Edelweiss Corporate Bond Fund

 
OVERVIEW

Edelweiss Corporate Bond Fund is an open ended debt scheme with the investment objective is to generate returns commensurate with risks of investing in a portfolio comprising of AA+ and above rated Corporate Bonds across the maturity spectrum.


However, there can be no assurance that the investment objectives of the Scheme will be realized.

 

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

Name: Edelweiss Corporate Bond Fund

Scheme Type: An open-ended debt scheme predominantly investing in AA+ and above rated corporate bonds

Investment Objective:The investment objective of the Scheme is to generate returns commensurate with risks of investing in a portfolio comprising of AA+ and above rated Corporate Bonds across the maturity spectrum.


However, there can be no assurance that the investment objectives of the Scheme will be realized.

Benchmark Index: CRISIL Short Term Bond Fund Index.

Fund Manager : Mr. Dhawal Dalal
Co- Fund Manager: Mr. Gautam Kaul

Asset Allocation
Asset Class Allocation Indicative Allocations(%of Total Assets) Risk Profile
Corporate bonds with credit rating of AA+ and above* 80% - 100% Low to Medium
Other Debt and Money Market instruments 0% - 20% Low
Units of InvITs/REITs 0% - 10% Medium to High

*Long Term credit rating of an instrument / entity by at least one Credit Rating Agency at the time of investment.

Corporate bonds include securities issued by Public Sector Undertakings, Public Financial Institutions, Banking entities & private sector entities & securitized debt but excluding T-bills, government securities and SDL & UDAY.

Further,

  • The Scheme may invest in units of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). The Scheme will not invest more than 10% of the net assets the Scheme in InvITs and REITs and not more than 5% of the net assets of the Scheme in InvITs and REITs of any single issuer.
  • Securitized debt will be up to 50% of net assets at the time of investment. The scheme shall not invest in foreign securitized debt.
  • The Scheme can invest up to 50% of its net assets in foreign debt securities.
  • The Scheme shall not engage in stock lending.
  • The Scheme may take exposure into fixed income derivatives up to 50% for hedging and portfolio rebalancing.
  • The cumulative gross exposure through debt, derivative, REITs and InvITs positions should not exceed 100% of the net assets of the Scheme. Cash, cash equivalent with residual maturity up to 91 days will be treated as not creating any exposure.
  • Pending deployment of funds of the Scheme in securities in accordance with the terms of the investment objective, the AMC may place the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI vide its circular SEBI/ IMD/CIR No. 1/91171/07 dated April 16, 2007, SEBI/IMD/CIR No. 8/107311/07, SEBI/IMD/CIR No.7/129592/08 dated April 16, 2007, October 26, 2007 and June 23, 2008, respectively and any other applicable guidelines.

Plans / Options / Facilities:

In terms of SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012, direct investments by investors, viz. where the investment is not routed through distributors but made directly by the investors, will have a separate plan (i.e. Direct Plan) and a separate NAV.

Expenses such as distribution expenses, brokerage or commission payable to distributors will not be charged to the investment made via direct investment and hence the Direct Plan will have a lower expense ratio.


1. Regular Plan and
2. Direct Plan.

Each Plan under the Scheme offers a choice of three options :-
Growth option
Dividend option


Under the Growth option, no dividend will be declared.


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


The Dividend option offers:
Payout option; or
Reinvestment option; or
Weekly reinvestment option; or
Fortnightly reinvestment option; or
Monthly reinvestment option; or
Annual reinvestment option; or
Monthly payout option; or
Annual payout option. In case

Minimum Application / Redemption Amount


Initial Application Amount


₹ 5,000/- (Five Thousand Rupees) or any amount in multiples of ₹ 1/- (One Rupee) thereafter. Please note that applications accompanied with cheque / draft for amount not in multiple of ₹ 1/- (One Rupee) may, at the discretion of the AMC, be rejected or accepted only for amount in multiples of ₹ 1/- (One Rupee) with balance being refunded to the investor.


In case of investors opting to switch into the Scheme from any other existing scheme of JPMorgan Mutual Fund (subject to completion of the lock-in period of that other scheme(s), if any) during the NFO Period of the Scheme, the minimum amount is ₹ 5,000/- (Five Thousand Rupees) per application and in multiples of ₹ 1/- (One Rupee) thereafter.


Additional Application Amount ₹ 1,000/- (One Thousand Rupees) or any amount in multiples of ₹ 1/- (One Rupee) thereafter


Minimum Amount or Minimum no. of Units for Redemption


₹ 5000/- (Five Thousand Rupees) or 500 (Five Hundred Units) or the account balance, whichever is lower

Load Structure

Entry Load: Nil

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

Exit Load: 10% of the units allotted shall be redeemed without any Exit Load on or before completion of 365 days from the date of allotment of units.
Any redemption in excess of such limit within 365 days from the date of allotment shall be subject to the following Exit Load:
- If redeemed or switched out on or before completion of 365 days from the date of allotment of units – 1.00%
- If redeemed or switched out after completion of 365 days from the date of allotment of units – NIL
Redemption of units would be done on First in First out Basis (FIFO).


Applicable NAV

The Cut-off time for the Scheme is 3.00 p.m. , and the Applicable NAV will be as under:

Purchase

  • Where the application is received upto 3.00 pm with a local cheque or demand draft payable at par at the place where it is received, with amount less than Rs. 2 lakhs – closing NAV of the day of receipt of application;
  • Where the application is received after 3.00 pm with a local cheque or demand draft payable at par at the place where it is received, with amount less than Rs.2 lakhs – closing NAV of the next Business Day;
  • Where the application is received with a local cheque or demand draft payable at par at the place where it is received, with amount equal to or more than Rs. 2 lakhs irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilisation shall be applicable.

Applicability of NAV for the Scheme with an amount equal to or more than Rs. 2 lakhs:
a) For allotment of units in respect of purchase in the Scheme, the following needs to be complied with:

  • Application is received before the applicable cut-off time.
  • Funds for the entire amount of subscription/purchase as per the application are credited to the bank account of the respective Scheme before the cut off time.
  • The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective Scheme.

b) For allotment of units in respect of switch-in to the Scheme from other schemes, the following needs to be complied with:

  • Application for switch-in is received before the applicable cut-off time.
  • Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank account of the respective switch-in Scheme before the cut-off time.
  • The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the respective switch-in Scheme or Plans or options thereunder.

The above will be applicable only for cheques / demand drafts / payment instruments payable locally in the city in which a Designated Collection Center is located. No outstation cheques will be accepted.

Note: For the avoidance of doubt, where applications are received for an amount of less than Rs. 2 Lakhs (Two Lakh Rupees) on a non-Business Day the closing NAV of the next Business Day shall be applicable.

For Redemption

  • Where the application is received upto 3.00 p.m. - the closing NAV of the day immediately preceding the next Business Day ; and
  • Where the application is received after 3.00 p.m. - the closing NAV of the next Business Day. Note: In case the application is received on a Non-Business Day, it will be considered as if received on the Next Business Day.

For Switches: Valid applications for ‘Switch-out’ shall be treated as applications for Redemption and valid applications for ‘Switch-in’ shall be treated as applications for Purchase, and the provisions of the Cut-off time, Business Day and the Applicable NAV mentioned in the relevant SID as applicable to Purchase and Redemption shall be applied to the ‘Switch-in’ and ‘Switch-out’ applications, respectively.

Fees & Expenses

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

First Rs. 100 Crores* Next Rs. 300 Crores* Next Rs. 300 Crores* Over Rs. 700 Crores*
2.25% 2.00% 1.75% 1.50%

*of the daily net assets

In addition to the above, a charge of 20 bps on the daily net assets and a proportionate charge in respect of sales beyond T-15 cities subject to maximum of 30 bps on daily net assets will be charged to the scheme.

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

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

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

Actual Current Recurring Expenses
 

This product is suitable for investors who are seeking*:
Riskometer
  • Regular income & capital appreciation through active management across time frames.
  • Investment predominantly in a portfolio comprising of AA+ and above rated Corporate Bonds.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Investors understand that their principal will be at moderate risk
 
 
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