EDELWEISS ARBITRAGE FUND

 
OVERVIEW

Edelweiss Arbitrage Fund is an Open-ended Equity Scheme with an investment objective to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
However, there is no assurance that the investment objective of the scheme will be realized.

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

 

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

Name: Edelweiss Arbitrage Fund

Scheme Type: An Open Ended Equity Scheme

Investment Objective: The investment objective of the Scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
However, there is no assurance that the investment objective of the scheme will be realized.

Benchmark: Nifty 50 Arbitrage Index
The Fund reserves the right to change the benchmark for evaluation of the performance of the Scheme from time to time, subject to SEBI Regulations and other prevailing guidelines if any.

Equity Portion :
Fund Manager : Mr. Bhavesh Jain
Debt Portion :
Fund Manager : Mr. Dhawal Dalal

Asset Allocation

The Scheme will aim to have a fully hedged portfolio to meet its Investment Objective.


1. Under normal circumstances, the anticipated asset allocation would be as follows:

Asset Class Indicative Allocation (%of net assets) Risk Profile
Equity & Equity related instruments including derivatives 65% - 100% Medium to High
Debt & Money Market instruments including the margin money deployed in derivative transactions 0%-35% Low

2. Under defensive circumstances, the anticipated asset allocation would be as follows:

Asset Class Indicative Allocation (%of net assets) Risk Profile
Equity & Equity related instruments including derivatives 0% - 35% Medium to High
Debt & Money Market instruments including the margin money deployed in derivative transactions 65% - 100% Low

The Scheme will not invest in Foreign Securities and ADRs/GDRs issued by Indian or foreign companies. The Scheme will not invest in Stock Lending and Short Selling.

 

Plans / Options / Facilities:

The Scheme will offers two Plans:
1. Regular Plan
2. Direct Plan

The Direct Plan will be offered only for investors who purchase /subscribe Units of the Scheme directly with the Fund and will not be available for investors who route their investments through a Distributor. In case neither Distributor’s Code nor “Direct” is indicated in the application form, the same will be treated as “Direct Plan” application.
Further, the portfolio of the Scheme under both these Plans will be common. Each Plan will offer: (i) Growth Option (ii) Dividend Option and (iii) Bonus Option.
Dividend Option shall have Reinvestment, Payout & Sweep Facility.
The AMC reserves the right to introduce further Plans / Options 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:

Growth Option (between Growth, Dividend & Bonus)

Default Facility:

Dividend Reinvestment (between Reinvestment & Payout & Sweep)
The AMC reserves the right to introduce further Plans / Options / facility as and when deemed fit.


Minimum Application /Additional Application Amount:

Minimum Application Amount Minimum Additional Application Amount (During Ongoing Offer Period)
Minimum of ₹ 5,000/- and in multiples of ₹ 1/- thereafter. Minimum of ₹ 1, 000/- and in multiples of ₹ 1/-thereafter.

Minimum Redemption Amount(During Ongoing Offer Period)

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

Entry Load*: NIL

Exit Load:

  • If the Units are redeemed/switched-out on or before 30 days from the date of allotment - 0.25%
  • If the Units are redeemed/switched-out after 30 days from the date of allotment - Nil
*Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor.
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.

Applicable NAV

(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

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

  • 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.

(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 Arbitrage Fund 1.05% 29-03-2016
Edelweiss Arbitrage Fund (Direct Plan) 0.40% 29-03-2016
 

This product is suitable for investors who are seeking*:
Riskometer
  • To generate income by predominantly investing in arbitrage opportunities.
  • Investments predominantly in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.
*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 low risk
 
 
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