Offer Period : 14th July 2020 - 17th July 2020

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What you expect from your investments? by Edelweiss Mutual Fund

Higher Safety Relatively Stable Returns Lower Tax No Lock-in

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Get the best of all worlds
by Edelweiss Mutual Fund

BHARAT Bond ETF brings in the best features of – Bonds, Mutual Funds & ETFs

Mutual Funds
Bonds ETFs

Diversified Portfolio
Predictable Returns High Liquidity
Professionally Managed
Fixed Maturity Date Low Cost*
Tax Efficiency
Lower Interest Rate Risk Transparency
if held till maturity

*The fund will be managed at very low cost -. upto 10,000 crore -0.0005% p.a.
; Next 10,001 crore to 20,000- 0.0004% : Over 20,001 crores – 0.0001% p.a.
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Invest in Public Sector Company Bonds by Edelweiss Mutual Fund

The mentioned companies

With BHARAT Bond ETF
are part of Nifty BHARAT
Bond Index as on 31st May Invest in Bonds of Public Sector Companies with just Rs.1000/- 4
2020
BHARAT Bond ETF – A Bond of Trust by Edelweiss Mutual Fund

Public Sector Companies

An Exchange Traded Fund which will invest your money
in Bonds of Public Sector Companies.

Defined Maturity*
The Fund will have a defined maturity date and at maturity you will
get back your investment proceeds along with returns.

Exchange Traded
You can buy or sell units of this fund on the exchange anytime
during the tenure of the fund.

* Please note that the Scheme (s) is neither Capital Protected nor Guaranteed Return Product. 5
Investment Strategy by Edelweiss Mutual Fund

BHARAT Bond ETFs will have a fixed maturity period having

a diversified portfolio of Public Sector Company Bonds

It will seek to track investment results of

the respective Nifty BHARAT Bond Index

It will invest in AAA rated Public Sector bonds maturing on or

before the maturity date of the respective fund
It will endeavor to hold bonds till their maturity with an aim
to provide stable and predictable returns
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How it works?
by Edelweiss Mutual Fund

BHARAT Bond ETF

Investor Public Sector Company Bonds

Buy/Sell units of BHARAT BHARAT Bond ETF invests
Bond ETF which is in Public Sector Company
listed/traded on the bonds maturing on or
exchange before scheme maturity

Upon maturity of the Fund you will get back your

money invested along with the returns*

*Please note that the Scheme (s) is neither Capital Protected nor Guaranteed Return Product. 7
Nifty BHARAT Bond Index Methodology
by Edelweiss Mutual Fund

BHARAT Bond ETF will invest in Public Sector Company bonds that meet the eligibility criteria of the Index
Index will have similar maturity as that of the respective BHARAT Bond ETF

Index will select bonds in a transparent manner through a 3 step process

Selection Weight Assignment Rebalancing

AAA rated bonds issued by public
sector companies
Bonds maturing within 12
months prior to the maturity of
Index
Weight based on total Quarterly Rebalancing
outstanding amount i.e. of Index constituents
higher the outstanding
– higher the weightage
Exposure to single
company capped at 15%

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Investment options for you – Exchange Traded Fund
by Edelweiss Mutual Fund

Investors holding Demat account can invest in the respective BHARAT Bond ETF
Within ETF there are two maturity options : Short Term and Long Term

Short Term Long Term

BHARAT Bond ETF

- April 2025
~5 Years
~11 Years
BHARAT Bond ETF
- April 2031

Underline Index
Yield*
6.04%# 7.04%# Underline Index
Yield**

Investors who do not have a demat account have an alternative medium to invest via BHARAT Bond FoFs
#The Scheme will invest in constituents of underlying Index. The indicative yield provided is of the Index and not that of the Scheme. The Scheme (s) are neither Capital Protected nor
guaranteed Return Product and may or may not generate return in line with Index. Indicative Yield of the Index is as on 31 st May 2020
*Nifty BHARAT Bond Index – April 2025 **Nifty BHARAT Bond Index – April 2031. The Scheme will be listed on Exchange only post allotment. 9
Alternate investment option – Fund of Funds
by Edelweiss Mutual Fund

BHARAT Bond FOFs will invest in the respective BHARAT Bond ETF
There will be two series of FoFs, both investing in ETFs of respective maturities.

BHARAT Bond FOF – April 2025 BHARAT Bond FOF - April 2031
Invests in Invests in

Units of BHARAT Bond ETF

- April 2025
~5Years
~11 Years
Units of BHARAT Bond ETF
- April 2031

Underline Index Underline Index

Yield* 6.04%# 7.04%# Yield**

#The Scheme will invest in constituents of underlying Index. The indicative yield provided is of the Index and not that of the Scheme. The Scheme (s) are neither Capital Protected nor
guaranteed Return Product and may or may not generate return in line with Index. Indicative Yield of the Index is as on 31st May 2020
*Nifty BHARAT Bond Index – April 2025 **Nifty BHARAT Bond Index – April 2031 10
Why should you invest?
by Edelweiss Mutual Fund

Why Should You Invest?

Stability & High Safety Transparency

Predictability Investment in diversified Daily disclosure of
A bond like structure with basket of Public Sector portfolio constituents
fixed maturity provides Bonds and live NAV Periodically
predictable and stable through the day#
returns at maturity

No Lock-in Lower Tax Low Cost

Buy/Sell on Tax efficient compared to The Fund will be managed
exchange traditional investment at a very low cost –
any time or through avenues. Taxed at only 20% 0.0005%#
AMC in specific post indexation*
basket size#

*Additional surcharge applicable # Please visit www.BHARATBond.in for Live NAV. #This is applicable only for BHARAT Bond ETF. 11
Benefit of Indexation - Tax efficiency
by Edelweiss Mutual Fund

Benefit of Indexation Indexation is an efficient way to reduce tax

Bond ETF
on your returns by adjusting it for inflation.
Post Tax Amount:
Rs. 20.35 L (7.36%)
Indexation allows you to adjust purchase
Traditional investment
price of your investment with inflation.
avenue
Post tax amount –
Rs. 18.11 l (6.12%) It is applied to long term returns on your
investments

Higher inflation means higher purchase

price, which means lower tax

Long term capital gains are taxed at 20%

post Indexation in debt mutual funds

• Analysis based on Rs. 10 Lakh invested in Bond ETF and Traditional investment Avenue
• Assumed Return : 8% CAGR | Tenure: 10 Years | Indexation: 4%
• Traditional Investment Taxed at 30% and Bond ETF Taxed at 20% after indexation

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Above is only for illustration purposes. Please consult you TAX Advisor before making any investment
Indexation Example by Edelweiss Mutual Fund

BHARAT Bond ETF BHARAT Bond ETF

Traditional Traditional
April 2025 April 2031
Investment Investment
(6 Indexation) (12 Indexation)
Investment Investment
Rs. 1 Lakh Rs. 1 Lakh Rs. 1 Lakh Rs. 1 Lakh
Amount Amount
Assumed Rate of Assumed Rate of
6.04% 6.04% 7.04% 7.04%
Return Return
Indexation** NA 6 Indexation** NA 12

Value on Maturity Rs. 1.33 Lakh Rs. 1.33 Lakh Value on Maturity Rs. 2.10 Lakh Rs. 2.10 Lakh
Indexation Value - Rs. 1.26 Lakh Indexation Value - Rs. 1.60 Lakh
Taxable Amount Rs. 33,171 Rs. 6,639 Taxable Amount Rs. 1,09,974 Rs. 49,871
Applicable Tax* Rs. 10,349 Rs. 1,381 Applicable Tax* Rs. 34,312 Rs. 10,373
Post Tax Value Rs. 1,22,822 Rs. 1,31,790 Post Tax Value Rs. 1,75,662 Rs. 1,99,601
Net Post Tax Net Post Tax
4.30% 5.81% 5.30% 6.54%
Return Return
• Assumed Tenure for Traditional Investment and Bond ETF (6 Indexation ) – 4.88 Years and Tenure for Traditional Investment and Bond ETF (12 Indexation) – 10.90 Years.
• **Assumed Rate of Inflation is 4%.
• * Traditional Investment Taxed at 30% + 4% Cess and BHARAT Bond ETF at 20% post indexation + 4% Cess,
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• Above is only for illustration purposes. Please consult you TAX Advisor before making any investment
Nifty BHARAT Bond Index – April 2025 constituents by Edelweiss Mutual Fund

NIFTY Bharat Bond Index – April 2025 constituents

Credit Outstanding Bond Issuance
Sr. no. Issuer No. of ISINs Weight
Rating amount (in crs.)
1 POWER FINANCE CORP.LTD. AAA 17 27409.20 15%
2 REC LIMITED AAA 10 19254.00 15%
3 POWER GRID CORP.OF INDIA LTD. AAA 16 10055.36 15%
4 NATIONAL HOUSING BANK AAA 2 3670.00 11%
5 INDIAN OIL CORP.LTD. AAA 1 2995.00 9%
6 NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT AAA 1 2800.00 9%
7 HINDUSTAN PETROLEUM CORP.LTD. AAA 2 2500.00 8%
8 EXPORT-IMPORT BANK OF INDIA AAA 5 1765.00 5%
9 INDIAN RAILWAY FINANCE CORP.LTD. AAA 4 1707.00 5%
10 NTPC LTD. AAA 13 1262.00 4%
11 NHPC LTD. AAA 9 892.80 3%
12 NUCLEAR POWER CORP.OF INDIA LTD. AAA 1 400.00 1%
Grand Total 81 74,710 100.00%

Index YTM: 6.04%*

*The indicative yield provided is of the Index and not that of the Scheme. The Scheme (s) are neither Capital Protected nor guaranteed Return Product and may or may not generate
return in line with Index. Indicative Yield of the Index is as on 31st May 2020 14
Nifty BHARAT Bond Index – April 2031 constituents by Edelweiss Mutual Fund

NIFTY Bharat Bond Index - April 2031 constituents

Credit Outstanding Bond Issuance

Sr. no. Issuer No. of ISINs Weight
Rating amount (in Crs.)

1 POWER FINANCE CORP.LTD. AAA 4 8745.70 15%

2 REC LIMITED AAA 1 3740.00 15%
3 POWER GRID CORP.OF INDIA LTD. AAA 5 1893.00 15%
4 NATIONAL HIGHWAYS AUTHORITY OF INDIA AAA 1 1824.00 15%
5 NUCLEAR POWER CORP.OF INDIA LTD. AAA 3 1600.00 15%

6 INDIAN RAILWAY FINANCE CORP.LTD. AAA 1 1410.00 15%

7 NHPC LTD. AAA 2 272.91 8%

8 NTPC LTD. AAA 9 55.00 2%
Grand Total 26 19,540.61 100.00%

Index YTM: 7.04%*

*The indicative yield provided is of the Index and not that of the Scheme. The Scheme (s) are neither Capital Protected nor guaranteed Return Product and may or may not generate
return in line with Index. Indicative Yield of the Index is as on 31st May 2020 15
Fund Features - ETF by Edelweiss Mutual Fund

Scheme BHARAT Bond ETF – April 2025 BHARAT Bond ETF – April 2031

To track the Nifty BHARAT Bond Index – April 2025 To track the Nifty BHARAT Bond Index – April 2031
by investing in bonds of eligible AAA-rated by investing in bonds of eligible AAA-rated
Investment Objective
CPSEs/CPSUs/CPFIs and other Government CPSEs/CPSUs/CPFIs and other Government
organizations, subject to tracking errors. organizations, subject to tracking errors.

NSE Symbol EBBETF0425 EBBETF0431

NFO Period 14th July to 17th July 2020 – All Investors

Underlying Index Nifty BHARAT Bond Index – April 2025 Nifty BHARAT Bond Index – April 2031

Fund Manager Mr. Dhawal Dalal

Co – Fund Manager Mr. Gautam Kaul

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Fund Features - FOF by Edelweiss Mutual Fund

Series BHARAT Bond FOF – April 2025 BHARAT Bond FOF– April 2031

BHARAT Bond FOF – April 2031 is a fund of funds

BHARAT Bond FOF – April 2025 is a fund of funds
scheme with the primary objective to generate
scheme with the primary objective to generate
Investment Objective returns by investing in units of BHARAT Bond ETF –
returns by investing in units of BHARAT Bond ETF –
April 2031.
April 2025.
.
NFO Period 14th July to 17th July 2020
Benchmark Nifty BHARAT Bond Index – April 2025 Nifty BHARAT Bond Index – April 2031

Fund Manager Mr. Dhawal Dalal

Co – Fund Manager Mr. Gautam Kaul

Minimum Investment
Rs. 1,000 and in multiples of Rs.1
Amount

➢ If redeemed or switched out on or before ➢ If redeemed or switched out on or before

completion of 30 days from the date of
allotment of units – 0.10%
Exit Load
➢ If redeemed or switched out after completion
of 30 days from the date of allotment of units –
NIL
completion of 30 days from the date of
allotment of units – 0.10%
➢ If redeemed or switched out after completion
of 30 days from the date of allotment of units –
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NIL
Existing BHARAT Bond ETF Performance by Edelweiss Mutual Fund

❖ First series of BHARAT Bond ETFs were launched in Dec 2019.

❖ Since then they have performed well and AUM in 2030 series has increased since inception

Scheme Name AUM (launch) AUM (May 31, 2020)

BHARAT Bond ETF 2023 Rs. 6,991 cr. Rs. 5,164 cr.
BHARAT Bond ETF 2030 Rs. 5,453 cr. Rs. 8384 cr.
Total Rs. 12,444 cr. 13,486.75 cr.

Annualised Returns as on May 31, 2020 1M 3M Since Inception

BHARAT Bond ETF - April 2023 28.45% 12.35% 12.54%

BHARAT Bond ETF - April 2030 32.32% 12.77% 15.96%

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Liquidity in existing BB ETFs on exchange by Edelweiss Mutual Fund

❖ BHARAT Bond ETF liquidity on exchange has been healthy. The Bid-Ask spread has been in a narrow
range of 5 to 10 Bps during current low liquidity scenario.
❖ The daily average traded value in BHARAT Bond ETFs is between Rs. 3.5 to 4.00 crore which is
significantly higher than existing G-sec ETFs which have average daily trading volume of around Rs. 1 to
2 lakh.
❖ Existing BHARAT Bond ETFs have been consistently trading at a premium to its NAV owing to strong
demand from investors on exchange.

Data Since Inception Total Volume Average Daily Total Traded Value Average Daily Traded
till May 2020 since Inception Volume SI SI Value SI

BB ETF 2023 35,59,549 units 39,116 units Rs. 361.68 cr. Rs. 3.97 cr.

BB ETF 2030 32,28,300 units 35,476 units Rs. 332.03 cr. Rs. 3.65 cr.

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Liquidity in existing BB ETF through AMC by Edelweiss Mutual Fund

❖ Large institutional and HNI investors are provided liquidity window directly through AMC
❖ Unit creation and redemption for such investors can be done on all business days for transaction
value of Rs. 25 cr. and above.
❖ In existing series of BHARAT Bond ETFs, multiple number of transactions valuing over Rs. 4,500 cr.
have been processed seamlessly.

Subscriptions Redemptions

Bharat Bond ETF Bharat Bond ETF Bharat Bond Bharat Bond ETF
Funds Funds
2023 2030 ETF 2023 2030
No of No of
23 50 18 4
Subscription(AMC) Redemption(AMC)

Units Created 1.05 Cr. Units 1.56 Cr Units Units Extinguished 1.98 Cr Units 22.60 Lkh Units

Inflow (INR) 1,052.99 Crores 1,597.40 Crores Outflow (INR) 1,848.48 230.26

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Product Riskometer by Edelweiss Mutual Fund

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Product Riskometer by Edelweiss Mutual Fund

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Disclaimer by Edelweiss Mutual Fund

The information provided above is for information purpose only and do not construe to be any
investment, legal or taxation advice or solicitation of business in schemes of Edelweiss Mutual Fund.
Please note that Edelweiss Asset Management Limited (Investment Manager of Edelweiss Mutual Fund) /
Edelweiss Trusteeship Company Limited (Trustee Company) / Edelweiss Financial Services Limited
(Sponsor of Edelweiss Mutual Fund) or any of its Associate Company will not be liable in any manner for
the consequence of any action taken by you on the information contained herein. Please note that the
proposed Schemes and their features are awaiting SEBI approval and may undergo changes accordingly.
Please consult your Financial / Investment Adviser before making any investment decision. 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.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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 by Edelweiss Mutual Fund

Thank you

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