Continuous A Emerging Leaders Fund* 5th August 2015 T O L L F R E E 1800 425 0090 N O N T O L L F R E E +91 40 23433150 S M S IQ to 5757590 W E B S I T E www.edelweissmf.com EMAIL : INVESTORS emfhelp@edelweissfin.com
Product Label Edelweiss Absolute Return Fund is suitable for investors who are see g*: Riskometer to create wealth over long term and prevent capital erosion in medium term i consult their advisers if in Edelweiss Diversi d Growth Equity T 100 (E.D.G.E T Fund is suitable for investors who are see g*: whether the LOW 100) HIGH Riskometer to create wealth in the long term consult their advisers if in whether the LOW HIGH al will Riskometer Edelweiss ELSS Fund is suitable for investors who are seeking*: to create wealth in the long term for t rst three years consult their advisers if in whether the LOW Edelweiss Emerging Leaders Fund is suitable for investors who are seeking*: HIGH al will Riskometer to create wealth in the long term investment predominantly in equity and equity related securities including equity derivatives of Mid and Small Cap Companies. consult their advisers if in Edelweiss are seeking*: whether the LOW is suitable for investors who HIGH al will Riskometer to create wealth in the long term consult their advisers if in whether the LOW Edelweiss Arbitrage Fund is suitable for investors who are seeking*: HIGH al will Riskometer t i consult their advisers if in whether the LOW Edelweiss Exchange Traded Scheme - Nifty (Nifty EES) is suitable for investors who are seeking*: HIGH al will Riskometer LOW HIGH *Investors should consult their financial advisers if in doubt about whether the Investors understand that their principal will product is suitable for them. be at Moderately High risk ves ts are subject to market risks, read all scheme relat ts carefully.
INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN INVESTMENT STRATEGY OF THE RISK PROFILE OF THE PLANS & OPTIONS / FACILITIES APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS DESPATCH OF REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY FUND MANAGERS NAME OF THE TRUSTEE COMPANY EDELWEISS ABSOLUTE RETURN FUND* (*The Scheme is an equity-oriented Scheme. Investors in the scheme are not being offered any guaranteed / assured returns) e of the Scheme will be to generate absolute returns with low vola er a longer tenur ordingly invest in arbitrage and debt and money market instruments on the one hand and in pure equity investments and equity deriva e strategies on the other. However there is no assurance that the investment e of the Scheme will be realized. Under normal circumstances, the an ted asset alloca pa ern is: Types of Instruments Normal Allocation (% to Net Assets) Min. Max. Equity & Equity related instruments & Derivatives 65% 100% Debt & Money Market instruments including securitized debts 0% 35% Further, The investments in papers including Pass through ates (PTCs) may be made upto 35% of the net assets of the Scheme. The Scheme can also take deriva e exposure upto 100 % of the net assets of the Scheme. The cumula e gross exposure through equity, debt and deriva e will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not crea any exposure. The total exposure related to premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such tr will not exceed 10% of the net assets of the Scheme. The Scheme may engage in Stock Lending. Not more than 25% 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 upto 35% of the Permissible Investments of net assets of the Scheme. The Scheme will deploy Absolute Return Strategy to achieve the Scheme's investment e. The Scheme will accordingly invest in arbitrage and in debt and money market instruments on the one hand and in pure equity investments and equity deriva e 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 combina of strategies to achieve the investment e of the Scheme. Depending on the market c vestments will be made in arbitrag et instruments and the residual will be a combina situa other deriva e strategies and use of quan a e models. 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 Scheme will involve certain Scheme specific Risk Factors apart from the General Risk men in SAI/SID which are summarized below: Equity And Equity Related Instruments: The value of the Scheme s investments may be affected generally by factors, such as price and volume vola in the Capital Markets, t Periods, Liquidity Risk or Ex Risk or R Risk or the Risk of NAV going below par value. Deriva es: Deriva e products are leveraged instruments and can provide dispr te gains as well as dispr te losses to the investor. Iden a and ex 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 deriva es are different from or possibly greater than, the risks associated with inves directly in and other tr investments. ADRs/GDRs and Foreign Subject to necessary approvals and within the investment e of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctua in the foreign exchange rates, the nature of the market of the country, repatria of capital due to exchange controls and al circumstances Fixed Income and Money Market Instruments: It involves Interest Rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & t Risk, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk. Edelweiss Absolute Return Fund and Edelweiss Absolute Return Fund-Direct Plan. For details pertaining to Direct Plan and Default Plan, please refer paragraphs "Direct Plan" and "Default Plan" r ely under the "INFORMATION COMMON TO ALL S. Each Plan will offer : (i) Growth (ii) Dividend. Dividend has Reinvestment, Payout & Sweep Facility. If the investor does not clearly specify the choice of at the of inves, it will be deemed that the investor has opted for the Growth In case, if the investor selects Dividend but fails to men the facility, it will be deemed that the investor has opted for the Dividend Reinvestment Facility. Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption) `1,000/- and in multiples of `1/- Minimum of `1,000/- and in multiples of `1/- Minimum R Amount can be `1/- or any number of units. thereafter. thereafter. For demat tr minimum r would be mandatorily 50 units. Within 10 business days of the receipt of valid r request at the official points of acceptance of Edelweiss Mutual Fund CRISIL MIP Blended Index The fund reserves the right to change the benchmark for evalua of the performance of the Scheme from to subject to SEBI Regula and other prevailing guidelines if any. Please refer under INFORMATION COMMON TO ALL S Mr. Kartik Soral is the Fund Manager of the Scheme. Mr. Bhavesh Jain is the Co-Fund Manager of the Scheme. Edelweiss Trusteeship Company Limited July 31 35.52 36.16 - Growth 19.79 20.48 11.63 11.63 6.77 6.17 5.00 5.24 7.14 9.06 9.92 10.31 6.52 6.52 16.4516.45 - Growth 17.15 10.33-1.25-0.21 4 - Growth 12.10 8.57 - Growth 11.70 18.34 8.47 9.56
EXPENSES OF THE WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS) DAILY NET ASSET VALUE (NAV) PUBLICATION. FOR INVESTOR GRIEVANCES PLEASE CONTACT UNIT HOLDERS' INFORMATION (I) LOAD STRUCTURE Entry Load: Nil Exit Load: If the Units are redeemed / switched out on or before 365 days from the date of allotment - 1.00% If the Units are redeemed / switched out er 365 days from the date of allotment - Nil Also please refer paragraph on "Load S t r u c t u r e " u n d e r t h e s e c o n " I N F O R M AT I O N C O M M O N T O A L L S Not Applicable. EDELWEISS ABSOLUTE RETURN FUND* (*The Scheme is an equity-oriented Scheme. Investors in the scheme are not being offered any guaranteed / assured returns) (II) RECURRING EXPENSES The total expense ra of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regula 52 of the SEBI (Mutual Fund) Regula 1996. Accordingly, the AMC has es ted that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. o the limits specified above, please refer paragraph R INFORMATION COMMON TO ALL S. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR 2014-2015 *Total expenses include Service Tax on Management Fees Investor is advised to refer to the details in the Statement of Informa and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publica in two daily newspapers having circula 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 23433150 for non MTNL/BSNL land line, mobile users and investors outside India. Please refer under INFORMATION COMMON TO ALL S Please refer under INFORMATION COMMON TO ALL S EARF (Existing Plan) EARF (Direct Plan) Total Expense as % of Average AUM* 2.80 2.33 INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN EDELWEISS DIVERSIFIED GROWTH EQUITY TOP 100 (E.D.G.E. TOP 100) FUND The primary e of the Scheme is to generate capital apprecia from a olio that is substan cons ed of equity and equity related of the 100 largest corporates by market capitalisa listed in India. However, there is no assurance that the investment e of the Scheme will be realized and the Scheme does not assure or guarantee any returns. Under normal circumstances, the an ted asset alloca pa ern is: Types of Instruments Normal Allocation (% to Net Assets) Equity & Equity related instruments of the 100 largest corporates by market capitalisation, listed in India. 65%-100% Equity & Equity related instruments of other companies 0%-20% Debt & Money Market Instruments* 0%-35% *Money Market Instruments include CPs, Commercial Bills, Corporate Debt, T-Bills, and Governmen ving 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 to Further, The investments in papers including Pass through ates (PTCs) may be made upto 35% of the net assets of the Scheme. The Scheme can also take deriva e exposure upto 50 % of the net assets of the Scheme. The cumula e gross exposure through equity, debt and deriva e will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not crea any exposure. The total exposure related to premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such tr will not exceed 10% of the net assets of the Scheme. The Scheme may engage in Stock Lending. Not more than 25% 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 upto 35% of the Permissible Investments of net assets of the Scheme. INVESTMENT STRATEGY OF THE RISK PROFILE OF THE PLANS & OPTIONS / FACILITIES APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS The Fund invests in a olio that is substan cons ed of equity and equity related of the 100 largest corporates by market capitalisa listed in India. 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 Scheme will involve certain Scheme specific Risk Factors apart from the General Risk men in SAI/SID which are summarized below: Equity And Equity Related Instruments: The value of the Scheme s investments may be affected generally by factors, such as price and volume vola in the capital markets, t periods, liquidity risk or ex risk or r risk or the risk of NAV going below par value Deriva es: Deriva e products are leveraged instruments and can provide dispr te gains as well as dispr te losses to the investor. Iden a and ex 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 deriva es are different from or possibly greater than, the risks associated with inves directly in and other tr investments. ADRs/GDRs and Foreign Subject to necessary approvals and within the investment e of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctua in the foreign exchange rates, the nature of the market of the country, repatria of capital due to exchange controls and al circumstances Fixed Income and Money Market Instruments: It involves Interest rate risk, Spread risk, Credit risk or default risk, Liquidity & t risk, Reinvestment risk, Performance risk, Prepayment risk, Market risk. Edelweiss Diversified Growth Equity Top 100 Fund and Edelweiss Diversified Growth Equity Top 100 Fund -Direct Plan. For details pertaining to Direct Plan, Default Plan and Plans Discon for further please refer paragraphs "Direct Plan","Default Plan" and "Discon Plans" r ely under the "INFORMATION COMMON TO ALL S. Each Plan will offer : (i) Growth and (ii) Dividend Dividend has Reinvestment, Payout & Sweep Facility. Default If the investor does not clearly specify the choice of at the of inves, it will be deemed that the investor has opted for Growth In case, if the investor selects Dividend but fails to men facility, it will be deemed that the investor has opted for Dividend Reinvestment facility. Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption) `1,000/- and multiples of `1/- thereafter `1,000/- and multiples of `1/- thereafter Minimum R Amount can be `1/- or any number of units. For demat tr minimum r would be mandatorily 50 units. Page 4
DESPATCH OF REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY Within 10 business days of the receipt of valid r request at the official points of acceptance of Edelweiss Mutual Fund CNX Index The Fund reserves the right to change the benchmark for evalua of the performance of the Scheme from to subject to SEBI Regula and other prevailing guidelines if any. Please refer under INFORMATION COMMON TO ALL S FUND MANAGER Mr. Kartik Soral is the Fund Manager of the Scheme. Mr. Bhavesh Jain is the Co-Fund Manager of the Scheme. NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE EXPENSES OF THE WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS) DAILY NET ASSET VALUE (NAV) PUBLICATION FOR INVESTOR GRIEVANCES PLEASE CONTACT UNITHOLDERS' INFORMATION Edelweiss Trusteeship Company Limited Edelweiss Diversified Growth Equity Top 100 (E.D.G.E. Top 100) Fund July 31 Returns for the last 1 year E.D.G.E - Top 100 Fund-Growth E.D.G.E - Top 100 Fund Plan B - Growth E.D.G.E - Top 100 Fund Plan C - Growth E.D.G.E - Top 100 Fund Direct Plan - Growth Returns for the last 3 years E.D.G.E - Top 100 Fund-Growth E.D.G.E - Top 100 Fund Plan B - Growth E.D.G.E - Top 100 Fund Plan C - Growth E.D.G.E - Top 100 Fund Direct Plan - Growth Returns for the last 5 years E.D.G.E - Top 100 Fund-Growth E.D.G.E - Top 100 Fund Plan B - Growth E.D.G.E - Top 100 Fund Plan C - Growth E.D.G.E - Top 100 Fund Direct Plan - Growth @ Returns Since Inception E.D.G.E - Top 100 Fund-Growth E.D.G.E - Top 100 Fund Plan B - Growth E.D.G.E - Top 100 Fund Plan C - Growth E.D.G.E - Top 100 Fund Direct Plan - Growth Scheme Returns % Benchmark # Returns % Edelweiss E.D.G.E Top 100-(G) Edelweiss E.D.G.E Top 100-B(G) Edelweiss E.D.G.E Top 100-C(G) Benchmark returns %# Edelweiss E.D.G.E Top 100-Direct Plan(G) Benchmark returns % (Inception Date Jan 7, 2013) # ^ 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. # CNX Nifty Returns below one year are Absolute and those above one year are Compounded Annualized Return (CAGR). @ Inception Date is deemed to be the date of allotment i.e. May 20, 2009. Inception date of Direct Plan is January 7, 2013 (I) LOAD STRUCTURE: Entry Load: Nil Exit Load: If the Units are redeemed / switched out on or before 365 days from the date of allotment 1.00% If the Units are redeemed / switched out after 365 days from the date of allotment Nil Also please refer paragraph on "Load Structure" under the "INFORMATION COMMON TO ALL S (II) RECURRING EXPENSES: The total expense ra of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regula 52 of the SEBI (Mutual Fund) Regula 1996. Accordingly, the AMC has es ted that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. In to the limits specified above, please refer paragraph Recurring Expenses under the INFORMATION COMMON TO ALL S. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR 2014-2015 E.D.G.E. Top 100 Fund E.D.G.E. Top 100 Fund - E.D.G.E. Top 100 Fund - E.D.G.E. Top 100 Fund - (Existing Plan) Plan B Plan C Direct Plan Total Expense as a % of Average AUM* 2.85 2.85 2.85 2.38 *Total expenses include Service Tax on Management Fees Not Applicable. EDELWEISS DIVERSIFIED GROWTH EQUITY TOP 100 (E.D.G.E. TOP 100) FUND 23.05 10.51 23.07 10.51 23.11 23.83 10.51 10.51 24.10 17.73 24.08 17.73 24.10 N.A. 17.73 N.A. 14.39 9.70 14.42 9.70 14.06 N.A. 9.70 N.A. 17.27 11.81 17.37 11.81 17.12 22.00 11.81 14.82 Investor is advised to refer to the details in the Statement of Informa and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publica in two daily newspapers having circula 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 23433150 for non MTNL/BSNL land line, mobile users and investors outside India. Please refer under INFORMATION COMMON TO ALL S Please refer under INFORMATION COMMON TO ALL S - 6 8.52 8.73 8.79 11.14 10.06 10.09 10.00 16.99 16.9717.07 17.43 17.98 17.98 7.31-0.92-0.85-2.39-9.23-5.51-5.11 44.24 44.24 44.19 44.92 26.65 26.65 Page 5
EDELWEISS ELSS FUND INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN INVESTMENT STRATEGY OF THE RISK PROFILE OF THE The primary e of the Scheme is to generate long-term capital apprecia with an of periodic payouts at the end of lock in periods from a olio that invests predominantly in equity and equity related instruments. However, there is no assurance that the investment e of the Scheme will be realized and the Scheme does not assure or guarantee any returns. The Asset Alloca pa ern of the Scheme under normal circumstances is as under: Types of Instruments Normal Allocation (% to Net Assets) Equity & Equity related instruments 80% to 100% Short Term Debt & Money Market instruments* 0% to 20% *Money Market instruments include Cds, commercial Bills, corporate Debt, Tbills & Govt sectors 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 to Short Term Debt instruments include debt instruments with daily to monthly put/call debt instruments with maturity less than one year and other like debt instruments. The Fund will invest in a diversified basket of equity stocks spanning the en e market capitaliza spectrum and across sectors, debt and money market instruments. The Fund will also invest a of the funds in offerings and other primary market offerings. 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 Scheme will involve certain Scheme specific Risk Factors apart from the General Risks men in SAI/SID which are summarized below: 1. Due to the lock in requirements under ELSS Guidelines, the ability of investors to realise returns is restricted for the first three years. 2. The Scheme proposed to invest in Equity & Equity related instruments. Investment in such instruments involve risks such as Liquidity Risk, Risks related to Capital Markets, Macro Factors Risk, Price Risk, Ex Risk, R Risk, Substan Holding Risk, NAV below par. 3. Risk associated with investments in Fixed Income and Money Market Instruments which involve Interest rate risk, Spread risk, Credit risk or default risk, Liquidity & t Risk, Reinvestment risk, Performance Risk, Prepayment Risk, Market risk etc. PLANS & OPTIONS / FACILITIES Edelweiss ELSS Fund and Edelweiss ELSS Fund - Direct Plan. For details pertaining to Direct Plan and Default Plan, please refer paragraphs "Direct Plan" & "Default Plan" r ely under the "INFORMATION COMMON TO ALL S. Each Plan to the Scheme offers Dividend and Growth Dividend has Payout & Sweep Facility. In case, if the investor fails to men the at the of inves, it will be deemed that the investor has opted for Growth In case, if the investor selects Dividend but fails to men facility, it will be deemed that the investor has opted for Dividend Payout Facility. APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS DESPATCH OF REPURCHASE (REDEMPTION) REQUEST Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption)* Minimum of `500/- and in multiples of Minimum of `500/- and in multiples of `500/- Minimum R Amount can be `1/- or any number of units. `500/- thereafter. thereafter. For demat tr minimum r would be mandatorily 50 units. * R of Units can be made only er a period of 3 years of lock-in period from the date of allotment of the Units proposed to be redeemed. Within 10 business days of the receipt of valid r request at the official points of acceptance of Edelweiss Mutual Fund BENCHMARK INDEX CNX 500 The Fund reserves the right to change the benchmark for evalua of the performance of the Scheme from to subject to SEBI Regula and other prevailing guidelines if any. DIVIDEND POLICY Please refer under INFORMATION COMMON TO ALL S FUND MANAGER Mr. Kartik Soral is the Fund Manager of the Scheme. Mr. Bhavesh Jain is the Assistant Fund Manager of the Scheme. NAME OF THE TRUSTEE COMPANY Edelweiss Trusteeship Company Limited Edelweiss ELSS Fund (EELSS) PERFORMANCE OF THE Returns as on July 31, 2015^ Scheme Returns % Benchmark # Returns % Returns for the last 1 year EELSS - Growth Option 29.71 14.72 100.00 EELSS - Direct Plan - Growth 30.21 14.72 80.00 Returns for the last 3 years 60.00 EELSS - Growth Option 26.83 19.86 40.00 20.03 20.50 47.25 47.87 EELSS - Direct Plan - Growth N.A. N.A. 20.00 9.17 17.72 17.72 33.56 33.56 7.26 6.74 5.13 Returns for the last 5 years 0.00 2010-11 -0.16 EELSS - Growth Option 14.62 9.68-20.00-8.75-5.14-8.60 2013-14 2014-15 2011-12 2012-13 EELSS - Direct Plan - Growth N.A. N.A. @ Returns Since Inception EELSS - Growth Option 22.35 18.65 Edelweiss ELSS Fund-(G) Benchmark returns %# EELSS - Direct Plan - Growth 25.39 16.29 Edelweiss ELSS Fund Direct Plan(G) Benchmark returns % (Jan 21, 2013)# # CNX 500 ^ Past performance may or may not be sustained in the future. The above information is not @ Inception date is deemed to be the date of allotment i.e. December necessarily indicative of future results and may not necessarily provide a basis for comparison with 30, 2008; Inception date of Direct Plan is January 21, 2013 other investments. Performance of the Dividend Option for the investor would be net of the Returns below one year are Absolute and those above one year are applicable dividend distribution tax. Compounded Annualised Returns (CAGR) EXPENSES OF THE (I) LOAD STRUCTURE: Entry Load: Nil Exit Load: Nil Also please refer paragraph on "Load Structure" under the "INFORMATION COMMON TO ALL S" (II) RECURRING EXPENSES: The total expense ra of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regula 52 of the SEBI (Mutual Fund) Regula 1996. Accordingly, the AMC has es ted that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. In to the limits specified above, please refer paragraph Recurring Expenses under the INFORMATION COMMON TO ALL S. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR 2014-2015 EELSS (Existing Plan) EELSS - Direct Plan Total Expense as % of Average AUM* 2.85 2.37 *Total expenses include Service Tax on Management Fees Page 6
EDELWEISS ELSS FUND WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS) DAILY NET ASSET VALUE (NAV) PUBLICATION FOR INVESTOR GRIEVANCES PLEASE CONTACT UNITHOLDERS' INFORMATION Not Applicable. Investor is advised to refer to the details in the Statement of Informa and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publica in two daily newspapers having circula 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 23433150 for non MTNL/BSNL land line, mobile users and investors outside India. Please refer under INFORMATION COMMON TO ALL S Please refer under INFORMATION COMMON TO ALL S Page 7
INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN INVESTMENT STRATEGY OF THE RISK PROFILE OF THE PLANS & OPTIONS / FACILITIES APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS DESPATCH OF REPURCHASE (REDEMPTION) REQUEST BENCHMARK INDEX DIVIDEND POLICY FUND MANAGER NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE The primary investment objective of the Scheme is to generate income and capital appreciation from a diversified portfolio predominantly comprising of equity and equity related securities of Mid and Small Cap Companies. Under normal circumstances, the an ted asset alloca pa ern is: However, Types of Instruments there is no assurance that the investment objective of the Normal Allocation (% to Net Assets) Scheme will be realized and the Scheme does not assure or guarantee Equity and equity related securities of Mid and Small Cap Companies # 80%-100% any returns. Equity and equity related securities of other companies 0%-20% Debt & Money Market Instruments 0%-20% Further, The Scheme can also take deriva e exposure upto 100% of the Net Assets of the Scheme. The exposure to deriva es men as a percentage to the Net Assets means Gross Exposure. The cumula e gross exposure through equity, debt and deriva e will not exceed 100% of the Net Assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not crea any exposure. The total exposure related to premium paid will not exceed 20% of the net assets of the scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such tr will not exceed 10% of the net assets of the scheme. The Scheme may engage in Stock Lending. Not more than 25% 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 upto 35% of the Permissible Investments of net assets of the Scheme as per SEBI guidelines. The investors/unitholders can ascertain details of asset alloca t date of each month on AMC's website, which will display the asset alloca of the scheme as on the given day. The Scheme will not invest in ed debt. The Scheme aims to generate income and capital appreciation from a diversified portfolio predominantly investing in equity and equity related securities of Mid and Small Cap Companies. Mid and Small Cap Companies are companies which are not part of the top 100 companies by market capitalization listed on NSE and have market capitalization of atleast Rs.100 crores at the time of investment. The Scheme will accordingly invest 80%-100% of the corpus in equity and equity related securities of Mid and Small Cap Companies and the balance in other companies and/or in debt and money market instruments. The Scheme may invest in equity derivatives instruments to the extent permitted and in accordance with the applicable Regulations.to protect the value of the portfolio and enhance Unit holders' interest. Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SAI and SID carefully for details on risk factors before investment. Investment in this scheme will involve certain scheme specific Risk Factors apart from the General Risk men in SAI/SID which are summarized below: Mid Cap Stocks are generally illiquid in terms of trading volumes on stock exchanges. Investors should therefore assume that illiquidity risks are higher in this Scheme than in a normal diversified fund. Equity and Equity Related Instruments: The value of the scheme s investments may be affected generally by factors, such as price and volume vola in the Capital Markets, t Periods, Liquidity Risk or Ex Risk or R Risk or the Risk of NAV going below par value. Deriva es: Deriva e products are leveraged instruments and can provide dispr te gains as well as dispr te losses to the investor. Ex of such strategies depends upon the ability of the fund manager to iden such Iden a and ex 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 iden or execute such strategies. The risks associated with the use of deriva es are different from or possibly greater than, the risks associated with inves directly in and other tr investments. ADRs/GDRs and Foreign Subject to necessary approvals and within the investment e of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctua in the foreign exchange rates, the nature of the market of the country, repatria of capital due to exchange controls and al circumstances. Fixed Income and Money Market Instruments: It involves Interest Rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & t Risk, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk. Edelweiss Emerging Leaders Fund and Edelweiss Emerging Leaders Fund-Direct Plan. For details pertaining to Direct Plan and Default Plan, please refer paragraphs "Direct Plan" & "Default Plan" r ely under the "INFORMATION COMMON TO ALL S. Each Plan will offer : (i) Growth and (ii) Dividend Dividend will have Reinvestment, Payout & Sweep Facility. If the investor does not clearly specify the choice of at the of inves it will be deemed that the investor has opted for Growth In case if the investor selects Dividend but fails to men facility, it will be deemed that the investor has opted for Dividend Reinvestment facility. If the investor chooses an / Facility in the Applica Form but fails to comply with the minimum applica applica amount/other criteria of the said acility, then he will be ed units under the Default Facility, provided the required amount/other criteria are fulfilled. Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption) `5,000/- and multiples of `1/- `1,000/- and multiples of `1/- Minimum R Amount can be `1/- or any number of units. For demat tr minimum r would be mandatorily 50 units. Within 10 business days of the receipt of valid r request at the official points of acceptance of Edelweiss Mutual Fund CNX Midcap Index The Fund reserves the right to change the benchmark for evalua of the performance of the Scheme from to subject to SEBI Regula and other prevailing guidelines if any. Please refer under INFORMATION COMMON TO ALL S Mr. Kartik Soral is the Fund Manager of the Scheme. Mr. Bhavesh Jain is the Assistant Fund Manager of the Scheme. Edelweiss Trusteeship Company Limited Select Midcap Fund (ESMF) Returns as on July 31, 2015^ Scheme Returns% Benchmark # Returns % Returns for the last 1 year ESMF - Growth Option 32.77 26.67 ESMF - Direct Plan - Growth 33.47 26.67 Returns for the last 3 years ESMF - Growth Option 31.47 24.18 ESMF - Direct Plan - Growth N.A. N.A. Returns for the last 5 years ESMF - Growth Option N.A. N.A. ESMF - Direct Plan - Growth N.A. N.A. @ Returns Since Inception ESMF - Growth Option 21.96 17.86 ESMF - Direct Plan - Growth 27.83 19.88 EDELWEISS EMERGING LEADERS FUND (Formerly, Edelweiss Select Midcap Fund) 60 40 20 0-10 -20 2011-12 2.83-4.02-10.14-13.96 2012-13 Benchmark returns % (Inception date Jan 1, 2013) ^ 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. Returns below one year are Absolute and those above one year are Compounded Annualised Returns (CAGR). @ # Inception Date is deemed to be the date of allotment i.e. August 25, 2011; Inception date of Direct Plan is January 1, 2013. CNX Midcap Index 2.40 7.20 26.78 27.23 16.36 16.36 2013-14 54.61 55.26 50.96 50.96 2014-15 Edelweiss Emerging Leaders Fund - (G) Edelweiss Emerging Leaders Fund - Direct Plan (G) Benchmark returns % (Inception date Aug 25, 2011) Page 8
EXPENSES OF THE WAIVER OF LOAD FOR DIRECT APPLICATIONS TAX TREATMENT FOR THE INVESTORS (UNITHOLDERS) DAILY NET ASSET VALUE (NAV) PUBLICATION FOR INVESTOR GRIEVANCES PLEASE CONTACT UNITHOLDERS' INFORMATION (I) LOAD STRUCTURE: Entry Load: Nil Exit Load: If the Units are redeemed / switched out on or before 365 days from the date of allotment 1.00% If the Units are redeemed / switched out after 365 days from the date of allotment Nil Also please refer paragraph on "Load Structure" under the "INFORMATION COMMON TO ALL S Not Applicable. (II) RECURRING EXPENSES: The total expense ra of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regula 52 of the SEBI (Mutual Fund) Regula 1996. Accordingly, the AMC has es ted that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. In to the limits specified above, please refer paragraph Recurring Expenses under the INFORMATION COMMON TO ALL S. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR 2014-2015 ESMF (Existing Plan) ESMF Direct Plan Total Expense as % of Average AUM* 2.84 2.37 *Total expenses include Service Tax on Management Fees Investor is advised to refer to the details in the Statement of Informa and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publica in two daily newspapers having circula 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 23433150 for non MTNL/BSNL land line, mobile users and investors outside India. Please refer under INFORMATION COMMON TO ALL S Please refer under INFORMATION COMMON TO ALL S EDELWEISS EMERGING LEADERS FUND (Formerly, Edelweiss Select Midcap Fund) Page 9
EDELWEISS VALUE OPPORTUNITIES FUND (Formerly, Edelweiss Equity Enhancer Fund) INVESTMENT OBJECTIVE The e of the Scheme is to generate returns through a combina of dividend income and capital apprecia by inves primarily in a well-diversified olio of Value Stocks. Value Stocks are those stocks, which tend to trade at a lower price rela e to their fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by investors. They have a e valua in rela to earnings or book value or current and/or future dividends. However, there is no assurance that the investment e of the Scheme will be realized and the Scheme does not assure or guarantee any returns. Under normal circumstances, the an ted asset alloca pa ern is: Types of Instruments Normal Allocation (% to Net Assets) Equity & Equity related Securities (Value Stocks) 65 to 100 Other Equity & Equity related Securities 0 to 35 Debt & Money Market Instruments* 0 to 35 ASSET ALLOCATION PATTERN *Money Market Instruments include CPs, Commercial Bills, Corporate Debt, T-Bills, and Governmen ving 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 to Further, The investments in papers including Pass through ates (PTCs) may be made upto 35% of the net assets of the Scheme. The Scheme can also take deriva e exposure upto 100 % of the net assets of the Scheme. The cumula e gross exposure through equity, debt and deriva e will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not crea any exposure. The total exposure related to premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such tr will not exceed 10% of the net assets of the Scheme. The Scheme may engage in Stock Lending. Not more than 25% 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 upto 35% of the Permissible Investments of net assets of the Scheme. INVESTMENT STRATEGY OF THE RISK PROFILE OF THE PLANS & OPTIONS / FACILITIES APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS DESPATCH OF REPURCHASE (REDEMPTION) REQUEST The Scheme aims to provide long term capital growth by inves primarily in a well-diversified olio of companies accumulated at a discount to their fair value er taking into considera various factors such as earnings, asset value, free cash flow, dividend yield etc. with respect to the market and their peers. The Scheme aims to iden such stocks, which have a e valua in rela to earnings or book value or current and/or future dividends and are available at a price, which can be termed as a bargain. This may cons e stocks which have depreciated for a short period due to some ex circumstance or due to market corr phase or due to lack of interest in inves in a sector, which has significantly underperformed the market. Such stocks are considered to have intrinsic value because of their business models and show poten for smart growth in the future. Intrinsic value of a stock is determined through analyzing inter-alia the EPS (Earnings per Share), the Book Value per share and comparing these value parameters to the market value so as to select stocks which may be available at more favourable valua when compared with peer groups or with applicable benchmarks. Thus, the universe of stocks for this Scheme will be defined as those stocks whose prices are low rela e to their fundamentals, their historic performance, their book values, their earnings and cash flow poten ent and/or future dividends. For investment, AMC may use industry specific valua es to evaluate companies in every sector in order to select the most a e companies for the olio. Few important financial parameters that AMC proposes to study are the price-to-book ra, which is defined as the market capitaliza of a stock divided by the accoun book value of equity (which equals the total assets of the company less total Thus, if the price-to-book ra is less than one, the investor is paying less than one rupee for each one rupee of net assets stated on the company's books. For picking up stocks, AMC would start with the premise that current market price may not always be an indica of the true worth of business. This supports the view that at current valua stocks may be cheaper than the Index and have value that has not yet been unlocked and hence the probability of capital apprecia is much higher. Hence such stocks can be considered since they offer a poten return. Since the P/E ra is only one of the factors involved in the evalua of a company's investment worthiness, investment decisions cannot be based on this ra alone. Other parameters such as management c eness, business c eness, growth prospects, etc. would also be considered. The endeavor would be to select those stocks which are at a P/E ra which is lower than the benchmark / peer group P/E ra level. The Scheme may also use various deriva es and hedging products from to as would be available and ed by SEBI, in an a empt to protect the value of the olio and enhance Unit holders' interest. 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 Scheme will involve certain Scheme specific Risk Factors apart from the General Risk men in SAI/SID which are summarized below: Equity And Equity Related Instruments: The value of the Scheme s investments may be affected generally by factors, such as price and volume vola in the Capital Markets, t Periods, Liquidity Risk or Ex Risk or R Risk or the Risk of NAV going below par value. Deriva es: Deriva e products are leveraged instruments and can provide dispr te gains as well as dispr te losses to the investor. Iden a and ex 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 deriva es are different from or possibly greater than, the risks associated with inves directly in and other tr investments. ADRs/GDRs and Foreign Subject to necessary approvals and within the investment e of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctua in the foreign exchange rates, the nature of the market of the country, repatria of capital due to exchange controls and al circumstances Fixed Income and Money Market Instruments: It involves Interest Rate Risk, Spread Risk, Credit Risk or Default Risk, Liquidity & t Risk, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk. Edelweiss Value Fund and Edelweiss Value Fund-Direct Plan. For details pertaining to Direct Plan and Default Plan, please refer paragraphs "Direct Plan" & "Default Plan" r ely under the "INFORMATION COMMON TO ALL S. Each Plan will offer : (i) Growth (ii) Dividend Dividend has Reinvestment, Payout & Sweep Facility. If the investor does not clearly specify the choice of at the of inves, it will be deemed that the investor has opted for the Growth In case, if the investor selects Dividend but fails to men the facility, it will be deemed that the investor has opted for the Dividend Reinvestment Facility. Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption) `1,000/- and multiples of `1/- thereafter Within 10 business days of the receipt of valid r `1,000/- and multiples of `1/- thereafter Minimum R Amount can be `1/- or any number of units. For demat tr minimum r would be mandatorily 50 units. request at the official points of acceptance of Edelweiss Mutual Fund Page 10
EDELWEISS VALUE OPPORTUNITIES FUND (Formerly, Edelweiss Equity Enhancer Fund) BENCHMARK INDEX DIVIDEND POLICY FUND MANAGER NAME OF THE TRUSTEE COMPANY PERFORMANCE OF THE CNX 200 Index The fund reserves the right to change the benchmark for evalua of the performance of the Scheme from to subject to SEBI Regula and other prevailing guidelines if any. Please refer the heading INFORMATION COMMON TO ALL S Mr. Kartik Soral is the Fund Manager of the Scheme. Mr. Bhavesh Jain is the Assistant Fund Manager of the Scheme. Edelweiss Trusteeship Company Limited Edelweiss Equity Enhancer Fund (EEEF) Compound Annualised Returns as on Sept. 9, 2014^ Scheme Returns % Benchmark # Returns % Returns for the last 1 year EEE F - Growth ~ 51.18 43.53 EEE F - Plan B - Growth @ 51.15 43.53 EEE F - Direct Plan *** 51.39 43.53 Returns for the last 3 years EEE F - Growth ~ 15.34 17.22 EEE F - Plan B - Growth @ 15.31 17.22 EEE F - Direct Plan *** N.A. N.A. Returns for the last 5 years EEE F - Growth ~ 10.68 11.10 EEE F - Plan B - Growth @ 10.53 11.10 EEE F - Direct Plan *** N.A. N.A. @ Returns Since Inception EEE F - Growth ~ 12.23 12.62 EEE F - Plan B - Growth @ 11.49 11.94 EEE F - Direct Plan *** 22.23 20.28 # CNX Nifty Index @ Inception/Allotment Date is June 16, 2009. ***Inception date for Direct Plan is January 7, 2013. ~ Inception/Allotment Date is August 12, 2009. 40.00 20.00 0.00-20.00 13.45 12.69 11.14 2010-11 11.14-9.32-9.30-9.23-9.23 2011-12 -0.90-1.08-6.37 7.31 2012-13 Edelweiss Equity Enhancer Fund - (G) Edelweiss Equity Enhancer Fund - B (G) Edelweiss Equity Enhancer Fund - Direct Plan -5.11 7.31 16.76 16.85 17.01 17.98 2013-14 17.98 17.98 27.43 27.40 27.66 21.61 21.61 21.61 2014*-15 Benchmark returns % @ Benchmark returns % (Inception date Jun 16, 2009)@ Benchmark returns % (Inception date Jan 7, 2013)@ ^ 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. Note:- The fundamental attributes of Edelweiss Equity Enhancer Fund have been changed with effect from September 10, 2014 and the Scheme name was renamed as Edelweiss Value Opportunities Fund. Edelweiss Value Opportunities Fund (EVOF) Returns* as on July 31, 2015^ Scheme Returns % # CNX 200 ~ Inception/Allotment Date is 10th September 2014. * Returns for less than 1 year are absolute Benchmark Returns %# Returns Since Inception EVOF - Growth ~ 13.52 8.02 EVOF - Plan B - Growth @ 13.49 8.02 EVOF - Direct Plan *** 13.85 8.02 40.00 20.00 0.00-20.00 8.92 8.88 9.11 6.53 2014-15* *Since Inception to 31st March 2015 Edelweiss Value Opportunities Fund - (G) Edelweiss Value Opportunities Fund - B (G) Edelweiss Value Opportunities Fund - Direct Plan Benchmark Returns %# ^ 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: Nil Exit Load: Nil Also please refer paragraph on "Load Structure" under the "INFORMATION COMMON TO ALL S EXPENSES OF THE (II) RECURRING EXPENSES The total expense ra of the Scheme (including investment management and advisory fees) shall not exceed the limits specified in Regula 52 of the SEBI (Mutual Fund) Regula 1996. Accordingly, the AMC has es ted that upto 2.50% of the daily net asset of the Scheme will be charge to the Scheme as expenses. In to the limits specified above, please refer paragraph Recurring Expenses under the INFORMATION COMMON TO ALL S. (III) ACTUAL EXPENSES FOR THE FINANCIAL YEAR 2014-2015 EVOF - (Existing Plan) EVOF - Plan B EVOF - Direct Plan Total Expense as a % of Average AUM* 1.07 1.07 0.67 *Total expenses include 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 UNITHOLDERS' INFORMATION Not Applicable. Investor is advised to refer to the details in the Statement of Informa and also independently refer to his tax advisor. The NAV will be declared on all Business Days and will be sent for publica in two daily newspapers having circula 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 23433150 for non MTNL/BSNL land line, mobile users and investors outside India. Please refer under INFORMATION COMMON TO ALL S Please refer under INFORMATION COMMON TO ALL S Page 11
EDELWEISS ARBITRAGE FUND INVESTMENT OBJECTIVE ASSET ALLOCATION PATTERN INVESTMENT STRATEGY OF THE RISK PROFILE OF THE PLANS & OPTIONS / FACILITIES APPLICABLE NAV MINIMUM APPLICATION / ADDITIONAL PURCHASE / REPURCHASE (REDEMPTION) AMOUNT/NO. OF UNITS DESPATCH OF REPURCHASE (REDEMPTION) REQUEST The investment e of the Scheme is to generate income by predominantly inves in arbitrage in the cash and the deriva e segments of the equity markets and the arbitrage available within the deriva e segment and by inves the balance in debt and money market instruments. However, there is no assurance that the investment e of the scheme will be realized. The Scheme will aim to have a fully hedged olio to meet its Investment e. 1. Under normal circumstances, the an ted asset alloca would be as follows: Types of Instruments Normal Allocation (% to Net Assets) Equity & Equity related instruments including derivatives 65-100 Debt & Money Market instruments including the margin money deployed in derivative transactions 0-35 2. Under defensive circumstances, the an ted asset alloca would be as follows: Types of Instruments Normal Allocation (% to Net Assets) Equity & Equity related instruments including derivatives 0-35 Debt & Money Market instruments including the margin money deployed in derivative transactions 65-100 The Scheme will not invest in Foreign and ADRs/GDRs issued by Indian or foreign companies. The Scheme will not invest in Stock Lending and Short Selling. Note: Defensive circumstances are when the arbitrage in the market place are negligible or returns are lower than alterna e investment as per the alloca pa ern. The alloca under defensive circumstances will be made keeping in view the interest of the unit holders. Such 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 deriva e exposure will be held in the form of Term Deposits, cash or cash equivalents or as may be allowed under the Regula Money Market Instruments include Cps, commercial bills, Corporate Debt, T-Bills, and Government 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 to The above percentages are indica e and not absolute. Further, The Scheme will not invest in ed Debt, Credit Default Swap or equity linked debentures. The Scheme can take deriva e exposure upto a limit as stated in the tables above. The total exposure related to premium paid will not exceed 20% of the net assets of the Scheme. The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such tr will not exceed 10% of the net assets of the Scheme. The cumula e gross exposure through equity, debt and deriva e will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not crea any exposure. The Scheme shall not undertake repo /reverse repo tr in Corporate Debt From to the Scheme may hold cash and/or invest in the Collateralised Borrowing & Lending Obliga (CBLO) or repo to meet the liquidity requirements. The Scheme 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 es of the Scheme. Pending deployment of funds of the Scheme in in terms of the investment e of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from to The scheme will invest in arbitrage between spot and futures prices of exchange traded and the arbitrage available within the deriva e segment. If suitable arbitrage are not available in the opinion of the Fund Manager, the scheme may invest in short term debt and money market The Fund Manager will evaluate the difference between the price of a stock in the futures market and in the spot market. If the price of a stock in the futures market is higher than in the spot mark er adjus or costs and taxes the scheme shall buy the stock in the spot market and sell the same stock in equal quan futures market, simultaneously. The Scheme will endeavor to build similar market neutral that offer an arbitrage poten for e.g. buying the basket of index cons ts in the cash or futures segment and selling the index futures, etc. The Scheme would also look to avail of between one futures contract and another. The margin money requirement for the purposes of deriva e exposure will be held in the form of Term Deposits, cash or cash equivalents. Mutual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme Informa Document carefully for details on risk factors before investment. The performance of the Scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and t systems, etc. Investment in Edelweiss Arbitrage Fund will involve certain scheme specific risk factors apart from the general risks men in SAI which are summarized below : There can be no assurance or guarantee that the arbitrage may exist at all in the capital market. The lack of arbitrage shall not provide an opportunity to the Fund Manager to exploit price discrepancies in the capital markets. In case if the fund receives heavy r before the Expiry Day (last Thursday of every month or any day specified by the exchange), the liquidity and/or NAV of the Scheme might be affected. In such cases, the Fund Manager may be required to unwind in deriva e segments before the expiry day, which may result in a fall in NAV. The performance of the Scheme will depend on the ability of the fund manager to iden due to price spread in the cash and deriva e market. No assurance can be given that Fund Manager will be able to locate investment or to correctly exploit price spread in the equity markets. There may be instances where the price spread between cash and deriva e market is insufficient to meet the cost of carry. In such situa the Fund Manager due to lack of in the deriva e market may not be able to outperform liquid/money market funds. In to this, there can be increase in number of tr as the fund manager has to take simultaneous calls in cash and deriva e market, which may lead to high olio turnover and consequently will lead to high tr costs. Equity And Equity Related Instruments: The value of the Scheme's investments may be affected generally by factors aff markets, such as price and volume vola in the capital markets, etc. t periods and transfer procedures may restrict the liquidity of the investments made by the Scheme. The Scheme may face liquidity risk or ex risk or r 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 & t Risk, Reinvestment Risk, Performance Risk, Prepayment Risk, Market Risk etc. Deriva es: Deriva e products are leveraged instruments and can provide dispr te gains as well as dispr te losses to the investor. Iden a and ex 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 iden or execute such strategies. The Scheme offers two Plans: 1. Regular Plan and 2. Direct Plan For details pertaining to Direct Plan and Default Plan, please refer paragraphs "Direct Plan" and "Default Plan" r ely under the "INFORMATION COMMON TO ALL S. Each Plan will offer : (i) Growth (ii) Dividend Dividend has Reinvestment, Payout & Sweep Facility. If the investor does not clearly specify the choice of at the of inves, it will be deemed that the investor has opted for the Growth In case, if the investor selects Dividend but fails to men the facility, it will be deemed that the investor has opted for the Dividend Reinvestment Facility. Please refer under INFORMATION COMMON TO ALL S Purchase Additional Purchase Repurchase (Redemption) Minimum of `5,000/- and in `1/- ther er. Within 10 business days of the receipt of valid r of Minimum of `1,000/- and ther er. of `1/- Minimum R Amount can be `1/- or any number of units. For demat tr minimum r would be mandatorily 50 units. request at the official points of acceptance of Edelweiss Mutual Fund Page 12