All Weather Equity (AWE)

What is All Weather Equity (AWE)

Make up to Without equity

Truly All Weather
50% return downside risk

*AWE gives 50% **Your Capital is ***Over last 10 years,

absolute return if protected in case Nifty AWE has given 50%
Nifty gives 7.5% falls after 3 Years return more than 90%
absolute return over 3 times
years

What you buy: Market Linked Debenture

issued by Edelweiss Finvest Pvt Ltd (EFPL), 100% subsidiary of Edelweiss Group
*50% absolute return is payable on the face value (1,00,000/- per Debenture) and not on the Issue Price, thus absolute return on investment may be lesser
**Capital is defined as the Face Value of the debenture, i.e. 1,00,000/- per debenture. Capital protection as well as returns are subject to the credit risk of Issuer.
***Based on backtested data from 21-Jul-08 till 20-Jul-18 assuming daily investment, covering 1827 observations. Backtesting is not indicative of future returns.
- This is not an offer document and does not constitute an offer for subscription 2
 AWE – Return Scenarios
Scenario 1 – Market Rallies Scenario 2 – Market Tanks

Nifty Level Nifty Return AWE Return Nifty Level Nifty Return AWE Return

17,515 50% 50%

**11,677 Start
Level
0% 0%

14,012 20% 50%

10,509 -10% 0%

~6.7x of Nifty Return

*Capital Protected
12,553 7.5% ***50%

9,341 -20% 0%
12,261 5.0% 33.3%

5,838 -50% 0%
11,969 2.5% 16.7%

**11,677 Entry 0.0% 0.0% 2,919 -75% 0%

Level

* Capital is defined as the Face Value of the debenture, i.e. 1,00,000/- per debenture
** Entry level will be the avg of Nifty close on 30-Aug-18 & 27-Sep-18. Nifty closed at 11677 on 30-Aug-18. Entry level may vary and will be fixed post 27-Sep-18.
***50% absolute return is payable on the face value (1,00,000/- per Debenture) and not on the Issue Price, thus absolute return on investment may be lesser 3
- All the above returns are Pre-Tax, Post-cost.
 90% times AWE has delivered 50% return
Nifty 50 3 Year Rolling Returns
80% 90% of the times AWE has
given Max Return 0f 50%
60%
Source: NSE Nifty Closing Prices

40%
Backtesting Results

20%
0%
-20%
2012 2013 2014 2015 2016 2017 2018
Nifty Performance AWE Perfomance

3 Year Rolling Return (abs.) Nifty 50 AWE

Total Observations 1827 1827
Average Return 32% 47%
Nifty Return Scenarios % Times Avg. Return Avg. Return
Below 0% 4% -3% 0%
0% to 7.5% 6% 5% 32%
7.5% to 50% 70% 25% 50%
Above 50% 20% 66% 50%

• Based on backtested data from 21-Jul-08 till 20-Jul-18 assuming daily investment, covering 1827 observations 4
• Backtesting is not indicative of future returns
 AT P/E of 20X or More Nifty Delivers only 11% Returns
*Current Nifty P/E – 23-24X and historically Nifty 50 has delivered only ~11% absolute at P/E>20X where as AWE
would deliver 39% returns
Do note that this is for back testing and not returns.

NIFTY Avg. 3 Yr. AWE 3 Yr. Avg.

Analysis Condition
Returns Returns
Source: NSE Closing Prices

Nifty P/E > 20 11% 39%

Valuations
Different
Entry at

Nifty P/E 15-20 31% 50%

Nifty P/E <15 63% 50%

NIFTY 50 3 YR ROLLING RETURNS

120%
Absolute Returns

100%
80%
60%
40% AWE AWE Alpha
20% Alpha
7.5%
0% Absolute
-20% Returns
Nifty P/E

2011 2012 2013 2014 2015 2016 2017 2018 2019

@Entry

Entry at Higher Valuations

• Based on backtested data from 21-Jul-08 till 20-Jul-18 assuming daily investment, covering 1827 observations
• Backtested results are no assurance of future performance.
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• The analysis explains the behaviour of AWE and does not in any manner reflect, assure/guarantee the returns.
 Risk Factors

1 Credit Risk

✓ Repayment of principal as well as the returns

are subject to the credit risk of the Issuer
✓ In the event the Issuer is insolvent or goes
bankrupt, the investor may stand to lose the
entire invested capital.

2 Liquidity Risk

✓ MLDs are issued for a fixed tenor with no

interim exit options for the investor built in.
✓ While the MLDs are listed, there is no
assurance that liquidity will be available on
the same if there are no active buyers and
sellers.

3 Interest Rate Risk

✓ Rise and fall in the interest rates influence

the valuation of the investment, thus
resulting in loss during the tenor of the
investment.

• For detailed information about the risks mentioned above and other risks, please refer to the offer document. 6
• Investors should consult their financial advisors and read the offer document before investing.
Why Should You Invest

• Upcoming General Elections 2019

Domestic Risks • High Market Valuations
• Slipping Fiscal Deficit

• Rising Interest Rates & Crude Oil

Foreign Risks • Trade wars

• Investors with large cap investments

Who should • Sell existing holdings and lock in profits
invest • Invest into AWE to keep profits safe and still
participate into equity market upside

7
 Key Terms
OFFERING All Weather Equity

PRODUCT TYPE Market Linked Debenture

ISSUER Edelweiss Finvest Pvt Ltd – (EFPL), 100% subsidiary of Edelweiss Group

CREDIT RATING CRISIL/ICRA PP-MLD-AA

SECURED Yes, with 1x collateral placed with SBI Trustee

LISTING Listed on BSE WDM Segment

FACE VALUE PER DEBENTURE INR 100,000/- per debenture

CAPITAL GUARANTEE 100% Capital (*Face Value) is protected at maturity

TENOR ~41 Months – 03-Mar-2022

Average of Official Closing Level of Nifty 50 on 30-Aug-2018 and Subsequent

ENTRY LEVEL
Month F&O Expiry on NSE
Average of Official Closing Level of Nifty 50 on NSE F&O Expiry from 31st to 36th
EXIT LEVEL
Month
*Face Value is 100000/- Per Debenture.
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This is not an offer document. Please see the offer document for exact details.
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