Edelweiss Banking and PSU Debt Fund

 
OVERVIEW

Edelweiss Banking and PSU Debt Fund is an open ended debt scheme with an investment objective of the Scheme is to generate returns commensurate with risks of investing in a portfolio of Debt Securities and Money Market Instruments issued by Banks, Public Sector Undertakings, Public Financial Institutions, entities majorly owned by Central and State Governments and Municipal Bonds.


However, there can be no assurance that the investment objective of the Scheme will be realized or that income will be generated.

 

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

Name: Edelweiss Banking and PSU Debt Fund

Scheme Type: An open ended debt scheme predominantly investing in Debt Instruments of Banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds.

Investment Objective: The investment objective of the Scheme is to generate returns commensurate with risks of investing in a portfolio of Debt Securities and Money Market Instruments issued by Banks, Public Sector Undertakings, Public Financial Institutions, entities majorly owned by Central and State Governments and Municipal Bonds.
However, there can be no assurance that the investment objective of the scheme will be realized.

Benchmark Index:Nifty Banking & PSU Debt Index .

Fund Manager : Mr. Gautam Kaul and Mr. Dhawal Dalal

Asset Allocation

Under normal circumstances, it is anticipated that the asset allocation shall be as follows:

Asset Class Allocation Indicative Allocation (% of net assets) Risk Profile
Debt Securities and Money Market Instruments issued by Banks, Public Sector Undertakings, Public Financial Institutions, entities majorly owned by Central and State Governments and Municipal Bonds. 80% - 100% Low to Medium
Debt Securities and Money Market Instruments including Treasury Bills, CBLO, Central and State Governments Securities, Units of Debt & Liquid Mutual Fund. 0% - 20% Low

Debt securities include government securities (G-Sec), debt issued by states (SDL & UDAY) & municipal corporations, debt issued by PSU, PFI, entities majorly owned by Central and State Governments and private entities, securitized debt, interest rate derivatives and other permissible debt securities.

Money market instruments include Commercial Papers, Commercial Bills, Treasury Bills, Collateralized Borrowing & Lending Obligations (CBLO), government securities having unexpired maturity up to one year, Call or Notice Money, Certificate of Deposits, Usance Bills, Repo (with approved government & Corporate Debt Securities as collateral), and any other like securities as specified by the RBI from time to time.

Further,

  • 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 purpose.
  • The cumulative gross exposure through debt, derivative positions will 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.

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the interests of the Unit Holders. Such changes in the investment pattern will be for short term and defensive considerations. In the event of deviations, rebalancing will be carried out within 30 (thirty) days from the date of the said deviation.

In case the rebalancing is not done within the specified period, justification for the same shall be provided to the Investment Committee and the reason for the same shall be recorded in writing. The Investment Committee shall then decide on the course of action.

Plans / Options / Facilities:

The Scheme offers a choice of two Plans:
1. Direct Plan; and
2. Regular Plan

Each Plan offers a choice of three options which are as follow:
1) Growth option
2) 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;
Reinvestment option;
Weekly reinvestment option;
Fortnightly reinvestment option;
Monthly reinvestment option; or
Monthly payout option.


Minimum Subscription / Redemption amount:

Initial Application Amount Initial Application Amount through SIP Additional Application Amount Amount / No. of Units for Redemption
Minimum of ₹ 5,000/- and in multiples of ₹ 1/- thereafter. 6 installments of Rs. 1000/- (One Thousand Rupees) each and in multiples of ₹ 1/- (One Rupee) thereafter. Minimum of ₹ 500/- and in multiples of ₹ 1/-thereafter. ₹ 500 and in multiples of ₹ 1 thereafter. There will be no minimum redemption criterion for Unit based redemption. The Redemption / Switch-out would be permitted to the extent of credit balance in the Unit holder's account of the Plan(s) / Option(s) of the Scheme(s) (subject to completion of Lock-in period or release of pledge / lien or other encumbrances).
Load Structure

Entry Load: Nil

Exit Load: Nil

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 5 bps on the daily net assets plus a proportionate charge in respect sales beyond T-30 cities subject to maximum of 30 bps on daily net assets.In the schemes, wherein exit load is not levied / not applicable, the AMCs shall not be eligible to charge the above mentioned additional expenses for such schemes.

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
  • Income over short to medium term.
  • Investment in Debt Securities and Money Market Instruments issued by Banks, PSUs and PFIs.
*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
 
 
Show