Edelweiss Long Term Equity Fund (Tax Savings)

 
OVERVIEW

Edelweiss Long Term Equity Fund (Tax Savings) is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit that aims at generating long-term capital appreciation with an option of periodic payouts at the end of the lock-in period. The Scheme’s portfolio predominantly invests in equity and equity-related instruments. It has a lock-in-period of three years from the date of allotment of units. The Scheme invests across market capitalisation. It is suitable for investors looking for wealth creation in the long-term and get tax benefits under Section 80C of the Income Tax Act up to Rs. 1.50 lakh.


NOTE : To view the Applicable Load Structure of the Scheme, click on “Load Structure” tab below.

 

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

Name: Edelweiss Long Term Equity Fund (Tax Savings)

Scheme Type:An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit

Investment Objective: The primary objective of the Scheme is to generate long-term capital appreciation with an option of periodic payouts at the end of lock in periods from a portfolio that invests predominantly in equity and equity related instruments.

However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Benchmark:Nifty 500 Total Return Index

Fund Manager : Mr. Harshad Patwardhan

Who should invest? Investors looking for Tax Benefits under Sec. 80C of the Income Tax Act. The Scheme is suitable for investors looking at investing in Equity with a minimum horizon of 3 years.

Investment Horizon: Minimum of 3 years

Asset Allocation
Asset Class Allocation (%of Corpus) Risk Profile
Equity & Equity related Instruments 80%-100% High
Short Term Debt & Money Market Instruments# 0%-20% Low to Medium

#Money market instruments include CPs ,commercial bills, Corporate Debts, 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. Short Time Debt instruments include debt instruments with daily to monthly put/call options, debt instruments with maturity less than one year and other like debt instruments.

 

Plans / Options / Facilities:

The Scheme offers Dividend Option and Growth Option. The Scheme also offers a Direct Plan with Dividend Option and Growth Option only for investors who purchase /subscribe Units of the Scheme directly with the Fund. Dividend option has Reinvestment, Payout & Sweep Facility.

The AMC reserves the right to introduce further Options/Facilities as and when deemed fit..

Default Plan:

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

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular/Existing Plan. Edelweiss Asset Management Limited (“the AMC”) shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load, if applicable.

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 the Growth Option.

Default Facility:

In case, if the investor selects Dividend Option but fails to mention the facility, it will be deemed that the investor has opted for the dividend payout facility. The AMC reserves the right to introduce further Options/Facilities as and when deemed fit.

Application Amount / No. of Units:

Purchase Additional Purchase
Minimum of ₹ 500/- per application & in multiples of ₹ 500/- Minimum of ₹ 500/- per application & in multiples of ₹ 500/-

Minimum Redemption Amount:

  • ₹ 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).
  • For demat transactions, minimum redemption would be mandatorily 50 units.
Load Structure

Entry Load: Not Applicable

In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009 no entry load will be charged for purchase / additional purchase / switch-in accepted by the Fund with effect from August 01, 2009. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund with effect from August 01, 2009.

The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder directly by the investor, based on the investor’s assessment of various factors including service rendered by the ARN Holder.

Exit Load*: NIL

Redemption of Units can be made only after a period of 3 years of lock-in period from the date of allotment of the Units proposed to be redeemed.

No Exit Load will be charged in case of switchout /systematic transfers between Edelweiss Absolute Return Fund, Edelweiss Diversified Growth Equity Top 100 Fund, Edelweiss ELSS Fund and Edelweiss Select Midcap Fund. W.e.f October 1, 2012 the entire exit load shall be credited to the scheme net of service tax, if any.

Applicable NAV

“In respect of purchase of units with an amount equal to or more than Rs. 2 lakhs, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable.

For allotment of units in respect of purchase / switch-in to the Scheme for an amount equal to or more than Rs. 2 lakhs, it shall be ensured that:

  • For allotment of units in respect of purchases in the Scheme, it shall be ensured that the application is received before the applicable cut-off time, the funds for the entire amount of subscription / purchase as per the application are credited to the bank account of the Scheme before the cut-off time and the funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.
  • For allotment of units in respect of switch-in to the Scheme from other schemes, it shall be ensured that the application for the switch-in is received before the applicable cut-off time, the funds for the entire amount of subscription / purchase as per the switch-in request are credited to the bank account of the Scheme before the cut-off time and the funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.”

(a) Cut off Timing for Subscriptions :

  Cut Off Time Applicable NAV
Valid Purchase application of less than Rs.2 lacs received at an Investor Service Centre Fund along with a local cheque or a demand draft payable at par at the place where the application is received Upto 3.00 P.M. The closing NAV of the day on which application is received
After 3.00 P.M. The closing NAV of the Next Business Day  of receipt of valid application
Valid Purchase application of Rs.2 lacs or more received  at an Investor Service Centre on a Business Day The closing NAV of the Business day on which funds are available for utilization, irrespective of the time of receipt of such application

(b) Cut off Timing for Redemptions:

  • In respect of valid applications received upto 3.00 p.m. by the Investor Service Center, the closing NAV of the day of receipt of application.
  • In respect of valid applications received after 3.00 p.m. by the Investor Service Center, closing NAV of the next Business Day shall be applicable. Note: Valid applications for 'switch-out' shall be treated as applications for Redemption and for 'switch-in' shall be treated as applications for Purchase, and the provisions of the Applicable NAV and cut-off time as mentioned above shall be applied respectively to the 'switch-in' and 'switch-out' applications.
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.

Actual Current Recurring Expenses
Regular Plan Effect From
On the first 100 crores of the daily net assets 2.50% 05-08-2015
On the next 300 crores of the daily net assets 2.25% 05-08-2015
On the next 300 crores of the daily net assets 2.00% 05-08-2015
On the balance of the net assets 1.75% 05-08-2015

Edelweiss Long Term Equity Fund (Tax Savings) - Direct Plan shall have a lower expense ratio by 0.75% (Effective Date 12-02-2015)

In addition to the above, additional expenses, upto 0.20 per cent of daily net assets of the Scheme, incurred towards different heads mentioned under Regulation 52(2) and Regulation 52(4) of SEBI Regulations shall be charged.

#Excluding Service Tax on Investment Management Fees, if any

 

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