EDELWEISS PRUDENT ADVANTAGE FUND

 
OVERVIEW

The Edelweiss Prudent Advantage Fund generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of Value Stocks. Value Stocks are those stocks, which tend to trade at a lower price relative to their fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by investors. They have attractive valuations in relation to earnings or book value or current and/or future dividends.


NOTE : To view the Current Expense Ratios and the Applicable Load Structure of the Scheme, click on “Fund Information” tab

 

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

Name: Edelweiss Prudent Advantage Fund

Scheme Type: An Open Ended Equity Scheme

Investment Objective: The objective of the Scheme is to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of Value Stocks. Value Stocks are those stocks, which tend to trade at a lower price relative to their fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by investors. They have attractive valuations in relation to earnings or book value or current and/or future dividends. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

Benchmark: Nifty 200 Index
The AMC/Trustee reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines, if any.

Equity Portion :

Fund Manager: : Mr. Bharat Lahoti

Debt Portion : Mr. Gautam Kaul

Asset Allocation

Under normal circumstances, the anticipated asset allocation would be:

Asset Class Allocation (%of Corpus) Risk Profile
Equity & Equity related Securities (Value Stocks) 65% - 100% Medium to High
Other Equity & Equity related Securities 0-35% Medium to High
Debt & Money Market instruments* 0% - 35% Low to Medium
Units of InvITs/REITs^ 0% - 10% Medium to High

*Money Market Instruments include CPs, Commercial Bills, Corporate Debt, T-Bills, and Government securities having an unexpired maturity upto one year, CDs, usance bills, CBLOs, Repo/ Reverse Repo and any other like instruments having a maturity of 1 year or less, as specified by the RBI from me to me.

^The Scheme may invest in units of Infrastructure Investment Trusts and Real Estate Investment Trusts. Not more than 10% of the net assets of the Scheme will be invested in InvITs and REITs and not more than 5% of the net assets of the Scheme will be invested in InvITs and REITs of any single issuer.

The cumulative gross exposure through equity, debt, derivative positions, REITs and InvITs will not exceed 100% of the net assets of the Scheme.

Further,

  • The investments in securitised papers including Pass through Certificates (PTCs) may be made upto 35% of the net assets of the Scheme.
  • The Scheme can also take derivative exposure upto 100 % of the net assets of the Scheme.
  • The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure.
  • The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme.
  • The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single counterparty in such transactions will not exceed 10% of the net assets of the Scheme.
  • The Scheme may engage in Stock Lending. Not more than 25% of the net assets of the Scheme can generally be deployed in stock lending and not more than 5% of the net assets of the Scheme will be deployed in Stock lending to any single counterparty.
  • The Scheme may invest in Foreign Securities upto 35% of the Permissible Investments of net assets of the Scheme.

 

Plans / Options / Facilities:

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

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

Default Plan:

Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not mentioned Regular Plan

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

Default Option:

If the investor does not clearly specify the choice of Option at the time of investing, it will be deemed that the investor has opted for the Growth Option.

Default Facility:

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

Minimum Application /Additional Purchase Amount:

Minimum Application Amount Additional Minimum Purchase Amount
₹ 1,000/- and multiples of ₹ 1/- thereafter ₹ 1,000/- and multiples of ₹ 1/- thereafter

Minimum Redemption Amount:

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

*Entry Load: Nil

**Exit Load*: Nil

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

    Bonus Units and Units issued on reinvestment of dividends shall not be subject to entry and exit load. . The upfront commission shall be paid by the investor directly to the ARN holder based on the investor's assessment of various factors including service rendered by the ARN Holder.
**The entire exit load (net of service tax), charged, if any, shall be credited to the Scheme.
No exit load shall be levied in case of switch of units from Edelweiss Prudent Advantage Fund - Direct Plan to Edelweiss Prudent Advantage Fund.
However, after the switch, exit load under the Scheme prevailing on the date of switch shall apply for subsequent redemptions/switch out from Edelweiss Prudent Advantage Fund.

    AMC reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.

Applicable NAV

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

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

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

(a) Cut off Timing for Subscriptions :

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

(b) Cut off Timing for Redemptions:

  • In respect of valid applications received upto 3.00 p.m. by the Investor Service Centers - closing NAV of the day of receipt of application.
  • In respect of valid applications received after 3.00 p.m. by the Investor Service Centers - closing NAV of the next Business Day shall be applicable.

Note:

  • Valid applications for 'switch-out' shall be treated as applications for Redemption and for 'switch-in' shall be treated as applications for Purchase, and the provisions of the Applicable NAV and cut-off time as mentioned above shall be applied respectively to the 'switch-in' and 'switch-out' applications.
  • In case of ‘switch’ transactions from one scheme to another the allocation shall be in line with redemption payouts.
  • Clauses (a) and (b) shall apply to 'sweep' transactions as if they were purchase transactions and to 'reverse sweep' transactions as if they were repurchase transactions.
Fees & Expenses

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

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

*of the daily net assets

In addition to the above, a charge of 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.

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.

Direct Plan shall have a lower expense ratio excluding distribution expenses and commissions.

Any change in the expense ratio will be updated on the website within two working days.

Actual Current Recurring Expenses
Schemes Expense Ratio Effect From
Edelweiss Prudent Advantage Fund 2.70% 05-08-2015
Edelweiss Prudent Advantage Fund - Plan B 2.70% 05-08-2015
Edelweiss Prudent Advantage Fund - Direct 2.30% 05-08-2015
 

This product is suitable for investors who are seeking*:
Riskometer
  • to create wealth in the long term
  • investment in equity and equity-related securities including equity derivatives
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Investors understand that their principal will be at moderately high risk
 
 
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