June 2024

Businesses yield returns on rotational basis

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR

Realty -51% 54% -34% 11% -14% -4% 111% -33% 29% 6% 55% -11% 82% 12%

Capital Goods -47% 37% -4% 52% -8% -2% 41% 0% -9% 13% 55% 17% 68% 17%

Auto -18% 45% 11% 58% 0% 12% 33% -22% -9% 13% 20% 17% 49% 15%

Cons Discr -22% 42% -2% 56% 9% 6% 56% -15% -1% 21% 31% -1% 40% 16%

Utilities -34% 12% -12% 23% -2% 12% 32% -13% -4% 4% 70% 25% 37% 12%

Pharma & HC -9% 33% 27% 44% 10% -14% -6% -7% -9% 62% 11% -11% 35% 11%

Telecom -16% -3% 19% 10% 3% -21% 51% -39% 14% 14% 43% -3% 31% 7%

FMCG 10% 51% 13% 20% 1% 5% 31% 15% 0% 15% 12% 20% 31% 16%

IT -17% 0% 60% 20% 2% -5% 15% 26% 11% 58% 62% -24% 26% 16%

Metal -48% 19% -12% 8% -29% 48% 54% -17% -10% 18% 73% 25% 19% 12%

Financial Services -29% 54% -6% 59% -4% 6% 43% 11% 26% 5% 15% 10% 14% 16%

Nifty 500 TRI -26% 33% 5% 39% 0% 5% 38% -2% 9% 18% 32% 4% 27% 15%

Source: NSE and BSE indices data, ACEMF and Edelweiss internal analysis. Sectors have been sorted basis 2023 returns. Calendar year returns provided above. Past performance is not an
indicator of future performance. HC = Healthcare 2
 70
80
90
100
110
120
130
140
150
160

70
120
170
220
270
370
320
Dec-14
Dec-12
Jun-13 May-15

Dec-13 Oct-15
Jun-14 Mar-16
Dec-14 Aug-16
Jun-15
Jan-17
Dec-15

IT
Auto

Jun-17
Jun-16
Dec-16 Nov-17

Jun-17 Apr-18
Dec-17 Sep-18
Jun-18 Feb-19
Dec-18
Jul-19
Jun-19
Dec-19
Dec-19
90
70
110
150
170

130
190

90
70
110
130
150
170
190

Dec-13 Dec-12
Mar-13
May-14
Jun-13
Oct-14
Sep-13
Mar-15
Dec-13
Aug-15 Mar-14
Jan-16 Jun-14
Jun-16 Sep-14
Nov-16 Dec-14
PHARMA

Apr-17 Mar-15
Every business goes through its cycle

Jun-15
Financial Services

Sep-17
Sep-15
Feb-18
Dec-15
Jul-18
Mar-16
Dec-18
Jun-16
May-19 Sep-16
Oct-19 Dec-16
50
90

100
200
250
300
100
110
120
130
140

150
150

Dec-20 Dec-13
Mar-21 Mar-14
Jun-21 Jun-14
Sep-21 Sep-14
Dec-21
Dec-14
Mar-22
Mar-15
Source: NSE and BSE indices data, ACEMF and Edelweiss internal analysis. Index levels rebased to 100 for the respective periods chosen for each sector. Past performance is not an indicator of future performance.

Jun-22
FMCG

Jun-15
Realty

Sep-22
Sep-15
Dec-22
Dec-15
Mar-23
Jun-23 Mar-16
An effective investment strategy is required to capture the up cycle and avoid the down cycle.

Sep-23 Jun-16
Dec-23 Sep-16
Mar-24 Dec-16
3
 Traditional approach to identify business cycles
Full Recovery

Weaknesses of this
1. Identify Macro- Early Recession approach
economic cycle
Early Recovery
Macroeconomic conditions
Full Recession
may change rapidly

2. Identify Judgment-based timing can

Defensives Cyclicals Growth
business cycle cause wrong entry and exit
FMCG Banks Discretionary
and sectors points
Healthcare Industrials IT

Turnaround calls may

become value traps
3. Identify stocks HUL ICICI Bank TVS Motor
within these Divi’s Lab L&T Persistent Sys
sectors ITC HDFC Bank Tata Motors

The above is for illustration only. The sectors/stocks mentioned should not be construed as a recommendation and the fund may or may not have exposure to these stocks currently or in the
future. 4
 Most diversified portfolios miss business cycles

Fund A Fund B Fund C Nifty 500

Industry (Allocation %)
FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24

Financial Services 33 35 37 38 29 29 30 23 30 28 32 28 32 29 32 28

Information Technology 8 6 12 8 12 13 8 7 11 9 6 5 13 14 11 10

Oil, Gas & Consumable Fuels 11 15 8 2 11 9 7 9 9 8 7 8 10 11 10 9

Fast Moving Consumer Goods 5 4 1 1 6 3 4 3 5 4 7 6 8 7 9 7

Automobile and Auto Components 5 4 6 6 5 3 7 10 4 3 6 6 5 4 5 7

Healthcare 8 6 9 13 3 3 3 4 5 5 3 3 5 5 5 5

Capital Goods 7 7 7 6 5 7 9 12 4 3 3 3 3 3 4 5

Power 10 8 6 5 - - - 1 1 2 2 3 2 3 3 4

Metals & Mining 1 - - 0 2 4 4 5 4 4 2 2 3 4 3 3

Construction 6 5 3 1 4 4 5 5 3 3 3 4 2 2 3 3

Top 10 of Nifty 500 index 93 92 87 79 77 75 78 78 76 68 71 67 85 83 84 82

Sector rotation is missing in traditional diversified funds.

Source: ACEMF and Edelweiss internal analysis. Portfolio of select flexicap funds provided above for illustration only. Data provided for end of March for each financial year. 5
Introducing

Factor investing approach

6
What is Factor investing?

Factor investing involves selecting stocks based on certain characteristics that are believed to contribute to
their performance.

Strong proven relationship

with stock returns

Stock selection based Aims to generate

on current data excess returns

Rule based, hence no Long-term

judgemental calls back testing

7
 Key factors that drive stock returns

An investment factor is a specific feature of a security that explains its risk and expected return.

Factors Quality Growth Value Momentum

Sound balance High growth with Relatively

Feature Rising stocks
sheet stocks future potential inexpensive stocks

ROE, ROCE, Debt to Revenue, EBITDA, Low valuation 3m/6m/12m price

Metrics Equity PAT growth rate ratios like P/E, P/B change

Maruti, Godrej ICICI Bank, Bajaj Tata Motors, TVS,

E.g.: SBI, ONGC, Tata Steel
Consumer, Divi’s Lab Finance, Titan Trent, REC

The stocks mentioned should not be construed as a recommendation and the fund may or may not have exposure to these stocks currently or in the future. 8
 An informed way of identifying business cycles

1. Identify factors
driving stock Quality Growth Momentum
returns

Strengths of this approach

Data and evidence backed

2. Identify stocks HUL ICICI Bank TVS Motor
identification of business
that are doing Divi’s Lab L&T Persistent Sys
well using factors
cycle trends
ITC HDFC Bank Tata Motors

Focus on “What is doing

Full Recovery well vs What will do well”

3. Arrive at Banks
Industrials
sectors doing well Auto Early Recession

in current Early Recovery Info Tech

business cycle Healthcare

FMCG

Full Recession

The above is for illustration purpose only. It demonstrates identification of business cycles using factor investing approach. The stocks mentioned should not be construed 9
as a recommendation and the fund may or may not have exposure to these stocks currently or in the future.
 Factor tilts vary across periods
Nifty 500 calendar year returns
39% 38%
33% 32%
27%
18%
9%
5% 5% 4%
0%

-2%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Key factor tilts for respective years

Momentum Quality Momentum Quality Value Momentum Quality Momentum Momentum Growth Value Momentum

Growth Momentum Value Momentum Quality Growth Momentum Growth Quality Momentum Momentum Value

Quality Growth Growth Growth Growth Value Growth Quality Growth Quality Growth Growth

Value Value Quality Value Momentum Quality Value Value Value Value Quality Quality

Factor tilts are provided basis an internal model on top 500 stocks. 10
Introducing

Edelweiss Business Cycle Fund

Identifying business cycles through a proprietary factor-based approach*

*Factor investing approach is based on internal proprietary model mentioned in the SID 11
Introducing Edelweiss Business Cycle Fund
A factor-based approach to capture trends in business cycles

Investment Philosophy

Market-cap bias – Aims to

Our proprietary model Key factors used in the
01 analyses factors to spot
business cycle trends.
02 model - Growth, Quality,
Value & Momentum.
03 maintain equal allocation
between large caps and
mid/small caps.

The model helps in Benchmark agnostic

Portfolio Universe – Top
04 constructing a portfolio of ~60
stocks that are doing well in 05 300 stocks by market
capitalization.
06 approach with sector
exposure capped at 40% and
the current cycle. single stock exposure at 10%.

Factor investing approach is based on internal proprietary model mentioned in the SID 12
Factors used in the process

The Edelweiss Business Cycle Fund evaluates businesses combining Momentum with
other factors

Momentum
Value Price performance of last 3 and 12- Quality
P/E, P/B, months ROE, ROCE, Standard deviation
EV/EBITDA, Dividend yield

Growth
EPS, Operating Profit & Sales growth

13
Stock selection process using factors

STEPS PROCESS

Filter from top 300 stocks by market cap for

investable universe
Risk Filters

Calculate scores for each stock across factors

(Quality, Growth, Value & Momentum)
Calculate
Scores

Select top ranked stocks from each factor combination

based on their scores (Value+Momentum; Growth+Momentum; Quality+Momentum)
Stock
Selection

Construct portfolio of ~ 60 stocks across

Portfolio large cap and mid/ small cap universe
Construction

14
 Back-testing of proprietary model performance

Strategy performance
Nifty 500 TRI
(back-tested)

1 year 69% 35%

3 years 33% 18%

5 years 29% 18%

7 years 22% 15%

10 years 24% 15%

Data as on 31st May 2024. Performance is based on the back testing of proprietary model gross of expenses. CAGR provided above. Past performance is not an indicator of future performance. 15
 Strategy has consistently outperformed
Calendar year returns

53%
Strategy performance (back 48% 49%
48%
tested)
38% 39% 38% Nifty 500 TRI
33% 32%
25% 27%
18%
13% 11% 11%
5% 5% 7% 9%
4%
0% 1%

-2%
-6%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Return contribution of top 3 sectors in each calendar year:

Information Consumer Information Information
Financials Health Care Financials Financials Financials Health Care Industrials Financials
Technology Discretionary Technology Technology
8.2% 3.2% 5.7% 14.3% 4.8% 16.4% 5.1% 15.0%
8.3% 20.6% 1.5% 20.4%
Consumer Consumer Consumer Information Consumer
Health Care Industrials Financials Energy Health Care Materials Industrials
Staples Discretionary Staples Technology Staples
3.4% 14.4% 2.8% 5.4% 2.7% 7.2% 11.2%
8.0% 11.0% 1.0% 7.8% 3.6%
Consumer Consumer Consumer
Materials Health Care Materials Materials Health Care Materials Materials Health Care Materials
Discretionary Discretionary Discretionary
7.4% 9.5% 3.0% 5.6% 0.9% 2.5% 5.4% 6.8% 1.9%
3.1% 2.5% 6.0%

Source: Edelweiss internal analysis. Model performance is based on the Back testing of proprietary model, gross of expenses. Past performance is not an indicator of future performance. 16
Back-testing of proprietary model performance
Strategy
performance Nifty 500 TRI
5 year rolling returns (back tested)

100% of the times outperformed Min 4% -1%

Max 30% 21%

Avg 19% 14%

35%
SD 15.7% 16.4%
30%

25%

20%

15%

10%

5%

0%
Mar-17

Mar-18

Mar-19

Mar-21

Mar-22

Mar-23

Mar-24
Sep-17

Sep-18

Sep-19

Mar-20

Sep-20

Sep-21

Sep-22

Sep-23
Nov-16

Jul-17

Nov-17

Jul-18

Nov-18

Jul-19

Nov-19

Jul-20

Nov-20

Jul-21

Nov-21

Jul-22

Nov-22

Jul-23

Nov-23
Jan-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24
May-17

May-18

May-19

May-20

May-21

May-22

May-23

May-24
-5%

Strategy Nifty 500 TRI

Model performance is based on the back testing of proprietary model, gross of expenses. Past performance is not an indicator of future performance. Data as on 31st May 2024. 17
 Factor based approach leads to a dynamic portfolio
Nifty 500 Index Edelweiss strategy
Static sector allocation (%) dynamic sector allocation (%)
Sector Mar'21 Mar'22 Mar'23 Mar'24 Mar'21 Mar'22 Mar'23 Mar'24
Financial Services 32 29 32 28 9 3 19 22
Information Technology 13 14 11 10 20 25 3 7
Oil, Gas & Consumable Fuels 10 11 10 9 1 5 6 8
Fast Moving Consumer Goods 8 7 9 7 6 2 10 3
Automobile and Auto Components 5 4 5 7 2 5 11 11
Healthcare 5 5 5 5 22 9 5 9
Capital Goods 3 3 4 5 6 7 24 5
Power 2 3 3 4 2 6 6 10
Metals & Mining 3 4 3 3 6 9 2 3
Construction 2 2 3 3 0 0 1 1
Consumer Durables 4 4 3 3 8 2 0 5
Consumer Services 2 2 2 3 4 1 0 3
Telecommunication 2 2 2 2 1 3 0 0
Construction Materials 3 2 2 2 3 1 0 0
Top 15 sectors for the index as on March 2024 provided above

Source: ACEMF and Edelweiss internal analysis. Factor based approach is based on internal proprietary model. Sector derived based on back testing of model portfolio 18
 Strategy’s dynamic sectoral rotation
100%
Metals & Mining
90%
FMCG
80%
O&G
70%
Utilities
Pharma & HC
60%
Pharma & Healthcare
50%
Technology
Technology
40%
Capital goods Consumer Discretionary
30%
CapGoods
20%
Autos
10% Financials
Financial
0%
Sep-19

Sep-20

Sep-21

Sep-22

Sep-23
Mar-19

Jul-19

Mar-20

Jul-20

Mar-21

Jul-21

Mar-22

Jul-22

Mar-23

Jul-23

Mar-24
Nov-18

Nov-19

Nov-20

Nov-21

Nov-22

Nov-23
Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24
May-19

May-20

May-21

May-22

May-23

May-24
Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Sector derived based on back testing of model portfolio. Data as on 31st May 2024. 19
 Illustration: Technology exposure over the years
60,000 50,769 40%
50,000 35%
30%
40,000 25%
15,179
30,000 20,680 20%
6,708 13,619 15%
20,000
10%
10,000 16,216
5%
- 0%
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Nov-11

Jul-12
Nov-12

Jul-13
Nov-13

Jul-14
Nov-14

Jul-15
Nov-15

Jul-16
Nov-16

Jul-17
Nov-17

Jul-18
Nov-18

Jul-19
Nov-19

Jul-20
Nov-20

Jul-21
Nov-21

Nov-22

Jul-23
Nov-23
Jul-22
Allocation NIFTY IT - TRI

Nifty 5O index growth 60% 23% 110%

Nifty IT index growth 100% 35% 200%

Peak allocation to IT sector in the

33% 27% 34%
period
Dominant factors Quality + Growth +
Quality
Momentum Momentum

After a muted 2012, expanding order In a highly volatile and During and post
book, rising spends on IT in the challenging environment, pandemic, increased
Tailwinds
developed world and fall of the rupee IT among the few sectors focus on
against the US dollar. that performed well. technology.
Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an indicator of future performance. 20
 Illustration: Pharma & Healthcare exposure over the years
25,000 45%
40%
20,000 15,507 35%
15,369
8,790 30%
15,000 8,596 25%
10,000 20%
15%
5,000 10%
5%
- 0%
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Nov-11

Jul-12
Nov-12

Jul-13
Nov-13

Jul-14
Nov-14

Jul-15
Nov-15

Jul-16
Nov-16

Jul-17
Nov-17

Jul-18
Nov-18

Jul-19
Nov-19

Jul-20
Nov-20

Jul-21
Nov-21

Jul-22
Nov-22

Jul-23
Nov-23
Allocation NIFTY PHARMA - TRI

Nifty 5O index growth 50% 65%

Nifty Pharma Index growth 75% 80%

Peak allocation to the Pharma index

28% 40%
in the period
Quality +
Dominant factors Quality
Momentum

Strong global growth opportunity Rally in pharma stocks during

Tailwinds (US being the key driver), healthy Covid owing to its resilience
earnings visibility.

Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an indicator of future performance. 21
 Illustration: PSU Banks exposure over the years
10,000 9,418 8%
9,000 7%
8,000
6%
7,000
6,000 5%
3,240
5,000 4%
4,000 3%
3,000
2%
2,000
1,000 1%
- 0%
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Nov-11

Jul-12
Nov-12

Jul-13
Nov-13

Jul-14
Nov-14

Jul-15
Nov-15

Jul-16
Nov-16

Jul-17
Nov-17

Jul-18
Nov-18

Jul-19
Nov-19

Jul-20
Nov-20

Jul-21
Nov-21

Jul-22
Nov-22

Jul-23
Nov-23
Allocation NIFTY PSU BANK - TRI

Nifty 5O index growth 45%

PSU Bank Index growth 200%

Peak allocation to PSU Bank sector in

the period 6%

Dominant factors Value + Momentum

Healthy growth in advances, Net Interest

Tailwinds Income (NII), reduction in gross Non-
Performing Assets (NPAs) and strong
growth in profitability.

Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an indicator of future performance. 22
 Illustration: Auto exposure over the years
30,000 27,921 30%

25,000 25%
20,000 20%
15,046
15,000 10,619 15%
10,000 5,101 10%
5,000 5%
- 0%
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Nov-11

Jul-12
Nov-12

Jul-13
Nov-13

Jul-14
Nov-14

Jul-15
Nov-15

Jul-16
Nov-16

Jul-17
Nov-17

Jul-18
Nov-18

Jul-19
Nov-19

Jul-20
Nov-20

Jul-21
Nov-21

Jul-22
Nov-22

Jul-23
Nov-23
Allocation NIFTY AUTO - TRI

Nifty 5O index growth 65% 45%

Auto Index growth 110% 85%

Peak allocation to Auto sector in

26% 14%
the period

Dominant factors Quality + Momentum Value + Momentum

Excise duty cut Pent-up demand following

Tailwinds announcement boosted Covid, limited supply keeping
sentiment towards the prices high, and investor
sector. optimism about profits.
Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an indicator of future performance. 23
 Illustration: Capital goods exposure over the years
80,000 35%
70,000 57,289
30%
60,000 25%
50,000 30,749
20%
40,000
19,751 15%
30,000
20,000 8,773 10%
10,000 5%
- 0%
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18

Nov-19

Nov-20

Nov-21

Nov-22

Nov-23
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18

Jul-19

Jul-20

Jul-21

Jul-22

Jul-23
Allocation S&P BSE Capital Goods - TRI

Nifty 5O index growth 65% 25%

Capital goods Index growth 160% 85%

Peak allocation to Capital goods

10% 30%
sector in the period

Dominant factors Quality + Momentum Value + Momentum

Increased infrastructure push Continued government push on

Tailwinds by the government with lower infrastructure, early signs of capital
interest rates. goods revival.
Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an
indicator of future performance. 24
 Illustration: Metals & Mining exposure over the years
14,000 18%
12,000 16%
9,350 14%
10,000
12%
8,000 10%
6,000 3,999 4,344 8%
6%
4,000 2,048
4%
2,000 2%
- 0%
Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Mar-23

Mar-24
Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18

Jul-19

Jul-20

Jul-21

Jul-22

Jul-23
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18

Nov-19

Nov-20

Nov-21

Nov-22

Nov-23
Allocation NIFTY METAL - TRI

Nifty 5O index growth 35% 30%

Nifty Metal Index growth 100% 90%

Peak allocation to Nifty Metal in the 8% 17%

period
Value + Quality + Growth +
Dominant Factors
Momentum Momentum
With recovery in economic activity, demand and price
Metal prices rose due to global events like
Tailwinds for metal commodities like steel, copper, aluminum
Brexit, US Presidential election.
rose leading to rising revenue for metal companies.

Note: Sector allocation of Edelweiss’ internal model demonstrated above for illustration only. Source: Edelweiss internal analysis and ACE MF. Past performance is not an indicator of future performance. 25
 Model maintained consistent market cap allocation
At each rebalance, the portfolio has been equally split between large (top 100 stocks by
market cap) and mid/small caps (Next 200 stocks by market cap)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023

Large Cap Mid Cap Small Cap

Note: Market cap allocation of Edelweiss’ internal model demonstrated above for illustration only. AMFI market cap classification has been used above. 26
 Outcome of a diversified portfolio vs Index constitution

Model portfolio weight relative to Nifty 500

Overweight/(Underweight)
7%
6% 6% 5%
3% 3% 3% 2%
0% 0% 0%

0% -1% -2%
-4%
-6%
-7%

-15%
Consumer Durables

Public Sector Bank

Construction
Chemicals
Power

Healthcare
Automobile and Auto
Realty

Fast Moving Consumer

Metals & Mining

Oil, Gas & Consumable Fuels

Capital Goods

NBFC
Financials ex Banks and

Telecommunication

Private Sector Bank

Consumer Services

Information Technology
Components

Goods
NBFCs

Absolute weight (%):

Strategy 13% 10% 12% 8% 5% 6% 4% 6% 4% 3% 8% 3% 4% 1% 3% 3% 1% 1%

Nifty 500 6% 4% 6% 3% 2% 3% 1% 3% 4% 3% 7% 3% 5% 3% 7% 9% 8% 16%

Note: As on 31st May 2024. The data is based on back testing of proprietary model as mentioned in the SID. 27
 Stock allocation vs Nifty 500

Top overweight stocks (%) Top underweight stocks (%)

Stock Sector Strategy Nifty 500 Overweight Stock Sector Strategy Nifty 500 Underweight
Private Sector
Indus Towers Ltd. Telecommunication 4.4 0.1 4.3 HDFC Bank Ltd. - 6.8 (6.8)
Bank
Oil, Gas &
Reliance
JSW Energy Ltd. Power 4.4 0.2 4.2 Consumable - 5.7 (5.7)
Industries Ltd.
Fuels
Financials ex Banks Private Sector
REC Ltd. 3.3 0.4 2.9 ICICI Bank Ltd. 1.1 4.6 (3.5)
and NBFCs Bank
Information
Thermax Ltd. Capital Goods 3.0 0.1 2.9 Infosys Ltd. - 3.0 (3.0)
Technology
Larsen & Toubro
Solar Industries Construction - 2.6 (2.6)
Chemicals 3.0 0.1 2.9 Ltd.
India Ltd.
Fast Moving
Torrent Power Ltd. Power 3.0 0.1 2.9 ITC Ltd. Consumer - 2.2 (2.2)
Goods
Tata
Phoenix Mills Ltd. Realty 3.0 0.2 2.8 Information
Consultancy - 2.2 (2.2)
Technology
Sundaram Finance Services Ltd.
NBFC 3.0 0.2 2.8 Private Sector
Ltd. Axis Bank Ltd. - 1.9 (1.9)
Bank
Dixon
Kotak Mahindra Private Sector
Technologies Consumer Durables 3.0 0.2 2.8 - 1.5 (1.5)
Bank Ltd. Bank
(India) Ltd.
Automobile and
Automobile and Mahindra &
Bajaj Auto Ltd. 3.3 0.6 2.7 Auto - 1.4 (1.4)
Auto Components Mahindra Ltd.
Components

Note: As on 31st May 2024. The data is based on back testing of proprietary model as mentioned in the SID. 28
 Strategy model portfolio details

Top 10 stocks Top 10 sectors

Stock name Sector % holding Sector Name % holding
Capital Goods 13%
JSW Energy Ltd. Power 4.4
Financials ex Banks and NBFCs 12%
Indus Towers Ltd. Telecommunication 4.4 Power 10%
Automobile and Auto Consumer Durables 8%
Bajaj Auto Ltd. 3.3
Components
Automobile and Auto Components 8%
Financials ex Banks and
REC Ltd. 3.3 Telecommunication 6%
NBFCs
Dixon Technologies (India) Consumer Services 6%
Consumer Durables 3.0
Ltd.
Chemicals 5%
Sundaram Finance Ltd. NBFC 3.0
Metals & Mining 4%
Phoenix Mills Ltd. Realty 3.0 Healthcare 4%

Torrent Power Ltd. Power 3.0 Top 10 sector holding 74%

Solar Industries India Ltd. Chemicals 3.0 Large Mid Small

Thermax Ltd. Capital Goods 3.0 % holding 40% 51% 9%

Total top 10 stocks 33.4 # of stocks 54

Data for the model portfolio provided above as on 31st May 2024. This is for illustration purpose only. The Fund may or may not invest in the above stocks in future. The
data is based on back testing of proprietary model as mentioned in the SID. 29
 Factor investing expertise

₹ 14,000 cr 15 5
years of applied Factor investment
AUM of factor-based funds quantitative innovation professionals

1
clear investment philosophy
4
Strategies being run
using factors
Note: As on 31st May 2024. The above data is for Edelweiss Balanced Advantage Fund, Edelweiss Aggressive Hybrid Fund, Edelweiss Equity Savings Fund and Edelweiss Large Cap Fund. 30
Our Factor Investing Team

Bharat Lahoti Bhavesh Jain

Co-Head – Factor Investing Co-Head – Factor Investing

Bharat has 18 years of experience in areas of portfolio management, Bhavesh started his career with Edelweiss Asset Management in
macro and sector research. He has earlier worked with marquee January 2008 and has over 15 years of rich experience in the financial
investment banks and asset management companies. His last markets. He had joined in the Low-Risk Trading team which is
assignment before joining Edelweiss Asset Management Limited was responsible for looking at arbitrage between SGX Nifty and NSE Nifty
with DE Shaw Group, a global hedge fund, as a senior manager along with normal cash-future and index arbitrage.
working on fundamental and quantitative research ideas.
He has done Masters in Management Studies from N.L. Dalmia
He has done Master in Management Studies (MMS) in Finance from Institute – Mumbai University and MBA in Finance also from Mumbai
N.L. Dalmia Institute of Management and Bachelor in Engineering (BE) University.
in Electronics and Telecom from Mumbai University.

Supported by a team of 3 analysts

31
Fund Features

Category Sectoral/ Thematic Indicative Allocation

Investments
Mr. Bhavesh Jain (% to net assets)
Fund
Mr. Bharat Lahoti
Manager Mr. Amit Vora (For Overseas Securities) Equity and Equity related instruments
80% to 100%
selected on the basis of business cycle
Benchmark Nifty 500 TRI
Other Equity & Equity related instruments 0% to 20%
The Fund seeks to generate long-term capital
appreciation by investing predominantly in equity and Debt and money market instruments 0% to 20%
equity related securities with a focus on navigating Units issued by REITs and InvITs 0% to 10%
Investment business cycles through dynamic allocation between
Objective various sectors and stocks at different stages of
business cycles in the economy. There is no assurance
that the investment objective of the Scheme will be
achieved.
Lumpsum: Minimum of Rs. 5,000/- and multiples of Re.
Minimum 1/- thereafter.
Application On continuous basis: Minimum Rs. 100/- and in multiples
Amount of Re. 1/- thereafter.
SIP: Rs. 100/- and in multiples of Re. 1/- thereafter.

NFO period 9th July 2024 to 23rd July 2024

For mote details on the asset allocation, please refer the SID available on website.
32
 Proven record of running factor-based strategies

Edelweiss Balanced Edelweiss Aggressive Edelweiss Large Cap

Advantage Fund Hybrid Fund Fund

Inception date 20th Aug 2009 26th June 2009 26th May 2009
AUM (Rs. cr) 11,300 1,600 900
Quality + Growth;
Quality + Growth +
Dominant factors Trend based Asset Quality + Growth
Momentum
Allocation model
14+ years track record, 15 years track record, 1st
14+ years track record,
proven multi-factor long only fund with
About the strategy 1st pure play trend-based
quant model in equity overlay of factor
asset allocation
stock selection investing
Since inception:
11.04% 12.30% 14.51%
Fund returns

Benchmark returns 10.68% 12.08% 13.75%

Data as on 31st May 2024. Returns are CAGR. Regular plans considered. Numbers rounded off for ease of reference. 33
 Disclaimer
Benchmark Additional Benchmark
Edelweiss Balanced Advantage Fund
(Nifty 50 Hybrid Composite Debt 50:50 Index) (Nifty 50 TR Index)
Period
Value of Rs 10,000 Value of Rs 10,000 Value of Rs 10,000
Returns Returns Returns
Invested Invested Invested
1 Year 23.43% 12,350 14.77% 11,482 22.95% 12,302
3 Years 12.66% 14,304 10.08% 13,342 14.44% 14,991
5 Years 14.30% 19,523 11.63% 17,347 14.93% 20,072
Since Inception 11.04% 47,030 10.68% 44,849 12.92% 60,355

Benchmark Additional Benchmark

Edelweiss Aggressive Hybrid Fund
(CRISIL Hybrid 35+65 - Aggressive Index) (Nifty 50 TR Index)
Period
Value of Rs 10,000 Value of Rs 10,000 Value of Rs 10,000
Returns Returns Returns
Invested Invested Invested
1 Year 30.69% 13,078 23.03% 12,310 22.95% 12,302
3 Years 17.96% 16,423 13.16% 14,497 14.44% 14,991
5 Years 16.69% 21,655 14.25% 19,482 14.93% 20,072
Since Inception 12.30% 55,740 12.08% 54,155 12.90% 60,332

Benchmark Additional Benchmark

Edelweiss Large Cap Fund
(Nifty 100 TR Index) (Nifty 50 TR Index)
Period
Value of Rs 10,000 Value of Rs 10,000 Value of Rs 10,000
Returns Returns Returns
Invested Invested Invested
1 Year 29.68% 12,978 28.86% 12,895 19.57% 11,963
3 Years 16.51% 15,821 15.48% 15,404 13.92% 14,788
5 Years 15.96% 20,981 15.66% 20,714 14.63% 19,808
Since Inception 14.51% 76,750 13.75% 69,398 13.22% 64,695

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Source: Ace-MF, Data as on May 31, 2024 34
Risk-o-meters & Disclaimers
This product is suitable for investors who are seeking*: Scheme Risk-o-meter Benchmark Risk-o-meter

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.
Edelweiss Balanced NIFTY 50 Hybrid Composite
Advantage Fund Debt 50:50 Index

To create wealth in the long term.

Investment in equity and equity-related securities and fixed-income instruments.

Edelweiss Aggressive Hybrid CRISIL Hybrid 35+65 -

Fund Aggressive Index

To create wealth in the long term.

Investment in equity and equity-related securities including equity derivatives of the 100 largest
companies by market capitalization, listed in India.
Edelweiss Large Cap Fund Nifty 100 TRI

Investors understand that their

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
principal will be at very high risk

35
 Risk-o-meter & Disclaimers

Edelweiss Business Cycle Fund is suitable for investors who are seeking^:
• Long term capital appreciation
• Investment in equity and equity related instruments with a focus on
navigating business cycles through dynamic allocation between
various sectors and stocks at different stages of business cycles in the
economy.
^Investors should consult their financial advisers if in doubt about whether
the product is suitable for them.

This document is for information purposes and private circulation only and is not an offer to sell or a solicitation to buy any mutual fund units/ securities or to
have business relations with Sponsor/ AMC/ Trustee Company and its associates or Edelweiss Mutual Fund. These views alone are not sufficient and should not
be used for the development or implementation of an investment strategy. All opinions, figures and estimates included in this document (unless as specified in
the document) are as of this date and are subject to change without notice. It should not be construed as investment advice to any party. Neither Sponsor/ AMC/
Trustee Company and its associates nor Edelweiss Mutual Fund or any person connected with it, accepts any liability arising from the use of this information.
Utmost care has been exercised while preparing the document, and Sponsor/ AMC/ Trustee Company and its associates or Edelweiss Mutual Fund does not
warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient
of this material should rely on their investigations and take their own professional advice. Investment decisions of the AMC may not always be profitable.

The above is the investment ideology which will be followed by the fund manager. However, this can change based on market dynamics, economic scenarios etc.
For detailed investment strategy, risk factors of the schemes please refer to SID available on website. The representational logos used does not imply any
affiliation or endorsement by the brands. These are for illustration purpose only.
Please click on Factsheet for performance of other funds managed by the fund managers.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 36
Know more, www.edelweissmf.com
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