KEY INFORMATION MEMORANDUM (KIM) AND COMMON APPLICATION FORM Offer for units at applicable NAV based prices. This KIM can be used for the following Schemes: MUTUAL FUND: Liquid Edelweiss Mutual Fund Ø Edelweiss Liquid Fund Edelweiss House, Off. C.S.T Road, (An Open-ended Liquid Scheme) Kalina, Mumbai - 400 098 Debt www.edelweissmf.com Ø Edelweiss Ultra Short Term Bond Fund (An Open-ended Debt Scheme) TRUSTEE: Ø Edelweiss Gilt Fund Edelweiss Trusteeship Company Limited (An Open-ended Gilt Scheme) Edelweiss House, Off. C.S.T Road, Ø Edelweiss Monthly Income Plan* Kalina, Mumbai - 400 098 (An Open-ended Income Scheme) (Formerly Edelweiss Income Advantage Fund) *Monthly income is not assured and is subject to availability of distributable surplus. SPONSOR: Ø Edelweiss Short Term Income Fund Edelweiss Financial Services Limited (An Open-ended Income Scheme) Edelweiss House, Off.C.S.T Road, (Formerly Edelweiss Interval Fund - Edelweiss Monthly Interval Fund - Series I, an interval income scheme) Kalina, Mumbai - 400 098 Equity www.edelweissfin.com Ø Edelweiss ELSS Fund (An Open-ended Equity Linked Saving Scheme) INVESTMENT MANAGER: Ø Edelweiss Diversified Growth Equity Top 100 (E.D.G.E. Top 100) Fund Edelweiss Asset Management Limited (An Open-ended Equity Scheme) Edelweiss House, Off. C.S.T Road, Ø Edelweiss Equity Enhancer Fund Kalina, Mumbai - 400 098 (An Open-ended Equity Scheme) (Formerly Edelweiss Nifty Enhancer Fund) Ø Edelweiss Absolute Return Fund* REGISTRAR: (An Open-ended Equity Scheme) Karvy Computershare Private Limited (*The Scheme is an equity-oriented Scheme. Investors in the Scheme are not being offered any guaranteed / Unit - Edelweiss Mutual Fund assured returns) ‘Madhura Estates’, Municipal No.1-9/13/C, Ø Edelweiss Select Midcap Fund Plot No.13 & 13 C, Survey No.74 & 75, (An Open-ended Equity Scheme) Madhapur Village, Serilingampally Mandal & Municipality, Ranga Reddy District, Hyderabad – 500 081. Tel: 040-4030 8000 INVESTORS SHOULD NOTE THAT: This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the Scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centers or distributors or from the website www.edelweissmf.com The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. This KIM is dated August 27, 2012. MINIMUM REDEMPTION AMOUNT • In all plans to a minimum of 50 units & in multiples of 1 unit thereafter or `500/- & in multiples of `1/- EDELWEISS LIQUID FUND & EDELWEISS ULTRA thereafter. SHORT TERM BOND FUND • For demat transactions, minimum redemption would be mandatorily 50 units. • In case of the investors/ units holders having available balance less than `500/- or less than 50 units in their respective folio on the day of submission of valid redemption request, for the respective plan, the minimum INVESTMENT OBJECTIVE redemption limit would be the available balance. Edelweiss Liquid Fund: The objective of the Scheme is to provide optimal returns, commensurate with low risk Edelweiss Ultra Short Term Bond Fund: and high degree of liquidity, through a portfolio constituted of money market & short term debt instruments. Particulars Purchase Additional However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme Purchase does not assure or guarantee any returns. Retail Plan Minimum of `5,000/- and in Minimum of `1,000/- and in Edelweiss Ultra Short Term Bond Fund: The objective of the Scheme is to provide reasonable returns, multiples of `1/- thereafter. multiples of `1/- thereafter. commensurate with moderate level of risk and high degree of liquidity, through a portfolio constituted of money Institutional Plan Minimum of `90 Lakhs and in Minimum of `1,00,000/- and market and debt instruments. However, there is no assurance that the investment objective of the Scheme will multiples of `1/- thereafter. in multiples of `1/- thereafter. be realized and the Scheme does not assure or guarantee any returns. MINIMUM REDEMPTION AMOUNT ASSET ALLOCATION PATTERN • In all plans to a minimum of 50 units & in multiples of 1 unit thereafter or `500/- & in multiples of `1/- Edelweiss Liquid Fund: thereafter. The Asset Allocation pattern of the Scheme under normal circumstances is as under: • For demat transactions, minimum redemption would be mandatorily 50 units. Instruments Indicative allocation (% of total assets) Risk Profile • In case of the investors/ units holders having available balance less than `500/- or less than 50 units in their Min. Max. respective folio on the day of submission of valid redemption request, for the respective plan, the minimum Money Market Instruments 0% 100% Low redemption limit would be the available balance. Debt instruments including securitized debts 0% 50% Low to Medium BENCHMARK INDEX The investments in securitised debt papers including Pass through Certificates (PTCs) may be made upto 35% CRISIL Liquid Fund Index of the net assets of the scheme. The Scheme can also take derivative exposure upto 50% of the net assets of the The fund reserves the right to change the benchmark for evaluation of the performance of the Scheme from Scheme. The Scheme may engage in Stock Lending. Not more than 25% of the net assets of the Scheme can time to time, subject to SEBI Regulations and other prevailing guidelines if any. generally be deployed in stock lending and not more than 5% of the Scheme will be deployed in Stock lending to NAME OF THE FUND MANAGERS any single counterparty. Mr. Dhilip Krishna The cumulative gross exposure through 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 PERFORMANCE OF THE SCHEME not creating any exposure. Edelweiss Liquid Fund Returns as on August 14, 2012^ Scheme Benchmark The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme. # The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single Returns% Returns % counterparty in such transactions will not exceed 10% of the net assets of the Scheme. Returns for the last 1 year~ Notes# Retail Plan - Growth 9.02 8.73 (i) The Liquid Scheme shall make investment in/purchase debt and money market securities with maturity of Institutional Plan - Growth* N.A. N.A. upto 91 days only. Super Institutional Plan - Growth 9.88 8.73 (ii) In case of securities with put and call options (daily or otherwise) the residual maturity shall not be greater Returns for the last 3 years~ than 91 days. Retail Plan - Growth 6.37 6.60 (#For details on Explanatory notes please read SID) Institutional Plan - Growth* N.A. N.A. Edelweiss Ultra Short Term Bond Fund: Super Institutional Plan - Growth** N.A. N.A. The Asset Allocation pattern of the Scheme under normal circumstances is as under: Scheme Returns Since Inception@ Instruments Indicative allocation (% of total assets) Risk Profile Retail Plan - Growth~ 6.40 6.81 Institutional Plan - Growth*~ 9.29 8.16 Min. Max. $ ## Money Market Instruments* 0% 100% Low Super Institutional Plan - Growth 9.88 8.73 Debt instruments including securitized debts 0% 100% Low to Medium #CRISIL Liquid Fund Index The investments in securitised debt papers including Pass through Certificates (PTCs) may be made upto 50% *Since there were no investors at certain intervals during the period, performance data has not been provided. of the net assets of the Scheme. The Scheme can also take derivative exposure upto 100% of the net assets of ** Since there was no investor prior to August 12,2011 performance data has not been provided. the Scheme. The Scheme may engage in Stock Lending. Not more than 25% of the net assets of the Scheme ## Return are calculated from May 14,2012 since there were no investors from March 16, 2012 upto the said can generally be deployed in stock lending and not more than 5% of the Scheme will be deployed in Stock date lending to any single counterparty. Further the scheme may invest in Foreign Securities upto 35% of net assets ~Compounded Annualized Returns (CAGR). $ Absolute Returns of the Scheme. @Inception Date for Retail Plan – Growth: September 9, 2008, and Super Institutional Plan - Growth: August The cumulative gross exposure through debt and derivative positions will not exceed 100% of the net assets of 12, 2011 the Scheme. However, cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. 10 Absolute return for each financial year ^ 7.68 8.51 8.56 8.44 The total exposure related to option premium paid will not exceed 20% of the net assets of the Scheme. 6.21 6.02 4.86 5.18 5.34 5.47 The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. Exposure to a single 5 3.69 counterparty in such transactions will not exceed 10% of the net assets of the Scheme. 2.84 *Money Market Instruments include CPs, commercial bills, Corporate Debts, T-Bills, and Government securities having an unexpired maturity upto one year, CDs, usance bills, CBLOs, Repo/ Reverse Repo and any 0 other like instruments having a maturity of 1 year or less, as specified by the RBI from time to time.