Edelweiss Equity Savings Fund

 
OVERVIEW

Edelweiss Equity Savings Fund


The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments. However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated and the scheme does not assure or guarantee any returns.

 

FUND INFORMATION
  • Fund Facts
  • Asset Allocation
  • Options
  • Load Structure
  • Applicable NAV
  • Fees & Expenses

Name: Edelweiss Equity Savings Fund

Scheme Type: An Open ended scheme investing in equity, arbitrage and debt

Investment Objective: The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments.
However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated and the scheme does not assure or garantee any returns.

Benchmark: Nifty Equity Savings Index

Equity Portion :
Fund Manager : Mr. Bharat Lahoti and Mr. Hiten Shah
Debt Portion :
Fund Manager : Mr. Dhawal Dalal

Asset Allocation

The Scheme will aim to have a fully hedged portfolio to meet its Investment Objective.


Under normal circumstances, it is anticipated that the asset allocation shall be as follows:

Asset Class Allocation Indicative Allocation (%of Total assets) Risk Profile
Equity & equity related instruments$ 65% - 80% Medium to High
Derivative including Index Futures, Stock Futures, Index Options, Stock Options etc* 25% - 55% High
Debt Securities & Money Market instruments# 10% - 35% Low To Medium
Units of InvITs/REITs 0%-10% Medium To High

$ The net long equity exposures (unhedged) will be between 10% to 40% of the net assets of the Scheme. This net long equity exposure is aimed to gain from potential capital appreciation and thus is a directional equity exposure which will not be hedged.


*The exposure to derivative shown in the above asset allocation tables would normally be the exposure taken against the underlying equity investments and in such case, exposure to derivative will not be considered for calculating the gross exposure.


#Money market instruments include Commercial Papers, Commercial Bills, Treasury Bills, Collateralized Borrowing & Lending Obligations (CBLO), government securities having unexpired maturity up to one year, Call or Notice Money, Certificate of Deposits, Usance Bills, Repo (with approved government & Corporate Debt Securities as collateral), and any other like securities as specified by the RBI from time to time.


Further,

  • Investment in securitised debt may be up to 35% of net assets of the Scheme. The Scheme shall not invest in foreign securitised debt.
  • The Scheme may take exposure into fixed income derivatives for hedging and portfolio rebalancing.
  • The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme.
  • The Scheme may invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Not more than 10% of the net assets of the Scheme will be invested in InvITs and REITs and not more than 5% of the net assets of the Scheme will be invested in InvITs and REITs of any single issuer.
  • The Scheme may invest in foreign securities up to 50% of the permissible investments of net assets of the Scheme.
  • The Scheme may engage in Stock Lending. Not more than 20% of the net assets of the Scheme can generally be deployed in stock lending and not more than 5% of the net assets of the Scheme will be deployed in Stock lending to any single counterparty.
  • The cumulative gross exposure through equity, debt, derivative, REITs and InvITs positions should not exceed 100% of the net assets of the Scheme. Cash, cash equivalent with residual maturity up to 91 days will be treated as not creating any exposure.

Whenever the equity and equity derivative investment strategy (arbitrage strategy) is not likely to give return comparable with the fixed income securities portfolio, the fund manager will invest in fixed income securities. If the debt / money market instruments offer better returns than the arbitrage opportunities available in cash and derivatives segments of equity markets then the investment manager may choose to have a lower equity exposure.


In such defensive circumstances the asset allocation will be as per the below table:

Asset Class Allocation Indicative Allocation (%of Total assets) Risk Profile
Equity & equity related instruments$ 10% - 80% Medium to High
Derivative including Index Futures, Stock Futures, Index Options, Stock Options etc* 0% - 55% High
Debt Securities & Money Market instruments# 20% - 90% Low To Medium
Units of InvITs/REITs 0%-10% Medium To High

$ The net long equity exposures (unhedged) will be between 10% to 40% of the net assets of the Scheme. This net long equity exposure is aimed to gain from potential capital appreciation and thus is a directional equity exposure which will not be hedged.

*The exposure to derivative shown in the above asset allocation tables would normally be the exposure taken against the underlying equity investments and in such case, exposure to derivative will not be considered for calculating the gross exposure.

#Money market instruments include Commercial Papers, Commercial Bills, Treasury Bills, Collateralized Borrowing & Lending Obligations (CBLO), government securities having unexpired maturity up to one year, Call or Notice Money, Certificate of Deposits, Usance Bills, Repo (with approved government & Corporate Debt Securities as collateral), and any other like securities as specified by the RBI from time to time.

Further,

  • Investment in securitised debt may be up to 35% of net assets of the Scheme. The Scheme shall not invest in foreign securitised debt.
  • The Scheme may take exposure into fixed income derivatives for hedging and portfolio rebalancing.
  • The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme.
  • The Scheme may invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). Not more than 10% of the net assets of the Scheme will be invested in InvITs and REITs and not more than 5% of the net assets of the Scheme will be invested in InvITs and REITs of any single issuer.
  • The Scheme may invest in foreign securities up to 50% of the permissible investments of net assets of the Scheme.
  • The Scheme may engage in Stock Lending. Not more than 20% of the net assets of the Scheme can generally be deployed in stock lending and not more than 5% of the net assets of the Scheme will be deployed in Stock lending to any single counterparty.
  • The cumulative gross exposure through equity, debt, derivative, REITs and InvITs positions should not exceed 100% of the net assets of the Scheme. Cash, cash equivalent with residual maturity up to 91 days will be treated as not creating any exposure.

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit Holders. Such changes in the investment pattern will be for short term and defensive considerations. In the event of deviations, rebalancing will be carried out within 30 Days from the date of the said deviation.
In case the rebalancing is not done within the specified period, justification for the same shall be provided to the Investment Committee and the reason for the same shall be recorded in writing. The Investment Committee shall then decide on the course of action.

Plans / Options / Facilities:

The Scheme offers a choice of two plans:
1. Direct Plan; and
2. Regular Plan

Each Plan under the Scheme offers a choice of three options which are as follow:
1) Growth option
2) Dividend option
a. Payout
b. Re-investment

Under the Growth option no dividend will be declared.


Under the Dividend option, a dividend may be declared by the Trustee, at its discretion, from time to time (subject to the availability of distributable surplus as calculated in accordance with the SEBI Regulations).


Default Option:

Growth Option (between Growth & Dividend)

Monthly Dividend Option (between Dividend Option & Monthly Dividend Option)

Default Facility:

Dividend Reinvestment (between Reinvestment & Payout & Sweep)


The Dividend option offers:
• Payout option;
• Reinvestment option;

If the investor does not clearly specify at the time of investing, the choice of option under Dividend, it will be treated as a dividend reinvestment option.


The investors must clearly indicate the option (Growth or Dividend) in the relevant space provided for in the Application Form. In the absence of such instruction, it will be assumed that the investor has opted for the default option, which is the Growth option.


Minimum Subscription / Redemption amount:

Initial Application Amount Initial Application Amount through SIP Additional Application Amount Amount / No. of Units for Redemption
Minimum of ₹ 5,000/- and in multiples of ₹ 1/- thereafter. 6 installments of ₹ 1000/- (One Thousand Rupees) each and in multiples of ₹ 1/- (One Rupee) thereafter. Minimum of ₹ 500/- and in multiples of ₹ 1/-thereafter. ₹ 500 and in multiples of ₹ 1 thereafter. There will be no minimum redemption criterion for Unit based redemption. The Redemption / Switch-out would be permitted to the extent of credit balance in the Unit holder's account of the Plan(s) / Option(s) of the Scheme(s) (subject to completion of Lock-in period or release of pledge / lien or other encumbrances).
Load Structure

Entry Load: NIL

Exit Load:

  • 5% of the units allotted shall be redeemed without any Exit Load on or before completion of 6 months from the date of allotment of units. Any redemption in excess of such limit within 6 months from the date of allotment shall be subject to the following Exit Load:
    • If redeemed or switched out on or before completion of 6 Months from the date of allotment of units - 1.00%
    • If redeemed or switched out after completion of 6 months from the date of allotment of units – NIL

  • Redemption of units would be done on First in First out Basis (FIFO).

Applicable NAV

For applications for Purchases (along with a local cheque or demand draft payable at par at the place where the application is received / redemptions), accepted during the Ongoing Offer Period at the Designated Collection Centres on a Business Day up to the Cut-off time of the Scheme, the NAV of that day; and


For applications for Purchases (along with a local cheque or demand draft payable at par at the place where the application is received / redemption) accepted during the Ongoing Offer Period at the Designated Collection Centres on a Business Day after the Cut-off time of the Scheme, the NAV of the next Business Day.


Note : In case of applications received on a Non-Business Day the NAV of the next Business Day shall be applicable.

Fees & Expenses

As per the SEBI Regulations, the maximum recurring expenses including the investment management and advisory fee that can be charged to the Scheme shall be subject to a percentage limit of daily net assets as given in the table below. Subject to the SEBI Regulations, expenses over and above the prescribed ceiling will be borne by the AMC

First Rs. 100 Crores* Next Rs. 300 Crores* Next Rs. 300 Crores* Over Rs. 700 Crores*
2.50% 2.25% 2.00% 1.75%

*of the daily net assets

In addition to the above a charge of 5 bps on the daily net assets plus a proportionate charge in respect sales beyond T-30 cities subject to maximum of 30 bps on daily net assets.In the schemes, wherein exit load is not levied / not applicable, the AMCs shall not be eligible to charge the above mentioned additional expenses for such schemes.

With Additional expenses, incurred towards different heads mentioned under regulations 52(2) and 52(4), not exceeding 0.20 per cent of daily net assets of the Scheme.

However, such additional expenses will not be charged if exit load is not levied/ not applicable to the Scheme.

Good and Service tax on investment and advisory fees will be charged to the Scheme in addition to the maximum limit of TER as prescribed in Regulation 52.

Actual Current Recurring Expenses
 

This product is suitable for investors who are seeking*:
Riskometer
  • 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 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
 
 
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