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Finance

Edelweiss Focused Mid & Small Cap Portfolio

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Awards

Edelweiss Focused Mid & Small Cap Portfolio* was ranked 2nd with a 4 Star rating by PMS Bazaar for FY 20-21

The Opportunity

  • Globally, investors are rewarded for investing in smaller companies
  • Mid & Small Caps across major economies have outperformed the large cap indices
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Story is the same in India

But can you look at only returns and ignore the risk?

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Mid & Small-caps provide better conversion rates for stock picking

Not if you consider risk to be lower chances of conversion rates

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From 2007-2021, on an Average Mid Cap (31%) & Small caps (36%) has more percentage of stocks which has delivered >15% CAGR than Large caps (26%)

vAvoiding mistakes is key

NSE500 failure rates vary but performance can be strong if avoided

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Underestimated benefit of diversificationinto mid-caps

Yes, large-caps provide downside protection but introducing mid-caps into the portfolio mitigates risk

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Are valuations really more expensive?

Long term valuation cycles are impossible to call but wealth generation is always linked to earnings growth

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PMS benefits & Our edge

Benefits of PMS platform

  • Best ideas in a focused portfolio
  • Portfolio transparency
  • Taxable in investors hand
  • Returns unaffected by cashflows

Why Edelweiss PMS ?

  • Cross seeding of knowledge across platforms
  • Best Industry access
  • Process oriented and mandate conscious
  • Strong track record over multiple funds
  • Experienced investment team with over a decade forensic experience

Edelweiss Focused Mid & Small Cap Portfolio – Fund Overview

  • Invests in unique and established business models
  • Risk conscious investing
  • Systematic process driven approach
  • 3+ year investment horizon

What we won’t do!

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Investment Philosophy

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Risk management framework

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Stringent stock selection process

Image 10 - Screen AMFI Small-Midcaps with good liquidity, Corporate Governance, Promoter pledge - Filter for unique models or leaders - Conduct intensive due diligence - Strong Management - Market sizing - Identifying structural growth figures - Assess sustainability of business economics - Understanding firm architecture - Competition and disruption framework - Valuation benchmarking - Up to 25 companies are selected with high growth & potential upside

Aggregate Portfolio

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Top 10 Performing stocks

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Portfolio Metrics

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Fund Terms

Strategy Name Edelweiss Focused Mid & Small Cap Portfolio Portfolio Manager Edelweiss Asset Management Limited Regulation SEBI (Portfolio Managers) Regulations, 2020 Benchmark Nifty Mid Smallcap 400 TRI Minimum Investment INR 50 Lakhs Management fee Fixed Fee Option : 2.5% per annum charged monthly on average AUM Variable Fee Option : 1.5% per annum charged monthly on average AUM Performance fee Fixed Fee Option : NIL Variable Fee Option : 20% of profits over 15% (incremental) - ( subject to high watermark) Hurdle rates are pre-tax, performance fees billed at fiscal year subject to completion of 6M Subscription Daily Redemption Daily Exit Load 2% under 1 year , 1% under 2 years, 0.75% under 3 years