Edelweiss Diversified Growth Equity Top 100 (E.D.G.

E Top 100) Fund

An Open-ended Equity Scheme

Product note for September 2013

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Product Details
Fund Type: An Open-ended Equity Diversified Scheme Fund Manager: Paul Parampreet (Assisted by Bhavesh Jain) Inception: May 20, 2009 Present Investment Style: Endeavors to outperform the index with lower volatility. Invests predominantly in high quality growth stocks of Top 100 companies by market capitalization, listed in India Benchmark: CRISIL CNX NIFTY AUM: `20.28 Crore (as on September 30, 2013)

The Scheme Investment Philosophy:

Edelweiss Diversified Growth Equity Top 100 Fund is an open-ended equity Scheme which seeks to generate capital appreciation. The Schemes portfolio constitutes equity and equity related securities of the 100 largest listed corporates by market capitalisation, in India. Stock selection is based on an adaptive mathematical model. Investment in large cap companies provides lower volatility than the broader market and better access to cash and credit reserves increases predictability of future performance. A rigorous processdriven investment approach results in effective allocation of risk and capital in this Scheme. 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.

Who Should Invest?

This Scheme is suitable for investors who are convinced about the value of investing in equities.

Comments & Markets for September 2013

Post a huge fall in the previous month, markets recovered smartly in the first half of September, led mostly by FII inflows. Since then, markets have been sideways due to two major events. On one hand, Fed deferred QE tapering giving some respite to the markets and on the other hand, RBI took a restrictive stand by increasing the repo rate and curbing liquidity. RBI applied varied modes of intervention in the forex market including but not limited to selling Dollars, allowing banks to borrow funds up to a limit of 100% of their unimpaired Tier I capital and allowing banks to swap FCNR deposits at a concessional rate of 3.5% per annum. These steps along with Fed non action have helped inflow of FII funds in the markets and stabilization of Rupee. Owing to persistently high inflation RBI took a hawkish stance in its mid quarter policy review, increasing the repo rate by 25 bps to 7.50%. 2nd quarter CAD was reported at $21.77 Billion, in line with expectations. Manufacturing and services sector, however, continued to contract with PMIs of 49.6 and 44.6 respectively. US Fed deferred QE tapering until healthy signs of economic recovery are visible. Also, deferral of US attack on Syria has helped stabilize crude prices. However, US is now facing a new challenge in the form of annual budget and the resurfaced debt ceiling issue.

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Our Outlook:
Earnings season will be closely watched. Markets are expecting good numbers from IT and Pharma sector, mainly on account of weak Rupee. Consumer goods & discretionary and auto sectors are expected to post a slowdown in revenue growth due to weakening demand. Banking sector is expected to post weak numbers due to restricted liquidity and macro-economic scenario. Markets would also be closely following any developments on the US budget/debt ceiling issue, as any failure to resolve the impasse may lead to panic in the markets.

Current Portfolio Position:

The Scheme has major overweight positions (vis--vis the benchmark) in Technology and Pharma. The Scheme has major underweight positions (vis--vis the benchmark) in Oil & Gas, Metals and Utilities.

Fund Performance as on September 30, 2013

EDELWEISS DIVERSIFIED GROWTH EQUITY TOP 100 (E.D.G.E. TOP 100) FUND
Period E.D.G.E Top 100 (Existing Plan)
Returns September 28, 2012 September 30, 2013^ September 30, 2011 September 28, 2012^ September 30, 2010 September 30, 2011^ Since Inception (CAGR)
#

E.D.G.E Top 100 Plan B

Returns 4.62% 17.76% -13.34% 11.51% Value (INR)# 10,462 11,776 8,666 16,090

E.D.G.E Top 100 Plan C

Returns 4.61% 15.89% -13.37% 11.15% Value (INR)# 10,461 11,589 8,663 15,870

Scheme Benchmark (CNX NIFTY)

Returns 0.56% 15.38% -18.02% 6.99% Value (INR)# 10,056 11,538 8,198 13,431

Alternate Benchmark (S&P BSE SENSEX)

Returns 3.29% 14.03% -18.01% 7.62% Value (INR)# 10,329 11,403 8,199 13,783

Value (INR)# 10,458 11,769 8,661 16,000

4.58% 17.69% -13.39% 11.36%

Based on standard investment of `10,000 made at the beginning of the relevant period. ^Absolute Returns Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Since Inception returns are calculated on `10/- invested at inception of the Scheme. Returns shown above are for Growth Option only.

Note: Mr. Paul Parampreet is the Fund Manager of all Equity Schemes and also a Co - Fund Manager of Edelweiss Monthly Income Plan. Mr. Bhavesh D. Jain is the Assistant Fund Manager of all Equity Schemes. For the performance of these Schemes, please refer to the next section - Performance of other Schemes.

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Performance of other Schemes:

EDELWEISS ABSOLUTE RETURN FUND ( Edelweiss ARF)
Period Edelweiss ARF Plan
Returns September 28, 2012 - September 30, 2013^ September 30, 2011 - September 28, 2012^ September 30, 2010 - September 30, 2011^ Since Inception (CAGR) 3.42% 12.03% -2.01% 6.58% Value (INR)# 10,342 11,203 9,799 13,000

Crisil Balanced Fund

Returns 1.87% 13.72% -10.05% 6.58% Value (INR)# 10,187 11,372 8,995 12,999

Scheme Benchmark (Crisil MIP Blended Index)

Returns 3.22% 10.60% 1.90% 6.22% Value (INR)# 10,322 11,060 10,190 12,818

Alternate Benchmark (CNX Nifty)

Returns 0.56% 15.38% -18.02% 6.34% Value (INR)# 10,056 11,538 8,198 12,878

EDELWEISS ELSS FUND

Period
September 28, 2012 - September 30, 2013^ September 30, 2011 - September 28, 2012^ September 30, 2010 - September 30, 2011^ Since Inception (CAGR)

Edelweiss ELSS Plan

Returns 3.90% 13.18% -13.89% 16.96% Value (INR)# 10,390 11,318 8,611 21,060

Scheme Benchmark (CNX 500)

Returns -2.49% 13.22% -19.22% 14.53% Value (INR)# 9,751 11,322 8,078 19,059

Alternate Benchmark (CNX NIFTY)

Returns 0.56% 15.38% -18.02% 14.77% Value (INR)# 10,056 11,538 8,198 19,249

EDELWEISS SELECT MIDCAP FUND

Period
September 28, 2012 - September 30, 2013^ September 30, 2011 - September 28, 2012^ Since Inception (CAGR)

Edelweiss Select Midcap Fund

Returns 0.74% 10.19% 4.14% Value (INR)# 10,074 11,019 10,890

Scheme Benchmark (S&P BSE Midcap Index)

Returns -15.15% 7.79% -4.49% Value (INR)# 8,485 10,779 9,080

Alternate Benchmark (CNX NIFTY)

Returns 0.56% 15.38% 8.42% Value (INR)# 10,056 11,538 11,851

EDELWEISS EQUITY ENHANCER FUND

Period
September 28, 2012 - September 30, 2013^ September 30, 2011 - September 28, 2012^ September 30, 2010 - September 30, 2011^ Since Inception (CAGR) Plan A Since Inception (CAGR) Plan B

Edelweiss Equity Enhancer Fund (Existing Plan)

Returns -5.17% 13.80% -17.12% 5.14% N.A. Value (INR)# 9,483 11,380 8,288 12,280 N.A.

Edelweiss Equity Enhancer Fund Plan B

Returns -5.32% 13.80% -17.61% N.A. 4.54% Value (INR)# 9,468 11,380 8,239 N.A. 12,100

Scheme Benchmark (CNX NIFTY)

Returns 0.56% 15.38% -18.02% 6.28% 5.72% Value (INR)# 10,056 11,538 8,198 12,867 12,695

Alternate Benchmark (S&P BSE SENSEX)

Returns 3.29% 14.03% -18.01% 6.35% 6.22% Value (INR)# 10,329 11,403 8,199 12,903 12,956

EDELWEISS MONTHLY INCOME PLAN (Edelweiss MIP)

Period
September 28, 2012 - September 30, 2013^ September 30, 2011 - September 28, 2012^ September 30, 2010 - September 30, 2011^ Since Inception (CAGR)
#

Edelweiss MIP (Growth)

Returns 14.08% 9.29% 4.43% 8.58% Value (INR)# 11,408 10,929 10,443 13,450

Scheme Benchmark (Crisil MIP Blended Index)

Returns 3.22% 10.38% 2.21% 6.09% Value (INR)# 10,322 11,038 10,221 12,373

Alternate Benchmark (Crisil 1 Year T bill)

Returns 5.70% 8.14% 5.38% 5.77% Value (INR)# 10,570 10,814 10,538 12,236

Based on standard investment of `10,000 made at the beginning of the relevant period. ^Absolute Returns Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Since Inception returns are calculated on `10/- invested at inception of the Scheme. Returns shown above are for Growth Option only. Performance of the Dividend Option for the investor would be net of the dividend distribution tax, as applicable.

In case start /end date of the relevant period is a non-Business Day, the NAV of the previous Business Day is considered for computation of returns.

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Product Labels:
Edelweiss Absolute Return Fund is suitable for investors who are seeking*:
To create wealth over long term and prevent capital erosion in medium term | Investment predominantly in equity and equity related securities including through arbitrage opportunities with balance exposure to debt and money market securities | High risk (BROWN)

Edelweiss ELSS Fund is suitable for investors who are seeking*:

To create wealth in the long term | Investment in equity and equity-related securities that will be locked-in for the first three years | High risk (BROWN)

Edelweiss Select Midcap Fund is suitable for investors who are seeking*:
To create wealth in the long term | Investment predominantly in equity and equity related securities including equity derivatives of Mid Cap companies | High risk (BROWN)

Edelweiss Equity Enhancer Fund is suitable for investors who are seeking*:
To create wealth in the long term | Investment in equity and equity-related securities including equity derivatives | High risk (BROWN)

Edelweiss Monthly Income Plan Fund is suitable for investors who are seeking*:
Long term capital appreciation and current income | Investment in equity and equity related securities as well as fixed income securities (debt and money market securities) | Medium risk (YELLOW) *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Note: Risk may be represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Disclaimer: The view of the fund managers should not be construed as advice. Recipients of this document must make their own investment decisions based on their specific investment objectives and financial positions and using such AMFI qualified advisors as may be necessary. Opinions expressed in this document under the relevant sections are not necessarily those of Edelweiss Asset Management Limited (EAML) or any of its Directors, Officers, Employees and personnel. Consequently, EAML, ETCL or any of its Directors, Officers, Employees and personnel do not accept any responsibility for the editorial content or its accuracy, completeness or reliability and hereby disclaim any liability with regard to the same.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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Contact us
Ahmedabad : Madhusudan House, Basement, Near Navrangpura Telephone Exchange, Off CG Road, Ahmedabad 380 009 Tel 079 - 65141246
Bengaluru: S M Tower, 3rd floor, 3/2 & 4/3/1, 11th Main Road, Jayanagar 3rd Block East, Above Nike Showroom, Bengaluru 560011 Karnataka

Tejas Joshi +91 99099 73160 Dilipsingh Chauhan +91 97129 25247

Manish K Sharma +91 97420 00580

Delhi: 104, 1st floor, Mercantile House, 15 Kasturba Gandhi Marg, New Delhi 110001 Tel - 011 - 4357 1105

Paras Sharma +91 78389 29500

Kolkata: Savitri Tower, 2nd Floor, 3A Upper Wood Street, Kolkata 700017 Tel - 033 - 4421 8800

Jayanta Chatterjee +91 99030 77482

Mumbai: Edelweiss House, 6th Floor, Off. C.S.T Road, Kalina, Mumbai 400098 Tel - 022-40979821

Ajay Parmar +91 98203 53314

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