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SCHEME INFORMATION DOCUMENT
Name of Mutual Fund Edelweiss Mutual Fund
Name of Asset Management Company Edelweiss Asset Management Limited
CIN: U65991MH2007PLC173409)
Address of AMC Edelweiss House, Off. C.S.T Road, Kalina, Mumbai 400098
Website of AMC https://www.edelweissmf.com
Name of Trustee Company Edelweiss Trusteeship Company Limited
CIN: U67100MH2007PLC173779
Address of Trustee Company Edelweiss House, Off. C.S.T Road, Kalina, Mumbai 400098
Name of the Scheme Edelweiss BSE Sensex ETF
Std. Obs.
Do’s 2
1
Category of Scheme Exchange Traded Fund (ETF)
Scheme Code To be disclosed after obtaining the same
Std.
Obs. 7
Scrip Code NSE: _____________ (scrip code to be updated at the time of listing of units of the Scheme)
Scrip Code BSE: _____________ (scrip code to be updated at the time of listing of units of the Scheme)
NFO open date: _________________________________
NFO close date: _________________________________
Scheme re-open on: _____________________________
Offer for Sale of Units at 1/1000th value of the BSE Sensex ETF closing Index as on the date of allotment for applications
received during the New Fund Offer (“NFO”) period and at approximately indicative NAV based prices (along with
applicable charges and execution variations) during the Ongoing Offer for applications directly received at AMC
Investment objective Scheme Riskometer Benchmark Riskometer
As per AMFI Tier I
Benchmark – BSE Sensex TRI
Std. Std.
Do’s 9
Obs. 5 Obs. 3
Do’s 8
To generate returns that are in line with the
performance of the BSE Sensex Total Return
Index, subject to tracking errors.
“There is no assurance that the investment
objective of the Scheme will be achieved”
The risk of the scheme is Very The risk of the benchmark is
High. Very High.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
1The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme
characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Investors are advised to refer to the Statement of Additional Information (SAI) for details of the Edelweiss Mutual Fund,
Standard Risk Factors, Special Considerations, Tax and Legal issues and other general information on
https://www.edelweissmf.com/.
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India
(Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date and circulars
issued thereunder filed with SEBI. The units being offered for public subscription have not been approved or
recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.
The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor
ought to know before investing. Before investing, investors should also ascertain about any further changes to this
Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres /
Website / Distributors or Brokers.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current
SAI, please contact your nearest Investor Service Centre or log on to our website https://www.edelweissmf.com/ .
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated September 15, 2025
NSE Disclaimer: As required, a copy of this Scheme Information Document has been submitted to National Stock
Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter Ref No. NSE/LIST/5904 dated
August 29, 2025, permission to the Mutual Fund to use the Exchange's name in this Scheme Information Document as
one of the stock exchanges on which the Mutual Fund's units are proposed to be listed subject to, the Mutual Fund
fulfilling various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited
internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly
understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme
Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the
correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the
Mutual Fund's units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the
financial or other soundness of the Mutual Fund, its sponsors, its management or any scheme of the Mutual Fund.
Disclaimer of BSE:
“BSE Ltd. (“the Exchange”) has given its letter no.LO/IPO/AG/MF/IP/33/2025-26 dated September 02, 2025 permission
to use the Exchange’s name in this SID as one of the Stock Exchanges on which this Mutual Fund’s Units are proposed to
be listed. The Exchange has scrutinised this SID for its limited internal purpose of deciding on the matter of granting the
aforesaid permission to.
The Exchange does not in any manner: -
i) warrant, certify or endorse the correctness or completeness of any of the contents of this SID; or
ii) warrant that this scheme’s units will be listed or will continue to be listed on the Exchange; or
2iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its management or
any scheme or project of this Mutual Fund.
and it should not for any reason be deemed or construed that this SID has been cleared or approved by the Exchange.
Every person who desires to apply for or otherwise acquires any unit of this Fund may do so pursuant to independent
inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss
which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by
reason of anything stated or omitted to be stated herein or any other reason whatsoever.
BSE INDICES LIMITED DISCLAIMERS
The BSE Indices are published by Asia Index Private Limited (“AIPL”), which is a wholly owned subsidiary of BSE Limited
(“BSE”). BSE® and SENSEX® are registered trademarks of BSE. The trademarks have been licensed to AIPL and have been
sublicensed for use for certain purposes by Licensee. Licensee’s Edelweiss BSE Sensex ETF is/are not sponsored, endorsed,
sold or promoted by AIPL or BSE. None of AIPL or BSE makes any representation or warranty, express or implied, to the
owners of Edelweiss BSE Sensex ETF or any member of the public regarding the advisability of investing in securities
generally or in Edelweiss BSE Sensex ETF particularly or the ability of the Index to track general market performance.
AIPL’s and BSE’s only relationship to Licensee with respect to the Index is the licensing of the Index and certain trademarks,
service marks and/or trade names of AIPL, BSE and/or their licensors. The BSE Indices are determined, composed and
calculated by AIPL or its agent without regard to Licensee or Edelweiss BSE Sensex ETF. None of AIPL or BSE are responsible
for and have not participated in the determination of the prices, and amount of Edelweiss BSE Sensex ETF or the timing
of the issuance or sale of Edelweiss BSE Sensex ETF or in the determination or calculation of the equation by which
Edelweiss BSE Sensex ETF is to be converted into cash, surrendered or redeemed, as the case may be. AIPL and BSE have
no obligation or liability in connection with the administration, marketing or trading of Edelweiss BSE Sensex ETF. There
is no assurance that investment products based on the Index will accurately track index performance or provide positive
investment returns. AIPL and BSE are not investment advisors. Inclusion of a security within an index is not a
recommendation by AIPL or BSE to buy, sell, or hold such security, nor is it considered to be investment advice.
AIPL, BSE AND THEIR THIRD-PARTY LICENSORS DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR
THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO. AIPL, BSE AND THEIR THIRD PARTY LICENSORS
SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. AIPL, BSE
AND THEIR THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL
WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE
OBTAINED BY LICENSEE, OWNERS OF EDELWEISS ASSET MANAGEMENT LIMITED OR EDELWEISS BSE SENSEX ETF, OR ANY
OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL AIPL, BSE OR THEIR THIRD PARTY LICENSORS BE
LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT
LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD
PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN AIPL AND LICENSEE, OTHER THAN THE
LICENSORS OF AIPL (INCLUDING BSE).
3HIGHLIGHTS/SUMMARY OF THE SCHEME
Sr. No. Title Description
I. Benchmark (TRI) BSE Sensex TRI
Justification for use of benchmark:
Do’s 7
The benchmark has been selected based on internal assessment because
the scheme is a passively managed ETF which will aim to track the
performance of BSE Sensex TRI and it would invest in securities which are
constituents of the BSE Sensex TRI, in the same proportion as the index.
II. Plans and Options The Scheme does not offer any Plans/Options for investment.
Plans/Options and sub
options under the Scheme The AMC/Trustee reserve the right to introduce Plan(s)/Option(s) as may
be deemed appropriate at a later date.
III. Load Structure Exit Load is an amount which is paid by the investor to redeem the units
from the scheme. Load amounts are variable and are subject to change
from time to time. For the current applicable structure, investors may
Std. refer the website of the AMC www.edelweissmf.com or call at 1800 425
Obs. 47 0090 (MTNL/BSNL) and non-toll-free number +91 40 23001181 or may
contact their distributor.
Applicable Load Structure:
Type of Load Load chargeable (as %age of NAV)
Exit NIL
There will be no exit load for units sold through the secondary market on
the NSE. Investors shall note that the brokerage on sales of the units of
the scheme on the stock exchanges shall be borne by the investors.
The Authorised Participant(s)/Investor(s) can redeem units directly with
the Fund/the AMC in Creation size. Currently there is no exit load
applicable for the said transactions.
Investors may note that the Trustee has the right to modify the existing
load structure, subject to a maximum as prescribed under the SEBI (MF)
Regulations. Any imposition or enhancement in the load shall be
applicable on prospective investments only. At the time of changing the
load structure, the AMC shall consider the following measures to avoid
complaints from investors about investment in the schemes without
knowing the loads:
(i) Addendum detailing the changes will be attached to the SID and Key
Information Memorandum (KIM). The addendum shall be circulated
to all the distributors/brokers so that the same can be attached to
SID and KIM already in stock.
(ii) Arrangements will be made to display the addendum to the SID in
the form of a notice in all the ISCs/offices of the AMC/Registrar.
Investors are advised to contact any of the Investor Service Centres or the
AMC to know the latest position on Exit Load structure prior to investing
in the Scheme.
IV. Minimum Application During NFO Period: Rs. 5,000 and in multiples of Re. 1 thereafter. There is
4Amount/switch in no upper limit.
Units will be allotted in whole figures and the balance amount will be
refunded.
On Continuous basis:
Authorised Participants: Application for subscription of Edelweiss BSE
Sensex ETF units directly with the Fund in Creation Unit Size at NAV based
prices in exchange of Portfolio Deposit and Cash Component.
Large Investors: Application for subscription of Edelweiss BSE Sensex ETF
units directly with the Fund in Creation Unit Size pursuant to minimum
requirement of 25 crore at NAV based prices by portfolio deposit /
payment of requisite Cash as determined by the AMC only by means of
payment instruction of Real Time Gross Settlement (RTGS) / National
Electronic Funds Transfer (NEFT) or Funds Transfer Letter / Transfer
Cheque of a bank where the Scheme has a collection account.
All direct transactions in units of the Scheme by MMs or other eligible
investors with the AMC/the Fund shall be at intra-day NAV based on the
actual execution price of the underlying portfolio.
Other investors: (including Authorised Participants, Large Investors and
Regulated Entities): Units of Edelweiss BSE Sensex ETF can be subscribed
(in lots of 1 Unit) during the trading hours on all trading days on the NSE
and BSE on which the units are listed.
Note: Allotment of units will be done after deduction of applicable stamp
duty and transaction, if any.
V. Minimum Additional Authorised Participants: Application for subscription of Edelweiss BSE
Purchase Amount Sensex ETF units directly with the Fund in Creation Unit Size at NAV based
prices in exchange of Portfolio Deposit and Cash Component.
Large Investors: Application for subscription of Edelweiss BSE Sensex ETF
units directly with the Fund in Creation Unit Size pursuant to minimum
requirement of 25 crore at NAV based prices by portfolio deposit /
payment of requisite Cash as determined by the AMC only by means of
payment instruction of Real Time Gross Settlement (RTGS) / National
Electronic Funds Transfer (NEFT) or Funds Transfer Letter / Transfer
Cheque of a bank where the Scheme has a collection account.
All direct transactions in units of the Scheme by MMs or other eligible
investors with the AMC/the Fund shall be at intra-day NAV based on the
actual execution price of the underlying portfolio.
Other investors: (including Authorised Participants, Large Investors and
Regulated Entities): Units of Edelweiss BSE Sensex ETF can be subscribed
(in lots of 1 Unit) during the trading hours on all trading days on the NSE
and BSE on which the units are listed.
5Note: Allotment of units will be done after deduction of applicable stamp
duty and transaction, if any.
VI. Minimum Redemption/ Authorised Participants: Application for redemption of Edelweiss BSE
switch out amount Sensex ETF units directly with the Fund in Creation Unit Size at NAV based
prices.
Large Investors: Application for redemption of Edelweiss BSE Sensex ETF
units directly with the Fund in Creation Unit Size pursuant to minimum
requirement of 25 crore at NAV based prices.
All direct transactions in units of the Scheme by MMs or other eligible
investors with the AMC/the Fund shall be at intra-day NAV based on the
actual execution price of the underlying portfolio.
Other investors: (including Authorised Participants, Large Investors and
Regulated Entities): Units of Edelweiss BSE Sensex ETF can be redeemed
(in lots of 1 Unit) during the trading hours on all trading days on the NSE
and BSE on which the units are listed.
Liquidity window:
Investors can also directly approach AMC for redemption of units for
transaction of upto Rs. 25 Crore without any exit load, if:
Traded price (closing price) of the ETF units is at discount of more than 1%
to the day end NAV for 7 continuous trading days, or No quotes for such
ETFs are available on stock exchange(s) for 3 consecutive trading days, or
Total bid size on the exchange is less than half of creation units size daily,
averaged over a period of 7 consecutive trading days.
In case of the above scenarios, applications received from investors for
redemption up to 3.00 p.m. on any trading day, shall be processed by the
AMC at the closing NAV of the day
VII. Tracking Error Not applicable since this is a new scheme
Std.
Obs. 10
VIII. Tracking Difference Not applicable since this is a new scheme
Std.
Obs. 10
IX. Computation Of NAV The NAV shall be calculated in accordance with the following formula, or
such other formula as may be prescribed by SEBI from time to time:
Market or Fair Value of the Scheme’s Investments+ Receivables+
Accrued Income+ Other Assets- Accrued Expenses- Payables-
Other Liabilities
NAV = Number of Units Outstandings
For detailed disclosure, kindly refer Annexure 2
6X. Asset Allocation. Under normal circumstances the asset allocation pattern will be:
Instruments Indicative allocations (% of total
assets)
Minimum Maximum
Securities covered by BSE Sensex 95% 100%
ETF
Money Market Instruments#, 0% 5%
cash and cash equivalent and/or
units of Liquid scheme
# Money Market instruments include commercial papers, commercial bills,
treasury bills, Tri-party repo, Government securities having an unexpired
maturity up to one year, call or notice money, certificate of deposit,
usance bills, and any other like instruments as specified by the Reserve
Bank of India from time to time.
Std.
Obs. 17
• The cumulative gross exposure through equity, debt
Do’s 14 and derivative positions will not exceed 100% of the net assets of the
Scheme, in line with paragraph 12.24 of the SEBI Master circular
dated June 27, 2024.
Std. • However, cash or cash equivalents with residual maturity of less than
Obs. 14 91 days may be treated as not creating any exposure. SEBI vide letter
dated November 3, 2021 has clarified that Cash Equivalent shall
consist of Government Securities, T-Bills and Repo on Government
Securities.
• In accordance with Clause 3.4 of SEBI Master Circular
Do’s 4 SEBI/HO/IMD/IMD-PoD-1/P/CIR/2023/74 dated June 27, 2024, the
underlying index shall comply with the portfolio concentration
norms as prescribed.
Indicative Table (Actual instrument/percentages may vary subject to
applicable SEBI circulars)
Do’s 20 Std.
Obs. 18
Sr. Type of Instrument Percentage of Circular references*
No. exposure
1. Securities Lending The Scheme shall Clause 12.11 of the
not deploy more SEBI Master Circular
than 20% of its dated June 27, 2024,
Do’s 19
net assets in stock for Mutual Funds.
lending and not
more than 5% of
the net assets of
the Scheme will
be deployed in
Stock lending to
any single
7intermediary.
2. Equity Derivatives 20% of the equity Clause 12.25 of the
for non- hedging net assets of the SEBI Master Circular
purposes. Scheme. ** dated June 27, 2024,
for Mutual Funds.
Do’s 23
Std.
Obs. 20
3. Investment in other Not more than 5% -
schemes managed of the Net Asset
by the AMC or in Value of the
the schemes of any Mutual Fund,
other mutual fund. provided it is in
conformity with
the investment
objectives of the
Scheme.
4. Investment in Tri- Yes, in Clause 1.10.3 of the
party Repo before accordance with SEBI Master Circular
the closure of NFO. SEBI Guidelines. dated June 27, 2024
- The scheme may
deploy the NFO
proceeds in Tri-party
Repo on G-sec or T-
bills before the
closure of NFO
period. The
appreciation
received from
investment in Tri-
party Repo shall be
passed on to
investors. In case if
the scheme is not
able to garner the
minimum
subscription amount
during the NFO
period the interest
earned upon
investment of NFO
proceeds in Tri-party
Repo shall be
returned to
investors, in
proportion of their
investments, along-
8with the refund of
the subscription
amount. The AMC
shall not charge any
investment
management and
advisory fees on
funds deployed in
Tri-party Repo
during the NFO
period.
5. Securitized Debt The Scheme shall -
not invest in the
said security
Std. Obs.
18
6. ADR/GDR/Overseas The Scheme shall -
Securities not invest in the
said security
Std. Obs.
18
7. REITs and InVITs The Scheme shall -
not invest in the
said security
Std. Obs.
18
8. AT1 and AT2 Bonds The Scheme shall -
not invest in the
said security
Std. Obs.
18
9. Debt derivative The Scheme shall -
exposure is only for not invest in the
hedging purpose. said security
Std. Obs.
18
10. Structured The Scheme shall -
Obligations / Credit not invest in the
Enhancements. said security
9Std. Obs.
18
11. Credit default The Scheme shall -
swaps (CDS). not invest in the
said security
Std. Obs.
18
12. Short Term Pending Paragraph 12.16 of
Deposits deployment of the Master Circular
funds of the for Mutual Funds
Scheme in dated June 27, 2024.
securities in terms
Do’s 13
of the investment
objective of the
Scheme, the AMC
may park the
funds of the
Scheme in short
term deposits of
scheduled
commercial
banks, subject to
paragraph 12.16
of the Master
Circular for
Mutual Funds
dated June 27,
2024, as amended
from time to time.
13. Repo / reverse repo The Scheme shall -
in corporate debt not invest in the
securities. said security
Std. Obs.
18
14. Unrated / unlisted The Scheme shall -
debt instruments not invest in the
said security
Std. Obs.
18
10**The Scheme may take an exposure to equity derivatives of constituents
of the underlying index for short duration when securities
of the index are unavailable, insufficient or for
Do’s 23
rebalancing at the time of change in index or in case of
corporate actions, as permitted subject to rebalancing
within 7 calendar days (or as specified by SEBI from time to time). The
exposure of the scheme in equity derivative instruments shall be up to
20% (for non-hedging) of the equity portfolio of the scheme.
Due to market conditions, the AMC may invest beyond the range set out
in the asset allocation. Such deviations shall normally be
Std.
for short term and defensive considerations as per
Obs. 23
Paragraph 1.14.1.2 of SEBI Master Circular dated June
& 24
27, 2024, and the fund manager will rebalance the
portfolio within 7 calendar days from the date of deviation.
Change In Investment Pattern:
The Scheme, out of the funds allocated shall invest in securities covered
by BSE Sensex TRI index and shall invest in money market instruments,
cash & cash equivalents and/or units of liquid schemes only to the extent
necessary to meet the liquidity requirements for honoring repurchase /
redemptions / expenses. In view of the nature of the Scheme, the asset
allocation pattern as indicated above may not change, except in line with
the changes made in SEBI (MF) Regulations, from time to time.
Subject to the above, any change in the asset allocation affecting the
investment profile of the Scheme shall be affected only in accordance with
the provisions of sub regulation (15A) of Regulation 18 of the Regulations,
as detailed later in this document.
Std.
Portfolio Rebalancing: Do’s 12 Obs. 22
In accordance with
Clause 3.5.3.11 and 3.6.7 of the Master Circular for Mutual Funds dated
June 27, 2024, in case of change in constituents of the index due to
periodic review, the portfolio will be rebalanced within 7 calendar days.
Any transactions undertaken in the scheme portfolio in order to meet the
redemption and subscription obligations shall be done while ensuring that
post1.14. such transactions replication of the portfolio with the index is
maintained at all points of time.
Timelines for deployment of funds collected in NFO:
In line with SEBI circular no. SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/23
dated February 27, 2025, funds collected in new fund offer shall be
deployed in the following manner:
1. The AMC shall deploy the funds garnered in an NFO within 30 business
days from the date of allotment of units.
112. In an exceptional case, if the AMC is not able to deploy the funds in 30
business days, reasons in writing, including details of efforts taken to
deploy the funds, shall be placed before the Investment Committee of
the AMC.
3. The Investment Committee may extend the timeline by 30 business
days, while also making recommendations on how to ensure
deployment within 30 business days going forward and monitoring the
same. The Investment Committee shall examine the root cause for
delay in deployment before granting approval for part or full
extension. The Investment Committee shall not ordinarily give part or
full extension where the assets for any scheme are liquid and readily
available.
4. In case the funds are not deployed as per the asset allocation
mentioned in the SID as per the aforesaid mandated plus extended
timelines, AMC shall:
(i) not be permitted to receive fresh flows in the same scheme till the
time the funds are deployed as per the asset allocation mentioned
in the SID.
(ii) not be permitted to levy exit load, if any, on the investors exiting
such scheme(s) after 60 business days of not complying with the
asset allocation of the scheme.
(iii) inform all investors of the NFO, about the option of an exit from
the concerned scheme without exit load, via email, SMS or other
similar mode of communication.
(iv) report deviation, if any, to Trustees at each of the above stages.
For details on derivatives, kindly refer Annexure 1.
XI. Fund manager details Name : Mr. Bhavesh Jain
Managing since: Not applicable, as the scheme is a new scheme.
Total experience (in years) : 16 years
XII. Annual Scheme Recurring Actual TER – The scheme is yet to be launched.
Expenses
For Detailed disclosure, Kindly refer
https://www.edelweissmf.com/downloads/scheme-information-
document-funds
XIII. Transaction charges and Transaction charges:
stamp duty SEBI vide its circular ref no. SEBI/ HO/IMD- PoD-1/P/CIR/2025/115 dated
August 08, 2025, No transaction charges shall be deducted from the
subscription amount for transactions /applications received through the
distributors (i.e. in Regular Plan).
Stamp Duty:
Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March
30, 2020 issued by the Department of Revenue, Ministry of Finance,
Government of India, read with Part I of Chapter IV of Notification dated
February 21, 2019 issued by Legislative Department, Ministry of Law and
Justice, Government of India on the Finance Act, 2019, a stamp duty @
0.005% of the transaction value would be levied on mutual fund
transactions (including transactions carried through stock exchanges and
12depositories for units in demat mode), with effect from July 1, 2020.
Accordingly, pursuant to levy of stamp duty, the number of units allotted
on purchase transactions (including IDCW reinvestment and IDCW
transfers) to the unitholders would be reduced to that extent.
For further details refer SAI.
XIV. Information available Investors can refer the link
through weblink https://www.edelweissmf.com/downloads/scheme-information-
document-funds for below mentioned points (Annexure 2):
• Liquidity/listing details
• NAV disclosure
• Applicable timelines for dispatch of redemption proceeds etc
• Breakup of Annual Scheme Recurring expenses
• Definitions
• Applicable risk factors
• Detailed disclosures regarding the index, index eligibility criteria,
methodology, index service provider, index constituents, impact cost
of the constituents/ underlying fund in case of fund of funds
• List of official points of acceptance
• Penalties, Pending Litigation or Proceedings, Findings of Inspections
or Investigations
• Investor services
• Portfolio Disclosure
• Detailed comparative table of the existing schemes of AMC
• Scheme performance
• Periodic Disclosures
• Any disclosure in terms of Consolidated Checklist on Standard
Observations
• Scheme specific disclosures (as per the prescribed format)
• Scheme Factsheet
XV. How to Apply Application form shall be available from either the Investor Service
Centers (ISCs)/Official Points of Acceptance (OPAs) of AMC or may be
downloaded from the website of AMC (www.edelweissmf.com). Please
Std.
Obs. 35 refer to the SAI and Application form for further details and the
instructions.
XVI. Where can applications 1. List of official points of acceptance shall be available at List of ISCs,
for OPAs & Collecting Banker List of ISCs, OPAs & Collecting Banker
subscription/redemption/
details_04062024_031225_PM.pdf (edelweissmf.com).
switches be submitted
2. Details of the Registrar and Transfer Agent (R&T), official points of
acceptance, collecting banker details etc. are available on back cover
page.
It is mandatory for every applicant to provide the name of the bank,
branch, address, account type and number as per requirements laid down
by SEBI and any other requirements stated in the Application Form.
Applications without these details will be treated as incomplete. Such
incomplete applications will be rejected. The Registrar/AMC may ask the
investor to provide a blank cancelled cheque or its
Std.
photocopy for the purpose of verifying the bank account
Obs. 61
number.
13Please refer to the SAI and Application form for further details and the
instructions.
XVII. Specific attribute of the Not Applicable.
scheme (such as lock in/
duration in case of target
maturity scheme/close
ended schemes etc.) (as
applicable)
XVIII. Special product/facility Stock Exchange Infrastructure Facility:
available during the NFO During NFO of the Scheme the AMC may make available facility to
and on ongoing basis investors to subscribe to the Units of the Scheme through Mutual Fund
Services System (MFSS) of the National Stock Exchange of India Ltd. (NSE)
and through BSE Stock Exchange Platform for Allotment and Repurchase
of Mutual Funds (BSE StAR MF System) of BSE Limited. For more
Do’s 30
information on this facility, please refer to SAI.
Switching Options:
Unit holders having the Demat Account will be able to invest in the NFO
of the Scheme by switching part or all of their unit holdings in physical
mode held in the respective plan(s) / option(s) of the existing scheme(s)
established by the Mutual Fund. Application for switch of units from
existing schemes to the Scheme(s) will be accepted upto 3.00 p.m. on the
last day of the NFO.
This option will be useful to unit holders who wish to alter the allocation
of their investment among the scheme(s) of the Mutual Fund (subject to
completion of lock-in period, if any, of the units of the scheme(s) from
where the units are being switched) in order to meet their changed
investment needs.
The switch will be effected by way of a redemption of units from the
scheme and a reinvestment of the redemption proceeds in the Scheme
and accordingly, to be effective, the switch must comply with the
redemption rules of the scheme and the issue rules of the respective
Scheme(s) (e.g. as to the minimum number of units that may be redeemed
or issued, exit load etc). The price at which the units will be switched-out
of the scheme will be based on the redemption price and the proceeds
will be invested in NFO Scheme.
XIX. Segregated portfolio/side The AMC has a written down policy on Creation of segregated portfolio
pocketing disclosure which is approved by the Trustees.
Do’s 24 Creation of segregated portfolio shall be subject to guidelines specified by
Std. SEBI from time to time.
Obs. 53
Creation of segregated portfolio is optional and is at the discretion of the
of the AMC.
For details, kindly refer SAI.
XX Creation Unit Size ‘Creation unit’ is a fixed number of Edelweiss BSE Sensex ETF units that
can be created or redeemed directly with the AMC by Authorized
Participants / Market Makers or Large Investors.
14As per para 3.6.2.2 of SEBI Master Circular No. SEBI/HO/IMD/IMD-PoD-
1/P/CIR/2023/74 dated June 27, 2024, minimum amount for direct
creation & redemption of units with AMC is Rs. 25 Cr. and in multiples of
creation unit size over and above 25 Cr. However, this limit is not
applicable for Market Maker who can create or redeem in multiples of
creation unit with the AMC. Exceptions have also been made for schemes
managed by Employee Provident Fund Organization, India and recognized
provident funds, approved gratuity funds and approved superannuation
funds under Income Tax Act, 1961.
Portfolio Deposit: Portfolio Deposit consists of pre-defined basket of
securities that represent the underlying index and announced by AMC
from time to time.
Cash Component: Cash component represents the difference between
the applicable net asset value of a creation unit and the market value of
the Portfolio deposit.
Creation & redemption of units in the scheme is done after full sighting of
cash/units in scheme account. Proposed Creation Unit size for Edelweiss
BSE Sensex ETF is 20,000 units. The fund may from time to time change
the size of the Creation Unit in order to equate it with marketable lots of
the underlying instruments.
A sample calculation of creation unit is as below:
NAV/unit (INR) 81.46
No. of units 20,000
Creation amount (INR) 16,29,262
Cash component 27,317
Portfolio amount (INR) 16,01,944
The Cash component is the difference between NAV of creation unit and
the market value of underlying portfolio. The cash component represents
accrued dividends, accrued annual charges including management
charges and residual fees in the scheme.
Details pertaining to portfolio and cash component for creation unit will
vary from time to time and will be decided and announced by the AMC on
its website on a daily basis.
Note: Cash component is either paid to investors or received from
investors at time of creation or redemption of units.
Following are the circumstances for cash component:
If cash component for the day is positive
151. Investor pays to AMC for creation of units
2. AMC pays to investor for redemption of units
If cash component for the day is negative
1. AMC pays to investor for creation of units
2. Investor pays to AMC for redemption of units
Notes:
1. Further any amendments / replacement / re-enactment of SEBI Regulations subsequent to the date of the Document
shall prevail over those specified in this Document.
2. The Scheme under this Document was approved by the Directors of Edelweiss Trusteeship Company Limited on
August 13, 2025.
3. The Board of the Trustees has ensured that Edelweiss BSE Sensex ETF, approved by it, is a new product offered by
Edelweiss Mutual Fund and is not a minor modification of the existing Fund
4. The information contained in this Document regarding taxation is for general information purposes only and is in
conformity with the relevant provisions of the Tax Act and has been included relying upon advice provided to the
Fund’s tax advisor based on the relevant provisions prevailing as at the currently applicable Laws.
5. Any dispute arising out of this issue shall be subject to the exclusive jurisdiction of the Courts in India.
Notwithstanding anything contained in the Scheme Information Document the provisions of the SEBI (Mutual Funds)
Regulations, 1996 and the Guidelines thereunder shall be applicable.
Do’s 6
For and on behalf of the Board of Directors of
Std.
Obs. 63 Edelweiss Asset Management Limited
Sd/-
Place: Mumbai Radhika Gupta
Date: September 15, 2025 Managing Director & CEO
16Annexure 1
Equity derivatives of underlying securities forming • Calculation of cumulative gross exposure : The
part of the index may also be available as an cumulative gross exposure through equity, debt and
investment option in case the underlying security is derivative positions will not exceed 100% of the net
not available for purchase. assets of the Scheme, in line with paragraph 12.24 of
the SEBI Master circular dated June 27, 2024
• Numerical example of risk involved (For illustration
purpose only)
a) Index Futures:
Spot Index: 1070
1-month Nifty Future Price on day 1: 1075
Scheme buys 1000 lots.
Each lot has a nominal value equivalent to 200 units of
the underlying index.
Let us say that on the date of settlement, the future
price = Closing spot price = 1085
b) Spot Index: 1070
1-month Nifty Future Price on day 1: 1075
Scheme buys 1000 lots.
Each lot has a nominal value equivalent to 200 units of
the underlying index.
Let us say that on the date of settlement, the future
price = Closing spot price = 1065
Loss for the Scheme = (1065 - 1075) * 1000 lots * 200
= - Rs. 20,00,000
The net impact for the scheme will be in terms of the
difference between the closing price of the index and
cost price (ignoring margins for the sake of simplicity).
Thus, it is clear from the example that the profit or loss
for the scheme will be the difference of the closing
price (which can be higher or lower than the purchase
price) and the purchase price. The risks associated
with index futures are similar to the one with equity
investments. Additional risks could be on account of
illiquidity and hence mispricing of the future at the
time of purchase.
Disclosure relating to extent and manner of
participation in derivatives to be provided : The
Scheme may take an exposure to equity derivatives of
constituents of the underlying index for short duration
when securities of the index are unavailable,
insufficient or for rebalancing at the time of change in
index or in case of corporate actions, as permitted
17subject to rebalancing within 7 calendar days (or as
specified by SEBI from time to time). The exposure of
the scheme in equity derivative instruments shall be
up to 20% (for non-hedging) of the equity portfolio of
the scheme.
18Annexure 2
Liquidity/listing details Through Stock Exchanges: Currently, the Scheme is proposed to be listed on
National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) Buying or
selling of units of the Scheme by investors can be done on all the Trading Days of
the stock exchanges. The minimum number of units that can be bought or sold is
1 (one) unit.
Directly with the Fund: Market makers and other eligible investors can directly
buy / sell the units from / to AMC in accordance with the criteria for Minimum
Application Amount for Application/ Subscription/ Redemption as mentioned in
minimum application amount.
NAV disclosure Transparency/ NAV Disclosure
The AMC will prominently calculate and disclose the NAV under the Scheme not
later than 5 Business Days from the date of allotment. Subsequently, the AMC
shall update the NAV under a separate head on its website
Std. Obs. 40A , 41
& 42 (www.edelweissmf.com) and on the Association of Mutual Funds of India (AMFI)
website (www.amfiindia.com). The NAVs will be normally updated on the
websites before 11:00 p.m. on every Business Day. In case of any delay, the
reasons for such delay would be explained to AMFI by the next day. If the NAVs
are not available before commencement of working hours on the following day
due to any reason, the Fund shall issue a press release providing reasons and
explaining when the Fund would be able to publish the NAV.
Indicative NAV (iNAV): The Fund may also calculate intra-day indicative NAV
(computed based on snapshot prices received from BE) and will be updated
during the market hours on Edelweiss Mutual Fund’s website
(www.edelweissmf.com) and within a maximum time lag of 15 seconds from
underlying market on stock exchange. Intra-day indicative NAV will not have any
bearing on the creation or redemption of units directly with the Fund by the
Market Makers /Large Investors.
Computation of NAV
The NAV shall be calculated in accordance with the following formula, or such
other formula as may be prescribed by SEBI from time to time:
Market or Fair Value of the Scheme’s Investments+ Receivables+
Accrued Income+ Other Assets- Accrued Expenses- Payables- Other
Liabilities
NAV = Number of Units Outstandings
The NAV of the Scheme will be calculated and declared upto Four decimal places
& the fourth decimal will be rounded off higher to the next digit if the fifth
decimal is or more than 5 i.e., if the NAV is Rs. 10.45347 it will be rounded off to
Rs. 10.4535.
Illustration of NAV:
Std.
If the net assets of the Scheme, after considering applicable
Obs.
421
19expenses, are Rs.10,45,34345.34 and units outstanding are 10,00,0000, then the
NAV per unit will be computed as follows: 10,45,34,345.34 / 100,00,000 = Rs.
10.4534 per unit (rounded off to four decimals).
Std.
Obs. 47
The Mutual Fund will ensure that the repurchase price will not
be lower than 95% of the Applicable NAV.
For other details such as policies w.r.t computation of NAV, rounding off,
procedure in case of delay in disclosure of NAV etc. refer to SAI.
Applicable timelines Dispatch of redemption proceeds:
The redemption or repurchase proceeds shall be dispatched to the unitholders
within three working days from the date of redemption or repurchase.
Dispatch of IDCW:
Not applicable as the Scheme does not have IDCW option.
Breakup of Annual Scheme These are the fees and expenses for operating the Scheme. These expenses
Recurring expenses include Investment Management and Advisory Fee charged by the AMC, Registrar
and Transfer Agents’ fee, marketing and selling costs etc. as given in the table
below:
The AMC has estimated that upto 1.00% of the daily net assets of the scheme will
be charged to the scheme as expenses.
The total expenses may be more or less than as specified in the table below. For
the actual current expenses being charged, the investor should refer to the
website of the Mutual Fund. In case of any change in the expense ratio, the
Mutual Fund would update the same on the website at least three business days
prior to the effective date of the change. The requirement for disclosing such
change would be subject to paragraph 10.1.8 of SEBI Master Circular dated June
27, 2024.
Expense Head % of daily Net Assets
(Estimated p.a.)
Investment Management and Advisory Fees
Audit fees/fees and expenses of trustees
Custodial fees
Registrar & Transfer Agent Fees including
cost of providing account statements / IDCW
/ redemption cheques/ warrants
Marketing & Selling Expenses including
Agents Commission and statutory
advertisement
Cost related to investor communications
Cost of fund transfer from location to
Upto 1.00%
location
Cost towards investor education &
awareness
Brokerage & transaction cost pertaining to
distribution of units
20Goods & Services tax on expenses other than
investment and advisory fees
Goods & Services tax on brokerage and
transaction cost
Other Expenses (to be specified as per Reg 52
of SEBI MF Regulations) *
Maximum total expense ratio (TER) Upto 1.00%
permissible under Regulation 52 (6) (c)
Additional Expenses under Regulation 52 -
(6A) (c)
Additional expenses for gross new inflows Upto 0.30%
from specified cities under Regulation 52
(6A) (b)
*Subject to the Regulations and as permitted under Regulation 52 of SEBI
(MF) Regulations, 1996, any other expenses which are directly attributable to
the Scheme may be charged with the approval of the Trustee within the
overall limits as specified in the Regulations.
All scheme related expenses including commission paid to distributors, by
whatever name it may be called and in whatever manner it may be paid, shall
necessarily paid from the scheme only within the regulatory limits and not from
the books of AMC, its associate, sponsor, trustees or any other entity through any
route in terms of SEBI circulars, subject to the clarifications provided by SEBI to
AMFI vide letter dated February 21, 2019 on implementation of Paragraph
10.1.12 of SEBI Master Circular dated June 27, 2024 on Total Expense Ratio (TER)
and performance disclosure for Mutual Fund.
Do’s 18
Additional Expenses under Regulation 52 (6A):
1. To improve the geographical reach of the Fund in Std. Obs. 46
smaller cities/towns as may be specified by SEBI
from time to time, expenses not exceeding of 0.30 % p.a. of daily net assets,
if the new inflows from retail investors^ from such cities (i.e. beyond Top 30
cities*) are at least:
(i) 30 % of gross new inflows in the Scheme, or;
(ii) 15 % of the average assets under management (year to date) of the Scheme,
whichever is higher.
In case the inflows from beyond Top 30 cities is less than the higher of (i) or
(ii) above, such additional expenses on daily net assets of the Scheme shall be
charged on proportionate basis. The expenses so charged under this clause
shall be utilised for distribution expenses incurred for bringing inflows from
such cities.
Further, the additional expense charged on account of new inflows from
beyond Top 30 cities shall be credited back to the Scheme, in case the said
inflows are redeemed within a period of 1 year from the date of investment.
^As per SEBI circular dated Paragraph 10.1.3 of SEBI Master Circular dated
June 27, 2024, inflows of amount upto Rs 2,00,000/- per transaction, by
individual investors shall be considered as inflows from “retail investor”.
*The Top 30 cities shall mean top 30 cities based on Association of Mutual
21Funds in India (AMFI) data on ‘AUM by Geography – Consolidated Data for
Mutual Fund Industry’ as at the end of the previous financial year.
Note: In line with AMFI communication no.35P/MEM-COR/85-a/2022-23
dated March 2, 2023 and SEBI letter no. SEBI/H0/IMD/IMD-SEC-
3/P/OW/2023/5823/1 dated February 24, 2023, the B-30 incentive structure
is kept in abeyance from March 1, 2023, till appropriate re-instatement of
incentive structure by SEBI with necessary safeguards.
2. Brokerage and transactions costs incurred for the purpose of execution of
trades and are included in the cost of investments shall be charged to the
Scheme in addition to the limits on total expenses prescribed under
Regulation 52(6) and will not exceed 0.12% in case of cash market transactions
and 0.05% for derivatives transactions.
As per Paragraph 10.1.14 of SEBI Master Circular dated June 27, 2024, the
brokerage and transaction cost incurred for the purpose of execution of trade
may be capitalized to the extent of 0.12% for cash market transactions and
0.05% for derivatives transactions. Any payment towards brokerage and
transaction cost, over and above the said 0.12% for cash market transactions
and 0.05% for derivatives transactions may be charged to the scheme within
the maximum limit of TER as prescribed under Regulation 52 (6) of the SEBI
(MF) Regulations.
Goods and Services Tax (GST):
In addition to the expenses under Regulation 52 (6) and (6A), AMC shall charge
GST as below:
1. GST on investment and advisory fees will be charged to the Scheme in addition
to the maximum limit of TER as prescribed in Regulation 52 (6).
2. GST on other than investment and advisory fees, if any, will be borne by the
Scheme within the maximum limit of TER as prescribed in Regulation 52 (6).
3. GST on brokerage and transaction cost paid for execution of trade, if any, shall
be within the limit prescribed under Regulation 52.
4. GST on exit load, if any, shall be paid out of the exit load proceeds and exit
load net of GST, if any, shall be credited to the Scheme.
Notes:
a. Maximum Permissible expense: The maximum Total Expense Ratio (TER) that
can be charged to the Scheme will be subject to such limits as prescribed
under the SEBI (MF) Regulations. The said maximum TER shall either be
apportioned under various expense heads as enumerated in the table above,
without any sub limit or allocated to any of the said expense head(s) at the
discretion of AMC. Also, the types of expenses charged shall
Std.
be as per the SEBI (MF) Regulations.
Obs. 43
-
b. Investor Education and Awareness initiatives: In terms of
SEBI Circular SEBI/HO/IMD/PoD2/P/CIR/2024/183 dated December 31, 2024
w.r.t. MF lite framework, the expense towards investor education &
awareness will be 5% of total TER charged to the direct plan of the Scheme,
subject to maximum of 0.5 bps of AUM.
The AMC may incur expenses on behalf of the Scheme which will be reimbursed
on actual basis to the AMC to the extent such expenses are permissible & are
22within the prescribed SEBI limit.
Any change in the current expense ratios will be updated on the website viz.
www.edelweissmf.comand the same will be communicated to the investor via
SMS / e-mail 3 working days prior to the effective date of change.
The AMC may incur expenses on behalf of the Mutual Fund which can be
reimbursed on actual basis to the AMC to the extent such expenses are
permissible & are within the prescribed SEBI limit.
Std.
Do’s 15
Obs. 44
Particulars
Amount Invested at the beginning of the year 10,000
Income on Investment(assumed rate 8.00% 800
p.a.)
Expenses charged to the scheme (assumed 64.8
expense ratio @0.60 %)
Returns after Expenses at the end of the Year 735.20
TER for last 6 months as well as scheme factsheet shall be made available
An investor can visit https://www.edelweissmf.com/statutory/total-expense-
ratio-of-mutual-fund-scheme weblink for TER of last 6 months and weblink for
scheme factsheet https://www.edelweissmf.com/downloads/factsheets
Definitions For detailed description please click the link:
https://www.edelweissmf.com/statutory/sid-kim-sai-related-disclosure-
corporate-announcement
23Risk factors • Scheme specific risk factors
1. Risk Factors Associated with Equity & Equity related instruments
The value of the Scheme’s investments may be affected generally by factors
Std.
affecting securities markets, such as price and volume volatility in the capital
Obs. 8
markets, etc. Settlement periods and transfer procedures may restrict the
liquidity of the investments made by the Scheme.
• Market Risk: Changes in economic conditions, such as recessions or booms, can
impact stock prices. Equities can experience significant price fluctuations and
volatility in the short term due to market conditions, economic events, or
investor sentiment. Broader events like financial crises or natural disasters can
also affect equity markets
• Company-Specific Risk: Factors related to a company's operations,
management decisions, or competitive position can affect stock performance.
Companies with high levels of debt or poor financial health may face difficulties
that can impact their stock value. Unexpected events such as management
changes, regulatory fines, or product recalls can impact stock prices.
• Liquidity Risk: Stocks with low trading volumes can be harder to buy or sell
without affecting the stock price significantly. In times of market stress,
liquidity can dry up, making it harder to execute trades at desired prices.
• Political and Regulatory Risk: Changes in government policies, regulations, or
taxation can impact corporate profits and stock values. Political instability,
conflicts, or trade disputes can affect global markets and individual stocks.
• Currency Risk: Fluctuations in exchange rates can affect the value of
investments in foreign equities or equity-related instruments.
• Behavioural Risk: Market prices can be influenced by investor behavior,
including irrational exuberance or panic selling, which can lead to significant
price swings.
• Sector-Specific Risk: Specific sectors may face unique risks, such as
technological changes in tech or regulatory issues in healthcare, which can
impact stocks within those sectors.
2. Risk factors associated with investing in Money Market Instruments / cash
and cash equivalent:
Edelweiss BSE Sensex ETF will invest not less than 95% of its corpus in the securities
representing the BSE Sensex TRI Index as this Scheme endeavors to earn returns
that correspond to the total returns represented by the BSE Sensex TRI Index. The
Scheme will have insignificant cash and cash equivalent /money market
investments. Therefore, the scheme is not significantly susceptible to risks
associated with money markets/cash and cash equivalents.
Risks associated with money market instruments are as under:
• Interest rate Risk: Price of a money market instruments generally falls when the
interest rates move up and vice- versa. The extent of fall or rise in the prices
24depends upon the coupon and maturity of the security. It also depends upon
the yield level at which the security is being traded.
• Spread Risk: In a floating rate security the coupon is expressed in terms of a
spread or mark up over the benchmark rate. In the life of the security this
spread may move adversely leading to loss in value of the portfolio. The yield
of the underlying benchmark might not change, but the spread of the security
over the underlying benchmark might increase leading to loss in value of the
security.
• Credit risk or default Risk: Credit risk is the risk that the issuer of a debenture/
bond or a money market instrument may default on interest and/or principal
payment obligations. Even when there is no default, the price of a security may
change with expected changes in the credit rating of the issuer. It is to be noted
here that a Government Security is a sovereign security and is the safest.
Corporate bonds carry a higher amount of credit risk than Government
Securities. Within corporate bonds also there are different levels of safety and
a bond rated higher by a particular rating agency is safer than a bond rated
lower by the same rating agency.
• Liquidity & Settlement Risk: The liquidity of a fixed income security may change,
depending on market conditions leading to changes in the liquidity premium
attached to the price of such securities. At the time of selling the security, the
security can become illiquid, leading to loss in value of the portfolio. Different
segments of the financial markets have different settlement cycle/periods, and
such settlement cycle/periods may be impacted by unforeseen circumstances,
leading to Settlement Risk. This can adversely affect the ability of the Fund to
swiftly execute trading strategies which can lead to adverse movements in
NAV.
• Reinvestment Risk: Interest rates may vary from time to time. The rate at which
intermediate cash flows are reinvested may differ from the original interest
rates on the security, which can affect the total earnings from the security.
• Prepayment Risk: The Scheme may receive payment of monthly cashflows
earlier than scheduled, which may result in reinvestment risk.
• Market Risk: Lower rated or unrated securities are more likely to react to
developments affecting the market as they tend to be more sensitive to
changes in economic conditions than higher rated securities
3. Risk Factors associated with the Scheme:
3a. Passive Investments:
As the scheme proposes to invest not less than 95% of the net assets in the
securities of the benchmark Index, the Scheme will not be actively managed. The
Scheme may be affected by a general decline in the Indian markets relating to its
Underlying Index. The Scheme invests in the securities included in its underlying
index regardless of their investment merit. The AMC does not attempt to
individually select stocks or to take defensive positions in declining markets. The
Scheme's performance is directly tied to the Underlying Index. If the Underlying
Index is dissolved, withdrawn, or not published for any reason, the Trustee may
change the Scheme to track a different, suitable index or temporarily halt tracking
the Underlying Index until it becomes available again. Unit holders will be notified
25of any such changes. During this transition, the investment strategy will be
adjusted to reflect the new index, which may result in tracking errors.
3.b. Tracking Error and Tracking Difference Risk:
Tracking Error and Tracking difference is to measure divergence of the
performance (return) of the Fund’s portfolio from that of the Underlying Index.
Tracking error / Tracking difference are inherent in any index fund and such errors
may cause the schemes to generate returns which are not in line with the
performance of the BSE Sensex Index or one or more securities covered by /
included in the BSE Sensex Index. That said, the risk parameters of the portfolio of
the Scheme and underlying index would be similar. Tracking Error / Tracking
Difference may arise from a variety of factors including but not limited to:
1. Any delay in the purchase or sale of shares due to illiquidity in the market,
settlement and realisation of sales proceeds, delay in credit of securities or in
receipt and consequent reinvestment of dividends, etc.
2. The index reflects the prices of securities at a point in time, which is the price
at close of business day on BSE Limited (BSE)/ National Stock Exchange of India
Limited (NSE). The scheme, however, may trade the securities at different
points in time during the trading session and therefore the prices at which the
scheme trades may not be identical to the closing price of each scrip on that
day on the BSE/NSE. In addition, the scheme may opt to trade the same
securities on different exchanges due to price or liquidity factors, which may
also result in traded prices being at variance from BSE/NSE closing prices.
3. The potential of trades to fail may result in the scheme not having acquired the
security at the price necessary to mirror the index.
4. Transaction and other expenses, such as but not limited to brokerage, custody,
trustee and investment management fees.
5. Being an open-ended scheme, the scheme may hold appropriate levels of cash
or cash equivalents to meet on going redemptions.
6. The scheme may not be able to acquire or sell the desired number of securities
due to conditions prevailing in the securities market, such as, but not restricted
to circuit filters in the securities, liquidity and volatility in security prices.
7. Due to the reasons mentioned above and other reasons that may arise, it is
expected that the scheme may have a tracking error not to exceed by of 2% per
annum from its Benchmarks.
8. However, it needs to be clearly understood that his is just an indicative range
and that the actual tracking error can be higher or lower than the range given.
3.c. Operational risks:
1. There are risks associated with the day-to-day management of the fund,
including errors in trading or valuation like safekeeping of ETF assets, cash
reporting and deployment etc.
2. Due to technical error, the reporting of NAV at frequent intervals on the
website and exchange may be impacted.
3. Risk associated with the index provider’s accuracy in maintaining and
calculating the index. Errors or changes in the index methodology can impact
ETF performance. Failure to update the same while rebalancing may also
impact the performance and tracking error.
4. Frequently rebalancing of the ETF’s holdings to match the index, which can
lead to transaction costs and potential market impact.
5. The units of the Scheme may trade at prices above or below their Net Asset
26Value (NAV). The NAV will change based on the market value of the Scheme’s
holdings. The trading prices of the units will vary in response to shifts in their
NAV and market supply and demand. However, because units can be created
and redeemed in creation units directly with the Fund, substantial discounts
or premiums to the NAV are unlikely to last, as arbitrage opportunities are
expected to address these imbalances.
4. Risk factors associated with Derivatives:
Derivative products are leveraged instruments and can provide disproportionate
gains as well as disproportionate losses to the investor. Execution of such
strategies depends upon the ability of the Fund Manager to identify such
opportunities. 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.
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.
The Fund may use derivatives instruments like equity futures & options, or other
derivative instruments as permitted under the Regulations and Guidelines. The
scheme will be using non-hedging strategy.
Common risk associated with Trading in derivatives:
a. Exposure risk: An exposure to derivatives can lead to losses. Derivatives carry
the risk of adverse changes in the market price.
b. Illiquidity Risk i.e. risk that a derivative trade may not be executed or reversed
quickly enough at a fair price, due to lack of liquidity in the market.
c. Execution Risk - The prices which are seen on the screen need not be the same
at which execution will take place.
d. Mark to Market Risk - There could be a market to market loss that would arise
and additional margin may need to be provided for the same.
e. Basis Risk - In extraordinary circumstances, the Fund Manager may have to
unwind positions before the expiry at a basis which may be higher than the
initiation basis to meet redemptions. Premature unwinding of the position
might result in the locked-in profits not getting realized.
f. Tracking Error Risk - Corporate actions such as demergers might result in the
weights of the index stocks to change. This might lead to a tracking error
affecting the returns to a certain extent.
5. Risks Associated with exposure in Tri-party Repo
Risk of exposure in the Tri-party Repo settlement Segment provided by CCIL
emanates mainly on two counts –
a. Risk of failure by a lender to meet its obligations to make funds available or by
a borrower to accept funds by providing adequate security at the settlement
of the original trade of lending and borrowing under Triparty Repo
transaction.
b. Risk of default by a borrower in repayment.
6. Risks Associated with segregated portfolio
1) Unit holder holding units of Segregated Portfolio may not able to liquidate
their holdings till the recovery of money from the issuer.
272) Portfolio comprising of Segregated Portfolio may not realise any value or may
have to be written down.
3) Listing of units of Segregated Portfolio in recognised stock exchange does not
necessarily guarantee their liquidity. There may not be active trading of units
in the stock market. Further trading price of units on the stock market may be
significantly lower than the prevailing NAV.
7. Risks associated with Securities Lending:
It may be noted that this activity would have the inherent probability of collateral
value drastically falling in times of strong downward market trends, rendering the
value of collateral inadequate until such time as that diminution in value is
replenished by additional security. It is also possible that the borrowing party
and/or the approved intermediary may suddenly suffer severe business setback
and become unable to honor its commitments. This, along with a simultaneous fall
in value of collateral would render potential loss to the Scheme. Besides, there is
also temporary illiquidity of the securities that are lent out and the scheme will
not be able to sell such lent out securities until they are returned.
As with other modes of extensions of credit, there are risks inherent to securities
lending, including the risk of failure of the other party, in this case the approved
intermediary, to comply with the terms of the agreement entered into between
the lender of securities i.e. the scheme and the approved intermediary. Such failure
can result in the possible loss of rights to the collateral put up by the borrower of
the securities, the inability of the approved intermediary to return the securities
deposited by the lender and the possible loss of any corporate benefits accruing to
the lender from the securities deposited with the approved intermediary.
8. Risk Factors associated with Exchange Traded Schemes:
The Scheme is subject to the specific risks that may adversely affect the Scheme’s
NAV, return and / or ability to meet its investment objective. The specific risk
factors related to the Scheme include, but are not limited to the following:
1. Market Trading Risks
• Absence of prior Active Market: Although the Scheme is listed on NSE/BSE,
there can be no assurance that an active secondary market will develop or be
maintained. Hence there would be time when trading in the Units of the
Scheme would be infrequent.
• Trading in Units may be Halted: Trading in the Units of the Scheme on NSE/BSE
may be halted because of market conditions or for reasons that in view of
NSE/BSE or SEBI, trading in the Units of the Scheme are not advisable. In
addition, trading of the Units of the Scheme are subject to trading halts caused
by extraordinary market volatility and pursuant to NSE and SEBI ‘circuit filter’
rules. There can be no assurance that the requirements of NSE/BSE necessary
to maintain the listing of the Units of the Scheme will continue to be met or will
remain unchanged.
• Lack of Market Liquidity: The Scheme may not be able to immediately sell
certain types of illiquid Securities. The purchase price and subsequent valuation
of restricted and illiquid Securities may reflect a discount, which may be
significant, from the market price of comparable Securities for which a liquid
market exists.
28• Units of the Scheme May Trade at prices Other than NAV: The Units of the
Scheme may trade above or below their NAV. The NAV of the Scheme will
fluctuate with changes in the market value of the holdings of the Scheme. The
trading prices of the Units of the Scheme will fluctuate in accordance with
changes in their NAV as well as market supply and demand for the Units of the
Scheme. However, given that Units of the Scheme can be created and
Redeemed in Creation Units directly with the Fund, it is expected that large
discounts or premiums to the NAV of Units of the Scheme will not sustain due
to arbitrage opportunity available.
• Regulatory Risk: Any changes in trading regulations by NSE/BSE or SEBI may
affect the ability of market maker to arbitrage resulting into wider
premium/discount to NAV.
• Reinvestment Risk: This risk refers to the interest rate levels at which cash
flows received from the Securities in the Scheme are reinvested. The additional
income from reinvestment is the “interest on interest” component. The risk is
that the rate at which interim cash flows can be reinvested may be lower than
that originally assumed.
• Risk of Substantial Redemptions:
The Scheme at times may receive large number or large value of direct
redemption requests as per the provision of the SID. The liquidity of underlying
investments may be restricted by trading volumes and settlement periods.
Settlement periods may be extended significantly by unforeseen circumstances
beyond the influence of the AMC. The inability of the Scheme to sell intended
securities due to liquidity & settlement problems, could cause delay for
processing the large number of direct redemptions. The Trustee, in the general
interest of the Unit holders of the Schemes offered under this SID and keeping
in view of the unforeseen circumstances/unusual market conditions, may limit
the total number of Units which can be redeemed on any Working Day
depending on the total “Saleable Underlying Stock” available with the Fund.
2. Redemption Risk:
Investors may note that even though the Scheme is an open-ended Scheme,
the Scheme would ordinarily repurchase Units in Creation Unit Size by Market
Makers and for an amount of greater than 25 crores for large investors. Thus,
unit holdings less than creation unit size can only be sold through the secondary
market on the Exchange unless any of the scenarios mentioned below have
occurred:
i. Traded price (closing price) of the ETF units is at discount of more than 1% to
the day end NAV for 7 continuous trading days, or
ii. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive
trading days, or
iii. Total bid size on the exchange is less than half of creation units size daily,
averaged over a period of 7 consecutive trading days.
3. Risk factors associated with processing of transaction through Stock
Exchange Mechanism
The trading mechanism introduced by the stock exchange(s) is configured to accept
and process transactions for mutual fund units in both Physical and Demat Form.
The allotment and/or redemption of Units through NSE and/or BSE or any other
29recognised stock exchange(s), on any Business Day will depend upon the
modalities of processing viz. collection of application form, order
processing/settlement, etc. upon which the Fund has no control. However, units
of the Scheme can only be subscribed in demat mode. Moreover, transactions
conducted through the stock exchange mechanism shall be governed by the
operating guidelines and directives issued by respective recognized stock
exchange(s).
For further details please refer SAI.
Std.
Do’s 16
Obs. 9
RISK MITIGATION STRATEGIES
The Fund has designed a detailed process to identify, measure, monitor and
manage the portfolio risk. The aim is not to eliminate the risk completely but to
have a structured mechanism towards risk management thereby maximizing
potential opportunities and minimize the adverse effects of risk. Few of the key
risks identified are:
Risk associated with Equity and equity related instruments:
Risk & Description specific to the Risk mitigants / Management
Scheme Strategy
Market Risk Market risk is a risk which is inherent to
The value of the Scheme’s an equity scheme. Being a passively
investments, may be affected managed scheme, it will invest in the
generally by factors affecting securities of the underlying index.
securities markets, such as price
and volume, volatility in the capital
markets, interest rates, currency
exchange rates, changes in policies
of the Government, taxation laws or
any other appropriate authority
policies and other political and
economic developments which may
have an adverse bearing on
individual securities, a specific
sector or all sectors including equity
and debt markets.
Liquidity risk Control portfolio liquidity at portfolio
The liquidity of the Scheme’s construction stage. Having optimum
investments is inherently restricted mix of cash & cash equivalents along
by trading volumes in the securities with the money market instruments in
in which it invests. the portfolio as defined in asset
allocations. The fund will try to
maintain a proper asset-liability match
to ensure redemption payments are
made on time and not affected by
illiquidity of the underlying stocks.
Derivatives Risk The fund has provision for using
Derivatives require the derivative instruments for portfolio
maintenance of adequate controls balancing and hedging purposes.
to monitor the transactions entered Investments in derivative instruments
into, the ability to assess the risk will be used as per local (RBI and SEBI)
that a derivative adds to the regulatory guidelines. The fund will
portfolio and the ability to forecast endeavour to maintain adequate
price or interest rate movements controls to monitor the derivatives
30correctly. There is the possibility transactions entered into.
that a loss may be sustained by the
portfolio as a result of the failure of
another party (usually referred to as
the “counter party”) to comply with
the terms of the derivatives
contract. Other risks in using
derivatives include the risk of mis-
pricing or improper valuation of
derivatives and the inability of
derivatives to correlate perfectly
with underlying assets, rates and
indices.
Risk associated with money market instruments:
Risk & Description specific to the Risk mitigants / Management Strategy
Scheme
Market Risk
Changes in interest rates may affect Fund Managers will periodically
the Scheme’s Net Asset Value as the monitor the portfolio structure with
prices of securities generally respect to the existing interest rate
increase as interest rates decline scenario. Exposure to Money market
and generally decrease as interest instruments will be in the form of TREPs
rates rise. Prices of long-term and other liquid assets to the extent
securities generally fluctuate more permissible.
in response to interest rate changes
than do short-term securities.
Indian debt markets can be volatile
leading to the possibility of price
movements up or down in fixed
income securities and thereby to
possible movements in the NAV.
Liquidity risk
The primary measure of liquidity The fund will endeavour to minimise
risk is the spread between the bid liquidity risk by investing in securities
price and the offer price quoted by having a liquid market. Exposure to
a dealer. Liquidity risk is today Money market instruments will be in
characteristic of the Indian fixed the form of TREPs and other liquid
income market. assets.
Credit Risk Detailed evaluation of issuers will be
The value of a fixed income security done. Investments will be done on high
will fluctuate depending upon the credit quality securities. Exposure to
changes in the perceived level of Money market instruments will be in
credit risk as well as any actual the form of TREPs and other liquid
event of default. assets.
Reinvestment Risk Reinvestment risks will be limited to
The rate at which interim cash flows the extent of coupons received on
can be reinvested may be lower money market instruments, which will
than that originally assumed. be a very small portion of the portfolio
value. Exposure to Money market
instruments will be in the form of TREPs
and other liquid assets.
Risk associated with the scheme:
31Tracking Error / Tracking Difference
The Tracking Error is the annualized The AMC will, to the best of their
standard deviation of the difference in efforts ensure that the scheme
daily returns between the underlying investments are aligned with the
index and the NAV of the Index Fund. underlying index at all the time. By
Tracking difference i.e. the annualized continuously monitoring, the AMC will
difference of daily returns between ensure that the tracking error &
the index and the NAV of the Scheme. tracking difference are well within the
regulatory thresholds.
Stock Lending
The Scheme may participate as a The AMC will ensure adherence to the
lender in the SLB market and lend limits assigned for stock lending and
securities held in the portfolio for will ensure that the liquidity Risk is
earning fees from such lending to managed actively within the portfolio
enhance revenue of the Scheme. The liquidity limits by maintaining proper
key risk to the Scheme is creation of asset-liability match to ensure payout
temporary illiquidity due to the of the obligations. Also to ensure that
inability to sell such lent securities, till the counterparty risk is limited the
the time such securities are returned AMC will participate in stock lending
on the contractual settlement date or only through exchange mechanism
on exercise of early recall. where the settlement is guaranteed.
For further details please refer SAI.
Index methodology/ Details The index is derived from the constituents of the BSE 100. The inclusion of DVRs
of underlying fund in case in the index will result in more than 30 stocks in the index. However, the number
of Fund of Funds of companies in the index remains fixed at 30.
Stock selection criteria
• Listing History - Stocks must have a listing history of at least six months at BSE.
Do’s 29
• Trading Days - The stock must have traded on every trading day at BSE during
the six-month reference period.
• Derivative Linkage - Stock must have a derivative contract.
• Multiple Share Classes - DVRs satisfying the above eligibility criteria are
aggregated with the company’s common stock and index construction is done
based on the aggregated company data as detailed below
• All companies meeting the eligibility factors are ranked based on their average
six-month floatadjusted market capitalization. The top 75 are identified.
• All companies meeting the eligibility factors are ranked again based on their
average six-month total market capitalization. The top 75 are identified.
• All companies identified based on steps 1 and 2 are then combined and sorted
based on their annualized traded value. Companies with a cumulative
annualized traded value greater than 98% are excluded.
• The remaining companies are then sorted by average six-month float-adjusted
market capitalization. Companies with a weight of less than 0.5% are
excluded.
• The remaining companies from step 4 are then ranked based on their average
six-month floatadjusted market capitalization, and are selected for index
inclusion according to the following rules:
a. The top 21 companies (whether a current index constituent or not) are
selected for index inclusion with no sector consideration.
b. Existing constituents ranked 22 – 39 are selected in order of highest rank until
32the target constituent count of 30 is reached.
c. If after this step the target constituent count is not achieved, then non-
constituents ranked 22 – 30 are selected by giving preference to those
companies whose common India Industry Classification Structure macro-
economic indicator is underrepresented in the index as compared to the
macro-economic indicator representation in the BSE AllCap.
d. If after this step, the target constituent count is still not achieved, non-
constituents are selected in order of highest rank until the target constituent
count is reached.
Index shall be reconstituted on a semi-annual basis
For more details, please refer to asiaindex.co.in.
Index constituents as on July 25, 2025
ISIN SECURITY_NAME WEIGHTAGE
(%)
INE742F01042 ADANI PORTS AND SPECIAL ECONOM LTD 1.07%
INE021A01026 ASIAN PAINTS LTD. 1.10%
INE238A01034 AXIS BANK LTD. 3.24%
INE296A01032 BAJAJ FINANCE LTD 2.49%
INE918I01026 BAJAJ FINSERV LTD. 1.13%
INE263A01024 BHARAT ELECTRONICS LTD. 1.48%
INE397D01024 BHARTI AIRTEL LTD. 5.31%
INE758T01015 ETERNAL LTD 2.26%
INE860A01027 HCL TECHNOLOGIES LTD. 1.65%
INE040A01034 HDFC BANK LTD. 15.88%
INE030A01027 HINDUSTAN UNILEVER LTD. 2.25%
INE090A01021 ICICI BANK LTD. 11.00%
INE009A01021 INFOSYS LTD. 5.66%
INE154A01025 ITC LTD. 3.96%
INE237A01028 KOTAK MAHINDRA BANK LTD. 3.27%
INE018A01030 LARSEN & TOUBRO LTD. 4.21%
INE101A01026 MAHINDRA & MAHINDRA LTD. 3.00%
INE585B01010 MARUTI SUZUKI INDIA LTD. 1.71%
INE733E01010 NTPC LTD. 1.65%
INE752E01010 POWER GRID CORPORATION OF INDIA LTD 1.39%
INE002A01018 RELIANCE INDUSTRIES LTD. 9.84%
INE062A01020 STATE BANK OF INDIA 3.23%
INE044A01036 SUN PHARMACEUTICAL INDUSTRIES LTD 1.87%
INE467B01029 TATA CONSULTANCY SERVICES LTD. 3.32%
INE155A01022 TATA MOTORS LTD. 1.51%
INE081A01020 TATA STEEL LTD. 1.39%
INE669C01036 TECH MAHINDRA LTD. 0.97%
INE280A01028 TITAN COMPANY LTD 1.48%
INE849A01020 TRENT LTD. 1.16%
INE481G01011 ULTRATECH CEMENT LTD. 1.51%
33List of official points of Please refer
acceptance: https://www.edelweissmf.com/Files/SID%20/%20KIM%20/%20SAI%20related%
20Disclosure/published/List%20of%20ISCs,%20OPAs%20&%20Collecting%20Ban
ker%20details_04062024_031225_PM.pdf
Penalties, Pending Litigation Please refer
or Proceedings, Findings of https://www.edelweissmf.com/Files/SID%20/%20KIM%20/%20SAI%20related%
Inspections or 20Disclosure/Published/Pending%20Litigation_04062024_123721_PM_201220
Investigations for which 24_124416_PM.pdf
action may have been taken
or is in the process of being
taken by any Regulatory
Std. Obs. 48 & 49
Authority
Investor services Contact details for general service requests:
Investors can enquire about NAVs, Unit holdings, valuation, IDCWs, etc or lodge
any service request including change in the name, address, designated bank
account number and bank branch, loss of Account Statement / Unit certificates,
etc. to M/s. KFin Technologies Limited - UNIT Edelweiss Mutual Fund, Karvy
Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial, District,
Nanakramguda, Serilingampally, Hyderabad – 500 008, Tel no: 040-67161500 or
can also call us at our toll free number 1800 425 0090 (MTNL/BSNL) and non toll
free number +91 40 23001181 for others and investors outside India. The Toll
Free Number and the Non-Toll Free Number will be available between 9.00 am
to 7.00 pm from Monday to Saturday.
Contact details for complaint resolution:
Unit holder’s grievances should be addressed to Investor Services Centres (ISC’s)
at the EAML branch offices, or KFin Technologies Ltd (KCL) Investor Service
Centres. All grievances will then be forwarded to the Registrar, if required, for
necessary action. The complaints will be monitored /followed up with the
Registrar to ensure timely redressal.
Investors can also address their queries/grievances to Mr. Abdulla Chaudhari,
Head – Investor Services, at Edelweiss House, Off. C.S.T Road, Kalina, Mumbai
400098.
Contact Details:
Tel. No. (022) 4097 9737
Fax no. (022) 4097 9878
E-mail id: EMFHelp@edelweissmf.com
Portfolio Disclosure The AMC will disclose portfolios (along with ISIN) in user friendly and
downloadable spreadsheet format, as on the last day of the half year for all the
schemes on its website (www.edelweissmf.com) and on the website of AMFI
(www.amfiindia.com) within 10 days from the close of each half year.
In case of unitholders whose email addresses are registered, the AMC will send
via email half yearly statement of scheme portfolio within 10 days from the close
of each half year.
The AMC will publish an advertisement every half-year, in the all India edition of
at least two daily newspapers, one each in English and Hindi, disclosing the
34hosting of the half yearly statement of the scheme portfolio on the AMC’s
website (www.edelweissmf.com) and on the website of AMFI
(www.amfiindia.com) and the modes such as SMS, telephone, email or written
request (letter) through which an unitholder can submit a request for a physical
or electronic copy of the statement of scheme portfolio. The AMC will provide
physical copy of the statement of scheme portfolio without any cost, on specific
request received from a unitholder.
Detailed comparative table For detailed comparative table, please refer
of the existing schemes of https://www.edelweissmf.com/Files/SID%20/%20KIM%20/%20SAI%20related%
AMC 20Disclosure/Published/Scheme%20Differentiation_02072024_025755_PM.pdf
Do’s 27
Scheme performance This scheme is a new scheme and does not have any performance track record.
Periodic Disclosure
a) Monthly Portfolio The AMC will disclose the scheme’s portfolio on monthly basis as on the last day
Disclosure
of the month or before 10th day of the succeeding month in the prescribed format
for all the Schemes or within such timelines and manner as prescribed by SEBI
from time to time on its website (www.edelweissmf.com) and on the website of
AMFI (www.amfiindia.com). The same shall be send via email to the unitholders
whose email addresses are registered with AMC/Mutual Fund.
35b) Half yearly financial The AMC will publish an advertisement every half-year, in the all India edition of
disclosures, at least two daily newspapers, one each in English and Hindi, disclosing the
hosting of the half yearly statement of the scheme portfolio on the AMC’s
website (www.edelweissmf.com) and on the website of AMFI
(www.amfiindia.com) and the modes such as SMS, telephone, email or written
request (letter) through which an unitholder can submit a request for a physical
or electronic copy of the statement of scheme portfolio. The AMC will provide
physical copy of the statement of scheme portfolio without any cost, on specific
request received from a unitholder.
The Fund shall, before the expiry of one month from the close of each half year,
(i.e. March 31 and September 30) shall display the unaudited financial results on
www.edelweissmf.com and the advertisement in this regards will be published
by the Fund in at least one English daily newspaper having nationwide circulation
and in a newspaper having wide circulation published in the language of the
region where the Head Office of the Fund is situated.
c) Annual Report The Annual Report or Abridged summary thereof in the format prescribed by SEBI
will be hosted within four months from the date of closure of the relevant
accounting year (i.e. March 31st each year) on AMC’s website
(www.edelweissmf.com) and on the website of AMFI (www.amfiindia.com). The
Annual Report or Abridged Summary thereof will also be sent by way of e-mail to
the Unit holder’s registered e-mail address. Unit holders, who have not
registered their email address, will have an option of receiving a physical copy of
the Annual Report or Abridged summary thereof. The Fund will provide a physical
copy of the abridged summary of the Annual Report, without charging any cost,
on specific request received from a Unit holder. Physical copies of the report will
also be available to the Unit holders at the registered office at all times. The Fund
will publish an advertisement every year, in the all India edition of at least two
daily newspapers, one each in English and Hindi, disclosing the hosting of the
scheme wise annual report on the AMC’s website (www.edelweissmf.com) and
on the website of AMFI (www.amfiindia.com) and the modes such as SMS,
telephone, email or written request (letter) through which a unitholder can
submit a request for a physical or electronic copy of the of the scheme wise
annual report or abridged summary thereof.
d) Account Statements: The AMC shall send an allotment confirmation specifying the units allotted by
way of email and/or SMS within 5 working days of receipt of valid
application/transaction to the Unit holders registered e-mail address and/ or
mobile number (whether units are held in demat mode or in account statement
form).
Consolidated Account Statement: CAS shall also be sent to the Unit holder in
whose folio transactions have taken place during that month:
-Monthly basis- on or before 15th of the succeeding month in case of delivery via.
36physical mode and on and before 12th of the succeeding month in case of
delivery via. electronic mode
-Half yearly basis- on or before the twenty-first (21st) day of April and October in
case of delivery via physical mode and on and before eighteenth (18th) day of
April and October incase of delivery via. electronic mode
In the event the account has more than one registered Unit holder, the first
named Unit holder shall receive the CAS. In case of specific request received from
investors, Mutual Fund will provide an account statement to the investors within
5 Business Days from the receipt of such request
Unit holders who receive account statements by e-mail may download the
documents after receiving e-mail from the Fund. Should the Unit holder
experience any difficulty in accessing the electronically delivered documents, the
Unit holder shall promptly advise the Fund to enable the Fund to make the
delivery through alternate means. It is deemed that the Unit holder is aware of
all security risks including possible third party interception of the documents and
contents of the documents becoming known to third parties.
e) Riskometer In accordance with circular no. SEBI/HO/IMD/DF3/CIR/P/2020/197 dated
October 5, 2020 the risk-o-meter will be disclosed along with monthly portfolio
and on annual basis on the website of the AMC (www.edelweissmf.com) and
Do’s 9
AMFI (www.amfiindia.com). Further, the same will also be disclosed in the
Annual Report in the format specified in the circular. Further in accordance with
SEBI circular no. SEBI/HO/IMD/IMD-II DOF3/P/CIR/2021/555 dated April 29, 2021
and circular no. SEBI/HO/IMD/IMD-II DOF3/P/CIR /2021/621 dated August 31,
2021 the risk-o-meter of the scheme, name of the benchmark and risk-o-meter
of the scheme shall be disclosed along with the monthly and half yearly portfolios
sent via email to the investors.
In addition to the above, the AMC shall disclose the following in all disclosures,
including promotional material or that stipulated by SEBI:
risk-o-meter of the scheme wherever the performance of the scheme is disclosed
b. b. risk-o-meter of the scheme and benchmark wherever the performance of
the scheme vis-à-vis that of the benchmark is disclosed.
f) Scheme summary In accordance with Paragraph 1.2 of SEBI Master on Mutual Funds dated June 27,
document 2024, Scheme summary document for all schemes of Mutual Fund in the
requisite format (pdf, spreadsheet and machine readable format) shall be
Std. uploaded on a monthly basis i.e. 15th of every month or within 5 Business days
Obs. 38 from the date of any change or modification in the scheme information on the
website of the AMC i.e. https://www.edelweissmf.com/downloads/scheme-
summary-document and AMFI i.e. www.amfiindia.com and Registered Stock
Exchanges i.e. National Stock Exchange of India Limited and BSE Limited.
g) Disclosure of Tracking The Tracking Error is the annualized standard deviation of the difference in daily
Error returns between the underlying index and the NAV of the Index Fund. The
Std. Scheme shall disclose the Tracking Error based on past one year rolling data, on
Obs. 39 a daily basis, on the website of AMC and AMFI. Till the Scheme completes one
37year it shall disclose the annualized standard deviation based on available data.
h) Disclosure of Tracking Tracking difference i.e. the annualized difference of daily returns between the
Difference index and the NAV of the Scheme will be disclosed on the website of the AMC
and AMFI, on a monthly basis, for tenures 1 year, 3 years, 5 years, 10 years and
Std. since the date of allotment of units.
Obs. 39
Scheme factsheet Weblink for scheme factsheet:
https://www.edelweissmf.com/downloads/factsheets
Scheme specific disclosures Refer the format given below
38Scheme Specific Disclosures
Portfolio The Scheme may take an exposure to equity derivatives of constituents of the underlying
rebalancing index for short duration when securities of the index are unavailable, insufficient or for
rebalancing at the time of change in index or in case of corporate actions, as permitted
subject to rebalancing within 7 calendar days (or as specified by SEBI from time to time). The
exposure of the scheme in equity derivative instruments shall be up to 20% (for non-hedging)
Std.
of the equity portfolio of the scheme
Obs. 24
Due to market conditions, the AMC may invest beyond the range set out in the asset
allocation. Such deviations shall normally be for short term and defensive considerations as
per Paragraph 1.14.1.2 of SEBI Master Circular dated June 27, 2024, and the fund manager
will rebalance the portfolio within 7 calendar days from the date of deviation
In accordance with Clause 3.5.3.11 and 3.6.7 of the Master Circular for Mutual Funds dated
June 27, 2024, in case of change in constituents of the index due to periodic review, the
portfolio will be rebalanced within 7 calendar days. Any transactions undertaken in the
scheme portfolio in order to meet the redemption and subscription obligations shall be done
while ensuring that post1.14. such transactions replication of the portfolio with the index is
maintained at all points of time.
For detailed disclosure, kindly refer SAI
Disclosure w.r.t Not applicable since the scheme is a new scheme.
investments by
key personnel and
AMC directors
For detailed disclosure, kindly refer SAI
including
regulatory
provisions
Investments of
As per clause sub-regulation 16 (A) of Regulation 25 of SEBI (Mutual Funds) Regulations, 1996
AMC in the
read along with clause 6.9 of the Master Circular for Mutual Funds dated June 27, 2024 on
Scheme
alignment of interest of AMC with the unit holders of Mutual Fund, the AMC will invest in the
Scheme based on the risk-o-meter. Please visit website
(https://www.edelweissmf.com/statutory/other-disclosures#Investment by AMCs in each of
Std. their Mutual Fund Scheme(s). However, as per the said guidelines, ETFs are exempted from
Obs. 58 the purview of the aforesaid regulations and guidelines.
For detailed disclosure, kindly refer SAI
Taxation For details on taxation please refer to the clause on Taxation in the SAI
Associate For detailed disclosure, kindly refer SAI
Transactions
Listing and The Units of the scheme will be listed on National Stock Exchange of India Limited and BSE
transfer of units Limited or any recognised stock exchanges as may be decided by AMC from time to time. The
Units of the Scheme may be bought or sold on all trading days at prevailing listed price on
such Stock Exchange(s). The AMC will appoint Market Makers to provide liquidity in
secondary market on an ongoing basis. The Market Maker(s) would offer daily two-way quote
(buy and sell quotes) in the market.
Alternatively, the Market Makers and Large Investors may subscribe to and/or redeem the
39units of the Scheme with the Mutual Fund on any business day during the ongoing offer
period commencing not later than 5(five) business days from the date of allotment at a price
equivalent to applicable NAV and transaction charges, if any, provided the units offered for
subscription and/or redemption are not less than Creation Unit size & in multiples thereof.
All investors including Market Maker(s), Large Investors and other investors may sell their
units in the stock exchange(s) on which these units will be listed on all the trading days of the
stock exchange.
Mutual fund will repurchase units from Market Maker(s) and Large Investors on any business
day provided the value of units offered for repurchase is not less than creation unit size.
Transfer of units
In accordance with Paragraph 14.4.4 of SEBI Master Circular dated May 19, 2023, units of the
scheme will be held in demat form and hence will be transferable and will be subject to the
transmission facility in accordance with the provisions of SEBI (Depositories and Participants)
Regulations, 2018 as may be amended from time to time.
If a person becomes a holder of the Units consequent to operation of law, or upon
enforcement of a pledge, the transfer may be effected in accordance with the provisions of
SEBI (Depositories and Participants) Regulations, 2018, provided the transferee is otherwise
eligible to hold the Units.
Dematerialization 1) Units of the Scheme will be available only in the Dematerialized form.
of units
2) The applicant under the Scheme will be required to have a beneficiary account with a
Depository Participant of NSDL/CDSL and will be required to indicate in the application
Std. the DP’s name, DP ID Number and its beneficiary account number with DP.
Obs. 57
3) The units of the Scheme are to be issued/ repurchased and traded compulsorily in
dematerialized form, no request for rematerialisation of units of the Scheme will be
accepted.
4) Application forms without relevant details of their depository account or with inactive
depository accounts are liable to be rejected.
5) In case of any discrepancy in demat account mentioned by the investor, the AMC will allot
the units and keep the same in AMC’s beneficiary demat account. Upon query resolution
the AMC will transfer the units in the investor’s demat account.
Minimum Target The Mutual Fund seeks to collect a minimum subscription amount of Rs. 5 crore (five crores)
amount (This is the in the Scheme during the NFO period.
minimum amount
required to This is the minimum amount required to operate the Scheme and if this is not collected during
operate the the NFO period of the Scheme, then all the investors would be refunded the amount invested
scheme and if this without any return. However, if AMC fails to refund the amount within 5 Business Days from
is not collected the date of closure of the NFO Period, interest as specified by SEBI (currently 15% p.a.) will
during the NFO be paid to the investors from the expiry of fifth business day of the closure of the subscription
period, then all the period.
investors would be
refunded the
40amount invested
without any
return.)
Maximum Amount There will be no upper limit on the total corpus collected under the Scheme during the NFO
to be raised (if any) Period.
Dividend Policy There is no IDCW Policy as the Scheme currently does not offer any IDCW Option.
(IDCW)
Allotment Allotment will be completed after due reconciliation of receipt of funds for all valid
applications within 5 Business Days from the closure of the NFO period. Allotment to
NRIs/FPIs will be subject to RBI approval, if required. Subject to the SEBI (MF) Regulations,
the Trustee may reject any application received in case the application is found
invalid/incomplete or for any other reason in the Trustee's sole discretion. For investors who
have given demat account details, the Units will be credited to the investor’s demat account
after due verification and confirmation from NSDL/CDSL of the demat account details.
Units will be allotted in whole figure. Offer for Sale of Units at 1/1000th value of the BSE
Sensex TRI as on the date of allotment for applications received during the New Fund Offer
(“NFO”) period and at approximately indicative NAV based prices (along with applicable
charges and execution variations) during the Ongoing Offer for applications directly received
at AMC. Balance amount will be refunded to the investor.
Example of issue of Unit during the NFO:
Example of Units allotted to the Investor (Amt. in Rs.)
Investment Amount by the Investor (In Rs) A 10,000.00
Allotment Price B 50.07
Total Units of the Investor C = A/B 199.72
Total Units allotted rounded off to nearest lowest integer D 199
Value of units allotted E =B*D 9,963.93
Stamp Duty F=E * 0.005% 0.50
Value of the fractional units which is refunded to investor G=A-E 35.57
After investment, the Scheme will determine the allotment price as follows: Allotment
Price = Amount collected in the NFO – Refund on account of application rejections, if any
Net Assets in the Scheme on the date of allotment / one thousandth of the benchmark
index on the date of allotment
• Allotment Confirmation/Account Statement (for non-demat account holders): An
Allotment Confirmation/Account statement will be sent by way of SMS
Std.
and/or email and/or ordinary post, to each Unit Holder who has not provided
Obs. 60
his demat account details in the application form for subscription during the
NFO. The Allotment Confirmation/Account statement, stating the number of Units allotted
to the Unit Holder will be sent not later than 5 Business Days from the close of the NFO
Period of the Scheme. The Account Statement shall be non-transferable.
41• Dispatch of Account Statements to NRIs/FPIs will be subject to RBI approval, if required.
• Allotment Advice/Holding Statement (demat account holders): For investors who have
given valid demat account details at the time of NFO, Units issued by the AMC shall be
credited by the Registrar to the investor’s beneficiary account with the DP as per
information provided in the Application Form. The AMC shall issue to such investor, units
in dematerialized form as soon as possible but not later than five working days from the
date of closure of the initial subscription list or from the date of receipt of the application.
Such investors will receive the holding statement directly from their depository participant
(DP) at such a frequency as may be defined in the Depository Act or Regulations or on
specific request.
• Consolidated Account Statement: CAS shall also be sent to the Unit holder in whose folio
transactions have taken place during that month:
-Monthly basis- on or before 15th of the succeeding month in case of delivery via. physical
mode and on and before 12th of the succeeding month in case of delivery via. electronic
mode
-Half yearly basis- on or before the twenty-first (21st) day of April and October in case of
delivery via physical mode and on and before eighteenth (18th) day of April and October
incase of delivery via. electronic mode
The Mutual Fund reserves the right to recover from an investor any loss caused to the Scheme
on account of dishonor of cheques issued by him/her/it for purchase of Units.
Refund Refund of subscription money to applicants in the case of minimum subscription amount not
being raised or applications rejected for any other reason whatsoever, will be made within 5
Business Days from the date of closure of the NFO period & all refund orders will be sent by
registered post or in such other manner as permitted under Regulations. Investors should
note that no interest will be payable on any subscription money so refunded within 5 Business
Days. If the Mutual Fund refunds the amount after 5 Business Days, interest at the rate of
15% p.a. will be paid to the applicant and borne by the AMC for the period from the day
following the date of expiry of 5 Business Days until the actual date of the refund. Refund
orders will be marked “A/c. Payee only” and drawn in the name of the applicant in the case
of a sole applicant and in the name of the first applicant in all other cases. In both cases, the
bank name and bank account number, as specified in the application, will be mentioned in
the refund order. The bank and/or collection charges, if any, will be borne by the applicant.
Who can invest The following persons are eligible and may apply for subscription to the Units of the Scheme
This is an of the Fund (subject, wherever relevant, to purchase of units of Mutual Funds being
indicative list and permitted and duly authorized under their respective constitutions, charter documents,
investors shall
corporate / other authorizations and relevant statutory provisions, etc.):
consult their
1. Resident adult Indian individuals either singly or jointly (not exceeding three), or on an
financial advisor to
Anyone or Survivor basis;
ascertain whether
the scheme is 2. Karta of Hindu Undivided Family (HUF in the name of Karta);
suitable to their 3. Partnership Firms in the name of any one of the partner (constituted under the Indian
risk profile. partnership law) & Limited Liability Partnerships (LLP);
4. Minors (Resident or NRI) through parent / legal guardian;
5. Schemes of Mutual Funds registered with SEBI, including schemes of Edelweiss Mutual
42Fund, subject to the conditions and limits prescribed by SEBI Regulations and the
respective Scheme Information Documents;
6. Companies, Bodies Corporate, Public-Sector Undertakings (PSU), Association of Persons
(AOP) or bodies of individuals (BOI) and societies registered under the Societies
Registration Act, 1860 (so long as the purchase of units is permitted under the respective
constitutions);
7. Banks, including Scheduled Bank, Regional Rural Bank, Co-Operative Bank etc. &
Financial Institutions;
8. Special Purpose Vehicles (SPV) approved by appropriate authority;
9. Religious and Charitable Trusts, Wakfs or endowments of private trusts and Private
trusts (subject to receipt of necessary approvals as required & who are authorised to
invest in Mutual Fund schemes under their trust deeds);
10. Non-Resident Indians (NRIs) / Persons of Indian origin residing abroad (PIO) on
repatriation or non-repatriation basis;
11. Foreign Institutional Investors (FIIs) registered with SEBI on fully repatriation basis;
12. Foreign Portfolio Investors (FPIs) subject to the applicable Regulations;
13. Provident / Pension / Gratuity / superannuation, such other retirement and employee
benefit and such other funds to the extent they are permitted to invest;
14. Army, Air Force, Navy and other para-military units and bodies created by such
institutions;
15. Scientific and Industrial Research Organisations;
16. Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the
permission of Government of India / Reserve Bank of India;
17. Trustee, the AMC, their Shareholders or Sponsor, their associates, affiliates, group
companies may subscribe to Units under the Scheme;
18. Overseas financial organizations which have entered into an
arrangement for investment in India, inter-alia with a mutual fund registered with SEBI
and which arrangement is approved by Government of India.
19. Insurers, insurance companies / corporations registered with the Insurance
Regulatory Development Authority (subject to IRDA Circular (Ref:
IRDA/F&I/INV/CIR/074/03/2014) dated March 3, 2014
20. Any other category of individuals / institutions / body corporate etc., so long as
wherever applicable they are in conformity with SEBI Regulations/other applicable
Regulations/the constituent documents of the applicants.
Notes:
1. Returned cheques are not liable to be presented again for collection, and the
accompanying application forms are liable to be rejected. In case the returned cheques
are presented again, the necessary charges, if any, are liable to be debited to the
investor.
2. It is expressly understood that at the time of investment, the investor/Unit holder has
the express authority to invest in Units of the Scheme and AMC / Trustees / Mutual Fund
will not be responsible if such investment is ultravires the relevant constitution. Subject
to the Regulations, the Trustee may reject any application received in case the
application is found invalid/ incomplete or for any other reason in the Trustee’s sole
discretion.
433. Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad/
Overseas Citizens of India (OCI) / Foreign Portfolio Investors (FPIs) have been granted a
general permission by Reserve Bank of India under Schedule 5 of the Foreign Exchange
Management (Transfer or Issue of Security by a Person Resident Outside India)
Regulations, 2000 for investing in / redeeming units of the mutual funds subject to
conditions set out in the aforesaid regulations. If a person who is a resident Indian at the
time of subscription becomes a resident outside India subsequently, he/she shall have
the option to either be paid repurchase value of Units or continue into the Scheme if
he/she so desires and is otherwise eligible.
However, the AMC shall not be liable to pay interest or any compensation, arising on
account of taxation law or otherwise, on redemption, IDCW or otherwise, to such a
person during the period it takes for the Fund to record change in residential status, bank
mandates, and change in address due to change in tax status on account of change in
residential status.
Notwithstanding the aforesaid, the Trustee reserves the right to close the Unit holder’s
account and to pay the repurchase value of Units, subsequent to his becoming a person
resident outside India, should the reasons of cost, interest of other Unit holders and any
other circumstances make it necessary for the Fund to do so.
4. Investors desiring to invest / transact in the Scheme are required to comply with the KYC
norms applicable from time to time. Under the KYC norms, Investors are required to
provide prescribed documents for establishing their identity and address such as copy of
the Passport/PAN Card/Memorandum and Articles of Association/bye-laws/Trust
Deed/Partnership Deed/ Certificate of Registration along with the proof of authorization
to invest, as applicable, to the KYC Registration Agency (KRA) registered with SEBI.
5. The Government of India has authorized the Central Registry of Securitization and Asset
Reconstruction and Security Interest of India (CERSAI, an independent body), to perform
the function of Central KYC Records including receiving, storing, safeguarding and
retrieving KYC records in digital form. Accordingly, in line with SEBI circular nos.
CIR/MIRSD/66/2016 dated July 21, 2016 and CIR/MIRSD/120/2016 dated November 10,
2016 on Operationalisation of Central KYC (CKYC), read with AMFI Best Practice
Guidelines circular no. 68/2016-17 dated December 22, 2016, new individual investors
investing into the Fund are requested to comply with the CKYC norms.
6. It is compulsory for investors to give certain mandatory disclosures while applying in the
Scheme like bank details & PAN/PEKRN copy etc. For details please refer SAI.
7. The Trustee may also periodically add and review the persons eligible for making
application for purchase of Units under the Scheme.
8. The Fund / AMC / Trustees / other intermediaries will rely on the
declarations/affirmations provided by the Investor(s) in the Application/ Transaction
Form(s) and the documents furnished to the KRA that the Investor(s) is permitted/
authorised by the constitution document/ their Board of Directors etc. to make the
investment / transact. Further, the Investor shall be liable to indemnify the Fund / AMC
/ Trustee / other intermediaries in case of any dispute regarding the eligibility, validity
and authorization of the transactions and / or the applicant who has applied on behalf
of the Investors. The Fund / AMC / Trustee reserves the right to call for such other
information and documents as may be required by it in connection with the investments
made by the investor.
44Investors are requested to view full details on eligibility /non-eligibility for investment in the
Scheme mentioned in the SAI under the head “Who Can Invest” & also note that this is an
indicative list and you are requested to consult your financial advisor to ascertain whether
the Scheme is suitable to your risk profile.
Foreign Account Tax Compliance Act (commonly known as “FATCA”):
The Foreign Account Tax Compliance Act is a United States (US) federal law, aimed at
prevention of tax evasion by US Citizens and Residents (“US Persons”) through use of offshore
accounts. The Government of India and the US have reached an agreement in substance on
the terms of an Inter-Governmental Agreement (“IGA”) to implement the FATCA provisions,
which have become globally applicable from July 1, 2014.
Edelweiss Mutual Fund (“the Fund”)/ Edelweiss Asset Management Limited (“the AMC”) is
classified as a FFI under the FATCA provisions, in which case the Fund / AMC is required, from
time to time, to:
i. undertake necessary due diligence process by collecting information/documentary
evidence of the US/non-US status of the investors;
ii. disclose/report information as far as may be legally permitted about the
holdings/investment returns pertaining to reportable accounts to the US Internal
Revenue Service and/or such Indian authorities as may be specified under FATCA or
other applicable laws and
iii. carry out such other activities as prescribed under the FATCA provisions, as amended
from time to time.
FATCA due diligence will have to be directed at each investor/unit holder (including joint
investors) and on being identified as a reportable person/specified US person, all the folios
will be reported. Further, in case of folio with joint investors, the entire account value of
investment portfolio will be attributable under each such reportable person. Investors/Unit
holders would therefore be required to furnish such information to the Fund/AMC, from time
to time, in order to comply with the reporting requirements stated in the IGA and or
circulars/guidelines issued by SEBI/AMFI in this regard.
The impact of FATCA is relevant not only at the point of on-boarding of the investors but also
throughout the life cycle of the investor account / folio with the Fund. Hence investor(s)
should immediately intimate the Fund/AMC, in case of any change in the FATCA related
information provided by them at the time of initial subscription.
The Fund/AMC reserves the right to reject any application or compulsorily redeem the units
held directly or beneficially in case the applicant/investor fails to furnish the relevant
information and/or documentation or is found to be holding units in contravention of the
FATCA provisions.
Further, in accordance with the regulatory requirements relating to FATCA/CRS read along
with SEBI Circular no. CIR/MIRSD/2/2015 dated August 26, 2015 and AMFI Best practices
45guidelines circular no. 63/2015-16 dated September 18, 2015 regarding uniform
implementation of FATCA/CRS requirements, investors are requested to ensure the
following:
• With effect from November 1, 2015 all investors have to mandatorily provide the details
and declaration pertaining to FATCA/CRS for all new accounts opened, failing which the
application shall be liable to be rejected.
• For accounts opened between July 1, 2014 and October 31, 2015 and certain pre -
existing accounts opened till June 30, 2014, the AMC shall reach out to the investors to
seek the requisite information/declaration which has to be submitted by the investors
before December 31, 2015. In case the information/declaration is not received from
the investor on or before December 31, 2015, the account shall be treated as reportable
account.
Ultimate Beneficial Ownership: In accordance with SEBI Circular no. CIR/MIRSD/2/2013 dated
January 24, 2013 and AMFI Best practices guidelines circular no. 62/2015-16 dated
September 18, 2015, Investors may note the following:
• With effect from November 1, 2015, it is mandatory for new investors to provide beneficial
ownership details as part of account opening documentation failing which the AMC shall
reject the application.
• With effect from January 1, 2016 it is mandatory for existing investors/unit holders to
provide beneficial ownership details, failing which the AMC may reject the transaction for
additional subscription (including switches).
Who cannot invest The following persons/entities cannot invest in the Scheme:
1. Overseas Corporate Bodies pursuant to RBI A.P. (DIR Series) Circular No. 14 dated
September 16, 2003
2. Non-Resident Indians residing in the Financial Action Task Force (FATF) declared Non-
Compliant Countries or Territories (NCCTs)
3. United States Person (US Person*) as defined under the extant laws of the United States
of America, except where such US Person is an NRI / PIO, he/she shall be permitted to
make an investment in the Scheme, when present in India, as lump-sum subscription,
switch transaction and systematic transactions (including SIP/STP/SWP) only through
physical form and upon submission of such additional documents/undertakings, as may
be stipulated by the AMC/Trustee from time to time and subject to compliance with all
applicable laws and regulations prior to investing in the Scheme(s.
4. Persons residing in Canada.
5. The Fund reserves the right to include / exclude new / existing categories of investors
to invest in the Scheme from time to time. In case the application is found invalid /
incomplete or for any other reason Trustee feels that the application is incomplete, the
Trustee at its sole discretion may reject the application, subject to SEBI Regulations and
other prevailing statutory regulations, if any.
*The term “U.S. Person” means any person that is a U.S. person within the meaning of
Regulations under the Securities Act of 1933 of U.S. or as defined by the U.S. Commodity
Futures Trading Commission or as per such further amended definitions, interpretations,
legislations, rules etc, as may be in force from time to time.
The policy Not Applicable.
46regarding reissue
of repurchased
units, including
the maximum
extent, the
manner of reissue,
the entity (the
scheme or
the AMC) involved
in the same.
Restrictions, if The Units of the Scheme will mandatory required to be held in electronic (demat) mode which
any, on the right are freely transferable.
Do’s 36
to freely retain
or dispose off Paragraph 1.12 of SEBI Master Circular dated June 27, 2024 has laid down the following
units being conditions, in case the AMC wish to impose restrictions on redemption:
offered. a) Restrictions may be imposed when there are circumstances leading to a systematic crisis
or event that severely constricts market liquidity or the efficient functioning of market such
as:
i. Liquidity issues
ii. Market failures, exchange closure
iii. Operational issues
b) Restriction on redemption may be imposed for a specified period of time not exceeding 10
working days in any 90 days period.
c) Any imposition of restriction would require specific approval of Board of AMCs and Trustee
and the same should be informed to SEBI immediately.
d) When restriction on redemption is imposed, the following procedure shall be applied:
I. No redemption request upto INR 2 lakh shall be subject to such restriction.
II. When redemption request are above INR 2 lakhs, AMCs shall redeem the first INR 2
lakh without such restriction and remaining part over and above INR 2 lakh shall be
subject to such restriction.
If the restriction on redemption will be made applicable in accordance with SEBI Regulation,
the provision of redemption in ‘creation size’ will not be applicable.
For details, please refer to paragraph on “Right to limit redemption, “suspension of purchase
and / or redemption of Units” & paragraph on “Lien & pledge” under SAI.
Cut off timing for In case of Purchase / Redemption directly with Mutual Fund:
subscriptions/ Pursuant to the Paragraph 3.6.2.3 (b) of Master Circular dated June 27, 2024, the requirement
redemptions/
of “cut-off” timing for NAV applicability as prescribed by SEBI from time to time shall not be
switches
applicable for direct transaction with AMCs in ETFs by Market Makers and other eligible
investors.
This is the time
before which your
application Settlement of Purchase/Sale of Units of the Scheme on Stock Exchange:
(complete in all Buying/Selling of Units of the Scheme on Stock Exchange is just like buying/selling any other
respects) should normal listed security. If an investor has bought Units, an investor has to pay the purchase
reach the official
amount to the broker/sub-broker such that the amount paid is realised before the funds pay-
points of
in day of the settlement cycle on the Stock Exchange(s). If an investor has sold Units, an
acceptance
47investor has to deliver the Units to the broker/sub-broker before the securities paying day of
the settlement cycle on the Stock Exchange(s). The Units (in the case of Units bought) and the
funds (in the case of Units sold) are paid out to the broker on the pay-out day of the
settlement cycle on the Stock Exchange(s). The Stock Exchange(s) regulations stipulate that
the trading member should pay the money or Units to the investor within 24 hours of the
pay-out.
If an investor has bought Units, he should give standing instructions for “Delivery-In” to his
/her/its DP for accepting Units in his/her/its beneficiary account. An investor should give the
details of his/her beneficiary account and the DP-ID of his/her/its DP to his/ her/its trading
member. The trading member will transfer the Units directly to his/her/ its beneficiary
account on receipt of the same from BSE‟s Clearing Corporation. An investor who has sold
Units should instruct his/her/its Depository Participant (DP) to give “Delivery Out”
instructions to transfer the Units from his/her/its beneficiary account to the Pool Account of
his/her/its trading member through whom he/she/it have sold the Units. The details of the
Pool A/C (CM-BP-ID) of his/her trading member to which the Units are to be transferred, Unit
quantity etc. should be mentioned in the Delivery Out instructions given by him/her to the
DP. The instructions should be given well before the prescribed securities pay-in day. SEBI has
advised that the Delivery Out instructions should be given at least 24 hours prior to the cut-
off time for the prescribed securities pay-in to avoid any rejection of instructions due to data
entry errors, network problems, etc.
Rolling Settlement:
As per the SEBI’s circular dated March 4, 2003, the rolling settlement on T+2 basis for all
trades has commenced from April 1, 2003 onwards. The Pay-in and Pay-out of funds and the
Units will take place within 2 working days after the trading date. The pay-in and pay-out days
for funds and securities are prescribed as per the Settlement Cycle. A typical Settlement Cycle
of Rolling Settlement is given below:
Day Activity:
T The day on which the transaction is executed by a trading
member
T+1 Confirmation of all trades including custodial trades by 11:00 a.m.
T+1 Processing and downloading of obligation files to
brokers/custodians by 1:30 p.m.
T+2 Pay-in of funds and securities by 11:00 a.m.
T+2 Pay out of funds and securities by 1:30 p.m.
While calculating the days from the Trading day (Day T), weekend days (i.e. Saturday and
Sundays) and stock exchange / bank holidays are not taken into consideration.
Minimum balance There is no minimum balance requirement
to be maintained
and consequence
Std.
of non-
Obs. 36
maintenance
Dividend/ IDCW The Scheme does not offer any Plans/ IDCW Options for investment. The AMC/Trustee
48reserves the right to introduce Plan(s)/Option(s) as may be deemed appropriate at a later
date.
Redemption The redemption or repurchase proceeds shall be dispatched to the unitholders within three
working days from the date of redemption or repurchase.
For list of exceptional circumstances refer para 14.1.3 of SEBI Master Circular for Mutual
Funds dated June 27, 2024.
For further details, refer SAI.
Bank Mandate It may be noted that, the Bank account provided to the DP shall be considered for
redemption, refund, maturity proceeds or any other transactional purposes by the
AMC/Mutual Fund.
During the NFO, in case the DP ID & Client ID provided is incorrect / invalid, the refund shall
be made in the account from the Fund has received subscription.
Delay in payment The AMC shall be liable to pay interest to the unitholders at rate as specified (presently @
of redemption / 15% per annum) vide clause 14.2 of SEBI Master Circular for Mutual Funds dated June 27,
repurchase 2024 by SEBI for the period of such delay.
proceeds/dividend
For further details, refer SAI.
Unclaimed In terms of paragraph 14.3 of the Master Circular for Mutual Funds dated June 27, 2024, the
Redemption and unclaimed redemption amount and IDCW amounts (the funds) may be deployed by the
Income
Mutual Fund in money market instruments and separate plan of liquid scheme / Money
Distribution cum
Market Mutual Fund scheme floated by Mutual Funds specifically for deployment of the
Capital
unclaimed amounts only. Investors who claim the unclaimed amounts during
Withdrawal Std.
Amount Obs. 52 a period of three years from the due date shall be paid initial unclaimed
amount along-with the income earned on its deployment. Investors, who
claim these amounts after 3 years, shall be paid initial unclaimed amount along-with the
income earned on its deployment till the end of the third year. After the third year, the
income earned on such unclaimed amounts shall be used for the purpose of investor
education.
The details of such unclaimed redemption/IDCW amounts are made available to investors
upon them providing proper credentials, on website of Mutual Funds and AMFI along with
the information on the process of claiming the unclaimed amount and the necessary forms /
documents required for the same.
Disclosure w.r.t The minor unitholder, on attaining majority, shall inform the same to AMC / Mutual Fund /
investment by Registrar and submit following documents to change the status of the account (folio) from
minors
'minor' to 'major' to allow him/her to operate the account in his/her own right viz., (a) Duly
Std. filled request form for changing the status of the account (folio) from 'minor' to 'major'; (b)
Obs. 37 updated bank account details including cancelled original cheque leaf of the new account; (c)
Signature attestation of the major by a bank manager of Scheduled bank / Bank certificate or
Bank letter; (d) KYC acknowledgement letter of major. The guardian cannot undertake
(financial/ non-financial transaction including existing Systematic Investment Plan (SIP),
Systematic Transfer Plan (STP), Systematic Withdrawal Plan (SWP) after the date of minor
attaining majority) till the time the change in the status from 'minor' to 'major' is registered
in the account (folio) by the AMC/ Mutual Fund. The AMC/RTA will execute standing
49instructions like SIP, STP, SWP etc. in a folio of minor only upto the date of minor attaining
majority though the instruction may be for the period beyond that date. The above provisions
are in line with the Paragraph 17.6 of SEBI Master Circular dated June 27, 2024.
Payment for investment by minor in any mode shall be accepted from the bank account of
the minor, parent or legal guardian of the minor, or from a joint account of the minor with
parent or legal guardian. Irrespective of the source of payment for subscription, all
redemption proceeds shall be credited only in the verified bank account of the minor, i.e. the
account the minor may hold with the parent/ legal guardian after completing all KYC
formalities. The above provisions are in line with the SEBI circular no. SEBI/HO/IMD/POD-
II/CIR/P/2023/0069 dated May 12, 2023.
For further details, please refer SAI
Principles of The principles of incentive structure with Authorized participants will be in line with the
incentive structure agreement with authorized participants.
for market makers
(for ETFs)
New Fund Offer NFO opens on: ___________________
Period NFO closes on: ___________________
The Scheme, when offered for subscription, would be open for such a number of days (not
Std. exceeding 15 days) as may be decided by the AMC.
Obs. 34
Further, the NFO will remain open for subscription for a minimum period of 3 working days
in line with SEBI Circular no SEBI/HO/IMD/IMD-RAC2/P/CIR/2023/60 dated April 25, 2023.
Any modification to the New Fund Offer Period shall be published through notice on AMC
website (www.edelweissmf.com).
New Fund Offer Offer for Sale of Units at 1/1000th value of the BSE Sensex TRI closing Index as on the date
Price: of allotment for applications received during the New Fund Offer (“NFO”) period.
This is the price
per unit that the
investors have to
pay to invest
during the NFO.
Due diligence It is confirmed that:
(i) The draft Scheme Information Document submitted to SEBI is in accordance with the
SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI
Std. from time to time.
Obs. 55 (ii) All legal requirements connected with the launching of the Scheme as also the
guidelines, instructions, etc., issued by the Government and any other competent
authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and
adequate to enable the investors to make a well informed decision regarding
investment in the Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of
Additional Information are registered with SEBI and their registration is valid, as on
date.
50(v) The contents of the Scheme Information Document including figures, data, yields etc.
have been checked and are factually correct.
(vi) A confirmation that the AMC has complied with the compliance checklist applicable
for Scheme Information Documents and other than cited deviations/ that there are no
deviations from the regulations.
(vii) Notwithstanding anything contained in this Scheme Information Document, the
provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there
under shall be applicable.
(viii) The Trustees have ensured that the approved Scheme is a new product offered by
Edelweiss Mutual Fund and is not a minor modification of any existing
scheme/fund/product.
Sd/-
Date: September 01, 2025 Name: Radhika Gupta
Place: Mumbai Designation: Managing Director & CEO
Fundamental Following are the Fundamental Attributes of the Scheme, in terms of Clause 1.14 of SEBI
Attribute Master Circular for Mutual Funds dated June 27, 2024:
(i) Type of a scheme - An open-ended exchange traded scheme replicating/tracking BSE
Do’s 38 Sensex Total Return Index.
(ii) Investment Objective
Main Objective - Please refer SID.
Std.
Obs. 59
Investment Pattern – Please refer SID
(iii) Terms of Issue
a) Liquidity Provisions:
The Units of the Scheme shall be listed on the Capital Market Segment of the NSE and BSE.
The AMC engages Market Makers for creating liquidity for the Units of the Scheme on the
Stock Exchange(s) so that investors other than Authorized Participants and Large Investors
are able to buy or redeem Units on the Stock Exchange(s) using the services of a stock
broker.
The Mutual Fund may at its sole discretion list the Units of the Scheme on any other
recognized Stock Exchange(s) at a later date.
The AMC/Trustee reserves the right to delist the Units of the Scheme from a particular stock
exchange provided the Units are listed on at least one stock exchange.
An investor can buy/sell Units on a continuous basis on the NSE and BSE on which the Units
are listed during the trading hours like any other publicly traded stock at prices which may
be close to the NAV of the Scheme.
The price of the Units in the market will depend on demand and supply at that point of time.
51There is no minimum investment, although Units are purchased in round lots of 1.
b) Aggregate fees and expenses charged to the Scheme:
The aggregate fees and expenses charged to the Scheme will be in line with the limits defined
in the SEBI Regulations as amended from time to time. Please refer to section ‘Part III- OTHER
DETAILS - C. ANNUAL SCHEME RECURRING EXPENSES for details.
c) Any Safety Net or Guarantee Provided:
The Scheme does not provide any safety net or guarantee.
Changes in Fundamental Attributes:
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of
SEBI Master Circular for Mutual Funds dated June 27, 2024, the Trustee shall ensure that no
change in the fundamental attributes of the Scheme and the Plan(s) / Option(s) thereunder
or the trust or fee and expenses payable or any other change which would modify the Scheme
and the Plan(s) / Option(s) thereunder and affect the interests of Unit holders is carried out
unless:
Do’s 38
1. The Trustees have taken/received comments from SEBI in this regard
before carrying out such changes.
2. An addendum to the existing SID shall be issued and displayed on AMC website
immediately.
3. A written communication about the proposed change is sent to each Unit holder and
an public notice / advertisement is given in one English daily newspaper having
nationwide circulation as well as in a newspaper published in the language of the region
where the Head Office of the Mutual Fund is situated;
4. The Unit holders are given an option for a period of 30 days to exit at the prevailing Net
Asset Value without any exit load; and
5. The SID shall be revised and updated immediately after completion of duration of the
exit option (not less than 30 days from the notice date).
Investment The investment policy of the Scheme complies with the rules, regulations and guidelines laid
restrictions out in SEBI (Mutual Funds) Regulations, 1996. As per the Regulations, specifically the Seventh
Schedule, the following investment limitations are currently applicable:
Do’s 21
1. All the investments by Scheme shall be made only in listed equity shares and equity
related securities.
2. The Scheme shall adhere to following limits for investments in Debt and Money Market
Instruments issued by a single issuer.
Do’s 22
Credit Rating Maximum Limit (% of net assets)
AAA 10
AA (including AA+ and AA-) 8
52A (including A+) & below 6
The above limits may be extended by up to 2% of the NAV of the Scheme with prior
approval of the Board of Trustees and AMC, subject to compliance with the overall 12%
limit.
Provided that such limits shall not be applicable for investments in Government
Securities, treasury bills, and Triparty Repo on G-Secs & T-Bills.
Considering the nature of the Scheme, investments in such instruments will be
permitted upto 5% of its NAV.
3. The Mutual Fund under all its Scheme will not own more than 10% of any Company's
paid-up capital carrying voting rights.
4. Transfer of investments from one scheme to another scheme in the
Std.
Mutual Fund is permitted provided: Obs. 30
- Such transfers are done at the prevailing market price for quoted
instruments on spot basis (spot basis shall have the same meaning as specified by a
Stock Exchange for spot transactions); and
- The securities so transferred shall be in conformity with the investment objective of
the Scheme to which such transfer has been made.
Transfer of investments from one scheme to another scheme in the Mutual Fund is
permitted provided the same are line with paragraph 12.30 of the Master Circular for
Mutual Funds dated June 27, 2024.
5. The Scheme may invest in other Schemes of the AMC or any other Mutual Fund without
charging any fees, provided the aggregate inter-Scheme investment made by all the
Schemes under the same management or in Schemes under management of any other
Asset Management Company shall not exceed 5% of the Net Asset Value of the Fund.
No investment management fees shall be charged for investing in other schemes of the
fund or in the schemes of any other Mutual Fund.
6. The Scheme shall buy and sell securities on the basis of deliveries and shall in all cases
of purchases, take delivery of relevant securities and in all cases of sale, deliver the
securities:
Provided further that sale of government security already contracted for purchase shall
be permitted in accordance with the guidelines issued by the Reserve Bank of India in
this regard. Further, the Mutual Fund may enter into derivatives transactions in a
recognized stock exchange, subject to the framework specified by the Board.
7. The Fund shall get the securities purchased or transferred in the name of the Fund on
account of the concerned Scheme, wherever investments are intended to be of a long-
term nature.
538. The Scheme shall not make any investment in any fund of funds scheme.
9. The Scheme shall not make any investment in:
a) Any unlisted security of an associate or group company of the Sponsor; or
b) Any security issued by way of private placement by an associate or group company
of the Sponsor; or
c) The listed securities of group companies of the Sponsor, which is in excess of 25%
of the net assets of the Scheme of the Fund.
10. No loans for any purpose shall be advanced by the Scheme
11. The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the
purpose of repurchase / redemption of Units or payment of interest and IDCW to the
Unit holders. Provided that the Fund shall not borrow more than 20% of the net assets
of the Scheme and the duration of the borrowing shall not exceed a period of 6 months.
12. Pending deployment of funds of the Scheme in securities in terms of the investment
objectives of the Scheme, the Fund may invest the funds of the Scheme in short term
deposits of scheduled commercial banks or in like instruments subject to the Guidelines
as may be specified by the Board. Further, the AMC shall not charge investment
management and advisory fees for parking of funds in short term deposits of scheduled
commercial banks.
Further as per paragraph 12.16 of the Master Circular for Mutual Funds dated June 27, 2024:
a. Total investment of the Scheme in Short term deposit(s) of all the Scheduled
Commercial Banks put together shall not exceed 15% of the net assets. However, this
limit can be raised upto 20% of the net assets with prior approval of the Board of
Trustees. Further, investments in Short Term Deposits of associate and sponsor
scheduled commercial banks together shall not exceed 20% of total deployment by the
Mutual Fund in short term deposits.
b. Scheme shall not invest more than 10% of the net assets in short term deposit(s), of any
one scheduled commercial bank including its subsidiaries.
c. Scheme shall not invest in short term deposit of a bank which has invested in that
Scheme
d. The Scheduled Commercial Banks in which a scheme has Short Term Deposits shall not
invest in the Scheme until the Scheme has Short Term Deposits with such bank.
Further as per paragraph 12.16.1.9 of the Master Circular for Mutual Funds dated June
27, 2024, it is clarified that the said limits shall not apply to term deposits placed as
margins for trading in cash and derivatives market.
The investments in short term deposits of scheduled commercial banks will be reported
to the Board of Trustees along with the reasons for the investment which, interalia,
would include comparison with the interest rates offered by other scheduled
commercial banks. Further, the AMC shall ensure that the reasons for such investments
54are recorded in the manner prescribed in paragraph 12.16.1.8 of the Master Circular for
Mutual Funds dated June 27, 2024.
13. Investments in derivatives shall be in lines with the norms/restrictions specified in
paragraph 12.25 of the Master Circular for Mutual Funds dated June 27, 2024.
14. The Scheme will comply with any other regulations applicable to the investments of
Mutual Funds from time to time.
Investments Limitations and Restrictions in Derivatives:
In accordance with SEBI guidelines, the following conditions shall apply to the Scheme's
participation in the derivatives market. Please note that the investment restrictions
applicable to the Scheme's participation in the derivatives market will be as prescribed or
varied by SEBI or by the Trustees (subject to SEBI requirements) from time to time.
Position limit for the Fund in index options contracts:
The position limit for the Mutual Fund in index options contracts shall be as follows:
• The Fund's position limit in all index options contracts on a particular underlying index
shall be Rs. 500 Crores or 15% of the total open interest of the market in index options,
whichever is higher, per Stock Exchange.
• This limit would be applicable on open positions in all options contracts on a particular
underlying index.
Position limit for the Fund in index futures contracts:
The position limit for the Mutual Fund in index futures contracts shall be as follows:
• The Fund's position limit in all index futures contracts on a particular underlying index
shall be Rs. 500 Crores or 15% of the total open interest of the market in index futures,
whichever is higher, per Stock Exchange.
• This limit would be applicable on open positions in all futures contracts on a particular
underlying index.
Position limit for the Fund for stock based derivative contracts:
The position limit for the Mutual Fund in a derivative contract on a particular underlying
stock, i.e. stock option contracts and stock futures contracts shall be as follows:
• For stocks having an applicable market-wise position limit (MWPL) of Rs. 500 Crores or
more, the combined futures and options position limit shall be 20% of applicable MWPL
or Rs. 300 Crores, whichever is lower and within which stock futures position cannot
exceed 10% of applicable MWPL or Rs. 150 Crores, whichever is lower.
• For stocks having an applicable market-wise position limit (MWPL) less than Rs. 500
Crores, the combined futures and options position limit would be 20% of applicable
MWPL and futures position cannot exceed 20% of applicable MWPL or Rs. 50 Crores
whichever is lower.
Position limit for the Scheme:
The position limit / disclosure requirements for the Scheme shall be as follows:
55• For stock option and stock futures contracts, the gross open position across all derivative
contracts on a particular underlying stock of the Scheme shall not exceed the higher of:
1% of the free float market capitalization (in terms of number of shares) OR
5% of the open interest in the derivative contracts on a particular underlying stock (in
terms of number of contracts (Shares).
• For index based contracts, the Fund shall disclose the total open interest held by its
Scheme or all Schemes put together in a particular underlying index, if such open interest
equals to or exceeds 15% of the open interest of all derivative contracts on that underlying
index.
These position limits shall be applicable on the combined position in all derivative contracts
on an underlying stock at a stock exchange.
Exposure Limit:
1. The cumulative gross exposure through equity, debt and derivative positions should not
exceed 100% of the net assets of the Scheme.
2. The Scheme shall not write options or purchase instruments with embedded written
options.
3. The total exposure related to option premium paid shall not exceed 20% of the net assets
of the Scheme.
4. Cash or cash equivalent instruments under the Scheme, with residual maturity of less
than 91 days shall be treated as not creating any exposure.
5. Each position taken in derivatives shall have an associated exposure as defined under.
Exposure is the maximum possible loss that may occur on a position. However, certain
derivative positions may theoretically have unlimited possible loss. Exposure in
derivative positions shall be computed as follows:
Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of
Contracts.
The Trustee may alter the above restrictions from time to time to the extent that changes in
the Regulations may allow and as deemed fit in the general interest of the Unit Holders.
These investment restrictions shall be applicable at the time of investment and changes do
not have to be effected merely because, owing to appreciations or depreciations in value, or
by reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any
Schemes of arrangement or for amalgamation, reconstruction or exchange, or at any
repayment or redemption or other reason outside the control of the Fund, any such limits
would thereby be breached. If these limits are exceeded for reasons beyond its control, AMC
56shall as soon as possible take appropriate corrective action, taking into account the interests
of the Unit holders.
In addition, certain investment parameters may be adopted internally by AMC, and amended
from time to time, to ensure appropriate diversification / security for the Fund. The Trustee
Company / AMC may alter these above stated limitations from time to time, and also to the
extent the SEBI (Mutual Funds) Regulations, 1996 change, so as to permit the Schemes to
make its investments in the full spectrum of permitted investments for Mutual Funds to
achieve its investment objective. As such all investments of the Schemes will be made in
accordance with SEBI (Mutual Funds) Regulations, 1996, including Schedule VII thereof.
WHAT ARE THE The Scheme will track the BSE Sensex ETF and will follow a passive or indexing approach to
INVESTMENT seek to achieve its investment objective. Unlike other funds, the scheme will not try to
STRATEGIES?
outperform its benchmark and will not seek temporary defensive positions when the market
declines or appears overvalued. The AMC does not make any judgments about the
investment merit of a particular stock or a particular industry segment nor will it attempt to
Std. apply any economic, financial or market analysis. Since the scheme is an exchange traded
Obs. 27
fund, the scheme will only invest in the securities constituting the underlying index.
In case of Money Market securities, the scheme aims to identify securities which offer optimal
level of yields/returns, considering risk-reward ratio.
The scheme may take exposure to derivative instruments on the underlying index (stock/
index futures) up to 20% of the Net Assets. Derivatives shall mean derivatives instruments as
permitted by SEBI, including derivative exposure in accordance with SEBI Master Circular
dated June 27, 2024, and such other amendments issued by SEBI from time to time. The
Scheme may take an exposure to equity derivatives of constituents of the underlying Basket
when securities of the Basket are unavailable, insufficient or for rebalancing at the time of
change in Basket or in case of corporate actions, for a short period of time, subject to
derivative limits. Such exposure to derivatives will be rebalanced within seven calendar days.
The Scheme may use derivative instruments such as stock/index futures and stock/index
options contracts, swap agreements or any other derivative instruments that are permissible
or may be permissible in future under applicable regulations and such investments shall be
in accordance with the investment objective of the Scheme. Derivative limit subject to limit
of 20% of net assets.
PORTFOLIO TURNOVER
The Scheme is an open-ended Exchange Traded Fund, and it is expected that there may be a
number of subscriptions and repurchases on a daily basis through Stock Exchange(s) or
Market Makers and Large Investors. Generally, turnover will depend upon the extent of
purchase and redemption of units and the need to rebalance the portfolio on account of
changes in the composition, if any. However, it will be the endeavor of the Fund Manager to
maintain an optimal portfolio turnover rate commensurate with the investment objective of
the Scheme and the purchase/ redemption transactions on an ongoing basis in the Scheme.
TRACKING ERROR & TRACKING DIFFERENCE
57Tracking Error and Tracking difference is to measure divergence of the performance (return)
of the Fund’s portfolio from that of the Underlying Index. Tracking error / Tracking difference
are inherent in any index fund and such errors may cause the schemes to generate returns
which are not in line with the performance of the Nifty LargeMidcap 250 Index or one or
more securities covered by / included in the Nifty LargeMidcap 250 Index. That said, the risk
parameters of the portfolio of the Scheme and underlying index would be similar. Tracking
Error / Tracking Difference may arise from a variety of factors including but not limited to:
1. Any delay in the purchase or sale of shares due to illiquidity in the market, settlement
and realisation of sales proceeds, delay in credit of securities or in receipt and
consequent reinvestment of dividends, etc.
2. The index reflects the prices of securities at a point in time, which is the price at close of
business day on NSE/BSE. The scheme, however, may trade the securities at different
points in time during the trading session and therefore the prices at which the scheme
trades may not be identical to the closing price of each scrip on that day on the NSE.
In addition, the scheme may opt to trade the same securities on different exchanges due
to price or liquidity factors, which may also result in traded prices being at variance from
NSE/BSE closing prices.
3. The potential of trades to fail may result in the scheme not having acquired the security
at the price necessary to mirror the index.
4. Transaction and other expenses, such as but not limited to brokerage, custody, trustee
and investment management fees.
5. Being an open-ended scheme, the scheme may hold appropriate levels of cash or cash
equivalents to meet on going redemptions.
6. The scheme may not be able to acquire or sell the desired number of securities due to
conditions prevailing in the securities market, such as, but not restricted to circuit filters
in the securities, liquidity and volatility in security prices.
7. Due to the reasons mentioned above and other reasons that may arise, it is expected
that the scheme may have a tracking error not to exceed by of 2% per annum from its
Benchmarks.
8. However, it needs to be clearly understood that this is just an indicative range and that
the actual tracking error can be higher or lower than the range given.
9. In case of equity oriented passive schemes, TD shall be targeted to be 50 bps (over and
above actual TER charged). In case the same is not maintained, it shall be brought to the
notice of trustees along with corrective actions taken by the AMC, if any.
WHO MANAGES Name of Age & Previous Managing Other Funds Managed
58THE SCHEME Fund Qualifications Experience Scheme
Manager Since
Mr. 38 years Mr. Bhavesh Not 1. Edelweiss Equity
Std. Obs. Bhavesh Master’s in Jain has a total applicable, Savings Fund
33 Jain management work as the 2. Edelweiss Aggressive
studies experience of scheme is Hybrid Fund
(Finance) over 16 years in a new 3. Edelweiss Arbitrage
from the the equity scheme. Fund
Mumbai market 4. Edelweiss Balanced
Do’s 28
University. segment. He Advantage Fund
has been 5. Edelweiss MSCI India
associated with Domestic & World
the AMC for Healthcare 45 Index
over 11 years. Fund
Currently, he is 6. Edelweiss Nifty 50 Index
co-head for Fund
hybrid and 7. Edelweiss ASEAN Equity
solution funds Offshore Fund
and manages 8. Edelweiss Greater China
various Equity Off-Shore Fund
schemes of 9. Edelweiss US
AMC and is a Technology Equity Fund
key person. He of Fund
was previously 10. Edelweiss Emerging
associated with Markets Opportunities
Edelweiss Equity Offshore Fund
Securities 11. Edelweiss Europe
Limited as SGX Dynamic Equity
Nifty Arbitrage Offshore Fund
Trader. 12. Edelweiss US Value
Equity Offshore Fund
13. Edelweiss Large Cap
Fund
14. Edelweiss Recently
Listed IPO Fund
15. Edelweiss Nifty
Smallcap 250 Index
Fund
16. Edelweiss Gold and
Silver ETF FOF
17. Edelweiss Nifty
Midcap150 Momentum
50 Index Fund
18. Edelweiss Nifty Next 50
Index Fund
5919. Edelweiss Multi Asset
Allocation Fund
20. Edelweiss Nifty Large
Mid Cap 250 Index
Fund.
21. Edelweiss Nifty 100
Quality 30 Index Fund.
22. Edelweiss Business
Cycle Fund.
23. Edelweiss Nifty Bank
ETF
24. Edelweiss Nifty 500
Multicap Momentum
Quality 50 ETF
25. Edelweiss BSE Capital
Markets & Insurance
ETF
Where will the i) Equity and Equity related instruments:
scheme invest? The Scheme shall invest in stocks which are constituents of the underlying Index viz. BSE
Sensex TRI, in the same proportion as the Index.
Std. Obs. 13 & 21
ii) Money Market Instruments.
Do’s 5
Money market instruments which includes commercial
papers, commercial bills, treasury bills, Government securities having an unexpired maturity
up to one year, call or notice money, certificate of deposit, usance bills, and any other like
Std. instruments as specified by the Reserve Bank of India from time to time; to meet the liquidity
Obs. 29 requirements.
Do’s 26
iii) Derivative Instruments.
The Scheme may invest in Derivative Instruments to the extent permitted under paragraph
7.5 and 12.25 of the Master Circular for Mutual Funds dated June 27, 2024, on ‘Trading by
Mutual Funds on Exchange Traded Derivatives’ as amended from time to time. Derivative
products are specialized instruments that require investment techniques and risk analysis
different from those associated with stocks and bonds. The use of derivatives requires an
understanding not only of the underlying instrument but also of the derivative instruments
itself. The Scheme may use derivative instruments such as index futures and options, stock
futures and options contracts, warrants, convertible securities, swap or forward rate
agreements or any other derivative instruments that are permissible or may be permissible
in future under applicable regulations and such investments shall be in accordance with the
investment objective of the Scheme.
iv) Investments in the Schemes of AMC or in the schemes of any other mutual fund.
The Scheme may invest in units of money market/liquid Schemes managed by the AMC or in
the schemes of any other mutual fund, provided it is in conformity with the investment
objectives of the Scheme and in terms of the prevailing SEBI Regulations. As per SEBI
Regulations, no Investment Management fees will be charged for such investments and the
60aggregate inter Scheme investment made by all Schemes in the schemes of the Mutual Fund
shall not exceed 5% of the Net Asset Value of the Mutual Fund.
*****************
61