs and REITs of any single issuer. The cumulative gross exposure through equity, debt, derivative positions, REITs and InvITs will not exceed 100% of the net assets of the. Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on risk factors before investment. Investment in this will involve certain 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 s investments 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 instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. 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. ADRs/GDRs and Foreign Securities: Subject to necessary approvals and within the investment objective of the, the 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, Reinvestment 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 investment decisions may not always be profitable, as actual market movements may be at variance with the anticipated trends. The NAV of the is vulnerable to movements in the prices of securities invested by the scheme, 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 investments made by the (s) could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for liquidating the investments in the scheme may be high in the event of immediate redemption requirement. Investment in such securities may lead to increase in the scheme portfolio risk. Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment 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 investments in REITs & InvITs. There can be no assurance that a s investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. The offers two Plans: 1. Edelweiss Prudent Advantage Fund (Regular Plan) and 2. Edelweiss Prudent Advantage Fund-Direct Plan. Direct Plan will be offered only for investors who purchase /subscribe Units of the directly with the Fund and is not available for investors who route their investments through a Distributor. However, the portfolio of the under both these Plans will be common. Each Plan will offer : (i) Growth Option (ii) Dividend Option. Dividend Option has Reinvestment, Payout & Sweep Facility. Discontinued Plan: With effect from October 1, 2012, Plan B of the 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 existing 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 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 Reinvestment facility. Minimum Purchase Amount Additional Purchase Amount Repurchase (Redemption) Amount/Unit v 1,000/- and in multiples of v 1/- v 1,000/- and in multiples of v 1/- Minimum Redemption Amount can be v 1/- or any number of units. thereafter. thereafter. For demat transactions, minimum redemption would be mandatorily 50 units. Within 10 business days of the receipt of valid redemption request at the official points of acceptance of Edelweiss Mutual Fund Nifty 200 The fund reserves the right to change the benchmark for evaluation of the performance of the from time to time, subject to SEBI Regulations and other prevailing guidelines if any. Page 10
Name of the FUND manager(s) AND TENURE of managing the FUND Name of the TRUSTEE ComPANy PerformANCE of the Expenses of the Waiver of LOAD FOR DiRECT APPLiCATiONS Tax treatment FOR the investors (Unit holders) Daily Net ASSET VALUE ( NAV ) PUBLiCATion For Investor GriEVANCES PLEASE CONTACT Unitholders information Name of the Fund Manager Edelweiss PRUDENT ADVANTAGE FUND Tenure of Managing the Fund Manager : Mr. Bharat Lahoti Since October 14, 2015 Edelweiss Trusteeship Company Limited Returns as on October 31, 2017 ^Returns for the last 1 year~ Date REGULAR PLAN GROWTh Option : DiRECT PLAN*** Growth Option : Returns (%) Benchmark Returns # (%) Returns (%) Benchmark Returns # (%) Edelweiss Prudent Advantage Fund - Growth~ 13.04% 22.62% 13.55% 22.62% Edelweiss Prudent Advantage Fund - Plan B - Growth@## 13.07% 22.62% **N.A. **N.A. ^Returns for the last 3 years~ Edelweiss Prudent Advantage Fund - Growth~ 9.07% 11.40% 9.58% 11.40% Edelweiss Prudent Advantage Fund - Plan B - Growth@## 9.13% 11.40% **N.A. **N.A. ^Returns for the last 5 years~ Edelweiss Prudent Advantage Fund - Growth~ 13.67% 16.23% **N.A. 16.23% Edelweiss Prudent Advantage Fund - Plan B - Growth@## 13.68% 16.23% **N.A. **N.A. ^@Returns since inception Edelweiss Prudent Advantage Fund - Growth~ 11.21% 12.78% 16.38% 12.78% Edelweiss Prudent Advantage Fund - Plan B - Growth@## 10.79% 12.54% **N.A. 14.91% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% Absolute Returns for each financial year for the last 5 years Edelweiss Prudent Advantage Fund - Regular - Growth Edelweiss Prudent Advantage Fund - Direct-Growth (Inception Date Jan 7, 2013) Benchmark returns% -Nifty 200 Benchmark returns% -Nifty 200 (Inception Date Jan 7, 2013) 38.02% 38.51% -0.90% 7.57% 2.73% -7.23% 16.76% 17.01% 19.32% 19.32% 33.14% 33.14% -2.21% -1.68% -6.92% -6.92% 23.99% 23.99% 14.48% 15.00% FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 Financial Years # Nifty 200 ^ CAGR Returns ~ Inception/Allotment Date is 12th August 2009 *** Inception date for Direct Plan is January 7, 2013 ** Not Applicable @ Inception/Allotment Date is June 16, 2009; ## Discontinued Plan for Subscription. Past performance may or may not be sustained in the future. The above information is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. Performance of the Dividend Option for the investor would be net of the applicable dividend distribution tax. (I) Load Structure: Entry Load: Not Applicable Exit Load: Nil Also please refer paragraph on Load Structure under the section INFORMATION COMMON TO ALL SCHEMES (II) Recurring Expenses: The total expense ratio of the (including investment management and advisory fees) shall not exceed the limits specified in Regulation 52 of the SEBI (Mutual Fund) Regulations, 1996. Accordingly, the AMC has estimated that upto 2.50% of the daily net asset of the will be charge to the as expenses. In addition to the limits specified above, please refer paragraph Recurring Expenses under the section INFORMATION COMMON TO ALL SCHEMES. (III) Actual Expenses For The Financial Year 2016-17 Plan Total Expense as % of Average AUM* Regular Plan 3.01 Plan B 3.01 Direct Plan 2.61 *Total expenses include Goods & Service Tax on Management Fees Not Applicable. Investor is advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publication in two daily newspapers having circulation all over India. NAV can also be viewed on www.edelweissmf.com and www.amfiindia.com. Investors can also call up at our toll free number 1800 425 0090 (MTNL/BSNL) and non toll free number +91 40 23001181 for non MTNL/BSNL land line, mobile users and investors outside India. Page 11