Name: Edelweiss Absolute Return Fund *

Scheme Type: An Open Ended Equity Scheme

* The Scheme is an equity - oriented scheme. Investors in the Scheme are not being offered any guaranteed / assured returns.

Investment Objective: The primary objective of the Scheme will be to generate absolute returns with low volatility over a longer tenure of time. The Scheme will accordingly invest in arbitrage opportunities and debt and money market instruments on the one hand and in pure equity investments and equity derivative strategies on the other. 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: CRISIL MIP Blended Index
The fund reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time subject to SEBI Regulations and other prevailing guidelines, if any.

Fund Manager: Mr. Paul Parampreet is the Fund Manager of the Scheme.

Under normal circumstances, the anticipated asset allocation would be:

Asset Class	Allocation (%of Corpus)	Risk Profile
Equity & Equity related instruments & Derivatives	65% - 100%	Medium to High
Debt & Money Market instruments including securitized debts	0% - 35%	Low to Medium

Further,

• The investments in securitised papers including Pass through Certificates (PTCs) may be made upto 35% of the net assets of the scheme.
• The scheme can also take derivative exposure upto 100 % of the net assets of the scheme.
• The cumulative gross exposure through equity, debt and derivative positions 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 creating any exposure.
• The total exposure related to option 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 transactions 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 Securities upto 35% of the Permissible Investments of net assets of the scheme.

 

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:

The application will be processed under Direct Plan

• If the Investors indicates “Direct Plan” against the Scheme name and/or indicates “Direct” in the ARN column of the application form,
• In case Distributor code is mentioned in the application form, but “Direct Plan” is indicated against the Scheme name, the Distributor code will be ignored,
• Where application is received for Existing Plan without Distributor code or “Direct” mentioned in the ARN Column.

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

Minimum Application /Additional Purchase Amount:

Purchase	Additional Purchase
Rs. 1,000/- and in multiples of Rs. 1/- thereafter.	Minimum of Rs.1,000/- & in multiples of Rs.1/- thereafter.

Minimum Redemption Amount:

• Minimum of Re 1/- or any number of units.
• For demat transactions, minimum redemption would be mandatorily 50 units.

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 transaction(s) accepted by the Fund. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund.

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*:

Under normal circumstances as well as under Expiry Day Trigger Facility:

• 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

* The entire Exit Load, net of service tax, shall be credited to the respective Scheme.

“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 Centers - closing NAV of the day of receipt of application.
• In respect of valid applications received after 3.00 p.m. by the Investor Service Centers - 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.
• In case of ‘switch’ transactions from one scheme to another the allocation shall be in line with redemption payouts.
• Clauses (a) and (b) shall apply to 'sweep' transactions as if they were purchase transactions and to 'reverse sweep' transactions as if they were repurchase transactions.

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

 

Schemes	Expense Ratio	Effect From
Edelweiss Absolute Return Fund	2.68	09-10-2012
Edelweiss Absolute Return Fund (Direct Plan)	2.28	01-01-2013