Why Edelweiss BAF - June 2022 presentation

Presentation

1. WHY EDELWEISS BALANCED
ADVANTAGE FUND?
Creating wealth at every step up; Protecting at every step down
1
June2022

2. 0
2000
4000
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20000
Jan
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NIFTY 50
But if you want All Three...
Market always proves us wrong
Source: ACE Mf | Data as on 10
th
Jun 2022 | Only for internal reference.
Market bounce back
sharply right when we
think it is a bear market
Market falls sharply
right when we think it
is a strong bull run
2

3. 0
5000
10000
15000
20000
25000
30000
Jan
-
2012
Jun
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Apr
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NIFTY 50 -TRI
But if you want All Three...Ideal way is to obey market trends and
go along with them, not against them
Stay Invested and
create wealth
Stay away and protect
wealth
3
Source: ACE Mf | Data as on 10
th
Jun 2022 | Only for internal reference.

4. But if you want All Three...Currently Uncertainly is even more
prevailing
Uncertainty around
Earnings
COVID Crisis and
Lockdowns
Valuations High or
low
Geopolitical Risk Economic Recovery
time unknown
Only for internal reference.
4

5. But if you want All Three...
How to invest amidst this Volatility?
Invest in a fund which adjusts itself according
to market conditions
MaintainHigherEquityLevelstocreatewealthif
marketscontinuetorise
MaintainlowerEquityLevelstoprotectdownside
ifmarketsfall
Only for internal reference.
You win whichever way market moves
5

6. But if you want All Three...
…and Protect Downside
Only for internal reference.
If You LoseGain required tobreakeven
20% 25%
30% 43%
50% 100%
18% (43-25)
% gain by protecting
10% downside
Protecting downside is more important. Every % saved is % gain later
6

7. But if you want All Three...
Presenting
Edelweiss Balanced Advantage Fund
Only for internal reference.
Creating wealth at every step up
Protecting wealth at every step down
7

8. But if you want All Three...
Edelweiss Balanced Advantage Fund
Only for internal reference.
•Dynamicassetallocationfundwhichaimstogeneratelowvolatileequitylinkedreturns
•InvestsinEquity&FixedIncomeandvariesallocationbetweentheseassetclassesbasedonapredefined
AssetAllocationModel.
•Aimstocapturetheupsideduringthebullmarketandprotectdownsideinbearmarketsbasedon
PROCYCLICALEEHIModel
Equity Linked Returns High Liquidity Tax efficient returns Lower Volatility
The Fund aims to fulfill following investor expectations
8

9. But if you want All Three...
Investment Strategy
Only for internal reference.
EQUITY DEBT ARBITRAGE
30% to 80% Net Equity
Multi-Cap
Growth oriented
Active Duration Management
Focus on Accrual
Hedging
Capture Spreads
Corporate Actions
Dynamic Equity Allocation
Net Equity exposure is equity exposure minus short derivative exposure. The scheme asset allocation allows to take derivativeexposure up to 50% of the
net assets.
9

10. But if you want All Three...
Investment Strategy
Only for internal reference.
EQUITY
FIXED INCOME
Quality
QualityManagement
HighFreeCashFlow
Consistency
Growth
Strong Earnings Growth
Sector Growth
Competitive Advantage
Value
AttractiveValuations
MarginofSafety
Objective
Generate Accrual
Income Provide Stability
Exposure 0-35%
Duration
Active Duration Management
1 to 5 Year Range
Credit Quality
Relatively higher quality
corporate bonds
(AAA Only)
10

11. But if you want All Three...
A Deep dive into EEHI Model
Only for internal reference.
Market Trend
Trend Health
Fundamentals
1 week, 2 weeks, 1 month & 3 month Daily Moving
Average (DMA) of Nifty 50
Indicates bull or a bear market trend
Market Volatility & Downside Deviation of Nifty 50
Indicates the strength and sustainability of current
bull/bear market trend
Market Valuations and Macro-economic factors
Indicates the overall economy trend and its strength
Equity
Market
Health
Core
Factors
Overriding
factors
•EEHI (Edelweiss Equity Health Index) is a Pro-cyclical asset allocation model which is based on quantitative
factors coupled with fundamentals.
•It aims to have higher equity exposure during the bull market and lower in the bear market
Following are the factors considered by EEHI
11

12. But if you want All Three...How Edelweiss BAF is different from
Peers?
Only for internal reference.
•Unlike E-BAF most of the funds follow a Valuation based or Valuation + Trend based approach.
•EBAF is the only Fund which follows a pure trend based asset allocation approach
12
Fund Name AssetAllocation Model Strategy
Axis Dynamic Equity Fund PEValuation + Trend + Volatility
Aditya Birla SL Balanced Advantage Fund PE Valuation
DSP Dynamic Asset Allocation Fund Valuation + trend
HDFC Balanced Advantage Fund Static
ICICI Pru Balanced Advantage Fund Price to Book Valuation
Kotak Balanced Advantage Fund PE valuation +Trend
L & T Balanced Advantage Fund PE/PB Valuation
Nippon India Balanced Advantage Fund PE Valuation + Trend
SBI BalancedAdvantage Fund No model
Tata Balanced Advantage Fund PE Valuation + Marco Indicators
Edelweiss Balanced Advantage Fund Pure TrendBased

13. But if you want All Three...
Edelweiss Procyclical Model Outperforms
Only for internal reference. Data as on 31
st
Dec,2021. Performance of the model and not the fund.
In 14 out of 17 years, Procyclical Model has outperformed Countercyclical
13
Calendar
year
20052006200720082009201020112012201320142015201620172018201920202021
Nifty 5036.3%39.8%54.8%-51.8%75.8%17.9%-24.6%27.7%6.8%31.4%-4.1%3.0%28.6%3.2%12.0%14.9%24.1%
Procyclical27.5%34.9%37.2%-21.3% 47.8%12.4%-9.5%17.3%6.0%20.1%-1.2%2.7%18.7%4.0%4.6%17.0%11.7%
Counter
Cyclical20.4%21.1%20.5%-26.5%48.6%9.0%-13.8%19.3%5.6%18.3%-1.5%1.9%14.6%2.1%6.7%11.7%10.5%
Pro Cyclical
Net Equity
Level
68% 68% 69%54%65%65%54%64%60%67%57%62%71%55%61%63%59%

14. EEHI Model –Net Equity Level vs Nifty 50
Data as on 31
st
May 2022 | Source: www.nseindia.com; Internal.
Up Market Avg.
Net Equity Level
66%
Up Market Avg.
Net Equity Level
66%
Down Market
Avg. Net Equity
Level 51%
Down Market
Avg. Net Equity
Level 52%
Down Market
Avg. Net Equity
Level 46%
Avg. Net Equity %
Nifty 50 Levels
Up Market
Avg. Net
Equity Level
70%
7,000
9,000
11,000
13,000
15,000
17,000
19,000
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Jan-17
Mar-17 May-17
Jul-17
Sep-17 Nov-17
Jan-18
Mar-18 May-18
Jul-18
Sep-18 Nov-18
Jan-19
Mar-19 May-19
Jul-19
Sep-19 Nov-19
Jan-20
Mar-20 May-20
Jul-20
Sep-20 Nov-20
Jan-21
Mar-21 May-21
Jul-21
Sep-21 Nov-21
Jan-22
Mar-22 May-22
Nifty 50 15 per. Mov. Avg. (Exposure for the next day)
Down Market
Avg. Net Equity
Level 50%
Avg. Net Equity%Avg. Net Equity %

15. But if you want All Three...
Swift Equity Allocation
Source: Internal. Data as on 31
st
May 2022
15
Swift change in
equity levels during
bear market cycles
Low equity
levels during
weak markets
High equity
levels during
healthy markets
Nifty 50 ReturnAverage Net EquityMin Net EquityMax Net Equity
July-20 7.48% 73% 68% 80%
Aug-20 2.84% 70% 63% 80%
Sep-20 -1.20% 60% 50% 65%
Oct-20 3.51% 66% 53% 70%
Nov-20 11.39% 72% 53% 80%
Dec-20 7.80% 72% 63% 80%
Jan-21 -2.48% 65% 51% 70%
Feb-21 6.56% 66% 51% 70%
Mar-21 1.11% 60% 51% 65%
Apr-21 -0.41% 52% 42% 61%
May-21 6.50% 60% 55% 63%
Jun-21 0.89% 59% 55% 63%
Jul-21 0.26% 58% 55% 60%
Aug-21 7.46% 63% 60% 63%
Sep-21 4.01% 63% 62% 70%
Oct-21 0.30% 62% 56% 70%
Nov-21 -3.90% 55% 46% 61%
Dec-21 2.18% 51% 45% 55%
Jan-22 -0.08% 60% 48% 69%
Feb-22 -3.15% 49% 35% 55%
Mar-22 3.99% 50% 35% 63%
Apr-22 -2.07% 58% 50% 65%
May-22 -3.03% 45% 38% 55%

16. But if you want All Three...
What is stock selection process?
Only for internal reference.
Universe
Selection
Stock
Selection
Portfolio
Construction
Risk
Management
•Business Quality
•Management Quality
Consistency
Growth Arbitrage
Value Arbitrage
Bucketing based on
Market cap
Building pre-risk
adjusted portfolio
Benchmark Sensitive
approach
Diversified portfolio
4 Pillar -Investment Process
16

17. But if you want All Three...
Portfolio Snapshot
Only for internal reference. Data as on 31
st
May 2022
17
Top Stocks*(in %)
Reliance Industries Ltd. 6.2%
HDFC Bank Ltd. 5.7%
ICICI Bank Ltd. 5.7%
Infosys Ltd. 3.5%
Axis Bank Ltd. 3.5%
State Bank of India 2.7%
HDFC Ltd. 1.7%
Larsen & Toubro Ltd. 1.8%
Tata Consultancy Services Ltd. 1.7%
ITC Ltd. 1.6%
Fixed IncomeQuantitativeIndicators
YTM 5.35%
Modified Duration 1.03 Years
Average Maturity 1.21 Years
Equity QuantitativeIndicators
Net Equity 55.00%
Top 10 (%) 34.1%
Active Bet 31.76%
Market Cap Allocation
Large cap
83%
Midcap
13%
Small cap
4%
Sector % Over wt.Sector % Under wt.
BFSI 10.94%Power -0.10%
Auto & Auto
Ancillaries
2.34%
Media &
Entertainment
0.00%
Metals &
Mining
2.20%
*Equity Portfolio Ex Arbitrage

18. But if you want All Three...
Edelweiss Balanced Advantage Fund
Aims to capture the upside during the bull market and protect downside in a bear market based on Unique Asset Allocation Model
Captures bigger trends
and limits drawdown
Aims to maximize the
benefits of trending
markets, both upside
and downside.
Superior risk adjusted
returns
This approach
smoothens the ride in a
volatile equity market,
Systematic process
driven approach
Discretionary decisions
based on ‘gut feeling’ or
news generally fail over
a longer time period.
Avoids timing of
market reversal
Timing the reversals
looking at historical
valuation ratios have
typical drawback of
having hindsight
syndrome.
What is unique about the Fund?
Only for internal reference.
18

19. But if you want All Three...How the Fund has performed in different
Cycles?
High Equity Levels when market is rising = Upside Participation
Low Equity Levels when market is falling = Downside participation
Source: Ace MF | Data as on 31
st
May 2022 | Only for internal reference.
19
Jan 17
to
Jan 18
Feb 18
to
Mar 18
Apr 18
to
Sep 18
Oct 18
to
Oct 18
Nov 18
to
Jun 19
Jul 19
to
Sep 19
Oct 19
to
Jan 20
Feb 20
to
Mar 20
Apr 20
to
Oct 21
Nov 21
to
May 22
Nifty 50
Returns
35% -8% 8% -5% 14% -2.7% 5% -28%57.49%-6.15%
E-BAF Avg. Net
Equity Level
70% 50% 59% 38% 62% 53% 65% 46% 64% 52%
E-BAF
Performance
26% -4% 3% -2% 7% 0.3% 5% -12%35.55%-3.98%

20. But if you want All Three...
Protected during every crisis
Source: Ace MF | Only for internal reference | Data as on 31
st
May 2022
Not only in the last one year, Edelweiss BAF model has protected during all steep falls
in market by swiftly reducing equity levels
20
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Jan-17
Mar-17 May-17
Jul-17
Sep-17 Nov-17
Jan-18
Mar-18 May-18
Jul-18
Sep-18 Nov-18
Jan-19
Mar-19 May-19
Jul-19
Sep-19 Nov-19
Jan-20
Mar-20 May-20
Jul-20
Sep-20 Nov-20
Jan-21
Mar-21 May-21
Jul-21
Sep-21 Nov-21
Jan-22
Mar-22 May-22
Nifty 50Average for the Month
IL&FSCrisis PostUnion Budget Fall
Covid19
Changes in LTCG

21. But if you want All Three...Fund Performance in recent Market
Cycles
Only for internal reference. All funds in the category have been considered for this analysis. Performances are in absolute terms.
Correction Phase
14
th
Jan 20 –23
rd
Mar 20
Nifty 50 -TR -38%
Edelweiss
Balanced
Advantage
-15%
RecoveryPhase
24
th
March 20 –18
th
Oct 21
Nifty 50 -TR 147%
Edelweiss
Balanced
Advantage
74%
Throughthe Cycle
14
th
Jan, 20 –10
th
Jun, 22
Nifty 50 -TR13.26%
Edelweiss
Balanced
Advantage
13.90%
Year on Year PerformanceCY 2017 CY 2018 CY 2019 CY 2020 CY21
Edelweiss BAF Returns 23.9% 1.9% 7.8% 22.6% 18.76
Peer group Average returns 17.0% 1.6% 9.1% 15.1% 13.74
Ranking 3/9 6/12 12/13 2/13 3/21
Excess returns over peer group6.9% 0.3% -1.3% 7.6% 5.02
21
Correction Phase
19
th
Oct 21 –20
th
Dec 21
Nifty 50 -TR -10%
Edelweiss
Balanced
Advantage
-5%

22. But if you want All Three...
Wins in all market conditions
Only for internal reference. Funds above 1,500 cr. AUM have been considered for this analysis. All performances are in absolute terms.
Performance against peers during
different market cycles
Significant downside
protection
Good
upside participation
Intermediate
downside protection
Best performance
in complete cycle
Scheme Name
14-Jan-20 to
23-Mar-20
24-Mar-20 to
18-Oct-21
19-Oct-21 to
20-Dec-21
14-Jan-20 to
10-Jun-22
Overall Rank
Edelweiss Balanced Advantage Fund -14.81 73.80 -5.10 13.90 1
Aditya Birla SL Balanced Advantage -26.10 79.14 -4.66 9.48 6
Axis Dynamic Equity Fund -15.52 50.88 -3.35 7.01 9
Baroda Dynamic Equity Fund -19.25 83.63 -4.37 13.12 2
DSP Dynamic Asset Allocation Fund -17.70 50.30 -2.55 6.28 13
ICICI PruBalanced Advantage Fund -26.79 76.10 -2.77 10.71 4
IDFC Balanced Advantage Fund -23.84 69.71 -2.88 7.00 11
Kotak Balanced Advantage Fund -25.75 73.71 -2.85 9.02 8
L&T Balanced Advantage Fund -18.79 52.59 -3.55 7.00 10
Nippon India Balanced Advantage -21.17 65.79 -4.68 9.32 7
Sundaram Balanced Advantage -12.58 40.36 -2.90 6.58 12
Tata Balanced AdvFund -19.68 68.53 -3.69 11.58 3
Union Balanced Advantage Fund -23.63 75.52 -2.70 10.54 5
NIFTY 50 -TRI -38.27 147.12 -9.93 13.26

23. But if you want All Three...
Resulting in Better performance vs Peers
Only for internal reference. Performance as on 10
th
Jun 2022. Funds above 1,500 cr. AUM have been considered for this analysis . Returns <1Y are in absolute
terms and >1Y are in CAGR terms .
Scheme Name 1Y Rank 2Y Rank 3Y Rank 5Y Rank
Edelweiss Balanced Advantage Fund 2.62 3 17.76 2 12.41 2 10.02 1
Aditya Birla SL Balanced Advantage Fund 0.91 10 16.63 5 9.31 7 7.42 4
Axis Balanced Advantage Fund 2.51 4 12.22 9 6.83 12
Baroda Dynamic Equity Fund 1.74 7 17.40 3 12.41 1
DSP Dynamic Asset Allocation Fund -1.57 13 9.54 12 7.33 10 6.29 7
ICICI Pru Balanced Advantage Fund 6.01 1 18.80 1 10.77 3 9.50 2
IDFC Balanced Advantage Fund -1.12 12 11.28 10 7.51 9 7.29 5
Kotak Balanced Advantage Fund 2.00 6 14.92 7 9.45 6
L&T Balanced Advantage Fund 1.18 8 9.76 11 7.01 11 6.63 6
Nippon India Balanced Advantage Fund 2.14 5 17.12 4 8.57 8 7.79 3
Sundaram Balanced Advantage Fund 0.99 9 9.47 13 5.90 13 4.87 8
Tata Balanced Adv Fund 4.02 2 16.30 6 10.48 4
Union Balanced Advantage Fund 0.63 11 14.85 8 10.23 5
23

24. But if you want All Three...
Lower Risk compared to Peers
Only for internal reference. The above table indicates ranks based on risk ratios calculated on monthly rolling returns for trailing 3 years ending on 10
th
Jun
2022. Funds above 1,500 cr. AUM existing for 3 years have been considered for this analysis . Data Source –ACE MF
Scheme Name
Annualized
SD
(Volatility)
Treynor*Sharpe**
Jensen`s
Alpha***
Sortino^
Down-Side
Risk^^
Up Capture
Ratio^^^
Down
Capture
Ratio#
Ranks
Edelweiss Balanced Advantage 5 1 1 1 1 3 2 5
Aditya Birla SL Balanced Advantage 12 7 7 7 6 10 4 11
Axis Balanced Advantage 1 12 12 11 11 2 10 4
Baroda Dynamic Equity 7 6 2 2 2 6 1 12
DSP Dynamic Asset Allocation 3 9 9 9 10 5 11 2
ICICI PruBalanced Advantage 11 4 5 4 5 12 3 9
IDFC Balanced Advantage 10 11 11 12 12 11 9 10
Kotak Balanced Advantage 9 5 6 6 7 9 5 7
L&T Balanced Advantage 2 10 10 10 9 1 12 1
Nippon India Balanced Advantage 6 8 8 8 8 8 7 8
Tata Balanced Adv 4 2 3 3 3 4 8 3
Union Balanced Advantage 8 3 4 5 4 7 6 6
*Excessreturnperunitofrisktaken;**Averagereturnsearnedaboveriskfreerate;***ExcessreturnsoverbenchmarkusingCAPM
^Returnscomparedtodownsidedeviation;^^Riskofgeneratingnegativereturn;^^^Participationduringmarketrise–higherthebetter
#Participationduringmarketfall–lowerthebetter

25. But if you want All Three...Performance and Volatility against other
MF categories
Only for internal reference. Performance as on 10
th
Jun 2022. Standard deviation calculated for each period based on monthly rolling returns.
Source –ACE MF
Returns 1 Year 2 Years3 Years5 Years7 Years10 Years
Edelweiss BAF 2.62 17.76 12.41 10.02 8.96 11.17
Nifty 50 TR 4.27 28.12 12.15 12.28 11.75 13.72
Average Large cap Funds 1.20 24.41 10.56 9.28 9.88 13.16
Average Large & Midcap 3.01 29.69 13.74 10.07 11.52 15.26
Average Flexi cap Funds 1.38 26.95 12.51 10.11 10.99 14.30
Volatility (Annualised SD)1 Year 2 Years3 Years5 Years7 Years10 Years
Edelweiss BAF 9.08 9.66 11.57 10.26 9.85 9.56
Nifty 50 -TR 15.82 16.21 22.51 19.00 17.70 16.86
Average Large cap Funds 15.96 15.99 20.95 18.19 17.31 16.79
Average Large & Midcap 17.48 16.94 22.81 20.37 19.36 18.80
Average Flexi cap Funds 17.05 16.71 21.15 18.85 18.16 17.94
Comparable returns with much lower volatility. Apt
for conservative investors
25

26. But if you want All Three...No negative returns on 3 years plus
horizon
Only for internal reference. Rolling performance since inception of the fund to 31
st
May 2022. Returns in CAGR.
Rolling Return Minimum Maximum
Average
Returns
3 Year Rolling Return 2.21 18.51 10.33
5 Year Rolling Return 2.65 15.02 10.60
CAGR Return Range
% of times -3 Year Rolling
Returns
% of times -5 year Rolling
Return
Less than 0 % 0% 0%
0% to 7% 22% 11%
7% to 15% 65% 89%
Above 15% 14% 0%
Total Observations 2,406 1,915
•The Fund has never given negative returns on 3 and 5 years horizon
26
79% of times –3
years returns has
been above 7%
89% of times 5
years returns has
been above 7%

27. But if you want All Three...
Performance vs Benchmark
Only for internal reference. Performance as on 31
st
May 2022.
Scheme Name
Edelweiss Balanced
Advantage Fund
NIFTY 50 Hybrid
Composite Debt 50:50
Index
NIFTY50 TRI
Last 1 Year 4.99% 4.65% 7.90%
Last 3Years 12.73% 10.80% 13.03%
Last 5 Years 10.66% 10.40% 12.97%
Since Inception 10.17% 10.34% 12.17%
27

28. But if you want All Three...
Rolling SIP Performance Analysis
Only for internal reference.
3 Years SIP Returns Dataas on
Edelweiss Balanced Advantage
Fund (XIRR %)
NIFTY 50 –TR
(XIRR %)
May-22 13.48 18.06
Apr-22 15.89 20.77
Mar-22 17.11 15.11
Dec-21 20.32 25.13
Sep-21 22.70 29.00
Jun-21 19.76 22.62
Mar-21 17.51 19.53
Dec-20 12.31 14.83
Sep-20 8.78 6.02
Jun-20 4.36 -1.46
Mar-20 -2.85 -15.12
Dec-19 7.02 11.89
Sep-19 6.20 9.38
Jun-19 7.16 12.73
Mar-19 7.94 14.15
Dec-18 7.21 11.68
Sep-18 8.05 13.92
Jun-18 9.03 14.13
Consistently generated SIP returns
28

29. But if you want All Three...
Portfolio Quality -Debt
Only for internal reference. Portfolio as on 31
st
May 2022
Edelweiss BAF invests only in AAA rated bonds
29
Rating
ABSL
Balanced
Advantage
Fund
Axis
Dynamic
Equity
Fund
Baroda
BNP
Paribas
BAF
DSP
Dynamic
Asset
Allocation
Fund
Edelweiss
Balanced
Advantage
Fund
ICICI Pru
Balanced
Advantage
Fund
IDFC
Balanced
Advantage
Fund
Kotak
Balanced
Advantage
Fund
Nippon
India
Balanced
Advantage
Fund
Tata
Balanced
Advantage
Fund
Union
Balanced
Advantage
Fund
A / A+ / A- 0.86 1.03
A1 / A1+ / A1- 3.16 1.65 5.26 1.50 0.73 3.38 1.51 0.96
AA / AA+ / AA-5.48 1.42 4.02 4.88 5.13 2.08
AAA 10.36 3.19 13.05 12.35 4.26 1.49 5.46 0.39 7.66 15.05 6.81
Cash &
Equivalent
6.56 28.43 11.01 2.75 12.34 3.61 6.23 8.29 6.14 1.40 14.42
D 0.13 0.00
Others 74.31 50.37 61.06 66.67 74.76 66.67 67.91 69.82 66.85 71.62 71.81
SOV 16.58 9.21 12.98 7.13 21.77 17.03 20.47 12.71 8.89 6.97

30. But if you want All Three...
True-to-Label approach
Only for internal reference. Portfolio as on 31
st
May 2022
Conservative
Approach
Multi cap Portfolio with Largecap
bias
Well Diversified
90 Stocks
Low Sector biases with a
conservative approach.
Un-Biased Dynamic Asset
Allocation
Asset Allocation Strategy is based
on model and intervention of
Fund manager is mainly for
stock selection
High Quality
Investment
No allocation to bonds below
‘AAA’ Credit rating
30

31. But if you want All Three...
Outlook
31
TheongoingcrudeandcommoditiesshockinthewakeoftheRussia-Ukraineconflicthasledtonegative
implicationsonglobalgrowthpostcovid.Thishasaccentuatedalreadyhighlyvolatilemarketledbyhawkish
commentaryandinflationconcerns.
IndiaisbetterplacedtoabsorbtheimpactofoilpriceshockgivensufficientbuffersbuiltthroughFXreserves
andtaxcollectionandstrongDIIflowshavebeenabletowithstandFIIoutflows.
Witheconomicactivityisgainingmomentumwhichisevidentfrompickupinpaceofhighfrequency
indicatorswebelievetherecoveryincapitalmarketwillbeswiftasgeopoliticalsituationnormalize.
Therefore,adynamicassetallocationfundwilldeliverbetterriskadjustedreturnsinsuchmarketscenario.
OurcoreequityportfolioinEBAFcontinuestofocusoncompanieswhichhasshownhighvisibilityofearnings
andstrongbalancesheet.Consequently,wehaveOWstanceonBFSIandAuto&autoancillarieswhilebeing
UWinOil&Gasandpowersector.
Wecontinuetoremainconservativeondebtportfolioandwillactivelyseekideasonopen
offer/buybacks/delisting/IPOlistingstoenhanceournon-equitylinkedreturns.
As on 31
st
May 2022

32. But if you want All Three...What are the risks associated with the
Fund?
Only for internal reference.
Performance Risk Liquidity Risk* Fund Manager Risk
•Fundmayhavemixedperformance
duringrangeboundmarkets.However,
inthelonghistoryofmarketstherehave
beenveryfewyearswheremarkets
havenotdisplayedanytrends.
•TheFundissuitableforlongterm
investorwithhorizonof5yearsora
completemarketcycle
•ThenotisnotsuitableforAggressive
investorslookingforpureEquityreturns
•TheFundpredominantlyinvestinlarge
marketcapstockswhicharemostlyin
liquidstocksandredemptionrequests
doesnotfacedifficulty
•Whilesizingindividualbetsinour
portfolio,wepaycloseattentionto
thisaspect.Webelieveitisimportant
tobalanceperformancewithliquidity
inthelong-terminterestsofallour
investors
•TheFundfollowaconsistent4pillar
investmentprocessdrivenapproach
whichincludesUniverseSelection,
StockSelection,PortfolioConstruction
&RiskManagement
•Theseprocessesaretruetolabeland
arereligiouslyfollowedbyourfund
managementteamevenifthe
membersorthefundmanagers
changeovertime
*Liquidity is the ability of an investment manager to meet redemptions in an orderly manner without compromising interests ofinvestors who are not redeeming
32