Edelweiss ETF - Nifty Bank
 
OVERVIEW

Edelweiss ETF - Nifty Bank is an Open Ended Exchange Traded Fund which aims to provide returns before expenses that closely correspond to the total returns of the Nifty Bank Index subject to tracking errors.
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.

 

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

Name: Edelweiss ETF - Nifty Bank

Scheme Type: An Open Ended Exchange Traded Fund

Investment Objective: The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the Nifty Bank Index subject to tracking errors.
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 Bank Index

Fund Manager : Mr. Bhavesh Jain
Co-Fund Manager : Mr. Hiten Shah

Asset Allocation

Under normal circumstances, the asset allocation pattern of the Scheme would be as follows:

Asset Class Indicative Allocation (% to net assets) Risk Profile
Stocks constituting Nifty Bank Index 95% to 100% Medium to High
Debt & money market instruments (with unexpired maturity not exceeding 91 days) and Liquid Schemes 0% to 5% Low

Exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when equity shares are unavailable, insufficient or for rebalancing in case of corporate actions for a temporary period. The gross position to such derivatives will be restricted to 5% of net assets of the Scheme.

Short Duration for this purpose may include but not limited to the following:
a. If there is a dividend declared, the same needs to be reinvested into the Scheme. Though the Index would do the same next day (i.e. ex dividend), the Scheme would account for the dividend in about 15-20 days, post which the money can be reinvested. Till such time to reduce the tracking error the Scheme would take exposure in derivatives and post accrual of the dividend, fresh stocks would be bought in the proportion of the Index;
b. In case of rebalancing, if a stock is moving out and a new stock enters the Index, to manage the pay-in/ pay-out mismatch, the Scheme shall take exposure to derivatives, which would be for a very short term; and
c. In case liquidity pertaining to the underlying stock is limited and derivative is available at a cheaper price, the Scheme may take exposure to derivative to reduce tracking error. This position would be reversed as soon as the stock gains liquidity and starts trading at par.

Notes:

  • The Scheme shall neither make investments in any Fund of Funds Scheme, Securitised Debt instrument, Credit Default Swap, Foreign Securities and/or ADRs/GDRs nor will it engage in short selling of securities.
  • The Scheme does not intend to participate in repo in corporate debt securities.
  • The funds under the Scheme shall be deployed in eligible securities, in accordance with the investment objective of the scheme within 5 Business Days from closure of NFO Period.
  • The Scheme can take derivative exposure upto a limit as stated in the tables above. The total exposure related to options premium paid will not exceed 5% 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 Scheme may engage in Stock Lending in accordance with SEBI guidelines in this regard. Not more than 20% of the net assets of the Scheme invested in the stocks constituting Nifty Bank Index would generally be deployed in stock lending and not more than 5% of the net assets of the Scheme invested in the stocks constituting Nifty Bank Index would be deployed in Stock Lending to any single counterparty.
  • From time to time, the Scheme may hold cash and/or invest in the Collateralized Borrowing & Lending Obligations (CBLO) or repo to meet the liquidity requirements.
  • Pending deployment of funds of the Scheme in securities in terms 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 the guidelines issued by SEBI vide its circular dated April 16, 2007, as amended from time to time.
  • The Fund will endeavor to keep the tracking error as low as possible. Under normal circumstances, such tracking error is not expected to exceed 2% per annum.

Plans / Options / Facilities :

The Scheme does not offer any Plans/Options for investment.

The AMC/Trustee reserve the right to introduce Plan(s)/Option(s) as may be deemed appropriate at a later date.

Load Structure

The Load Structure would comprise of an Entry Load and /or an Exit Load / CDSC, as may be permissible under the Regulations. The current load structure is stated as under:

Entry Load: NIL

Exit Load#:NIL

*No entry load will be charged for purchase / additional purchase / switch‐in transaction(s) accepted by the Fund. 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.

#Investors other than Authorised Participants can redeem units directly with the Fund for less than Creation Unit size at Applicable NAV based prices and no exit load shall be charged for redemption of units if:

  • the traded price of the units of the Scheme is at a discount of more than 3% to the NAV for continuous 30 days; or
  • Discount of bid price to NAV over a period of 7 consecutive days is greater than 3%, or
  • There are no quotes available on the Stock Exchange for 3 consecutive trading days.
  • Total bid size on the exchange is less than half of Creation Units size daily, averaged over a period of 7 consecutive trading days.

Such instances shall be tracked by the AMC on an ongoing basis and in case if any of the above mentioned scenario arises the same shall be disclosed on the website of the Fund i.e. www.edelweissmf.com

The exit load charged, if any, shall be credited to the Scheme net of service tax. For any change in load structure AMC will issue an addendum and display it on the website/Investor Service Centres.

The investor is requested to check the prevailing load structure of the Scheme before investing.

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 1.5% of daily net assets.


In addition to the above 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.


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

Applicable NAV

The Net Asset Value (NAV) applicable for purchases or redemptions or switches, based on the time of the Business Day & relevant cut off time by which the application is accepted at the Investor Service Centres and/or at Branches.

Actual Current Recurring Expenses
Schemes Total Expense Ratio Effect from
Edelweiss ETF - Nifty Bank - Growth Option 0.20% 15-12-2015


This product is suitable for investors who are seeking*:
Riskometer
  • Long term capital appreciation
  • Investment in securities covered by Nifty Bank Index
*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 high risk
 
 
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