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MUTUALFU) eeu pum ~ Race a at era cae me SMALL THINGS. BIG IMPACT. IN SMALL ST=PS EDELWEISS SMALL CAP FUND € (An open ended scheme predominantly investing in small-cap stocks) Invest in Edelweiss Small Cap Fund in small steps through a unique Smart Trigger enabled Plan* It helps you invest in a staggered manner and mitigates market timing risk NFO PERIOD: Jan 18, 2019 to Feb 1, 2019 Small-Caps in Small STePs ‘While small-cap stocks may have started looking attractive, ooking atthe market volatility and other macro and Political factors no one can predict the bottom Invest in Edelweiss Small Cap Fund in a staggered way through STeP (Smart Trigger enabled Plan) and reduce timing risk Through STeP fc Gen Vedi ate 20% ot 77 oaing 80% wil be inasorcanspeastnor (trigger satecin onl (pg, invested in seins invesinent in deaess (enabled) be invested upton In Ug Fudan wit wach Sial Cap Funai eal we 7 éehweisSalcapFund & "s) to Edelweiss SmallCap Fan ine monty isms emma Let's understand — ST=P 1 7 20% Investment in Edelweiss Small Cap Fund directly Reva 80 wi be invested in Edel gud une — Growth Investment Cpton an wil be sibseaveny sth ro Eéawess Sl Cap Find 20% | Sfalimsmatreay index ram te date of alent or nen ‘| on tne ast business day ofthe month f trigger does not hit noe on te last business day ofthe month if trigger does not hit Further 3% fal in small-cap index from the date of allotment or ‘on the last business day ofthe month if trigger does not hit | 20% | 20% Further 3% fal in small-cap index from the date of allotment or ‘Apretg | 20% | Further 3% fal in smal-cap index trom the date of allotment or Ea erie aoe Why now ? Investing in small-caps has been rewarding when last ‘53% small-cap stocks have fallen more than fone year returns are negative. Currently small-cap 30% from their peak. This provides good Index is down over 28% in last one year and this may ‘opportunity for picking quality small-cap stocks bea good timeto invest Last iyr return | Subsequent Syr Average sion pea (Small-Cap Index) Comarca Gee “iiiina From 30% to -20% Less than 10% 4 From 20% to -10% tr Fi From -10% to 036 20% to 30% From 00 10% 1.7% From 10% to 20% 67% 30% t0 50% From 20% to 30% 57% ‘More than 50% an ends vey sme 250 ae 2078 ‘ay ama 250 next Be boven Das on 208, srr: sre Dat at prance mye sustain he Why invest in Small-Cap ? ee eay No, of Anas Covering Stocks trom + Quality small-caps outperform as they show stronger SE Small-Cap index ‘earings growth compared tolarge-caps “0 + Out of 870 stocks in BSE small-cap Index more than 400 stocks covered by less than 5 analysts providing edge to 3 fund manager in generating alpha ies Es 2 i Wider scope to invest: “ + Over 2500 stocks are available in small-cap segment mine 8 10 ad 03D across many unique sectors not covered by large-caps Nantes ssc Rnb SESE Su nro an Growth stories unique to small-caps Industrial Infra Sector + Small-cap stocks account for 69% of companies and 27% of market cap + Sector shall do well over medium term as itis levered to acceleration in economic growth Chemicals Companies + 83% of isted chemical companies are small-caps accounting for 50% of market cap + These companies continue to gain market share from China in select product categories and ‘are expected to do well aver medium to long term + 28rd of the staffing services companies (both in terms of numbers and market cap) are ssmall-caps + These companies are growing fast and shall continue to do wellin medium to long term About The Fund Investment Objective ‘The investment objective of the scheme is to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small-cap companies Investment Strategy ~~ © oO Invests predominantly in small-cap | Aim to benefit from both | Asset Allocation ‘companies that are sources of return + 65% to 100% into equity + Compounding stories with + Compounding of and equity related securities reasonable growth prospects earings of small-cap companies + High quality businesses with + Valuation re-rating + 0% to 35% into equity and strong return ratios equity related securities of + Operating in niche environment ther companies + Eye on quality - higher degree of + 0% to 35% into debt and due diligence money market instruments