Edelweiss Large & Midcap Index Fund

Edelweiss Large & Midcap Index Fund

An Open-ended Equity Scheme replicating Nifty LargeMidcap 250 Index

NFO Period – 15th Nov to 26th Nov 2021

Searching a right fund isn’t easy

Selecting a right mutual fund to invest in largecap and midcap stocks is a lengthy process

Whichcategory?

Whichscheme?

Whatallocation?

Review &tracking

Large Cap Fund + Mid Cap Fund?Flexi Cap Fund?Large and Mid Cap Fund? Multicap Fund?

33 Large Cap Funds28 Mid Cap Funds28 Large & Mid Cap Funds28 Flexi Cap FundsTotal over 120 schemes to select from

Allocation between large and midcaps?Static?Dynamic?When and how to change the allocation?

Review allocation between large and midcapTrack performance against benchmarks and peersReview underperforming schemesTrack costs

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Winners keep changing

YoY ranks of top 10 Flexicap Funds since 2016

Each active fund has a different style and philosophy

Stock and sector exposures in each active fund canbe skewed based on Fund Manager’s view andconviction

This leads to huge diversion in performance withinactive funds compared to their benchmark and peersin the short run

Most investors fail to tide over such diversion andshort-term underperformance in active funds leadingto churn and constant switching between funds

Year 2016 2017 2018 2019 2020 2021

Fund A 1 5 11 1 14 6

Fund B 2 11 4 5 13 15

Fund C 3 2 15 12 16 18

Fund D 4 9 6 14 19 4

Fund E 5 8 12 9 11 12

Fund F 6 3 19 16 8 13

Fund G 7 15 8 19 9 3

Fund H 8 4 13 2 6 8

Fund I 9 12 9 17 12 16

Fund J 10 17 3 3 2 2

Data source: ACE MF. Ranks within entire peer group of Flexicap funds based on CY returns. 3

Index funds can solve these problems

If you don’t know what to buy, buy the market

Index Funds are simplesolution to choose

Consistent investing rule and well diversified portfolios

Requires much lower time and efforts to track and review

Adds good performers and eliminates bad performers on every rebalance

Ideal for investors who don’t have advisors/distributors by their side

Since index funds hold entire market and represent collective market intelligence, they usually perform above average

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Edelweiss Large & Midcap Index Fund

Presenting

An Open-ended Equity Scheme replicating Nifty Large Midcap 250 Index

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About Nifty LargeMidcap 250 Index

The NIFTY LargeMidcap 250 reflects theperformance of a portfolio of 100 large cap and 150mid cap companies, represented through the NIFTY100 and the Nifty Midcap 150 index respectively.

The Index provides equal weight allocation tolargecap and midcap stocks which is rest quarterly.

Weights to individual stocks are assigned as per theirfree-float marketcap. Index constituents are reviewedon half-yearly basis.

Through equal weight, index seeks to balancebetween growth (mid-cap) and stability (large-cap)which cannot be achieved if weighed on the basis ofmarket capitalization due to skewness towardslargecap.

For detailed index methodology and more details visit www.niftyindices.com

Established businesses representing Nifty 100 Index

High growth emerging businesses representing Nifty midcap 150 index

A perfect blend of large and midcap stocks

NiftyLarge

Midcap250 Index

100Largecap

Stocks50%

150Midcap stocks

50%

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Index Constituents (as of 30 Sept 2021)

Top 10 Largecap StocksWeightage

(%)

Reliance Industries Ltd. 4.52

HDFC Bank Ltd. 3.87

Infosys Ltd. 3.44

HDFC Ltd. 2.76

ICICI Bank Ltd. 2.70

Tata Consultancy Services Ltd. 2.17

Kotak Mahindra Bank Ltd. 1.63

Hindustan Unilever Ltd. 1.34

ITC Ltd. 1.15

Larsen & Toubro Ltd. 1.14

Top 10 Midcap stocks Weightage (%)

Adani Total Gas Ltd. 1.13

SRF Ltd. 0.95

Crompton Greaves Consumer Electricals Ltd. 0.82

Voltas Ltd. 0.82

Zee Entertainment Enterprises Ltd. 0.81

Godrej Properties Ltd. 0.78

Mind Tree Ltd. 0.78

Tata Power Co. Ltd. 0.78

Shriram Transport Finance Co. Ltd. 0.76

Mphasis Ltd. 0.74

Source: NSE, Data as of 30th Sept 2021 7

Index Statistics (as of 30 Sept 2021)

Source: NSE, Data as of 30th Sept 2021

Risk Measures 1 yr 5 yrs

Std. Deviation (Largemidcap 250 Index) 14.59 17.62

Std. Deviation (Nifty 50) 15.38 18.22

Beta (against Nifty 50) 0.87 0.92

Correlation (against Nifty 50) 0.92 0.95

Fundamentals P/E P/B Dividend Yield

LargeMidcap 250 Index 29.75 4.14 1.04

Nifty 50 Index 26.98 4.41 1.17

Top 10 Sector Allocation

Sector Weight

Financial Services 25.93%

Consumer Goods 11.49%

IT 11.38%

Oil & Gas 8.46%

Automobiles 6.16%

Pharma 5.63%

Industrial Manufacturing 4.94%

Chemicals 4.04%

Construction 3.26%

Metals 3.12%

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Diversified sector allocation

Top 10 sector allocation

Nifty 100 Index Nifty Midcap 150 Index Nifty Large Midcap 250 Index

Sector Weight Sector Weight Sector Weight

Financial Services 34.76% Financial Services 17.24% Financial Services 25.93%

IT 15.18% Consumer Goods 11.05% Consumer Goods 11.49%

Consumer Goods 11.94% Industrial Manufacturing 9.58% IT 11.38%

Oil & Gas 11.26% Automobiles 8.12% Oil & Gas 8.46%

Metals 4.51% IT 7.65% Automobiles 6.16%

Automobiles 4.17% Chemicals 7.62% Pharma 5.63%

Pharma 4.10% Pharma 7.14% Industrial Manufacturing 4.94%

Cement & Cement Products 2.64% Oil & Gas 5.70% Chemicals 4.04%

Construction 2.59% Construction 3.92% Construction 3.26%

Power 2.48% Healthcare Services 2.85% Metals 3.12%

Largecap index is skewed towards Financials and IT

Midcap index has exposure to promising themes like Chemicals and

lower exposure to financials

Blended index has exposure to large plus promising new age sectors

Source: NSE, Data as of 30th Sept 2021 9

FinancialServices

IT Oil & GasConsumer Goods

Automobile

Metals PharmaConstruct

ion

Cement &Cement

ProductsTelecom Power Services

Fertilisers&

Pesticides

Consumer Services

Healthcare

Services

Chemicals

IndustrialManufact

uring

Nifty 50 37.2 17.4 12.3 11.1 4.7 3.6 3.4 2.7 2.5 2.1 1.7 0.7 0.5

Nifty 100 34.8 15.2 11.3 11.9 4.2 4.5 4.1 2.6 2.6 2.1 2.5 0.8 0.7 1.6 0.5 0.4 0.2

Nifty Largemidcap 250 25.9 11.4 8.5 11.5 6.2 3.1 5.6 3.3 2.5 1.8 2.9 1.7 1.0 2.6 1.7 4.0 4.9

0.0

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15.0

20.0

25.0

30.0

35.0

40.0

Nifty 50 Nifty 100 Nifty Largemidcap 250

Reduces Sector Concentration Risk

Nifty 50 Index and Nifty 100 has major exposure to Financial Services and IT and very low exposure into promising sectors like chemical, consumer and healthcare services.

Source: NSE, Data as of 30th Sept 2021 10

Simple investment strategy compared to peers

LargeMid Cap 250 Index Large and midcap funds Flexicap funds

Market Cap

Allocation

Avg Min Max Avg Min Max Avg Min Max

Large Cap 50% 50% 50% 49% 17% 61% 64% 40% 80%

Mid Cap 50% 50% 50% 39% 35% 46% 19% 7% 30%

Small Cap -- -- -- 8% 2% 16% 11% 1% 30%

Average No. of stocks 250 55 50

Sectoral allocation

As per Free Float market cap As per Fund manager’s view As per Fund manager’s view

Average no. of sectors : 19 Average no of sectors : 22 Average no of sectors : 20

Top 5 sector allocation : 63% Top 5 sector allocation : 51% Top 5 sector allocation : 58%

Concentration % in top 10 stocks : 25% % in top 10 Stocks : 28% % in top 10 Stocks : 33%

Entire Flexicap and Large and Midcap fund universe considered as on 30th September 2021. Exposure to large and midcap stocks in Nifty Largemidcap 250 index may move above or below 50% due to market price movements and the same shall be reset to 50% on every rebalance, Source: ACE MF 11

Index Performance

0

2000

4000

6000

8000

10000

12000

14000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Nifty LargeMidcap 250 Index - TRI NIFTY 200 - TRI NIFTY 500 - TRI

Since Inception (April 2005) CAGRNifty Largemidcap 250 16.65%Nifty 200 15.30%Nifty 500 15.36%

Performance (CAGR%) 15 Years 10 Years 5 Years 3 Years 1 Year

Nifty LargeMidcap 250 Index - TRI 14.33 17.85 18.70 24.97 74.31

NIFTY 200 - TRI 12.77 15.61 17.69 22.42 62.95

NIFTY 500 - TRI 12.81 15.78 17.76 23.04 65.56

Data as 17th Oct 2021. Past performance may or may not sustain in future, Source: ACE MF 12

Performs well against Flexicap funds

Index performance compared with flexicap funds

Source: ACE MF, Funds with more than Rs. 1,000 cr AUM are selected from the Flexicap category. Performance as on 18th Oct 2021. Index returns are net of 0.75% expense, Past performance may or may not sustain in future

Scheme Name 10 Years Rank 5 Years Rank 3 Years Rank

Nifty LargeMidcap 250 Index - TRI 17.09 5 17.71 5 24.12 7

Fund 1 17.62 4 15.30 10 19.93 13

Fund 2 15.23 10 15.42 8 20.15 12

Fund 3 18.23 1 20.25 2 28.12 3

Fund 4 17.98 2 15.20 11 21.92 10

Fund 5 22.39 1 30.52 2

Fund 6 17.87 3 15.80 7 21.93 9

Fund 7 12.14 14 15.48 16

Fund 8 16.81 6 15.41 9 22.21 8

Fund 9 25.61 5

Fund 10 16.23 8 17.09 6 25.60 6

Fund 11 16.32 7 18.95 4 25.61 4

Fund 12 15.93 9 12.48 13 17.98 15

Fund 13 14.13 11 13.43 12 18.11 14

Fund 14 20.21 3 31.61 1

Fund 15 20.23 11

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Performs well against Large & Midcap funds

Index performance compared with Large & Midcap funds

Source: ACE MF, Funds with more than Rs. 1,000 cr AUM are selected from the large & Midcap Fund category. Performance as on 18th Oct 2021. Index returns are net of 0.75% expense. Funds that have switched categories from midcap to large and midcap has been excluded. Past performance may or may not sustain in future

Scheme Name 10 Years Rank 5 Years Rank 3 Years Rank

Nifty LargeMidcap 250 Index - TRI 17.09 3 17.71 2 24.12 2

Fund 1 16.93 5 16.12 8 23.67 5

Fund 2 16.93 4 16.19 7 23.44 8

Fund 3 17.59 2 14.83 13 23.93 3

Fund 4 17.68 1 16.03 10 22.89 9

Fund 5 16.44 6 16.98 4 20.59 15

Fund 6 16.13 9 16.06 9 22.53 11

Fund 7 13.69 16 13.55 17 21.69 12

Fund 8 13.78 15 16.51 6 23.80 4

Fund 9 15.78 11 14.25 15 20.77 14

Fund 10 16.36 7 15.06 11 23.59 7

Fund 11 14.67 13 14.97 12 20.12 16

Fund 12 16.26 8 17.86 1 22.60 10

Fund 13 16.62 5 23.65 6

Fund 14 15.68 12 13.83 16 18.51 17

Fund 15 14.33 14 14.58 14 21.57 13

Fund 16 15.94 10 17.55 3 24.39 1

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Consistently performs above average

Rolling return analysis against Large and midcap fund category

Source: ACE MF. Entire peer group considered for daily rolling return analysis. Data since Jan 2015 to Sep 2021. Index returns are considered net of 0.75% expense ratio

Time spent in quartile rank 3 Year 5 Year

Quartile Q1 Q2 Q1 Q2

Nifty Largemidcap 250 Index 22% 50% 38% 49%

Rolling return analysisNifty LargeMidcap

250 IndexLarge & Midcap Fund

categoryNifty LargeMidcap

250 IndexLarge & Midcap Fund

category

3 year 5 year

Average 12.37 11.86 13.70 13.80

Min -7.32 -7.02 -0.86 -0.58

Max 28.56 26.88 23.99 22.45

Median 13.54 12.09 14.98 14.56

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Consistently performs above average

Rolling return analysis against Flexicap fund category

Source: ACE MF. Entire peer group considered for daily rolling return analysis. Data since Jan 2015 to Sep 2021. Index returns are considered net of 0.75% expense ratio

Time spent in quartile rank 3 Year 5 Year

Quartile Q1 Q2 Q1 Q2

Nifty Largemidcap 250 Index (TRI)

15% 48% 6% 60%

Rolling return analysisNifty LargeMidcap

250 IndexFlexicap Fund

categoryNifty LargeMidcap

250 IndexFlexicap Fund

category

3 year 5 year

Average 12.39 12.25 13.70 13.24

Min -7.32 -5.86 -0.86 -1.02

Max 28.56 28.37 23.99 21.98

Median 13.56 12.16 14.97 14.20

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One of the better indices for core portfolio

Rolling returns analysis compared to some popular indices

Indices

10 years 5 years 3 years

Max. Min. Avg.STD Dev.

Max. Min. Avg.STD Dev.

Max. Min. Avg.STD Dev.

Nifty LargeMidcap 250 Index - TRI 20.64 6.36 12.63 12.63 24.74 -1.50 12.79 12.79 34.27 -6.57 12.80 12.80

NIFTY 50 - TRI 17.18 5.13 10.75 10.75 22.60 -1.03 10.99 10.99 28.79 -4.46 10.97 10.97

NIFTY NEXT 50 - TRI 24.32 7.13 14.25 14.25 30.20 0.26 14.44 14.44 43.79 -8.00 14.20 14.20

NIFTY 500 - TRI 18.18 5.04 11.03 11.03 22.08 -1.40 11.24 11.24 30.52 -6.31 11.18 11.18

NIFTY 100 - TRI 18.29 5.50 11.36 11.36 23.12 -0.75 11.59 11.59 30.95 -4.98 11.51 11.51

NIFTY 200 - TRI 18.02 5.16 10.98 10.98 22.15 -1.27 11.19 11.19 30.06 -5.75 11.14 11.14

Nifty Midcap 150 - TRI 23.30 7.27 14.01 14.01 29.10 -2.34 14.14 14.14 39.62 -8.29 14.30 14.30

NIFTY 100 Equal Weight Index - TRI 20.41 4.41 12.13 12.13 27.29 -2.78 12.37 12.37 41.41 -10.11 11.82 11.82

NIFTY 50 Equal Weight Index - TRI 17.12 2.70 10.14 10.14 25.02 -4.46 10.42 10.42 36.30 -10.25 9.78 9.78

Source: ACE MF. Daily rolling return analysis since Oct 2010 till Oct 2021 for 5 & 3 year returns and since Oct 2015 till Oct 2021 for 10 year returns. Past performance may or may not sustain in future 17

Performs well compared to other peer indices

5 year rolling returns analysis against other broad indices having midcap/Smallcap exposure

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Nifty LargeMidcap 250 Index - TRI NIFTY 200 - TRI NIFTY 500 - TRI

Rolling ranks % time spent NIFTY 200 - TRI NIFTY 500 - TRI Nifty Large Midcap 250 Index - TRI

Rank 1 9% 0% 91%

Rank 2 47% 48% 5%

Rank 3 44% 52% 4%

Source: ACE MF, 5 year daily rolling return analysis since April 2005 till Oct 2021. Past performance may or may not sustain in future

Equal weight assigned Large and Midcap stocks leads to outperformance against Free-Float Marketcap weighted indices

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A right solution for long term SIP

SIP performance Total Amount Invested(Rs)Nifty LM 250

(Present Value) (Rs)Nifty LM 250

XIRR(%)Nifty 200XIRR(%)

Nifty 500XIRR (%)

15 years 18,00,000 69,62,979 16.46 14.50% 14.70%

10 years 12,00,000 33,32,328 19.51 17.19% 17.51%

5 years 6,00,000 10,86,630 24.33 22.21% 22.62%

3 years 3,60,000 6,09,472 38.32 33.43% 34.72%

Source: ACE MF, Data as 17th Oct 2021. Past performance may or may not sustain in future. Rs. 10,000 Monthly SIP considered for above calculations

A simple fund for core SIP allocation

It’s easy to set-up an SIP in index fund

Earn market returns- no need to review and track

Performs better than other broad indices

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Summary

A simple yet powerful Index Fund to invest

in large and midcap universe

Reduces efforts of tracking and reviewing

your fund frequently

Equal weight to Largecap and midcaps reduces

skewness to any one marketcap segment

Apt solution for DIY and first time investors

for their core portfolio allocation

Complements active funds in your portfolio

Lower cost adds to returns over the

longer period

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Fund Features

Scheme Type An Open-ended Equity Scheme replicating Nifty LargeMidcap 250 Index

Investment objective

The investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the Nifty LargeMidcap 250 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.

Category of the Scheme Index Funds

Plan Options Regular & Direct

Fund Managers Mr. Bhavesh Jain

Exit Load NIL

Minimum InvestmentLumpsum: Minimum of Rs. 5,000/- and multiples of Re. 1/- thereafter.Additional purchase: Minimum of Rs. 500/- and multiples of Re. 1/- thereafter.

Approximate expense ratio

Regular Plan : around 0.95% to 1.00%Direct Plan : around 0.25% to 0.30%(Expense ratio is subject to change. Above numbers are approximate figures. For final expense ratio please refer expense ratio section on www.edelweissmf.com after allotment)

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Disclaimers

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 havebusiness relations with Sponsor/ AMC/ Trustee Company and its associates or Edelweiss Mutual Fund. These views alone are not sufficient and should not be usedfor 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 Companyand 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 beenexercised while preparing the document, and Sponsor/ AMC/ Trustee Company and its associates or Edelweiss Mutual Fund does not warrant the completeness oraccuracy 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 theirinvestigations and take their own professional advice. Investment decisions of the AMC may not always be profitable.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.22

Disclaimers

NSE INDICES LIMITED DISCLAIMERS FUNDThe Product(s) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED. NSE INDICES LIMITED does not make anyrepresentation or warranty, express or implied, to the owners of Edelweiss Large & Midcap Index Fund or any member of the publicregarding the advisability of investing in securities generally or in Edelweiss Large & Midcap Index Fund particularly or the ability of the NiftyLargeMidcap 250 Index to track general stock market performance in India. The relationship of NSE INDICES LIMITED with the Licensee isonly in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined,composed and calculated by NSE INDICES LIMITED without regard to Edelweiss Asset Management Limited or Edelweiss Large & MidcapIndex Fund. NSE INDICES LIMITED does not have any obligation to take the needs of the Edelweiss Asset Management Limited or owner ofEdelweiss Large & Midcap Index Fund into consideration in determining, composing or calculating the Nifty LargeMidcap 250 Index. NSEINDICES LIMITED is not responsible for nor has participated in the determination of the timing of, prices at, or quantities of Edelweiss Large& Midcap Index Fund to be launched or in the determination or calculation of the equation by which Edelweiss Large & Midcap Index Fund isto be converted into cash. NSE INDICES LIMITED has no obligation or liability in connection with the administration, marketing or trading ofthe Edelweiss Large & Midcap Index Fund. NSE INDICES LIMITED does not guarantee the accuracy and/ or the completeness of the NiftyLargeMidcap 250 Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for anyerrors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to beobtained by the Edelweiss Asset Management Limited, owners of Edelweiss Large & Midcap Index Fund, or any other person or entity fromthe use of the Nifty LargeMidcap 250 Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties,and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any dataincluded therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims,damages or losses arising out of or related to Edelweiss Large & Midcap Index Fund, including any and all direct, special, punitive, indirect,or consequential damages (including lost profits), even if notified of the possibility of such damages. An investor, by subscribing orpurchasing an interest in the Product(s), will be regarded as having acknowledged, understood and accepted the disclaimer referred to inClauses above and will be bound by it.

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